Sunrise Resources (AIM:SRES) told investors that Phase III testwork at its Pioche Sepiolite Project in Nevada has demonstrated that processed material meets American Petroleum Institute (API) drilling-grade specifications.
The AIM-listed exploration company said the result positions Pioche sepiolite for the oil and gas drilling fluids market, a sector its former project partner Tolsa USA never evaluated during two years of exploration work that ended in December 2024.
"Drilling fluids represent a significant market opportunity, one that was never evaluated during Tolsa's previous work at Pioche", said Patrick Cheetham, Sunrise's executive chairman.
Re-testing of 2024 drill core also uncovered new sepiolite horizons, including at hole AF-04-2024, where Sunrise's optimised processing returned medium-grade results from material Tolsa had classed as showing no significant viscosity.
That finding opens a new area of interest in the southeast of the project.
Testing across eight surface samples showed freshwater viscosity results exceeding Tolsa's figures at every site, in two cases more than double, which the company attributes to better fibre separation in its processing method.
Sunrise has now identified prime locations in the northwestern and southeastern parts of the East Mesa area for future trial mining.
Cheetham said Pioche remains one of only two major sepiolite deposits in the United States, alongside the producing Amargosa Valley deposit, and called the project "a significant value catalyst" as the company works to secure a development partner.
In London, Sunrise shares soared 13.5% to 0.021p after the company update.
News Intelligence what this means for the company
Sunrise Resources has demonstrated that sepiolite from its Pioche project meets API drilling-fluid specifications for the first time, unlocking a commercial market route that its former partner Tolsa USA never pursued during two years of work ending in December 2024. The company's optimised processing method also recovered medium-grade material from horizons Tolsa had dismissed, and outperformed Tolsa's viscosity results across eight surface samples, in two cases by more than double—opening a new exploration area in the project's southeast and positioning Pioche as a potential development asset alongside the only other major US sepiolite deposit at Amargosa Valley.
The API drilling-fluid specification achievement materially expands Pioche's addressable market beyond the industrial minerals uses Tolsa evaluated, and the superior processing results suggest Sunrise's technical approach has unlocked value Tolsa's work did not capture. This strengthens the company's case to attract a development partner, though the project remains at exploration stage and subject to funding and permitting risk.
Insights assembled by AI. Editor-reviewed and grounded in tickstock’s coverage and proprietary knowledge graph.
Content is for informational purposes only, not financial advice.
