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UPDATE - Sunrise Resources stakes claim in Nevada

Last updated: 00:15 18 Feb 2014 AEDT, First published: 01:15 18 Feb 2014 AEDT

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Sunrise Resources (LON:SRES) has made the move into Nevada, USA, with the acquisition of two groups of mineral claims targeting copper, gold and industrial metals.

The AIM-listed company has set up SR Minerals Inc, a new subsidiary incorporated in Nevada, which will focus on two new projects generated from ongoing research and reconnaissance: the County Line diatomite project and the Strike copper-gold prospect.

61 claims were staked in County Line, a large area of diatomite, a specialist industrial mineral used for filtering beer and liquor, and initial grab samples show potential for a high-quality deposit. Two larger samples are now being collected for further testwork.

Meanwhile at Strike, six claims were acquired, with a single drill hole from surface showing 30 metres grading 0.98% copper.

Nevada is the fourth largest gold producing area in the world, a large silver producer, a re-emerging copper producer and a significant producer of industrial minerals. Mining there has strong support from locals and the authorities.

It follows the start of the company’s 2014 exploration programme at its flagship Cue diamond project in Western Australia.

Executive Chairman Patrick Cheetham said: “The announcement being made today marks the start of a project acquisition programme in Nevada which has been several months in the making. 

“Nevada is one of the world’s major mining regions and has a rich endowment of precious metals, base metals and industrial minerals.”

Most importantly, Cheetham added, the mining law allows for exploration to move forward quickly as work can be carried out immediately.

Broker Northland Capital highlighted management’s experience in Nevada, which it suggests is one of the most attractive mining regions in the world.

“The key for Sunrise will be to prove that the diatomite is low in impurities and has a high brightness, a low bulk density and is chemically inert,” said analyst Dr Ryan Long.

He says that while Sunrise believes Strike is underexplored, the historical drill hole result (0.98% copper over 30 metres) is encouraging.

“While the project is early stage exploration, it could potentially allow Sunrise to add significant value with a low cost exploration programme,” Long said.

The shares improved 13% to 0.62p on the news.


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