LONDON (Alliance News) - Sunrise Resources on Monday said a "number of technical challenges" have hindered its drill programme at the Bay State silver project in Nevada, US.
Shares in Sunrise were down 21% at 0.170 pence on Monday.
The diversified mineral exploration and development company said the most recent underground sampling confirmed the high grade of material left behind in the Chihuahua Vein, and said the vein system was present at 300 metres from surface. This is below both the level of all historical workings and the lowest level of previous drilling.
Alongside this, the vein system was silver-bearing at the 300-metre depth as well.
However, Sunrise noted the technical challenges of the project which, although mostly resolved during the programme, affected the results.
Sunrise said at the first hole in its programme, its interpretations of the data suggest the vein system was not penetrated, with the hole instead skimming the edge of the vein before dipping away from it.
At the second hold, the new tooling system "worked well and hole deviation was not material", Sunrise said. However, the miner said no significant analytical results were obtained, and the vein system "does not appear to have been intersected".
"As the vein was projected to this position both from above and below it seems likely that the vein is displaced at this point by faulting and that the hole did not reach the vein," Sunrise said.
No significant analytical results were obtained at the third of the holes under the programme with further mapping and sampling of the Lincoln Vein system required before further drilling on this target can be considered.
"Notwithstanding these frustrations, Bay State remains a priority target amongst our diverse exploration portfolio," said Executive Chairman Patrick Cheetham.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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Sunrise Res (SRES)