Nevada Sunrise and Emgold Release Updated Technical Report on the Golden Arrow Property in Nevada
Nevada Sunrise and Emgold Release Updated Technical Report on the Golden
Arrow Property in Nevada
TSX Venture Exchange: NEV
VANCOUVER, March 19, 2018 /CNW/ - Nevada Sunrise Gold Corporation (TSXV: NEV) ("Nevada
Sunrise" or the "Company") announced today that Emgold Mining Corporation ("Emgold") has
completed a National Instrument 43-101 ("NI 43-101") Technical Report (the "Technical Report") on the
Golden Arrow property ("Golden Arrow", or the "Property") in connection with Emgold's acquisition of a
51% interest in the Property from the Company. The Technical Report has been filed on SEDAR at
www.sedar.com and can be found on the Company's website at www.nevadasunrise.ca.
The Technical Report, entitled "2018 Updated Technical Report on the Golden Arrow Project, Nye
County, Nevada, U.S.A." was prepared for Emgold and Nevada Sunrise by Mine Development
Associates in Reno, Nevada, and has an effective date of November 28, 2017 and a report date of
March 2, 2018. The Technical Report was prepared by qualified persons Steven Ristorcelli, CPG, Odin
D. Christensen, PhD, CPG, and Jack S. McPartland, MMSA (collectively, the "Authors"), in support of
Emgold's first-time disclosure of a mineral resource for the Property. The Authors are independent of
both Emgold and Nevada Sunrise.
Nevada Sunrise's data archives, now available to Emgold, include geologic mapping, geochemistry,
geophysics, and exploration drill information collected by multiple companies over the past two
decades. Historical information was compiled, integrated, and reinterpreted by Nevada Sunrise. More
than 400 hammer, air-track, reverse circulation ("RC"), and diamond drill holes have been drilled to
explore for and evaluate gold-silver mineralization on the Property. The vast majority of this drilling has
been focused on discovering and delineating the Gold Coin and Hidden Hill mineralized
zones. Documentation for a large part of this drilling is available, specifically 361 drill holes for a total of
201,010 feet. Of these holes, 19 are core holes and 342 are RC.
Mineral Resource Estimate
The Technical Report discloses a mineral resource, which particulars are set out in Table 1 below. The
mineral resource was modeled for Golden Arrow and estimated by evaluating the drill data statistically
and utilizing a three‐dimensional geological solid model. Mineral domains were interpreted on northeast‐
southwest geological cross sections spaced at approximately 100 foot intervals throughout the extent of
the Property mineralization. The mineral domain interpretations were then rectified to east‐west cross
sections spaced at 20 foot intervals. Estimation was done by inverse‐distance. The Authors were
certified to make their own independent investigations based on what they deemed necessary, in their
professional judgment, to be able to reasonably rely on the provided information to make the conclusions
and recommendations presented in the Technical Report.
Table 1
Golden Arrow Property Mineral Resource1,2,3,7,8
Classification Cut-Off
Grade4,5 Tons Au opt Ag opt Au
Ounces
Ag
Ounces
Measured Variable 1,850,000 0.028 0.43 52,400 796,000
Indicated Variable 10,322,000 0.024 0.31 244,100 3,212,000
Measured and Indicated Variable 12,172,000 0.024 0.33 296,500 4,008,000
Inferred6 Variable 3,790,000 0.013 0.33 50,400 1,249,000
1. CIM Standards were followed in reporting the mineral resource estimate.
2. Effective date of the mineral resource is November 28, 2017.
3. Any known legal, political, environmental, or other risks that could materially affect the potential development of the Mineral
Reserves are detailed below in the section entitled "Cautionary Note Regarding Forward-Looking Statements".
4. Cut-off grades are 0.01 gold equivalent opt for oxide material and 0.015 gold equivalent opt for sulfide material. Mine
Development Associated derived these cut-off grades using mining costs of US$2.00 per ton, heap-leach costs of US$4.00 per
ton, milling costs of US$12.00 per ton, and G&A costs of US$3.50 per ton. Metallurgical recoveries were assumed to range from
70% to 95% for gold, depending upon the oxidation state and sulfide content of the material, and heap-leach or milling scenarios
envisioned. Multiple economic evaluations were done including pit optimization that demonstrated the economic viability.
5. Gold equivalent cut-off grade calculated using a 55:1 gold to silver price ratio. No adjustment was made for metallurgical
recovery.
6. The quality and grade of inferred resources are uncertain in nature and there has been insufficient exploration to define the se
inferred resources as measured or indicated resources and it is uncertain whether further exploration will result in upgrading
them to measured or indicated resource categories.
7. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
8. The Authors verified the data in the Technical Report through a combination of data audits, where drilling data compiled in the
project database was compared to paper logs, maps, assay certificates and other records, and independent verification
sampling. There have been no limitations on, or failure to conduct the verification
As outlined in the Technical Report, the Authors have determined that Golden Arrow is a property of merit
that warrants continued exploration and recommend that Emgold undertake continued systematic
exploration to discover additional centers of mineralization within the Property.
The Authors recommend a two-phased approach to advance the Property, with the goal of completing a
Preliminary Economic Assessment ("PEA") by the end of Phase 2. They recommend Phase 1 include
completion of an internal economic scoping study based on the existing mining resources to evaluate
whether the PEA can be completed from the existing resource, or whether additional drilling is needed to
expand the resource prior to moving forward with a PEA. In addition, the Authors recommend that
Phase 1 include a comprehensive review of presently available technical data to define potential drilling
targets for discovery of new mineral centers and identify locations for drilling within the current resource
areas to upgrade mineral resources from Inferred to Indicated classification. Following a review of the
technical data, preparation of a new geological map for the project area is recommended for clarification
of district volcanic stratigraphy, as well as preparation of several geological cross sections based upon
the mapping and drilling information. Rock-chip and soil geochemistry will complement the geological
mapping. The proposed budget for Phase 1 recommended work is US$550,000.
Following the completion of Phase 1, a decision would be made whether or how to proceed with
Phase 2. Phase 2 may follow two different paths, based on the results of the Phase 1 scoping study and
geological work. The budget for Phase 2 could potentially range from US$200,000 for simply completing
a PEA, to $2.0 million or more for an aggressive drilling program followed by completion of a
PEA. Regardless of the results of Phase 1, exploration drilling is presently warranted, but Phase 1 will be
used to design the drill program for Phase 2.
About Golden Arrow
Golden Arrow is located approximately 40 miles east of Tonopah, Nevada. It encompasses 357
contiguous unpatented and 17 patented lode mineral claims covering an area of approximately 7,050
acres (2,845 hectares). It is an advanced-stage gold and silver exploration property with a
comprehensive exploration database including geochemical sampling, geophysics, and over 200,000 feet
of reverse circulation and diamond core drilling.
To date, two main exploration targets have been drilled on the Property, focusing on bulk disseminated
mineralization – the Gold Coin and the Hidden Hill deposits. Several other targets have been identified
for exploration. The management of Emgold and Nevada Sunrise believe there is potential for expansion
of both the Hidden Hill and the Gold Coin resources, and for discovery of other bulk disseminated
mineralization at Golden Arrow. In addition, historic underground mine workings exist along the Page
Fault and other structures on the Property, indicating potential for vein style mineralization that has been
subject to limited, if any, modern exploration.
Qualified Person
The scientific and technical information that forms the basis for portions of this news release was
reviewed and approved by Robert Pease, PG, CPG, who is a qualified person as defined by NI 43-101.
About Emgold
Emgold is a junior gold exploration and mine development company that has several exploration
properties located in the western U.S. and Canada. These include the Buckskin Rawhide East, Buckskin
Rawhide West, and Koegel Rawhide gold and silver properties in Nevada and the Stewart and Rozan
poly-metalic properties located in British Columbia.
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, cobalt and copper mineral exploration
projects, all located 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. In March 2018,
Nevada Sunrise announced it has acquired the rights to earn 100% interests in the Treasure Box and
Boyer Mine copper properties, subject to underlying royalties, each located approximately 10 miles (15
kilometres) southwest of the Lovelock Cobalt Mine.
Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and
Inferred Resources
This news release has been prepared in accordance with the requirements of Canadian provincial
securities laws which differ from the requirements of U.S. securities laws. Unless otherwise indicated, all
mineral resource estimates included in this news release have been prepared in accordance with
Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") and the
Canadian Institute of Mining, Metallurgy and Petroleum (CIM) classification systems. NI 43-101 is a rule
developed by the Canadian Securities Administrators that establishes standards for all public disclosure
an issuer makes of scientific and technical information concerning mineral projects. These standards
differ significantly from the requirements of the United States Securities and Exchange Commission (the
"SEC"), and reserve and resource estimates disclosed in this news release may not be comparable to
similar information disclosed by U.S. companies.
This news release uses the terms "measured and indicated resources" and "inferred resources" to comply
with the reporting standards in Canada. The Company advises United States investors that while those
terms are recognized and required by Canadian regulations, the SEC does not recognize them. United
States investors are cautioned not to assume that any part or all of the mineral deposits in these
categories will ever be converted into mineral reserves. Further, "inferred resources" have a great
amount of uncertainty as to their existence and as to whether they can be mined legally or
economically. Therefore, United States investors are also cautioned not to assume that all or any part of
the "inferred resources" exist. In accordance with Canadian securities laws, estimates of "inferred
resources" cannot form the basis of feasibility or other economic studies. It cannot be assumed that all or
any part of "measured and indicated resources" or "inferred resources" will ever be upgraded to a higher
category or are economically or legally mineable. In addition, disclosure of "contained ounces" is
permitted disclosure under Canadian securities laws; however, the SEC only permits issuers to report
mineralization as in place tonnage and grade without reference to unit measures.
NI 43-101 also permits the inclusion of disclosure regarding the potential quantity and grade, expressed
as ranges, of a target for further exploration provided that the disclosure (i) states with equal prominence
that the potential quantity and grade is conceptual in nature, that there has been insufficient exploration to
define a mineral resource and that it is uncertain if further exploration will result in the target being
delineated as a mineral resources, and (ii) states the basis on which the disclosed potential quantity and
grade has been determined. Disclosure regarding exploration potential has been included in this news
release. United States investors are cautioned that disclosure of such exploration potential is conceptual
in nature by definition and there is no assurance that exploration will result in any category of NI 43-101
mineral resources being identified.
Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information (collectively,
"forward-looking statements") within the meaning of applicable Canadian and U.S. securities legislation,
including the United States Private Securities Litigation Reform Act of 1995. All statements, other than
statements of historical fact, included herein including, without limitation, statements regarding the
anticipated content, commencement, timing and cost of exploration programs in respect of the Property
and otherwise, anticipated results from the exploration activities, the discovery and delineation of mineral
deposits/resources/reserves on the Property, the completion of a PEA, and the anticipated business
plans and timing of future activities of Emgold on the Property, are forward-looking statements. Although
the Company believes that such statements are reasonable, it can give no assurance that such
expectations will prove to be correct. Forward-looking statements are typically identified by words such
as: "believe", "expect", "anticipate", "intend", "estimate", "postulate" and similar expressions, or are those,
which, by their nature, refer to future events.
In making the forward-looking statements in this news release, the Company has applied several material
assumptions, including without limitation, the metallurgical recovery ranges, a 55:1 gold to silver price
ratio, that market fundamentals will result in sustained gold demand and prices, the receipt of any
necessary regulatory approvals in connection with the future development of the Property in a timely
manner, the availability of financing on suitable terms for the development, study and continued
exploration by Emgold, and the Emgold's ability to comply with environmental, health and safety
laws. Nevada Sunrise cautions investors that any forward-looking statements made by the Company are
not guarantees of future results or performance, and that actual results may differ materially from those in
forward-looking statements as a result of various factors, including, issues raised during the Emgold's due
diligence on the Property, operating and technical difficulties in connection with mineral exploration and
development activities, actual results of exploration activities, the estimation or realization of mineral
reserves and mineral resources, the timing and amount of estimated future production, the costs of
production, capital expenditures, the costs and timing of the development of new deposits, requirements
for additional capital, future prices of precious metals, changes in general economic conditions, changes
in the financial markets and in the demand and market price for commodities, labour disputes and other
risks of the mining industry, delays in obtaining governmental approvals, permits or financing or in the
completion of development or construction activities, changes in laws, regulations and policies affecting
mining operations, title disputes, the inability of Emgold to obtain any necessary permits, consents or
authorizations required, including TSXV acceptance of the acquisition of the Property and any other
current or future property acquisitions or financings and other planned activities, the timing and possible
outcome of any pending litigation, environmental issues and liabilities, and risks related to joint venture
operations, and other risks and uncertainties disclosed in the Company's latest interim Management's
Discussion and Analysis and filed with certain securities commissions in Canada. Nevada Sunrise's and
Emgold's Canadian public disclosure filings may be accessed via www.sedar.com and readers are urged
to review these materials, including the technical reports filed with respect to each company's mineral
properties.
Readers are cautioned not to place undue reliance on forward-looking statements. The Company
undertakes no obligation to update any of the forward-looking statements in this news release or
incorporated by reference herein, except as otherwise required by law.
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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%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 16:45e 19-MAR-18