Project Updates

27 October 2020

SUNRISE RESOURCES PLC

("Sunrise" or "the Company")

Project  Updates

CS Pozzolan-Perlite Project, Nevada USA

·    Commercial-scale plant assembled for trial processing.

·    100-ton bulk sample of perlite to be processed at the end of this week..

·    Approx. 20-30 tons of coarse horticultural grade raw perlite to be split between five different customers across the USA for expansion testing.

·    Raw perlite fines to be prepared for larger scale pozzolan grinding test and concrete pour.

·    Aiming for first commercial production in Spring 2021.

Clayton Silver-Gold Project, Nevada USA

·    Drilling contract signed - drilling to start on or around 29^th October.

·    Drilling to follow up historic exploration where a number of holes ended in mineralisation or did not reach the target depth e.g. CL-15 which intersected 7.6m grading 4.8 ounces/ton (165 grammes/tonne) silver from 82.3m depth to the base of hole, ending in mineralisation.

·    Historic grades were reportedly understated due to loss of fine silver-bearing sulphide minerals during previous percussion drilling programmes.

Other Projects, Nevada & Australia

·    Notice of intent to drill Newark Gold Project in Nevada submitted to Bureau of Land Management.

·    Planning to drill Baker's Gold project in Western Australia.

Commenting today Sunrise Executive Chairman Patrick Cheetham said: "I am pleased to advise that good progress is being made at our permitted CS Perlite-Pozzolan Project to deliver tonnage quantity test samples of perlite to a range of customers as part of the offtake negotiations. We are moving forward with more detailed engineering and financial planning as we aim for first commercial  production in Spring 2021."

" I am also pleased to announce the scheduled start of drilling on our Clayton Silver-Gold Project in Nevada this week and the preparations for drilling at our Newark Gold Project in Nevada and at our Baker's Gold Project in Western Australia. This is an exciting time for Sunrise with regular news updates expected over the coming months from both our CS Project and our gold and silver assets. We are fully funded for the planned work programmes and for the foreseeable future and I look forward to updating shareholders in due course.".

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014. 

Further information:

Detailed Information

CS Project, Nevada, USA (100% owned by Sunrise)

The Company has recently contracted Kimball Equipment Company of Reno, Nevada to supply and operate a mobile crushing and screening plant to process a 100-ton bulk sample of raw perlite from the Company's CS Project.

The plant will comprise a crusher, high frequency screens and associated conveyors and will be a basic version of the plant that is proposed for the initial production facility and for which the Company recently received its air quality permit.

The perlite bulk sample will be processed into two separate size-grades of horticultural raw perlite. Interest in a new source of raw perlite has been very strong and material will initially be sent to five potential customers who will expand the raw perlite in their commercial facilities. Plans to supply additional customers are in progress.

Different customers who expand perlite for end-use horticultural markets do so in different types of furnaces and consequently will achieve different production rates and yields of expanded perlite using the same ore source and so must test the material prior to committing to offtake agreements.

A by-product of the raw perlite production test will be approximately 60 tons of fine grained (-16 mesh) perlite which will be ground for use as natural pozzolan and  production of a test concrete pour.

Over the next few weeks, the Company will move forward with detailed engineering and financial planning. The Company is also planning to conduct infill drilling before the end of the year in the starter pit area and exploration drilling in the large, and largely unexplored, NE Exploration Area  of natural pozzolan.

The Company is working towards a start to commercial production in Spring 2021.

Clayton Silver-Gold Project, Nevada, USA (100% owned by Sunrise)

The Clayton Silver-Gold Project is located in the Walker Lane Mineral Belt, which includes a large number of epithermal gold and silver deposits and porphyry copper and molybdenum and copper skarn deposits, including the famous and  productive Comstock gold and silver deposits and Yerington porphyry copper deposits.

The property also lies 40 miles southwest of the famous silver deposits at Tonopah which produced over 138 million ounces of silver and 1.5 million ounces of gold from 1900-1921.

Twenty-one holes were drilled at the Clayton project in the 1980s and explored a zone of extensive brecciation and silicification believed to represent the high levels of an epithermal silver-gold deposit. A number of these holes intersected significant silver mineralisation and some did not reach the target depth. Silver grades were reported as likely understated due to loss of fine silver-bearing sulphide minerals as a result of the percussion drilling method used at that time.

A 600 ft core hole will now be drilled to evaluate the mineralisation intersected in historic drill hole CL-15 (7.6m grading 4.8 ounces/ton (165 grammes/tonne) silver from 82.3m depth to the base of hole).  A drill contract has been awarded to Falcon Drilling and drilling is scheduled to start on the 29^th October.

Newark Gold Project, Nevada (100% owned by Sunrise)

The Newark Gold Project is located at the southern end of the Battle Mountain-Eureka (Cortez) gold trend and lies 40 km south of and along the same structural zone as the past-producing Alligator Ridge Mine, 13 km southwest of the past producing Illipah Gold Mine and 20 km east of the Pan Gold Mine.

The Newark Project was originally targeted for Carlin-style gold mineralisation by Freeport-McMoRan Gold Co. in the 1980s following the discovery of gold anomalous values in silicified rocks in a favourable structural and stratigraphic setting.  Carlin-style deposits can be both large (e.g. Goldstrike which contains 39 million ounces gold at a grade of 3.3 g/t) and high-grade (e.g. Barrick's recent Goldrush discovery which contains 8.6 million ounces gold at a grade of 10.6 g/t).

Freeport drilled a total of 16 holes. Significantly, hole NWK8 intersected 47m of low-level gold (average 0.14 ppm gold) in jasperoid from 75m to the end of the hole at 122m. The Company is planning to drill test this gold bearing jasperoid and to deepen the hole through to about 400m depth to test the underlying Joanna Limestone which can be a significant host for Carlin-style  gold mineralisation.

The Company has submitted a notice of intent to drill at Newark.

Baker's Gold Project, Western Australia (100% owned by Sunrise)

Plans are also being advanced to drill test the Baker's Gold Project in Western Australia where the Company has defined a significant gold-in-soil anomaly which will be tested alongside the Dickie Lee open pit area where specimen quality gold-quartz nuggets have been recovered by metal detectorists both at surface and in-situ.

The Company's Programme of Work has already been approved by the Western Australia Department of Mines, Industry Regulation and Safety and a drill start date will be advised in due course.

Notes:

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.

2. Covid-19

To date the Covid-19 pandemic has not affected the progress of the Company's projects. Mining is considered an essential industry in Nevada and existing operations are progressing largely as normal, as is mineral exploration. However, the future impact of Covid infections in Nevada and more widely in the US is unpredictable. Travel  bans are still in place between the US and the UK and many US Companies have self-imposed internal travel bans. These factors have the potential to negatively affect and delay the Company's plans.

3. Qualified Person Information

The information in this release has been compiled and reviewed by Mr. Patrick Cheetham (MIMMM, MAusIMM) who is a qualified person for the purposes of the AIM Note for Mining and Oil & Gas Companies. Mr. Cheetham is a Member of the Institute of Materials, Minerals & Mining and also a member of the Australasian Institute of Mining & Metallurgy.

Shares in the Company trade on AIM. EPIC: "SRES". Website: www.sunriseresourcesplc.com