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UPDATE: Sunrise to start drilling at Bay State this month

Published: 11:10 03 Aug 2015 BST

nevada2
The Bay State silver project is in Nevada...

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Sunrise Resources (LON:SRES) expects to start drilling Bay State silver project in Nevada this month after permitting came through.

Contractor bids are being reviewed it said with the US Bureau of Land Management allowing Sunrise to construct up to 16 drill pads.

Patrick Cheetham, executive chairman said: “We believe that the permit now in place will cover sufficient phased drilling to meet our next objective which is to define a JORC compliant mineral resource estimate."

Earlier this month, Sunrise reported “bonanza silver grades” from samples taken from old mine workings at Bay State, which prompted a revision of its drilling plans.

The 18 samples were taken from the Chihuahua vein in an area previously inaccessible due to a rock-fall.

Sunrise said the Chihuahua Vein is now known to carry high grade silver over the 470m sampling length, and is open to the north and south.

Initially, 3 holes will be drilled at 150-200m spacing to test beneath existing workings on the Chihuahua vein, with one of the holes testing the area where bonanza silver grades were found.

House broker Northland Capital said: “Should the initial drill programme define high grade mineralisation over significant incepts, as has been indicated from the limited sampling done to date, it will be a transformational development for the company.

“The large volume of drill pads that have now been permitted should allow the company to define a JORC compliant mineral resource estimate from a second drill programme, should the results from phase 1 be favourable.”

Shares climbed 11.1% today to 0.25p.

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