Sunrise Resources plc reported positive results from further evaluation work at its Reese Ridge Project in Nevada, USA, where the surface occurrence of high-grade zinc mineralisation was reported by the Company on 29 June 2023. The news release of 29 June 2023 highlighted a zone of low resistivity, below the surface zinc occurrence, that was evident in a 2010 report from a geophysical survey carried out to explore for geothermal energy. The Company reported that such a low resistivity (high conductivity) zone could be indicative of a significant zone of sulphide mineralisation.

The Company has now sourced the original 1ZTEM airborne electromagnetic data and commissioned leading Canadian geophysical company, Geotech Ltd. (?Geotech?), to carry out further processing and 2D and 3D inversions on the ZTEM data. Computational power and inversion modelling has substantially improved since 2010 and this has allowed Geotech to provide more reliable 3D conductivity models for drill targeting. 3D inversion produces a 3D model that ?maps?

the conductivity of the earth at and below surface. The newly developed 3D model has confirmed an annular zone of low resistivity (high conductivity) below the surface mineralisation that extends from just below near surface to a depth of nearly 1,000m. This annular zone surrounds a core of high resistivity which the Company interprets as a granitic intrusion.

This would be consistent with a Carbonate Replacement Deposit (?CRD?) model for mineralisation. CRD deposits can be large and high-grade as seen in the Taylor (Hermosa) Deposit in the neighbouring State of Arizona which was purchased by South32 for $1.6 billion in 2018 and is now under development. In other work at the Reese Ridge Project, the Company has received results from a petrological report on thin section examination of mineralised surface samples.

This has indicated that the zinc mineralisation at surface is largely contained in secondary minerals, the result of weathering or alteration, but remnants of zinc sulphide (sphalerite) and lead sulphide (galena) were identified consistent with sulphide mineralisation at depth and a possible source for the low resistivity anomaly. A review of chemical analyses from the surface mineralisation has identified anomalously high levels of the metal gallium in the high-grade zinc samples - up to 69ppm gallium. Gallium is an essential mineral in the production of semi-conductors and is increasingly used in the production of solar panels.

It is also used in high frequency computer chips. It is extracted from some zinc ores and approximately 80% of the world's gallium is produced in China. China has placed some restrictions on the export of gallium and gallium compounds in response to the US's restrictions on the exports of high-end computer chips to China.

The Company is now planning a follow-up exploration programme to include drill testing.