Sunrise Resources Plc (LON:SRES) plans to continue to develop its mining projects in anticipation of a sustained recovery in the commodities sector.
In its results statement covering the year to 30 September, the company highlighted achievements of the year just ended, and its targets for 2017.
The latter included the continued focus on Nevada in the USA, and the possibility of adding more projects to the portfolio.
Sunrise’s policy is to target advanced projects that have the potential to sustain cash flow, and it said it continues to evaluate industrial mineral deposits and to seek industrial partners.
Meanwhile, it said the company could receive an advance royalty payment next year from diatomite producer EP Minerals.
EP has leased 109 project claims from Sunrise in the County Line Diatomite project.
Should it develop the leases, EP is obliged to pay Sunrise US$450,000 by 2 June as an advanced royalty payment.
Further royalty payments would be due thereafter.
On the development front, the Bay Street silver project in Nevada probably saw the most progress last year, all achieved on a limited budget.
Initial drill testing of the Chihuahua and Lincoln vein systems took place at Bay Street.
Surface and underground sampling on the Chihuahua vein demonstrated high silver grades over a strike length of around 500 metres.
It also confirmed the occurrence of the bonanza grades that had supported historical production of direct smelter feed grades in the past.
Further drilling at Bay State has provisionally been scheduled for spring 2017.
Sunrise has the permits for sufficient drilling to define a maiden mineral resource.
The plan is to demonstrate the tonnage potential, carry out economic modelling and then seek a joint-venture partner for delineation under existing permits.
As for the profit & loss numbers, they are not very meaningful for an exploration and development company that currently has no revenue.
The loss before tax widened a little to £369,587 from £301,271 the year before.
“I am pleased to report on the progress being made under our strategic plan to seek cash flow from industrial minerals projects whilst continuing our more speculative exploration for precious metal deposits,” said executive chairman, Patrick Cheetham.
“In 2016 we have continued the development of our business in anticipation of a continuing recovery in the commodities sector and I look forward to reporting further progress in 2017 and to meeting shareholders at our upcoming AGM," Cheetham said.
Shares in Sunrise surged 5.5% to 0.142p on the results.