Sunrise Energy Metals acquires Hylea cobalt project from Lotus Resources

Sunrise Energy Metals Limited has wrapped up its previously announced acquisition of the Hylea cobalt project in New South Wales from Lotus Resources.

The cash and stock deal worth AUD 2.5 million was announced in 2021.

The Hylea project includes exploration licences — EL8520, EL8641, and EL8801 (Hylea Project).

Sunrise Energy Metals said that the acquisition grows its presence over additional nickel, cobalt, and scandium mineralization in the Lachlan Fold Belt.

The Hylea cobalt project is situated nearly 50km north of the Sunrise nickel, cobalt, and scandium project on the western part of the Lachlan Fold Belt.

The geology of Hylea project is said to show late-stage post-orogenic zoned Alaskan-Ural style intrusives, spanning an area of nearly 25km2.

In 2018, Lotus Resources had completed a drill program comprising 54 hole for 3,624m that is said to have encountered a well-developed laterite profile developed over ultramafic rock types.

Commenting on the acquisition of the Hylea cobalt project, Sam Riggall — Managing Director and CEO of Sunrise Energy Metals, said: “Acquisition of the Hylea Project is consistent with our strategy to expand our footprint in the highly prospective Lachlan Fold Belt by adding to our inventory of nickel and cobalt.

“Demand from the automotive sector in coming years will be significant and we continue to believe that ownership of mineral resources is key to unlocking value in the battery supply chain.

“Our aim is to position Sunrise Energy Metals, with its land position in the Lachlan Fold Belt, as one of the largest, lowest cost and most sustainable suppliers of battery raw materials in the world.”