Sunrise Resources plc has identified “extensive sepiolite beds” based on exploration data now received from its former earn-in partner Tolsa at the Pioche sepiolite project in Nevada, USA.
TARGETS
The Spanish company’s work since June 2022 included geological mapping, trenching, surface sampling, 20 auger drill holes, 10 sonic drill holes and specialist testing results for samples.
In December 2024 Tolsa decided not to exercise the option because it was “difficult to
correlate specific sepiolite grades (and so values) between drill holes”, said Sunrise.
Sepiolite expert Tom Powell has advised Sunrise that sepiolite deposits in Nevada “differ significantly in origin and character” from those in Tolsa’s Spanish operations.
Additionally, the company “should not expect to see correlation of specific sepiolite grades between the widely spaced holes drilled to date”.
Sunrise added that the East Mesa area is a priority and large target area with the best sepiolite occurrences over a large area, while drilling has not adequately tested the West Mesa (discovery) area.
The outer limits of the Pioche deposit have also yet to be defined.
The company noted that the Pioche sepiolite is similar to that found in IMV sepiolite mine in the Amargosa Valley, Nevada.
Tests are needed to evaluate the potential use of Pioche sepiolite for gelling saltwater in US oil / gas drilling, for which the Amargosa Valley-type sepiolite is “well suited”.
The Amargosa Valley mine is the only producer of sepiolite in the USA.
Executive chairman Patrick Cheetham said that Pioche had so far returned US$150,000 in option fees, compared with the company’s $60,000 spend, and “several hundred thousand
dollars of third-party, non-dilutive expenditure”.
“The data we now hold confirms that Tolsa located large quantities of sepiolite clay over a
wide and open-ended area.
“Tolsa’s drilling, although widely spaced, has defined priority target areas having potential for future resource definition and a great springboard for anyone picking up the baton for the further development of this project.
“The only producing sepiolite deposit in the USA, in the Amargosa Valley, Nevada has
successfully served the US sepiolite market since the 1970s, first under Gulf Resources
ownership, then under Rio Tinto’s ownership, and most recently under the control of global
lime producer Lhoist, but it now faces an existential threat from encroaching Areas of
Critical Environmental Concern.
“This paves the way for a new entrant to the US sepiolite market with new parties showing
interest in the Pioche project now that Tolsa is no longer involved.”