Sunrise Resources plc said it had positive evaluation tests for commercial production on samples from its Pioche sepiolite clay project in Nevada, USA.
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The tests simulated processing methods with results comparing “very favourably” with commercially available sepiolite in the US, confirming the “commercial potential” of the large Pioche deposits.
The results also identified “higher grade” areas within the several square kilometre
area in which sepiolite has to date been drilled.
The company resumed management of the project after partner Tolsa exited its earn-in option, and is awaiting all remaining drill samples from the Spanish company.
Executive chairman Patrick Cheetham added that the results demonstrated for the first time the suitability of Pioche sepiolite for the US market when suitably processed.
“The results should help dispel any uncertainties that surrounded the project following Tolsa’s decision not to exercise its option to purchase the project at the end of last year, a decision that may ultimately work in the company’s favour.
“Sepiolite is very rare in commercial quantities but has now been found at Pioche in surface
sampling and drilling over several square kilometres.
“With the only other US sepiolite producer facing severe environmental restrictions, Pioche now presents an opportunity to develop a new replacement source of sepiolite in the US.
“The largest single market for sepiolite is in oil and gas well drilling, a market not served by
Tolsa.
“We believe the project could be a beneficiary of planned US policies to increase domestic oil and gas drilling as a way to reduce reliance on foreign energy sources and therefore, the project is now generating interest from a range of consumers and other clay producers.”