Friedland-backed Sunrise Energy Metals doubles scandium resource in Australia

[Ben Graham]

Sunrise Energy Metals (ASX: SRL), the Robert Friedland-backed developer advancing the Syerston scandium project in New South Wales, has nearly doubled its scandium resource following a successful drilling campaign.

According to the company, the updated Mineral Resource Estimate, released this week, confirms Syerston as the world’s largest and highest-grade scandium deposit at a time when global supply is under increasing strain.

The revised estimate at a 300 parts per million cutoff now stands at 19,007 tonnes of contained scandium grading 414 ppm, representing a 98% increase in metal content, with all resources falling within the Measured and Indicated categories.

At a higher 600 ppm cutoff, the contained scandium grew by 161% to 1,155 tonnes.

The resource expansion comes at a pivotal moment for the scandium market. In April, China imposed new export licensing restrictions on the metal, a critical input in lightweight aerospace alloys, semiconductors, and advanced manufacturing.

Total world scandium production was less than 40 tonnes in 2022. Demand, meanwhile, is tipped to surpass 110 tonnes a year by 2026.

Over 90% of global demand comes from the US, for both civilian and defense applications. The majority of the supply, however, is controlled by China. 

Sunrise is positioning Syerston as a reliable Western source of scandium oxide. Australia currently has no scandium production or processing.

Following the latest drilling results and resource upgrade, shares jumped by more than 15% in a single session, giving the company a market capitalization of about A$265 million ($176M).

Attention now turns to the updated feasibility study, expected before the end of September, which will incorporate the expanded resource base.