TSX Venture Exchange: NEV
VANCOUVER, July 13, 2017 /CNW/ - British Columbia - Nevada Sunrise Gold Corporation ("Nevada Sunrise" or the "Company") (TSXV: NEV) is pleased to announce it has received results from Liberty Gold Corp. ("Liberty Gold",TSX: LGD, formerly Pilot Gold Inc.) from a 4-hole reverse circulation ("RC") drilling program carried out at the Western Flank East Extension Target at the Kinsley Mountain Project ("Kinsley Mountain", or the "Project") in eastern Nevada. The 2017 drilling program is part of an ongoing effort to test new targets and expand sparsely-drilled targets at Kinsley Mountain, which is a joint venture between Liberty Gold and Nevada Sunrise, with Liberty Gold holding a 79.1 percent interest, and Nevada Sunrise, through a wholly-owned U.S. subsidiary, holding a 20.9 percent interest. Liberty Gold is operator of the Project.
Highlights from the Western Flank East Extension Target include:
- From the Secret Canyon Shale Zone (lower host):
- 5.30 grams/tonne ("g/t") gold over 29.0 metres including 7.84 g/t gold over 16.8 metres in hole PK221
- 3.68 g/t gold over 3.0 metres in hole PK224
- From the Dunderberg Shale Zone (upper host):
- 12.4 g/t gold over 4.6 metres including 35.1 g/t gold over 1.5 m in PK221
- 6.84 g/t gold over 7.6 m including 12.8 g/t gold over 3.0 metres in PK224
The Western Flank East Extension Target is located immediately east of the Western Flank deposit, which was discovered in late 2013. The sulphide resource at the Western Flank deposit, hosted in the Secret Canyon Shale, is currently estimated at 284,000 Indicated ounces of gold grading 6.04 g/t, and 39,000 Inferred ounces grading 2.41 g/t gold (see Nevada Sunrise news release dated December 17, 2015), and the Kinsley Mountain Technical Report available on the Company's website at www.nevadasunrise.ca or under the Company's SEDAR profile at www.sedar.com).
The Western Flank East Extension Target had yielded several high-grade intercepts in previous drilling, including:
- 6.15 g/t gold over 7.6 metres (Secret Canyon Shale host) in hole PK200;
- 2.34 g/t gold over 9.1 metres (Dunderberg Shale host) in hole PK208;
- 3.46 g/t gold over 18.3 metres including 13.7 g/t gold over 3.0 metres (Secret Canyon Shale host) in hole PK208, and
- 2.95 g/t gold over 13.7 metres (Secret Canyon Shale host) in hole PK210.
The new drill holes link gold mineralization in the Western Flank deposit to drill holes PK208 and PK210, 150 metres to the east. Results provide impetus for further drilling in this sparsely tested area, which remains open to infill and extension in all directions for both stratigraphic horizons.
Three additional holes were drilled in the current program. One drill hole tested the Dunderberg Shale and returned 1.37 g/t Au over 3.0 metres, but was lost above the Secret Canyon Shale target. Another hole tested stratigraphy to the southeast of the historic mine. It did not return a mineralized intercept, but it did confirm the presence of the prospective Secret Canyon Shale at shallow depth.
For a map of drill collars and traces, and a complete table of drill results for the current holes, please visit the Company's website at: http://www.nevadasunrise.ca/projects/kinsley-mountain/
About the Western Flank Target Area
The Western Flank deposit was discovered in late 2013 in the Secret Canyon Shale Formation, which lies below the Dunderberg Shale, host to shallow oxide resources and past-production at Kinsley Mountain, and was previously unrecognized as a potential host to mineralization (see Nevada Sunrise news release dated November 18, 2013). In late 2015, Liberty Gold released a resource estimate for the Kinsley Mountain deposit, including a separate estimation for the Western Flank Zone (see Nevada Sunrise news release dated November 5, 2015). 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 and conventional flotation methods (see Nevada Sunrise news release dated January 19, 2015).
Drill composites were calculated using a cut-off of 0.20 g/t gold. Drill intersections are reported as drilled thicknesses. True widths of the mineralized intervals vary between 30 and 100 percent of the reported lengths due to varying drill hole orientations, but are typically in the range of 60 to 80 percent of true width. Drill samples were assayed by ALS Limited in Reno, Nevada for gold by Fire Assay of a 30 gram (1 assay ton) charge with an AA finish, or if over 5.0 g/t were re-assayed and completed with a gravimetric finish. For these samples, the gravimetric data were utilized in calculating gold intersections. For any samples assaying over 0.200 ppm an additional cyanide leach analysis is done where the sample is treated with a 0.25% NaCN solution and rolled for an hour. An aliquot of the final leach solution is then centrifuged and analyzed by AAS. Metallic screen techniques may be employed where the presence of coarse free gold is suspected. Approximately 1000 grams of coarse reject material are pulverized and screened. Two splits of the fine fraction are assayed, as well as all material that does not pass through the screen (the coarse fraction). The final gold assay reported is a weighted average of the coarse and fine fractions. QA/QC for all drill samples consists of the insertion and continual monitoring of numerous standards and blanks into the sample stream, and the collection of duplicate samples at random intervals within each batch.
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.
Further information on Kinsley Mountain 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, available on the Company's website at www.nevadasunrise.ca 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 two key gold assets include a 100% interest in the Golden Arrow project near Tonopah, and a 21% interest in a joint venture with Liberty Gold (formerly Pilot Gold Inc.) at Kinsley Mountain, 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 (Resolve Ventures,TSXV: RSV owns a 25% interest in Neptune), Clayton Northeast and Triton 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 lithium projects, and holds a 3% gross overriding royalty interest in in the Gemini lithium project, each located in playas proximal to the Clayton Valley. The Company has optioned six of its Nevada lithium projects to Advantage Lithium Corp., (TSXV: AAL), who has earned a 51% interest in Clayton Northeast, Triton, Aquarius, and Jackson Wash projects, and a 50% interest in the Gemini project. The Atlantis project is currently under option to American Lithium Corp. (TSXV: LI).
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 work at the Kinsley Mountain property, reliance on technical information provided by third parties on any of our exploration properties, including access to historical information on the Kinsley Mountain 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; failure of Nevada Sunrise 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 Six Months ended March 31, 2017, 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]