(Alliance News) - Sunrise Resources PLC on Monday said Tolsa USA Inc received approvals from the US Bureau of Land Management for its planned resource definition drill programme.
Sunrise Resources is Cheshire, England-based company focusing on the development of its three key Nevada-based industrial mineral projects, while Tolsa USA is subsidiary of Tolsa SA, "the world's largest producer of sepiolite", according to Sunrise Resources.
Tolsa USA holds a USD1.3 million option to purchase Sunrise Resources' Pioche sepiolite project in Nevada no later than December 28. Sunrise Resources would retain retain 3% revenue royalty on production from the project area should Tolsa purchase the Pioche project.
Sunrise Resources said 24 drill holes had now been approved by the US BLM, spread over an area of 2.5 kilometres by 2 kilometres. The holes will be drilled by a truck mounted auger drill to average depth of 50 feet, with drilling scheduled for mid-July.
Shallow drilling reflects the surface and near surface position of mapped and trenched sub-horizontal sepiolite beds, amenable to open pit mining, Sunrise Resources said.
"We are pleased to see the completion of this important permitting step in preparation for Tolsa's resource definition drilling programme and look forward to the results of drilling in due course," said Sunrise Resources Executive Chair Patrick Cheetham.
"The Pioche sepiolite project has come a long way since our initial discovery thanks to Tolsa's ongoing commitment and enthusiasm for the project."
Sepiolite is a rare form of clay with very few commercial deposits in the world, Sunrise Resources said, used extensively in pet litter, agriculture as a slow-release absorbent and adsorbent carrier for chemicals and pesticides and in animal feeds as a binder and carrier for nutrients and growth promoter.
This is alongside use as a gelling agent and viscosity modifier in several industrial products, it added.
On Monday last week, Sunrise Resources said it expects to receive a second investment in next week of GBP200,000 from Towards Net Zero LLC. Towards Net Zero is a US-based institutional investor focused on the green economy.
This second convertible security will have a term of 24 months, Sunrise Resources said, while it will not be subject to quarterly repayments.
Shares in Sunrise Resources were quoted at 0.10 pence each in London on Monday afternoon, having last traded at the same price on Friday afternoon.
By Greg Rosenvinge, Alliance News reporter
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Sunrise Res (SRES)