(Sharecast News) - Sunrise Resources said on Wednesday that Tolsa USA had reported positive results from its October trenching programme, its strategy for further evaluation work, and its decision to continue the option period to acquire the company's Pioche Sepiolite Project in Nevada.
The AIM-traded firm said Tolsa would make the required interim payment of $50,000 to continue its option to purchase the project for 12 months.
It said the trenching programme was successful in demonstrating continuity of the sepiolite beds mapped at surface.
Tolsa was now planning a resource definition drilling programme, further industrial testing and feasibility studies, Sunrise added.
It said Tolsa was able to purchase the Pioche Project for $1.25m by 28 December next year, as well as an ongoing payment to Sunrise of a 3% royalty.
"This is excellent news and an early Christmas present for shareholders," said executive chairman Patrick Cheetham.
"We are delighted with the progress being made by Tolsa since our agreement was signed in the summer and to see the commitment to resource definition drilling in the spring when the snow melts.
"As we know, sepiolite is a rare mineral with few commercial deposits in the world and Tolsa is the world's largest producer, so it is significant, I believe, when Tolsa tells us this project has the highest priority within the Tolsa Group."
At 1058 GMT, shares in Sunrise Resources were up 7.27% at 0.12p.
Reporting by Josh White for Sharecast.com.
Sunrise Res (SRES)