Sunrise Resources plc said it had granted Tolsa S.A. an exclusive option to buy for US$1.25 million in cash the company’s 100% owned Pioche sepiolite project in Nevada, USA.
PIOCHE
The project lies near the historic mining town of Pioche in Lincoln County, Nevada.
Sunrise added that the agreement followed “encouraging results” of testwork carried out by Tolsa in Spain after a preliminary field visit to the Pioche project in December 2021.
TERMS
The binding heads of agreement gives the American subsidiary of the Spanish world producer of sepiolite six months to exercise the option.
Tolsa may extend the option for a further 12 months on payment of $50,000.
Sunrise will retain a 3% net revenue royalty for a 25-year period from the start of commercial production.
Tolsa will pay a nominal advance royalty of $50,000 per annum to Sunrise if production fails to start within five years.
SEPIOLITE
The company noted that sepiolite had “unique characteristics” and was scarce with very few commercial deposits in the world.
Sepiolite is a non-swelling, lightweight, porous hydrous magnesium silicate clay, possessing a high surface area due to channels in the crystal lattice giving it a structural nano-porosity.
Just 20g of sepiolite can have an internal surface area equivalent to that of a football field and
sepiolite can absorb more than its weight in water.
The largest market globally for sepiolite is in light-weight non-clumping pet litters.
Sepiolite is also used in agriculture as a slow-release absorbent and adsorbent carrier for chemicals and pesticides, in animal feeds as a binder and carrier for nutrients and growth promoter, and to decolour vegetable and mineral oils.
MARKET
Executive chairman Patrick Cheetham said that although the Pioche project was at an early stage the company expected Tolsa to move quickly with its evaluation.
“There is a large market that can be targeted in North America that is currently served by alternative clays or imported sepiolite.
“Sepiolite from the Pioche project, being in Nevada and near to rail, is well situated to replace some of this supply.”
PORTFOLIO
The company’s projects includes its core CS pozzolan-perlite as well as potential revenue streams from the Stonewall and Garfield, Junction gold-silver project, and the Jacksons Wash.
The company also holds a portfolio of 100% owned industrial mineral and precious metal projects.