Sunrise Resources - CS PROJECT: MINE PERMIT IS GRANTED
29 July 2020
SUNRISE RESOURCES PLC
("Sunrise" or "the Company")
MINE PERMIT IS GRANTED
Further to its announcement of
Ø Environmental Assessment Final -
Ø BLM Decision Record (Mine Permit) issued thereby authorising:
· Mine Plan of Operations ("the Plan");
· Production of up to 1,656,000 tons of perlite and 14,523,000 tons of natural pozzolan; and
· Rights of Way for water well site and access development.
Ø Perlite and natural pozzolan now permitted as locatable minerals - No Federal royalty payable.
Ø Initial reclamation bond agreed.
Ø Draft Air Quality Permit Issued by
Ø Project to move into trial mining stage, detailed engineering and financial modelling/mine finance evaluation.
Commenting today Sunrise Executive Chairman
We can now move forward with the staged development of mining and mineral processing operations at the
The mine permit comes at a propitious time as cement industry demand is growing for natural pozzolan as a fly ash replacement and the horticultural demand for perlite is increasing with the rising cultivation of medicinal marijuana.
We believe that this is a major value adding milestone for the Company and puts the project firmly on the map as one of just a few permitted deposits of perlite and high quality natural pozzolan in the US."
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
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Tel: +44 (0)1625 838 884
Nominated Adviser and Joint Broker
Tel: +44 (0)207 628 3396
Tel: +44 (0)207 469 0930
The Company's Mine Plan of Operations is located on public land administered by the
The BLM's Environmental Assessment (EA) for the
The BLM, having now evaluated the EA, has handed down a Finding of No Significant Impact (FONSI) for the Company's Mine Plan of Operations and accordingly determined that an Environmental Impact Statement is not required per Section 102(2) (c) of the National Environmental Policy Act. The FONSI recognizes the positive contributions that the use of natural pozzolan can make to a reduction in CO2 emissions in the US as a replacement in the cement industry for the fly ash from coal-fired power stations.
The BLM has also issued its Decision Record approving and authorising the Company's Mine Plan of Operations. This now allows the Company to develop the
The BLM Decision authorises the extraction of perlite and natural pozzolan under the regulations applicable to locatable minerals governed by the 1872 Mining Act. This means that no Federal Royalties are payable on production of either perlite or pozzolan.
As with all mining projects in
Copies of the EA, the FONSI and the Decision Record as well as various Supplemental Environmental reports are available for download from the BLM's eplanning website at: https://eplanning.blm.gov/eplanning-ui/project/1505504/510
Parties that are adversely affected by the BLM decision to authorise mining operations can appeal this decision to the BLM State Director within 30 days, as set out in the Decision Record referenced above.
Mine Plan of Operations
The BLM authorised Mine Plan of Operations covers the production of 1,656,000 tons of perlite and 14,523,000 tons of natural pozzolan over a 27-year period and includes the following components:
· Two open pits (
· One area at any given time to be utilized for administration, mobile crushing and screening facilities, and run-of-mine stockpiles;
· One fixed perlite processing plant;
· Access and haul roads;
· Exploration and bulk sampling activities;
· Fuel and propane storage;
· Explosives prill silo;
· Use of existing access road and groundwater well, and
· Reclamation and closure.
The Plan of Operations covers four phases of mining operations with mining taking place in the
During Phase I, the production rate ramp-up phase, perlite and pozzolan are mined from the
Starting with Phase II, a fixed perlite processing plant would be constructed to produce a wider range of perlite products and would replace many of the functions of the mobile process plant which would then only be used for primary crushing of natural pozzolan. Mined material would continue to come from the
Phase III is an expansion of the Phase II operations in the
The BLM is primarily concerned with permitting surface and environmental disturbance in accordance with the Mine Plan of Operations and within the defined Project Area. The Project Area covers 585 acres and is the area for which detailed environmental baseline studies were conducted as a part of the Environmental Assessment and within which the mine development will take place. The approved disturbance is for 264.9 acres and includes existing disturbance of 5 acres, all open pits and areas designated for trial mining in the
In addition to the Mine Plan of Operations, the BLM has approved the Company's Plan of Development for long-term and short-term rights of way to enable it to develop the groundwater well proposed for use in connection with the project. The Company has already obtained water rights and had granted a temporary water extraction permit by the
In conjunction with the BLM Decision Record, the
Whilst the BLM EA included a detailed consideration for air quality issues, emissions from process plants are regulated by the
It is not expected that drilling and blasting will be required for rock extraction but, should this prove necessary, a blasting licence may be required. This permit is a short lead time item and an explosives storage facility is included in the BLM approved Plan of Operations and in the Air Quality Permit Application.
A few other minor short-lead-time permits are required and are not expected to hold up the development of the project.
The Company is required to post a reclamation bond of
This initial bond is to cover trial mining and infill drilling in the Main and Tuff Zones and drill testing and bulk sampling in the
Trial Mining, Processing & Offtake Negotiations
Without BLM EA permitting, the Company has been limited to five acres of surface disturbance. This limit was reached some time ago by the Company's earlier drilling, trenching and associated road building. This has constrained the Company's ability to excavate and supply larger samples to potential customers who are considering offtake agreements with the Company.
With this constraint now removed the Company's prime objective is to initiate trial mining and first production of perlite and natural pozzolan for larger scale customer trials as soon as possible with the expectation that this will transition to commercial production in due course on the commitment of potential customers to offtake sales contracts.
A quote has already been obtained for the short-term rental of the necessary mobile processing equipment.
Site engineering is now planned for development of the mine and well site to allow construction and mining contracts to be negotiated.
Plant Design & Costing
The mobile process plant required for Phase I processing of perlite and natural pozzolan has been selected. The installation of such a facility is now authorised and preliminary quotes have been obtained for supply and rental of this plant which will now be firmed up.
The fixed perlite processing plant required in Phase II has already been designed and costed. Although the Company is now permitted by BLM to construct this plant on site, an alternative rail-linked site may be more suitable and various sites are being considered. The operation of such a plant will require a separate air quality permit.
The BLM permit does not include installation of a pozzolan grinding plant which would need to be constructed if the Company wishes to sell a finished product rather than raw material to a customer grinding facility. Such a plant would be best sited close to market and preferably rail-linked. The Company has recently obtained a preliminary estimate of the costs for construction and operation of such a plant and will now continue the evaluation of suitable sites.
The Company's evaluation of the Miller's grinding plant is not yet complete and although the formal exclusive arrangement advised last year has expired, the plant owner is happy for the Company to continue its evaluation on a non-exclusive basis.
Infill Drilling and Drill Testing of the
A few additional drill holes are planned to infill existing drill hole data for production planning as the level of drilling previously undertaken was constrained by the previous disturbance limits. Drilling is also planned for the
Detailed Financial Planning & Project Funding
The work programmes described above will combine with detailed financial planning. The Company's objective is to minimise the funding required to achieve production as set out in various previous news releases and shareholder reports. Funding will be required to enable the Company to deliver its mine plans. This funding could take the form of one or a combination of equity, debt, offtake or joint venture funding at Group, local company or project level and a number of options and discussions are currently being pursued, including unsolicited approaches from third parties.
1. Forward Looking Statements.
The news release may contain certain statements and expressions of belief, expectation or opinion which are forward-looking statements, and which relate, inter alia, to the Company's proposed strategy, plans and objectives or to the expectations or intentions of the Company's directors. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the control of the Company that could cause the actual performance or achievements of the Company to be materially different from such forward-looking statements. Accordingly, you should not rely unduly on any forward-looking statements and save as required by the AIM Rules for Companies or by law, the Company does not accept any obligation to disseminate any updates or revisions to such forward-looking statements.
To date the Covid-19 pandemic has not affected the progress of the Company's projects. Mining is considered an essential industry in
Shares in the Company trade on AIM. EPIC: "SRES". Website: www.sunriseresourcesplc.com
This information is provided by RNS, the news service of the
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