Sunrise Resources PLC (AIM:SRES) shares surged nearly 19% after testing at its Pioche Sepiolite Project in Nevada demonstrated that processed material can meet American Petroleum Institute (API) specifications for use in oil and gas drilling fluids.
The company shares traded as high as 0.022p in early London trade, up 18.9% from the previous close.
Sunrise's Phase III evaluation of surface and drill-core samples found that all but one of the medium and high-grade surface samples tested exceeded the API minimum specification, most by a wide margin.
Testing of selected core samples produced similar results, while a blending study confirmed combinations of low, medium and high-grade sepiolite could produce material meeting drilling-grade specifications.
The results broaden the potential commercial applications for Pioche, where previous work by former project partner Tolsa had not evaluated the oil and gas drilling fluids market.
Sunrise also identified additional sepiolite horizons after re-testing core from a 2024 drilling program. Results from hole AF-04-2024 identified medium-grade sepiolite where earlier Tolsa testing had returned no significant viscosity, opening a new area of interest in the southeast of the project.
The company’s optimised processing method also produced higher freshwater viscosity results than Tolsa’s at all 8 surface sample locations evaluated, including more than double at 2 locations.
Sunrise has identified the northwestern and southeastern parts of East Mesa as preferred locations for future trial mining.
Executive chairman Patrick Cheetham said the results broadened Pioche’s commercial development opportunities as the company seeks a development partner.
