Syerston Scandium Project Boasts 60.3Mt at 390ppm Scandium, Drilling Set for Q2 2025

Updated Mineral Resource Highlights Scale and Quality

Sunrise Energy Metals Limited (ASX: SRL) has announced an updated Mineral Resource Estimate (MRE) for its wholly owned Syerston Scandium Project near Fifield, New South Wales. The refreshed estimate confirms a global scandium resource of 60.3 million tonnes at an average grade of 390ppm scandium, equating to approximately 23,500 tonnes of contained scandium at a 300ppm cut-off grade. This positions Syerston as one of the world's largest and highest-grade scandium deposits.

The MRE incorporates extensive drilling data, including 1,940 drill holes and over 73,000 metres of drilling, with assays confirming high-grade mineralisation near surface. Notably, 40% of the contained scandium is classified in the higher confidence Measured and Indicated categories, underpinning the project's robust resource base.

Targeted Drilling to Expand High-Grade Zones

Building on this foundation, Sunrise plans a step-out drilling campaign commencing in early Q2 2025. The focus will be on expanding the already significant high-grade zones defined at a 600ppm scandium cut-off, targeting untested areas along the boundary of the intrusive ultramafic body. This campaign aims to increase both tonnage and grade, potentially enhancing the project's economic profile.

The shallow nature of the mineralisation, hosted within lateritic soils, suggests low strip ratios and selective mining of high-grade pods, which could translate into favourable mining economics. The company’s prior metallurgical test work supports the amenability of the ore to sulphuric acid leaching, with relatively low acid consumption expected due to low gangue mineral content.

Strategic Importance Amid Supply Chain Challenges

Sunrise’s CEO, Sam Riggall, highlighted the strategic timing of the project, noting the steady growth in scandium demand driven by emerging applications in 5G/6G semiconductors, advanced aluminium alloys, and solid oxide fuel cells. The project offers a timely solution to Western industry’s current 100% reliance on Chinese scandium supply, which faces potential export restrictions and supply chain risks.

Engagement with end-users in the US and Asia has been encouraging, with formal expressions of interest received for scandium supply. The company is actively progressing offtake discussions to refine the development scope and product specifications for an updated feasibility study, which will determine the scale and configuration of the proposed standalone scandium mine and processing facility.

Advancing Product Development and Intellectual Property

Sunrise is also advancing product development initiatives with partners in the US and Asia, focusing on aluminium-scandium alloy sputtering targets critical for AlScN thin films used in next-generation semiconductor devices. The company has filed patents related to these alloys, underscoring its commitment to innovation and value capture across the scandium supply chain.

The project benefits from secured mining tenure, water rights, and development consents, with infrastructure studies underway to confirm power supply arrangements. These factors collectively support the feasibility of developing a small, integrated scandium operation at the Syerston site.

Outlook and Market Implications

With scandium demand poised for growth across strategic sectors, Sunrise Energy Metals’ updated resource and planned expansion drilling position the company to play a pivotal role in diversifying global supply. The forthcoming feasibility study update, informed by offtake negotiations and drilling results, will be critical in defining the project’s commercial pathway.