annual general meeting 18 february 2016€¦ · 18/02/2016 · 18 february 2016 1 annual general...
TRANSCRIPT
Sunrise Resources plc
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
Sunrise Resources plc
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
Sunrise Resources plc
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
Sunrise Resources plc
Sunrise Resources plc
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?
Sunrise Resources plc
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
Diatomite - How is it used?
Sunrise Resources plc
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
Sunrise Resources plc
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
Sunrise Resources plc10
Large resource potential suggested by significant
extent of diatomite exposed at surface...
...and exposures of significant vertical thickness
18 February 2016
Sunrise Resources plc
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
Sunrise Resources plc
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
Sunrise Resources plc
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
Sunrise Resources plc14
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
Sunrise Resources plc15
Recorded production approx. 500,000 ounces silver but mine void space suggests at least 1Moz.
0
0.5
1
1.5
2
2.5
3
3.5
1 4 7
10
13
16
19
22
25
28
31
34
37
40
43
46
49
52
55
58
61
64
67
70
73
76
79
82
85
88
91
94
97
100
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
Sunrise Resources plc16
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
Sunrise Resources plc
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
Sunrise Resources plc
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
Sunrise Resources plc19
• 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
March 2014 20 Sunrise Resources plc20
Lincoln Vein projected
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
March 2014 21 Sunrise Resources plc21
Lincoln Vein projected
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
Sunrise Resources plc22
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
5
10
15
20
25
30
35
40
Sil
ver
Pri
ce $
Oz/
t
Source: Silver Institute
The Silver Market
Sunrise Resources plc23
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
Sunrise Resources plc
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
Sunrise Resources plc
• 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
Sunrise Resources plc
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
Sunrise Resources plc
Cue Diamond Project, Australia
27
Diamonds recovered from drill samples
18 February 2016
Cue Diamond Project, Australia
Sunrise Resources plc28
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
Sunrise Resources plc
• 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
Sunrise Resources plc
• 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
Sunrise Resources plc
• 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