Nevada Sunrise Acquires Treasure Box and Boyer Mine Copper Properties Near Lovelock Cobalt Mine in Nevada and Samples up to 16.57% Copper
Nevada Sunrise Acquires Treasure Box and Boyer Mine Copper Properties Near
Lovelock Cobalt Mine in Nevada and Samples up to 16.57% Copper
TSX Venture Exchange: NEV
VANCOUVER, March 5, 2018 /CNW/ - Nevada Sunrise Gold Corporation ("Nevada Sunrise" or the
"Company") (TSXV: NEV) is pleased to announce it has acquired options to purchase the historic
Treasure Box and Boyer Mine copper properties, each located in the Stillwater Range of Churchill
County, approximately 100 miles (150 kilometers) east of Reno. Under its area of interest agreement with
the vendor of the Lovelock Cobalt Mine, Nevada Sunrise has the right to purchase a 100% interest in the
Treasure Box property, and has also executed an option agreement with a separate vendor to purchase a
100% interest in the Boyer Mine property.
"This is the first consolidation of the Treasure Box and Boyer Mine properties in decades," said Warren
Stanyer, President and CEO of Nevada Sunrise. "Our exploration in this mineral-rich area began with the
Lovelock Cobalt Mine and we now recognize the hallmarks of a supergene-enriched deposit model that
includes the potential for discovery of high-grade copper mineralization."
2017 Geochemical Sampling near Lovelock Cobalt Mine and at the Treasure Box
While conducting due diligence in late 2017, Nevada Sunrise collected grab rock samples southwest of
the Lovelock Cobalt Mine and on the Treasure Box property further to the southwest. The analytical
results of several of the rock samples taken from historical mine waste and other bedrock occurrences
show strong enrichment in copper and anomalous values of gold and silver in certain samples, as shown
in the analytical highlights below:
Sample No. Location Copper
(%)
Gold
(g/t)
Silver
(g/t)
LCoR-10 SW Lovelock Mine area 16.57 2.22 21.10
ENR-2 Treasure Box historical trench 11.86 trace 0.24
AZ Grab SW Lovelock Mine area 8.29 ND 11.57
LCoR-12 Treasure Box mine waste 4.54 trace 0.42
ENR1 Treasure Box float 4.09 trace 8.33
About the Treasure Box Mine and the Boyer Mine Properties
The combined area of the Treasure Box unpatented claims and the Boyer Mine patented claims total
approximately 1,300 acres (526 hectares). The two properties are contiguous and some of the claim
boundaries dating back to 1901 are still intact. The Treasure Box and Boyer Mine properties each host
mine workings from limited copper production, which occurred until early into the 20th century. A historical
diamond drill hole (circa 1910) drilled at the Treasure Box by the Boyer-Nevada Copper Company
reportedly intersected 1.52% copper over 85 feet (25.9 metres) with mineralization beginning at
surface. A reverse circulation hole drilled on the Treasure Box by Utah International in 1976 returned
1.55% copper over 40 feet (12.2 metres) from a depth of 85 to 125 feet (25.9 to 38.1 metres), and the
hole was stopped in chalcopyrite mineralization. The core Treasure Box claims were held continuously for
over 20 years by a private company but were relinquished in September 2017, leading to their acquisition
by Nevada Sunrise.
The Boyer Mine was discovered by Alva Boyer who made the original discovery of high-grade oxide
copper mineralization in the early 1860s. Some hand-sorted material was shipped to Swansea, Wales by
wagon train through Sacramento ("Reconnaisance of Mining Districts in Churchill County, Nevada",
Vandenburg, 1940). In the modern exploration era, Boxxer Gold Corp. carried out trenching in 2007,
successfully outlining a mineralized zone at the Boyer Mine property but did not execute a long-term
option agreement with the vendor. In 2014 and 2015, Discovery Harbour Resources Corp. carried out
geophysical surveys, geochemical sampling and drilled 12 holes on the Boyer Mine claims and adjacent
areas. The best intersections were in hole 2B14-06, which intersected a true thickness of 21 feet (6.4
metres) of mineralization grading 0.84% copper, including 4 feet (1.22 metres) of 3.22% copper, and hole
2B14-07, which intersected a true thickness of 60 feet (18.29 metres) of mineralization grading 0.37%
copper, including 2 feet (0.61 meters) grading 1.09% copper and 5 feet (1.52 metres) grading 1.02%
copper.
Boyer Mine Property Letter Agreement
The Boyer Mine property (the "Property") consists of seven patented claims (Azurite, Gardner, Nevada
Queen, Colorado King, Mammoth, Lulla B and Snipe) covering an area of approximately 140 acres (56.7
hectares). Included in the option agreement are three non-contiguous patented claims (Lida G, Copper
Glance and Maggie W) west of the Boyer Mine designated as the Copper Glance claim group covering an
area of approximately 64.7 acres (26.2 hectares), and one isolated patented claim (Flora May) covering
approximately 20.7 acres (8.4 hectares), all located in Churchill County, Nevada.
Nevada Sunrise may acquire a 100% interest in the Property subject to a 1.0% net smelter returns royalty
("NSR") in consideration for cash payments totaling US$2,500,000, as described below (all cash amounts
listed are in US dollars):
A non-refundable $5,000 payment paid by Nevada S unrise as a pre-option payment for an exclusive
45-day period during which Nevada Sunrise will conduct due diligence on the Property and shall
receive and review a technical report for the Property dated March 1, 2016;
Within 5 business days following the receipt by Nevada Sunrise of a fully-executed definitive
agreement: $20,000;
On or before January 1, 2019: $30,000;
On or before January 1, 2020: $40,000;
On or before January 1, 2021: $50,000;
On or before January 1, 2022: $2,355,000.
Nevada Sunrise will have the right to accelerate the timing of cash payments to the vendor at its
discretion. The vendor shall retain a 1.0% NSR applicable to the Property, half of which can be purchased
by Nevada Sunrise (i.e., 0.5%) at any time for $750,000.
During the option period Nevada Sunrise shall be responsible for (i) payment of the annual property taxes
for the Property totaling approximately $660 per year, and (ii) payment of sample storage fees of
approximately $1,600 per year.
The purchase of the Property by Nevada Sunrise is subject to (i) completion of a due diligence review for
up to 45 days, which may including a site visit by its geological consultants, to its sole satisfaction, and (ii)
formal approval by the Board of Directors of Nevada Sunrise.
Upon the execution of a definitive agreement and receipt of the $20,000 cash payment described above,
Nevada Sunrise will receive access to a data archive and samples related to the Property collected by
previous explorers at a historical cost of approximately $700,000.
Technical Advisor Appointment
Nevada Sunrise is also pleased to announce the appointment of Theodore ("Ted") DeMatties, CPG, PG.,
a U.S.-based consulting geologist with experience in exploring the geology and mineral deposits of the
Stillwater Range in Nevada. His recent work in the Stillwater Range has led to the better understanding of
the potential for iron oxide-copper-gold ("IOCG") deposits in the area. Mr. DeMatties is the author of a
technical report for the Boyer Mine area entitled "An Evaluation of the 2BAR Copper-Oxide Property,
Churchill County, Nevada, U.S.A." dated March 1, 2016.
During his 40-year career as a geologist, Mr. DeMatties has been responsible for planning, management,
and execution of mineral exploration programs, and detailed mining and mineral property evaluations for
numerous clients. Deposit-type experience includes volcanogenic and sediment-hosted massive sulfide
deposits in Precambrian and younger terranes, shear zone and iron formation-hosted gold deposits, as
well as copper-nickel-PGM deposits associated with mafic-ultramafic rocks. He acted as field manager for
a major, long-term, multimillion-dollar joint-venture volcanogenic massive sulfide (VMS) exploration
program in Wisconsin, which led to the discovery of the Bend copper-gold deposit.
In 2017, Mr. DeMatties published a paper in Ore Geology Reviews entitled: "The Jurassic –
Tertiary unconformity: A new exploration target for supergene-enriched iron oxide copper-gold –style
mineralization in the Humboldt mafic complex, Nevada, USA", which specifically discusses the
copper, nickel and cobalt deposits of the eastern Stillwater Range.
Geochemical analyses for the Treasure Box and Lovelock Mine samples were performed by Bureau
Veritas of Vancouver, BC, Canada, with a 53-element analytical package by ICP-MS after modified aqua
regia digestion, following sample crushing and preparation in the Bureau Veritas, Reno, Nevada
facility. Over limit samples were reanalyzed by ICP-ES by HNO3-HCl acid digestion.
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. Readers are cautioned that some of the technical
information described in this news release is historical in nature; however, the information is
deemed credible and was produced by professional geologists of the eras discussed.
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 gold, lithium and cobalt 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,
currently the subject of a transaction with Emgold Mining Corporation (TSXV: EMR) and a 21% interest in
a joint venture at Kinsley Mountain with Liberty Gold Inc. (TSX: LGD, formerly Pilot Gold Inc.) near
Wendover, with each of the properties subject to certain production royalties.
Nevada Sunrise began acquisitions of Nevada lithium properties in 2015, which includes 100% interests
in the Neptune, Jackson Wash and Aquarius projects, and a 50% interest in the Gemini project (Eureka
Resources Inc. (TSXV: EUK) holds a 50% interest), and a 100% interest in the Atlantis project, currently
under option to American Lithium Corp. (TSXV: LI). For further information on other Nevada lithium
projects operated by the Company (Aquarius, Neptune, Jackson Wash and Gemini), including location
maps, please visit the Nevada Sunrise website at: "Projects – Nevada Lithium":
http://www.nevadasunrise.ca/projects/nevadalithium/
In November 2017, Nevada Sunrise announced an option to earn a 100% interest in the historic Lovelock
Cobalt Mine property, located approximately 100 miles (150 kilometers) east of Reno.
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 and other metals and minerals, 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 Lovelock Mine property, reliance on technical information provided by third parties on any of our
exploration properties, including access to historical information on the Lovelock Mine 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 Three Months ended December 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
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http://www.newswire.ca/en/releases/archive/March2018/05/c3116.html
%SEDAR: 00026824E
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
CO: Nevada Sunrise Gold Corporation
CNW 08:30e 05-MAR-18