Sunrise Resources Share Discussion Threads

[irishdave2] 24/7/2024 09:08

Richemondo sure you are correct in assuming it relates to water content re low density figure of 333 kilos per square metre and royalty I think will be based on dry weight,as is Diatomite site.Interesting thing about current agreement with Tolsa is that no mention of them holding option for buying out 3% royalty.

[irishdave2] 24/7/2024 08:23

Pistolpete your point about low depth,this figure is depth of drilling done so far.They are now drilling deeper in second phase 130ft in an effort to find sediment in lake formation.

[richemondo] 23/7/2024 17:09

I suspect Dave that the difference is accounted for by the water content - relative density 2 in situ (wet) perhaps and much less (.33?) dried..interesting to see how it is priced for royalty calculation..

[pistolpete100] 23/7/2024 10:49

Bed and breakfast transaction I assume today..

[irishdave2] 22/7/2024 13:29

Richemondo I think they are putting sepiolite under clay category when it is not,it is like perlite and diatomite low density.

[richemondo] 22/7/2024 12:47

Actually Dave.. my research gives a much higher density - around two tonnes plus per cuMetre which would multiply everything by around 6 ...
That would be nice...

[richemondo] 22/7/2024 10:44

Thanks Dave - it does seem conservative overall - but probably a good thing!
Plenty of upside I think but even that would give c$44m to SRES @ $400 per tonne × 3% or $6m per year at 500k tonnes per year..nice little earner!

[pistolpete100] 22/7/2024 08:28

Thanks Dave - the depth assumption seems rather conservative no?

[irishdave2] 21/7/2024 20:30

Richemondo saw engineer last night calculation as follows.Total area 2000m x 1100m= 2200000 less 50% =1100000sq m x Depth 14.3m = 15730000sq m of sepiolite density of which is 333 kilos per sq m which can vary = 5,243,000 ton deduct 1/3 for waste = 3,688,000 ton.He also stated that depth is confirmed by now drilling deeper and that sepiolite is found in veins which lead into lake like formation.In his opinion the site is a steal at $1.4 million.

[irishdave2] 15/7/2024 12:53

Richemondo you are correct rate of extraction from any site is the key,otherwise we will all end up paper rich with nothing in the bank.

[richemondo] 15/7/2024 12:02

Thanks Dave

I'm sure you are right on my over simplification of the area Dave
though I would expect clay beds to be laid down fairly evenly in large contiguous areas and, of course tolsa are looking for expansion outside the current footprint and, if I remember, going deeper so who knows how large it will end up being.. anyway if I'm right on the price then the key question for us in the short term is the rate of extraction I guess..

[irishdave2] 15/7/2024 11:54

Richemondo you have taken whole area as being sepiolite,they have found two main levels.20 drill holes would not confirm extent of sepiolite over such a large area of 2km x 1.1 km.Your price per tonne is is probably a better estimate.Will ask him for the figures in full next time I see him and let you know.

[richemondo] 15/7/2024 09:50

Dave
Thanks for the tolsa post.. it would be good if your friend could share his workings. I make it around 30million cu M (1000x2000 ×15) before the expansion drilling. Assuming 1 cu M = 2 tonne (2g/ cm3) then we have a starting point of 60million tonnes. My research gives a conservative price of $400 per tonne for med-high quality sepiolite = $24billion ...
That's a lot to us at 3% but of immediate interest is how much they extract per year. If they build up to 500k tonnes then at c$400 that's $6m per year royalty.
Sounds mad - where am I going wrong?

[theaviator] 15/7/2024 01:37

Barnaby, agreed and it's the news that will move share price It'll come....

[irishdave2] 15/7/2024 00:03

Barnaby life of each mine will depend on agreement with Nevada state mining.As for royalties build up of these will result in s.p.moving north.The pozzolan sites,i think will also be done on a royalty basis.Outright sale would tie up a lot of funds for one company ( why should they when they can pay as they use ).The key is making sure 1/2 million ton per year from C.S. site and whatever is agreed from Hazen.this would result in $2-21/2 million per year minimum After agreements sres can sell rights if we wish.

[barnaby5] 14/7/2024 19:17

Dave, no problem. With the 9.6m min. I gather this over the length of the mine. What is that time spab. This would onky stop us raising funding but I'm afraid that and other royalties don't interest me. I'm only wanting to see cs come in as royalties means I'm here for years and years

[pistolpete100] 14/7/2024 02:41

Excellent contribution Dave

[theaviator] 14/7/2024 01:19

Nice one Dave. Thanks for your detailed analysis much appreciated.

[irishdave2] 13/7/2024 21:16

Loot a while back a mine engineer from Mannok cement worked out an estimate on figures reported at that time Tolsa site 20 drill holes 47 ft deep over 2km x 1.1km total tonnage between 3-4 million @ a very low price of £40 per ton would give us £120 million,our cut @ 3% would be £3.6 million over time.Tolsa are now drilling down130ft if sepiolite extends that deep it could double the above estimate.It all hinges on quality of sepiolite top of range is very much higher and quality is stated as medium high.This site together with Diatomite site which holds 1-2 million ton @6% £6 million.Total both sites £9.6 million,it will all come together in next few months.

[loot2309] 13/7/2024 14:27

Has anyone got any thoughts on royalties for the sepiolite? I know it’s 3% but at the moment we don’t really know anything about potential volumes or the sale price of the stuff do we?

[theaviator] 12/7/2024 22:57

Buffet always said buy businesses that are undervalued. Well done your calcs on royalties folks.... You won't find anything around like this. Strong buy from Aviator.

[theaviator] 12/7/2024 14:03

Will always get day traders and cold feet brigade as you say. It makes a market. Most here for bigger picture

[bsg] 12/7/2024 13:59

3,896,875 held for under two hours.