Sunrise Energy Metals Ltd (ASX:SRL) is preparing to update a feasibility study for the Syerston Scandium Project in New South Wales – which is proximal to the company’s current battery materials complex – with prior feasibility work suggesting the project could deliver 49.2 tonnes per annum of scandium oxide over a 20 year mine life.
Sunrise has appointed GR Engineering Services to undertake the update of the 2016 Syerston feasibility study, which will focus on capital and operating cost estimates for the project, located in Fifield in central NSW.
At the same time, commercial pilot scale extrusion trials – which will test Sunrise’s proprietary 6xxx-series aluminum-scandium alloys in a range of automotive components – are also set to commence in the United States.
And while the company will continue to progress work at the Sunrise Nickel-Cobalt Project in the same location, it has argued that developments in the scandium market have required a reassessment of a ‘stand-alone, fully integrated scandium mining, processing and refining facility in Australia’.
CEO Sam Riggall said that such a development would provide a financial boost.
“The potential for a small, high-grade, stand-alone scandium mine adjacent to the Sunrise Battery Material Complex provides a potential pathway to near-term operations and cashflow for the company,” he said.
“With a considerable body of study work completed, we have a strong foundation to update the previous Syerston Project Feasibility Study, assess opportunities for funding support and rapidly move the project towards production.
“While the scandium market is still relatively small, we believe scandium will play an important role in semiconductor advances over the next decade, as the world transitions towards 5G and 6G communications infrastructure.”
Sunrise has been trading at 47.5 cents.