Sunrise Resources Plc (LON:SRES) has discovered further extensive areas of perlite at its NewPerl pozzolan-perlite project in Nevada.
NewPerl is located 85 kilometres away from the company’s flagship CS pozzolan-perlite project.
WATCH: Sunrise boss sets out steps towards production at CS
READ: Sunrise completes commercial trials on bulk samples from CS project
Recent mapping carried out by Sunrise at NewPerl identified new, large areas of outcropping perlite.
It has now staked an additional 40 claims, which has more than trebled the size of the project claim area.
Targeting method works (again)
“I am pleased to be announcing the expansion of our claim holdings at the NewPerl project,” said executive chairman Patrick Cheetham.
“This new discovery is proof of concept of the targeting method that originally led us to the discovery of the perlite and pozzolan deposits at our CS project and which we now know can be successfully applied elsewhere.
“We have now found and claimed extensive areas of perlite at NewPerl, at multiple separate locations.”
He added: “It is too early to say how the NewPerl Project will fit in with the development of our CS project - which is clearly our priority - but it adds value to and has synergy with the business we are developing.”
Samples sent to Greek lab
The AIM-quoted firm has taken some additional samples from the new discovery areas which it has sent to a lab in Greece for characterisation and testing for horticultural-grade perlite.
Earlier samples tested positive for horticultural-grade perlite – meaning it can be added to soil to prevent compaction – and Cheetham said the latest ones “appear to be similar”.
Canadian cannabis growers to fuel demand for perlite
City broker Northland Capital said the new discoveries fit in will with Sunrise’s development of the more advanced CS project, “potentially offering synergies while adding value to the company’s core business opportunity”.
Analysts also highlighted the “more favourable” market conditions for pozzolans and perlite, with cannabis growers in Canada, where the drug was recently legalised, expected to push up demand.
“Cement companies and fly ash suppliers are already grappling with shortages of key raw materials, which is set to increase further given that largest supplier to western markets, the coal-fired Navajo Power Station in Arizona is scheduled to close 2019,” read a note to clients.
“Meanwhile the perlite market in North America continues to be strong as industrial-scale cannabis growers build-out major new capacity following Canadian legalization and the relaxation of legislation within a growing number of US states.”
Shares rose 5.2% to 0.17p in mid-morning trade on Wednesday.
--Updates for share price and analyst comment--