Annual General Meeting 18 February 2016€¦ · 18/02/2016 · 18 February 2016 1 Annual General...

Sunrise Resources plc


118 February 2016

Annual General Meeting 18 February 2016

Colin FitchCompany Secretary

Francis JohnstonNon-executive Director

Patrick CheethamExecutive Chairman

David SwanNon-executive Director


Directors & Officers

A geologist with 34

years in exploration

management and 29

years as executive

director of public traded

companies. Currently

Executive Chairman

Tertiary Minerals plc.

Chartered Accountant.

Former Group Leader in

Mining and Resource

Group, Ernst & Young,

Sydney and CFO of

Oriel Resources.

Currently a director of

Central Asia Metals plc.

Adviser to Baker Steel

Resources Trust.

Formerly Commercial

Director Ridge Mining

plc. Director of a number

of junior mining

companies.

Barrister-at-Law &

Chartered Secretary.

Formerly Corporate

Finance Director

Kleinwort Benson.

218 February 2016

Important Notice

March 2014 3 Sunrise Resources plc3

This Presentation is being supplied to you solely for your information. This Presentation has been prepared by, and is the sole responsibility of, Sunrise Resources plc (the “Company”). The directors of the Company

have taken all reasonable care to ensure that the facts stated herein are true to the best of their knowledge, information and belief.

This Presentation does not constitute, or form part of, an admission document, listing particulars or a prospectus relating to the Company, nor does it constitute, or form part of, any offer or invitation to sell or issue, or

any solicitation of any offer to purchase or subscribe for, any shares in the Company nor shall it or any part of it, or the fact of its distribution, form the basis of, or be relied upon in connection with, or act as any

inducement to enter into any contract therefor.

The information in this Presentation is provided as at the date of this presentation and as such is preliminary in nature, has not been fully verified by the Company and is subject to material amendment, updating and

change. The Company undertake no obligation to provide the recipient with access to any additional information or to update this Presentation or any additional information or to correct any inaccuracies in any such

information which may become apparent. This document sets out certain features of the Company and does not purport to provide a complete description of the Company or the shares in the Company.

No reliance may be placed for any purpose whatsoever on the information contained in this Presentation or on its completeness, accuracy or fairness thereof, nor is any responsibility accepted for any errors,

misstatements in, or omission from, this Presentation or any direct or consequential loss however arising from any use of, or reliance on, this Presentation or otherwise in connection with it.

By accepting this Presentation you confirm, represent and warrant that you have consented to receive information in respect of securities of the Company and other price-affected securities (as defined in the Criminal

Justice Act 1993 (“CJA”)) which makes you an “insider” for the purposes of Part V of the CJA, and you agree not to deal in any securities of the Company until such time as the inside information (as defined in the CJA)

of which you have been made aware has been made public for the purposes of the CJA.

This Presentation may not be reproduced or redistributed, in whole or in part, to any other person, or published, in whole or in part, for any purpose without the prior consent of the Company. The contents of this

Presentation are confidential and are subject to updating, completion, revision, further verification and amendment without notice.

The Presentation is being distributed on request only to, and is directed at, authorised persons or exempt persons within the meaning of FSMA or any order made thereunder or to those persons falling within the

following articles of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the “Financial Promotion Order”): Investment Professionals (as defined in Article 19(5)) and High Net

Worth Companies (as defined in Article 49(2)). Persons who do not fall within any of these definitions should not rely on this Presentation nor take any action upon it but should return it immediately to the

Company. This Presentation is exempt from the general restriction in section 21 of FSMA relating to the communication of invitations or inducements to engage in investment activity on the grounds that it is made only

to certain categories of persons.

Neither this Presentation nor any copy of it should be distributed, directly or indirectly, by any means (including electronic transmission) to any persons with addresses in the United States of America (or any of its

territories or possessions) (together, the “US”), Canada, Japan, Australia, the Republic of South Africa or the Republic of Ireland, or to any corporation, partnership or other entity created or organised under the laws

thereof, or in any other country outside the United Kingdom where such distribution may lead to a breach of any legal or regulatory requirement. The recipients should inform themselves about and observe any such

requirements or relationship.

The Company’s ordinary shares have not been, and are not expected to be, registered under the United States Securities Act 1933, as amended, (the “US Securities Act”) or under the securities laws of any other

jurisdiction, and are not being offered or sold, directly or indirectly, within or into the US, Canada, Japan, Australia, the Republic of South Africa or the Republic of Ireland or to, or for the account or benefit of, any US

persons or any national, citizen or resident of the US, Canada, Japan, Australia, the Republic of South Africa or the Republic of Ireland, unless such offer or sale would qualify for an exemption from registration under

the US Securities Act and/or any other applicable securities laws.

Past Performance

This Presentation contains statements regarding the past performance of the Company’s ordinary shares. Past performance cannot be relied upon as a guide to future performance.

Forward-looking Statements

This Presentation or documents referred to in it contain forward-looking statements. These statements relate to the future prospects developments and business strategies of the Company and its subsidiaries (the

“Group”). Forward-looking statements are identified by the use of such terms as “believe”, “could”, “envisage”, “estimate”, “potential”, “intend”, “may”, “plan”, “will” or the negative of those, variations or comparable

expressions, including references to assumptions. The forward-looking statements contained in this Presentation are based on current expectations and are subject to risks and uncertainties that could cause actual

results to differ materially from those expressed or implied by those statements. If one or more of these risks or uncertainties materialises, or if underlying assumptions prove incorrect, the Group’s actual results may

vary materially from those expected, estimated or projected. Given these risks and uncertainties, potential investors should not place any reliance on forward-looking statements. These forward-looking statements

speak only as at the date of this Presentation.

No undertaking, representation, warranty or other assurance, expressed or implied, is made or given by or on behalf of the Company or any of its directors, officers, partners, employees or advisers or any other person

as to the accuracy or the completeness of the information or opinions contained herein and to the extent permitted by law no responsibility or liability is accepted by any of them for any such information or opinions.

Notwithstanding the aforesaid, nothing in this paragraph shall exclude liability for any representation or warranty made fraudulently.

The content of information contained in these slides and the accompanying verbal presentation (together, the “Presentation”) has not been approved by an authorised person

within the meaning of the Financial Services and Markets Act 2000 (“FSMA”). Reliance upon this Presentation for the purpose of engaging in any investment activity may

expose an individual to a significant risk of losing all of the property or other assets invested. If any person is in any doubt as to the contents of this Presentation, they should

seek independent advice from a person who is authorised for the purposes of FSMA and who specialises in advising in investments of this kind.

18 February 2016


Company Strategy & Business Plan

4

Strategic Objectives:

• To generate cash flow from more advanced projects.

• To add value through mineral discovery by drill testing necessarily more speculative

exploration targets.

Industrial minerals projects have the greatest potential to achieve an early cash flow as these

typically have fewer permitting issues enabling them to be advanced to production more

quickly than base or precious metal projects.

Company Business Plan:

• Acquire 100% of a project through research and by staking or licencing of “open ground”

from the relevant authority. This allows the Company to acquire 100% ownership of

valuable assets.

• To run the Company with low overheads and be a low cost explorer.

• To seek partners for certain other projects to reduce exploration costs.

18 February 2016

Overview - Structure



UK

Sunrise Resources plc.…….an efficient and low cost explorer

………….Commodity diversity in stable and democratic countries

5

Sunrise Minerals

Australia Pty Ltd

Cue Diamond

Corona Gold

Baker’s Gold

Republic of

Ireland

Derryginagh

Barite

18 February 2016

SR Minerals Inc.

Nevada

Strike Copper

County Line Diatomite

Garfield Gold-Copper

Bay State Silver

Junction Gold

Pozz Ash Project

Diatomite - What is it?


Typical diatom: Aulacoseira granulata

Source: westerndiatoms.colorado.edu

• Lightweight, white to buff coloured industrial rock.

• Formed by the accumulation of vast quantities of skeletal material from single celled

aquatic algae called diatoms in marine and fresh water lake environments.

• Diatoms have hollow and lattice-like silica skeletons.

• Mass accumulation of these skeletons during algal blooms forms a rock with very

high micro-porosity.

• Usually chemically inert with low level of crystalline silica.

6

10 microns

18 February 2016

http://westerndiatoms.colorado.edu/images/species_sem_images_fragments/GSL00374_006_1.jpg

http://westerndiatoms.colorado.edu/images/species_sem_images_fragments/GSL00374_006_1.jpg

Diatomite - How is it used?


Filtration

Due to high porosity and micro-porous texture used in filtering beer, liquor,

wine, fats, fruit juices, biofuels and solvents and in swimming pool filters.

Fillers

Diatomite with high brightness, low bulk density and chemical inertness

used as inert filler in plastics, paints and other coatings.

Absorbents

Highly absorbent, used to clean up oil, chemical and other spills,

cat litter, etc.

Agricultural

Used as insecticide and in agricultural/horticultural surface dressings,

as an animal feed additive and fertilizer carrier.

Construction

Aggregate in lightweight concrete and in insulation.

The value of diatomite varies widely from just US$10s of dollars/ton for

lightweight aggregate to over US$1,000/ton for specialist products.

Flux-calcined filter aids (58% of market): US$640-880/ton FOB plant

(source: Industrial Minerals Magazine).

7

Typical beer filtration line

18 February 2016


Diatomite Production, Western USA

8

Three main producers of

diatomite in the USA:

• EP Minerals, LLC.

• Imerys USA Inc.

• Dicalite Minerals.

Western USA Region is world’s largest and a growing

producer of diatomite – 800,000 tonnes in 2014 from 10

mines, 9 plants (approx. 34% world production of 2.3

million tonnes).

18 February 2016

County Line Diatomite Project

Sunrise Resources plc9

• Project located 200km southeast of Reno, Nevada, USA.

• 109 claims covering 8sq km underlain by extensive beds of diatomite.

Oblique view looking North

18 February 2016

County Line Diatomite Project


Large resource potential suggested by significant

extent of diatomite exposed at surface...

...and exposures of significant vertical thickness

18 February 2016


Agreement with EP Minerals, LLC

11

SR Minerals Inc. (100% owned by Sunrise Resources plc)

SR Minerals Inc. has leased County Line Diatomite claims to EP Minerals for 25 years (renewable for

a further two 25 year periods, subject to EP Minerals’ right to withdraw at any time).

Sunrise to retain significant revenue based royalty payable six monthly from the start of

production.

To maintain the Lease EP Minerals must make minimum royalty payments to Sunrise comprising:

• Initial payment of US$450,000 in 18 months, and

• three years thereafter, a payment of US$75,000 and annual payments of US$150,000 in each

subsequent year.

After 18 months EP must return at least 49 of the 109 claims back to SR which shall be free to

establish diatomite business competitive to EP Minerals.

18 February 2016


About EP Minerals, LLC

12

EP Minerals is a worldwide leader in diatomite, clay and perlite and Nevada’s largest producer of

diatomite.

EP Minerals produces diatomite from four primary diatomite mining areas in the Western USA with

multiple quarries feeding three main process plants.

• The Colado mining and processing complex,

20 miles northwest of Lovelock, Nevada.

• The Clark mining and processing complex,

30 miles northeast of Reno, Nevada.

• The Fernley mining complex,

55 miles northeast of Reno, Nevada.

• The Celatom® mining and processing complex,

90 miles west of Ontario, Oregon.

EP Minerals, LLC has the potential to process diatomite from the County Line Project

through its existing process plants in Nevada thereby reducing permitting

requirements and timelines.

18 February 2016


Pozz Ash Project, Nevada

13

A new industrial minerals project in Nevada -

staked 2015

The Pozz Ash Project claims cover a deposit of volcanic

ash which the Company is now evaluating as a source of

natural pozzolan for use as an environmentally friendly

replacement for Portland cement in the manufacture of

cement and concrete mixes.

• Large expanse of volcanic ash discovered with

significant tonnage potential.

• Favourable characteristics for use as a natural

pozzolan.

• Meets chemical requirements of Class “N” natural

pozzolan.

Natural pozzolans have strong “green” credentials

and a growing market.

Samples currently undergoing tests for industrial use.

18 February 2016

Pantheon Dome, Rome

Built nearly 2000 years ago using volcanic ash

Chihuahua Adit

500m vertical

elevation

Chihuahua Vein projected

Lincoln Vein projected

“Mining

Canyon”

Bay State Silver Project - Location


Located 15km west of

County mining town of

Eureka, 1km off a sealed

road

Nevada

USA

Google Earth oblique view looking northwest

18 February 2016

Bay State Mine History 1850-1950


Recorded production approx. 500,000 ounces silver but mine void space suggests at least 1Moz.

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0.5

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Sil

ver

Pri

ce (

US

$/O

z)

Silver price 1850-1950

1863 First claims staked

1864 Mill (process plant) built.

Ore grade c. 50 oz./t silver

Bay State Silver Mining Co. Newark Silver mining Co

1900-1920s

Direct shipping ore: 100 oz./t

Mill Ore: 10-20 oz./t

Upper mine levels worked for

tungsten by relatives of current

patent holders during WWII

Private Interests

18 February 2016

Sunrise Resources plc - Exploration Progress


Winter 2014 Various surface sampling campaigns.

June 2015 Underground sampling campaign.

August 2015 Drill permit received.

September 2015 Phase 1 drill programme completed.

Chihuahua adit

18 February 2016


Surface Sampling – Winter 2014

Adit level

Chihuahua Vein System

• Known strike length of nearly 1km.

• Historical mined grade >20 ounces/ton silver.

• 11 samples of low grade vein material and wall rocks

left behind by old timers average:

11 ounces/ton silver over 280m strike length

18

Main

Chihuahua

Vein

Chihuahua

Splay Vein

18 February 2016


Underground Sampling – June 2015

19

Ore piles outside of main entrance to

Chihuahua Splay Vein workings

Assay 1,000g/t silver

Main photo here

18 February 2016

Underground Sampling – June 2015


• June 2015 - Sampling programme completed

beyond the rock fall (blocked underground

access to Chihuahua Adit).

• Bonanza values up to 4kg/tonne silver (4,020g/t

or 0.4% or 117oz/t) within bedded replacement

style mineralisation at end of adit over 61cm

(2ft).

• Over 1kg/tonne silver (1,123g/t or 33oz/t)

average for 18 samples along 230m strike

length to end of adit.

• Base metals enriched up to 10% combined

lead-zinc-copper.

• Chihuahua Vein now known to carry high-grade

silver over sampling length of 470m.

• The vein remains open to the north and south.

18 February 2016

Drill Permit - Detail



Chihuahua Vein projected0.5km

Drill plan – devised to allow for testing of:

• Chihuahua Vein.

• Lincoln Vein.

• Bedded Mineralisation.

Permitted drill infrastructure will allow

sufficient drilling to define a JORC

Mineral Resource, if justified by drill

results.

18 February 2016

Drill Planning - Phase 1



Chihuahua Vein projected

Phase 1 Drill programme

Three diamond drill holes completed to:

• Test Chihuahua vein over 320m strike length.

• Establish geological control, and

• Grade/thickness information.

0.5km

0.5km

18 February 2016

Phase 1 Drilling – High Grade Results


LONG SECTION IN PLANE OF

CHIHUAHUA VEIN SYSTEM

503 g/t silver (14.7 oz/ton)over 1.4m from 185.32m in Hole 15SRDD003

1,460 g/t silver (42.6 oz/ton)over 0.2m from 164.13m in Hole 15SRDD002

566 g/t silver (16.5 oz/ton) over 0.5m from 70.71m in Hole 15SRDD001

18 February 2016

0

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Sil

ver

Pri

ce $

Oz/

t

Source: Silver Institute

The Silver Market


Source: Coeur Mining

Silver Survey released May 2015:

• Mine production peaked, new spending declined.

• Total supply 1.06 billion ounces.

• Demand 1.07 billion ounces.

• Second consecutive year demand >supply.

Silver Price 1850-2015

1979

2011

18 February 2016


Garfield Copper-Gold-Silver Project, Nevada

Located in prolific gold and copper producing

Walker Lane belt of southern Nevada.

• 24 claims staked.

Prospecting Discovery:

Grab Samples yielded up to

6% copper, 3.5g/t gold, 126g/t silver

2418 February 2016

Junction Gold Project, Nevada


• Acquired March 2015.

• Area previously explored for copper.

• Contains unworked orogenic quartz veins/stockworks

in Cretaceous granite host:

• Grab samples up to 16g/t Au.

2518 February 2016

//upload.wikimedia.org/wikipedia/commons/b/ba/Nevada_in_United_States.svg

//upload.wikimedia.org/wikipedia/commons/b/ba/Nevada_in_United_States.svg


Cue Diamond Project, Australia

• Two diamondiferous kimberlite dykes discovered by De Beers in

1990s - Cue 1 and Soapy Bore.

• Six target areas tested by drilling in 2014:

• Soapy Bore Kimberlite - 227 diamonds recovered from

272kg of kimberlite but stone size distribution dominated by

small stones - unlikely to be economic.

• Source of Targeted 5 kimberlite float - where 250kg of

surface float returned 280 high quality diamonds - remains

to be discovered. A focus for 2016.

• New Discoveries in 2014 - to be evaluated further in 2016:

FW prospect - kimberlite discovered.

Soapy Bore north west - diamondiferous kimberlite

discovered.

Area 6 - diamondiferous kimberlite discovered.

• Area 1a - tested without success.

26

A high kimberlite discovery rate in drill testing

18 February 2016



27

Diamonds recovered from drill samples

18 February 2016



Large Area of kimberlite float – 280 diamonds

recovered from 250kg of float with favourable

stone size distribution – source remains to be

found.

Target 5

18 February 2016

Corona & Bakers Gold Projects, Australia


• Located in Murchison Mining District of central

Western Australia.

• 150 km east of the Company's Cue Diamond

Project.

• Meekatharra Greenstone Belt has yielded over

5.5 million ounces of gold.

• Belt hosts number of producing gold mines

including the Andy Well high grade gold deposit

being mined by Doray Minerals Ltd:

(690,000 ounces in Resources and

Reserves at 11.00g/t gold).

• Soil sampling completed at both prospects to aid

drill targeting.

2918 February 2016

Bakers Gold Project, Australia


• P51/2884 now included in Native Title Agreement and recently

granted.

• Soil sampling of P51/2884 now completed - anomalies defined

associated with Dicky Lee Mine workings.

• Dicky Lee Prospect to be drill tested alongside soil anomalies

defined by company on adjacent licences.

• Native Title Survey required to allow for drill testing.

Dicky Lee mine workings – P51/2884

Gold anomalies in soil sampling

400m

3018 February 2016

The Investment Case


• County Line Diatomite Project, Nevada – agreement with world leading diatomite producer EP Minerals,

LLC – potential for royalty based revenue within 18 months.

• Bay State Silver Project, Nevada – bonanza and high grade silver values in underground

sampling and first three drill holes.

• Share price at historic low – Market Capitalisation only £1.11 million at mid-price 0.16p

(15 February 2016).

• Directors fully invested – taking fees in shares.

• Operating only in attractive mining jurisdictions in politically stable countries.

• Strong project pipeline:

• Three new kimberlites discovered in last drill programme at Cue Diamond Project, Australia.

• Baker’s Gold Project, Australia ready for drilling.

• Active exploration programme continuing – regular news flow.

Sunrise Resources plc…….an efficient and low cost explorer

… management track record of discovery

18 February 2016 31

Annual General Meeting 18 February 2016€¦ · 18/02/2016 · 18 February 2016 1 Annual General...

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