Sunrise Resources Plc (LON:SRES) is to throw its full weight behind its CS Pozzolan project in Nevada after a concept study confirmed its potential.
“It is recommended that the company proceed to engage with market participants, carry out drilling on the deposit and start critical path baseline permitting studies as soon as possible,” concluded the study.
Interest in pozzolan is growing as a natural and greener alternative to Portland cement and especially in the US where traditionally manufacturers have used fly ash from coal-fired power stations as a key ingredient.
WATCH: Sunrise executive chairman on project potential and next steps
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But as coal-fired power stations in the US are closed, half have gone since 2010, natural pozzolan producers are seeing sales soar.
Tests at CS have shown it is a potentially large deposit of perlite, an industrial mineral which expands on heating to a lightweight material with multiple industrial uses.
This material also has potential as a high quality natural pozzolan while there is also a separate, large area of non-perlitic pozzolan at CS.
But the concept study concluded that that Sunrise will not have carry put a full environmental study and a lower level Environmental Assessment (EA) will suffice.
The company will be able to carry out drilling and bulk sampling to provide samples for customer testing under a simple Notice level permit provided the total area of disturbance does not exceed 5 acres.
Anything produced will have to be trucked and logistics will be a key issue in a final decision on whether to develop the project.
CS Project's natural pozzolan has strong "green" credentials
Patrick Cheetham, Sunrise’s executive chairman, said: CS Project's natural pozzolan had strong "green" credentials for partial replacement of Portland cement which is responsible for 5% of global man-made CO2 emissions.
“We have identified a low capital cost development option with attractive returns on the production of both natural pozzolan and perlite.
“Whilst best practice does not allow the release of forward-looking financial projections before drilling has defined the deposit, we have confidence in the large surface areas of perlite and pozzolan mapped to date.
“The board has discussed the findings of the Study and is excited to announce a strategic decision that development of the CS Project should be the company's priority.
“We will move quickly to initiate the necessary technical work, feasibility studies and start the permitting process.
“Various value adding marketing and technical milestones have been identified and we hope to move forward with bulk sampling and customer trials later this year.”
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