TSX Venture Exchange: NEV
VANCOUVER, April 25, 2016 /CNW/ - Nevada Sunrise Gold Corporation ("Nevada Sunrise" or the "Company") (TSXV: NEV) is pleased to announce that a four-hole drill program has commenced targeting high-grade gold mineralization at the Kinsley Mountain Gold Project ("Kinsley Mountain", or the "Project") in northeastern Nevada. Kinsley Mountain is a joint venture between Pilot Gold Inc. ("Pilot Gold") (TSX:PLG) and Nevada Sunrise, with Pilot Gold holding a 79.1 percent interest, and Nevada Sunrise, through a wholly-owned U.S. subsidiary, holding a 20.9 percent interest.
New drill targets were developed using 3-D modeling software, including the integration of recent and historical geological, geochemical and geophysical data as detailed below. As a result, a new high-priority target area, immediately southwest of the historic Main Pit and at a lower stratigraphic level, was identified and will be tested in four reverse circulation holes of approximately 425 metres each for a total of 1,700 metres. The drill program commenced April 21, 2016.
The 2016 Kinsley Mountain program and budget was increased by US$315,000 from US$460,000 for an amended total of US$765,000. If the 2016 drill program successfully intercepts high-grade sulphide mineralization, additional induced polarization ("IP") surveys and drilling along the Kinsley Trend may be undertaken.
For a map showing the 2016 target area, please access Nevada Sunrises website under Exploration - Kinsley Mountain at: http://www.nevadasunrise.ca/projects/kinsley-mountain/
Secret Canyon Shale Target Area
In late 2013, Pilot Gold, as operator, discovered the Western Flank gold deposit within the Secret Canyon Shale Formation, previously unrecognized as a potential host to gold mineralization. Mineralization at the Western Flank is open for extension to the north and east. The Western Flank sulphide resource is currently estimated at 284,000 Indicated ounces of gold grading 6.04 grams/tonne, and 39,000 Inferred ounces grading 2.41 grams/tonne gold (see Nevada Sunrise news release dated December 17, 2015). The Kinsley Mountain National Instrument 43-101 ("NI-43-101") compliant Technical Report dated December 16, 2015 is available at www.nevadasunrise.ca or under the Company's SEDAR profile at www.sedar.com.
Metallurgical testing of sulphide material from the Western Flank Zone returned excellent recoveries and concentrate grades, suggesting that the gold may be amenable to extraction using low capital cost, conventional flotation methods (see news release January 19, 2015).
Given the exceptional grades and metallurgical characteristics exhibited by mineralization at the Western Flank Zone, Pilot Gold began an intensive 3-D modeling exercise in the fall of 2015 focused solely on identification of other targets similar in nature to the Western Flank Zone. The drill targeting exercise involved characterization of the major controls on mineralization in the Western Flank Zone, as well as exploration vectors. These include:
- The intersection of swarms of closely-spaced, high-angle, NNE-striking faults with the NW-striking Kinsley Trend fault zone, along which the historic pits are aligned. Both sets of faults are believed to be feeders to mineralization in the Dunderberg Shale and Secret Canyon Shale;
- Gold associated with disseminated arsenical pyrite, localized within the Secret Canyon Shale stratigraphic horizon;
- Association of gold-bearing, disseminated sulphide mineralization with deep IP chargeability highs;
- Association of mineralization with a halo of pathfinder elements, including arsenic, antimony, thallium and mercury.
From this exercise, a high-priority target was identified immediately southwest of the Main Pit in the east-central Kinsley Trend. A large (400 metre-long), coincident, untested, historical IP-chargeability anomaly, as well as surface structures and geochemical anomalies are consistent with the model.
ABOUT KINSLEY MOUNTAIN
Kinsley Mountain is located in eastern Nevada, approximately 50 miles (80 kilometres) south of Wendover. The Project consists of 513 unpatented lode claims on U.S. Bureau of Land Management land plus 6 leased patents totaling 4,213 hectares (10,410 acres). Kinsley Mountain hosts near-surface mineralization similar to other Carlin-style, sediment-hosted gold systems, and hosts a past-producing mine with an extensive exploration database and numerous untested gold targets.
John R. Kerr, P. Eng., is the Company's designated Qualified Person within the meaning of NI 43-101 and has reviewed and approved the technical information contained in this news release.
Further information on Kinsley is available in the technical report entitled "Updated Technical Report and Estimated Mineral Resources for the Kinsley Project, Elko and White Pine Counties, Nevada, U.S.A.", effective October 15, 2015, dated December 16, 2015 and prepared by Michael M. Gustin, CPG, Moira Smith, Ph.D., P.Geo. and Gary Simmons, B.Sc. MMSA (the "Kinsley Technical Report"), available at www.nevadasunrise.ca/investors or under the Company's SEDAR profile at www.sedar.com.
About Nevada Sunrise
Nevada Sunrise is a junior mineral exploration company with a strong technical team based in Vancouver, BC, Canada, that holds interests in nine gold and lithium mineral exploration projects in the State of Nevada, USA.
The Company's three key gold assets include a 21% interest in a joint venture with Pilot Gold Inc. (TSX: PLG) at Kinsley Mountain near Wendover, a 100% interest in the Golden Arrow project near Tonopah, and a 100% interest in the Roulette gold property in the southeastern Carlin trend near Ely, with each of the properties subject to certain production royalties.
Nevada Sunrise began acquisitions of Nevada lithium properties in September 2015, which include options to earn 100% interests in the Neptune and Clayton Northeast projects, and a 100% interest in the Aquarius Project, all located in the Clayton Valley area. The Company also holds options to earn 100% interests in the Jackson Wash and Atlantis projects, and has a 50% participating interest in the Gemini project, each located in playas proximal to the Clayton Valley.
FORWARD LOOKING STATEMENTS
All statements in this release, other than statements of historical fact, are "forward-looking information" with respect to Nevada Sunrise Gold Corporation ("Nevada Sunrise") within the meaning of applicable Canadian securities laws, including statements that address future mineral production, reserve potential, exploration drilling, the future price of gold, potential quantity and/or grade of minerals, potential size of a mineralized zone, potential expansion of mineralization, the timing and results of current or future mineral resource estimates, or other study, proposed exploration and development of our exploration properties and the estimation of mineral resources. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Nevada Sunrise to differ materially from those anticipated in such forward-looking information.
Such factors include, among others, risks related to the interpretation and actual results of historical production at Kinsley Mountain, reliance on technical information provided by third parties on any of our exploration properties, including access to historical information on the Kinsley Mountain property as well as specific historic data associated with and drill results from the property, information from Pilot Gold Inc., current exploration and development activities; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; failure of Pilot Gold Inc. to complete anticipated work programs; labor disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration, as well as those factors discussed in the section entitled "Risk Factors" in the Company's Management Discussion and Analysis for the Three Months ended December 31, 2015, which is available under Company's SEDAR profile at www.sedar.com.
Although Nevada Sunrise has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Nevada Sunrise disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. Accordingly, readers should not place undue reliance on forward-looking information.
Forward-looking statements are made as of the date hereof and accordingly are subject to change after such date. Except as otherwise indicated by Nevada Sunrise, these statements do not reflect the potential impact of any non-recurring or other special items or of any dispositions, monetizations, mergers, acquisitions, other business combinations or other transactions that may be announced or that may occur after the date hereof. Forward-looking statements are provided for the purpose of providing information about management's current expectations and plans and allowing investors and others to get a better understanding of our operating environment. Nevada Sunrise does not undertake to update any forward-looking statements that are included in this document, except in accordance with applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of TSX Venture Exchange) accepts responsibility for the adequacy of accuracy of this release. The Securities of Nevada Sunrise Gold Corporation have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to the account or benefit of any U.S. person.
SOURCE Nevada Sunrise Gold Corporation
Image with caption: "Nevada Sunrise Gold Corporation (CNW Group/Nevada Sunrise Gold Corporation)". Image available at: http://photos.newswire.ca/images/download/20160425_C4173_PHOTO_EN_673778.jpg
For further information: Warren Stanyer, President and Chief Executive Officer, Telephone: (604) 428-8028, Facsimile: (604) 484-7143, Email: email@example.com