VANCOUVER, Dec. 10, 2015 /CNW/ - Nevada Sunrise Gold Corporation ("Nevada Sunrise" or the "Company") (TSXV: NEV) is pleased to announce it has entered into a definitive agreement for an option to purchase a 100% interest in the Clayton Northeast lithium property ("Clayton NE"), located in the Clayton Valley in Esmeralda County, Nevada.
Clayton Northeast Property
Clayton NE totals approximately 684 acres (276 hectares) and is contiguous to the Silver Peak lithium mine ("Silver Peak") operated by Albemarle Corporation (ALB: NYSE). A Silver Peak lithium production well is located approximately 45 metres from the Clayton NE western boundary.
In the United States Geological Survey ("USGS") Open-File Report 82-415 (1982), it is reported that a historical drill hole (CV-5) is located on Clayton NE. Hole CV-5 was drilled to a depth of 479 feet (146 metres) and encountered lithium values in ground water ranging from 24 parts per million ("ppm") to 110 ppm lithium, averaging 69.3 ppm lithium for a group of 11 samples, and averaging 65.75 ppm lithium for another group of 12 samples, analyzed both in the laboratory and in the field. The historical drill hole was part of a 1977 regional drilling program carried out by the USGS. Nevada Sunrise believes that drilling deeper holes at Clayton NE could intersect additional aquifers potentially hosting brines of similar or better contents of lithium than were encountered in the relatively shallow historical hole.
For information on Clayton NE including a map showing its location, see the Company's website under "Projects-Nevada Lithium" at: http://www.nevadasunrise.ca/projects/nevadalithium/
Details of the Option Agreement for Clayton NE
For an option to purchase a 100% interest in Clayton NE, Nevada Sunrise has agreed to pay a total of 500,000 common shares of Nevada Sunrise to the vendor upon signing a definitive agreement (the "Agreement") for the Property, and on subsequent anniversaries of the Agreement, as follows:
- On signing the Agreement: 100,000 common shares
- 1st Anniversary: 150,000 common shares
- 2nd Anniversary: 250,000 common shares
A 1.5 mile (2.25 kilometer) area of interest applies to the Property. Clayton NE is subject to a 3.0% gross overriding royalty ("GOR"). On the 3rd anniversary of the signing of the Agreements for Clayton NE, Nevada Sunrise would have the right to purchase 1.0% of the GOR for US$1,000,000.
The option agreement for Clayton NE is subject to acceptance by the TSX Venture Exchange.
About the Clayton Valley
In 2013, the USGS released a report describing the Clayton Valley's potential to host lithium deposits based on the hypothesis that lithium is liberated by weathering of host rocks or derived from hydrothermal fluids from a variety of rock sources within a closed basin. The floor of Clayton Valley has an area of about 100 square kilometers and a catchment of about 1,400 square kilometres, and is the lowest (topographically) of at least five adjacent basins that are hydrologically linked by groundwater flow (Zampirro, 2004). It is the combined area of all five linked catchments that makes the effective area of the Clayton Valley lithium-brine system much larger than the footprint of the Clayton Valley proper (Source: from USGS Open File 13-1006, 2013).
John R. Kerr, P. Eng., is the Company's designated Qualified Person within the meaning of National Instrument 43-101, and has reviewed and approved the technical information contained in this news release.
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 five exploration projects in Nevada, USA. Our 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 an option to earn a 100% interest in the Neptune Project in the southern Clayton Valley area. The Clayton NE property near Silver Peak is the Company's second acquisition in the field of lithium exploration, and a third acquisition, Jackson Wash, is pending.
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 lithium, potential quantity and/or grade of minerals, potential size of a mineralized zone, potential expansion of mineralization, the timing and results of future 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 exploration at the Clayton NE property, reliance on technical information provided by third parties on any of our exploration properties, including access to historical information on the Clayton NE property; 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; 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 Nine Months ended June 30, 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/20151210_C4624_PHOTO_EN_562112.jpg
For further information: Warren Stanyer, President and Chief Executive Officer, Telephone: (604) 428-8028, Facsimile: (604) 484-7143, email: [email protected]