Sunrise Resources plc said that plans for boreholes and further trenching would test extensions at its Pioche sepiolite project in Nevada.
OPTIMISTIC
Potential purchaser Tolsa S.A is working with the US authorities to obtain approval for 13 holes, each to a maximum of 130ft deep, as well as three large trenches for a total 300m.
The Spanish company has the option to purchase the project for $1.4 million by 28 December 2024, with future payments to Sunrise of a 3% revenue-based royalty on production.
Sunrise said that drilling and trenching, planned to start in early July, would collect additional samples for testing and to test for extensions to the deposit defined in 2023.
Executive chairman Patrick Cheetham added: “There are very few commercial sepiolite deposits in the world and 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.
“We continue to be optimistic that Tolsa will exercise its option.”