Drilling work on Sunrise Resources’ (LON:SRES) Derryginagh barite project is set to resume early next month after the group hired a new drill contractor today.
Last month the group halted work at Derryginagh and terminated the previous drill contract. The company said that the decision was made because the contractor’s progress was ‘unacceptably slow’.
This morning Sunrise announced that it has now signed a new drill contract, with Irish firm Priority Drilling Ltd, and the drill programme will resume in the week starting October 10.
Once work resumes Sunrise expects that the drill programme will take about 6 weeks to complete, and assay results will be available about 6 weeks after that.
Initially the drill programme began at the beginning of April. Barite is an industrial mineral that has many uses, it is most commonly used as a weighting agent in drilling and as a filler in paint.
Importantly Sunrise believes that the Derryginagh barite is of a sufficient quality to be used as a ‘premium’ paint filler, and as such its market value is estimated at around £200 per tonne.
Sunrise completed a concept study for Derryginagh in May, with positive results. The study suggested that a profitable operation could be developed for an output of at least 50,000 tonnes per year of barite. This drill programme, aimed at the defining a JORC mineral resource, is the next step for the potential mine development.