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Nevada Sunrise and Advantage Lithium intersect 426.72 metres averaging 243.44 mg/l lithium in brines at Clayton Northeast Project, Nevada


News provided by

Nevada Sunrise Gold Corporation

Mar 01, 2017, 08:30 ET

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Nevada Sunrise Gold Corporation (CNW Group/Nevada Sunrise Gold Corporation)
Nevada Sunrise Gold Corporation (CNW Group/Nevada Sunrise Gold Corporation)

TSXV: NEV

VANCOUVER, March 1, 2017 /CNW/ - Nevada Sunrise Gold Corporation ("Nevada Sunrise" or the "Company") (TSXV: NEV) and its exploration partner, Advantage Lithium Corp. ("Advantage Lithium") (TSXV: AAL) are pleased to announce that the first borehole of the 2017 drilling campaign at their Clayton Northeast property ("Clayton NE, or the "Property") in Clayton Valley, Nevada, has intersected lithium-bearing brines.  This follows successful results from the first three boreholes drilled in 2016 (see Nevada Sunrise news releases dated November 1, 2016, December 5, 2016, and December 21, 2016). Hole CNE-17-04, drilled to a total depth of 609.6 metres (2,000 feet), has intersected multiple aquifer formations, including 426.72 metres of brine-producing strata averaging 243.44 milligrams per litre ("mg/l") lithium between a depth of 140.21 to 609.6 metres, including a higher-grade interval averaging 274.6 mg/l lithium over 79.2 metres from a depth of 530.35 metres to 609.6 metres.

"Exploration drilling at Clayton NE continues to intersect classic Clayton Valley aquifer systems containing lithium," said Warren Stanyer, President and CEO of Nevada Sunrise. "Every successful hole brings us closer to our goal, and that of our partner, Advantage Lithium, of producing a lithium brine resource estimate for Clayton NE."

The Phase 2 drilling program is comprised of a total of approximately 1,800 metres (5,905 feet) in three reverse circulation ("RC") holes expected to test depths of a minimum 600 metres each. Using a similar approach to the successful Phase 1 program that hit wide intercepts of lithium brine with strong brine flow rates, these new holes are focused on high-priority conductive horizons identified and imaged in the 2016 3-D resistivity survey and confirmed by drilling to be lithium-bearing brines.  All four holes drilled to date are adjacent to Silver Peak lithium brine field operation, North America's only producing lithium mine, operated by Albemarle Corporation ("Albemarle") (NYSE: ALB) in close proximity to several of their production wells. 

 2017 Drilling Program Highlights

  • Continued 100% Drilling Success Rate with Strong Lithium Brine Results. Hole CNE-17-04 has intersected multiple aquifer formations:
    • Total composite of 426.72m of brine producing strata at an average grade of 243.44 mg/l lithium, including:
    • 274.6 mg/l lithium over 79.2 metres (530.35m to 609.6m)
  • Extension of mineralized brine trend to 4.46km. The highly-successful Phase 1 program defined a 3.43km mineralized trend. The results of Phase 2 drilling to date has extended this trend length to 4.46km.
  • Drilling deeper into potentially untested aquifers. Phase 2 holes are targeting possible deeper aquifers that may not have been intersected by previous drilling in the Clayton Valley. Previous hole CNE-16-03, from the Phase 1 program, was one of the deepest boreholes drilled in the Clayton Valley and, based on results obtained, may have hit a previously untested aquifer.
  • Permits/waivers obtained for future development of a lithium brine resource and wells. In November 2016, waivers were received from the Nevada Division of Water Resources for 5 of the 6 permitted holes, which allows for reaming a borehole to a larger diameter well, pump testing, and flow rate determination in order to provide the necessary technical information for development of an initial lithium brine resource at Clayton NE.

CNE-17-04 – Technical Details

CNE-17-04 was completed to a depth of 609.6 metres (2,000 feet), intersecting the base of the Clayton Valley salar sedimentary basin at 579.12 metres (1,885 feet).  Drilling has intersected typical Clayton Valley strata consisting of alternating layers of gravel, volcanic ash and clay as well as units consisting of carbonate deposits and other evaporites.  A total of 80 grab groundwater samples were collected as brine-bearing formations were encountered.  Table 1 presents a compiled summary of the depths of the aquifer systems with brine interval thickness and associated average lithium grades and TDS concentrations.  Anomalous lithium results with average concentration of 243.44 mg/l were obtained from six (6) discrete brine-bearing formations intersected over a 469.39 metre section (from 140.21 to 609.6 metres) within the Salt Aquifer, Main Ash Aquifer, Tufa Aquifer, Lower Aquifer System, Lower Gravel Aquifer, and a possible fractured bedrock aquifer. 

Table 1:  Results of Brine Samples for CNE-17-04

Drill

Hole

Aquifer

System

Interval (m)

Total Dissolved
Solids (TDS) mg/l

Lithium

Range (mg/l)

Lithium

Average
Grade (mg/l)

From

To

Width

CNE-17-04

Salt Aquifer System - A

140.21

146.30

6.10

230,000

N/A

182.00


Salt Aquifer System - B

152.40

158.50

6.10

255,000

N/A

238.00


Main Ash - A

182.88

188.98

6.10

310,000

N/A

310.00


Main Ash - B

195.07

201.17

6.10

175,000

N/A

177.00


Tufa Aquifer

201.17

219.46

18.29

 114,000 - 183,000

63 - 105

89.17


Lower Aquifer System - A

219.46

249.94

30.48

 118,200 - 154,000

194 - 301

266.80


Lower Aquifer System - B

256.03

469.39

213.36

 161,000 - 234,000

162 - 274

242.29


Lower Gravel Aquifer

469.39

579.12

109.73

 200,000 - 268,000

223 - 283

260.11


Bedrock

579.12

609.60

30.48

219,000 - 242,000

269 - 286

274.00

Within this section, a 24.38 metre interval composed of compacted, confining clay was intersected from depth of 158.50 to 182.88 metres. Water was not produced from this unit. This zone is not included in the calculation of total average lithium concentrations. In addition, recoverable water was not present in three 6.1-metre intervals within this 469.39-metre section because of excessive fine-grained solids content. The Salt Aquifer System contains two brine-bearing zones (A and B as shown in table 1) separated by an unsampled zone from 146.30 to 152.40 metres. The Main Ash Aquifer contains two brine-bearing zones (A and B as shown in Table 1) separated by an unsampled zone from 188.98 to 195.07 metres. The Lower Aquifer System contains one unsampled zone from 249.94 to 256.03  separating the aquifer into two brine-bearing zones as shown in Table 1 (Lower Aquifer System – A and B). These three unsampled zones are not included in the calculation of total average lithium concentrations for these aquifers.

The highest grade results were obtained in the Main Ash Aquifer with a peak concentration up to 310 mg/l lithium (182.88 to 201.17 metres), and in the deeper Lower Gravel Aquifer, with a peak concentration up to 301 mg/l (219.46 to 225.55 metres).  In addition to brine samples, drill cuttings were collected for each 1.5 metre interval and 87 samples have been submitted for analysis.  Analytical results for the drill cuttings are pending. 

Clayton Valley Project Overview

  • Clayton NE consists of 55 unpatented claims totaling approximately 1,080 acres (437 hectares) located in the Clayton Valley sedimentary salar and is contiguous to the eastern boundary of Albemarle's Silver Peak property, North America's only lithium producer;
  • O'Keefe Drilling, of Butte, Montana, has been retained for the Phase 2 program to drill by RC equipment;
  • Several of Albemarle's lithium brine production wells are situated within approximately 100 metres and less of the Clayton NE western claim boundary;
  • Clayton NE is subject to an option earn-in agreement where Advantage Lithium can earn up to a 70% interest in the Project after fulfilling CDN$3.0 million in exploration expenditures on a package of five lithium properties optioned from Nevada Sunrise (for further details, see Nevada Sunrise news release dated June 20, 2016);
  • Nevada Sunrise is the project manager at Clayton NE on behalf of Advantage Lithium, the operator.

For further information about the Company's exploration properties, please access the Nevada Sunrise website at: http://www.nevadasunrise.ca/projects/nevadalithium/

Robert M. Allender, Jr., CPG, RG, SME is the Company's designated Qualified Person for this news release within the meaning of National Instrument 43-101 and has reviewed and approved the technical information contained herein.

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 mineral exploration projects in the State of Nevada, USA. Nevada Sunrise began acquisitions of Nevada lithium properties in September 2015, which include options to earn a 75% interest in the Neptune project (Resolve Ventures Inc. (TSXV: RSV) owns a 25% interest), a 100% interest in the Clayton Northeast project, 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. The Company has recently optioned five of the Nevada lithium projects to Advantage Lithium Corp. (TSXV: AAL), and the Atlantis project is currently under option to American Lithium Corp. (TSXV: LI). The Salt Wells Lithium project, in the Carson Basin near Reno, is currently the subject of due diligence by the Company.

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 an option to earn 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.

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 the properties transaction with Advantage Lithium Corp., the successful transfer of Place of Use and Point of Diversion of water rights, proposed exploration and development of our lithium exploration properties and the potential for 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 its lithium properties, reliance on technical information provided by third parties on any of our exploration properties, including access to historical information on its lithium properties, 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 Year Ended September 30, 2016,  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

For further information: Warren Stanyer, President and Chief Executive Officer, Telephone: (604) 428-8028, Facsimile: (604) 484-7143, Email: [email protected], Website: www.nevadasunrise.ca

Related Links

www.nevadasunrise.ca

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Nevada Sunrise Gold Corporation

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