Nevada Sunrise and Liberty Gold drill 5.42 g/t gold over 9.1 metres at Kinsley Mountain Gold Project in Nevada
Nevada Sunrise and Liberty Gold drill 5.42 g/t
gold over 9.1 metres at Kinsley Mountain Gold
Project in Nevada
TSX Venture Exchange: NEV
VANCOUVER
,
Aug. 2, 2018
/CNW/ -
Nevada Sunrise Gold Corporation
("Nevada Sunrise" or the
"Company") (TSXV: NEV) is pleased to announce that the Company has received results of the
2018 drilling program at the Kinsley Mountain Gold Project ("Kinsley Mountain" or the "Project") from
Liberty Gold Corp. ("Liberty Gold", formerly Pilot Gold Inc.) (TSX: LGD). Kinsley Mountain is
located near the town of
Wendover
in eastern
Nevada
and is a joint venture between
Liberty Gold
and the Company, with
Liberty Gold
, as operator, holding a 79.1 percent interest and Nevada
Sunrise, through a wholly-owned U.S. subsidiary, holding a 20.9 percent interest.
2018 Drilling Program
The 2018 drilling program targeted possible extensions of the Western Flank deposit, which was
discovered by
Liberty Gold
in 2014. Subsequent drilling has outlined a sulphide resource estimate,
using multiple cut-offs
1
of 284,000 Indicated ounces of gold grading 6.04 grams per tonne ("g/t") and
39,000 Inferred ounces grading 2.41 g/t gold (see Nevada Sunrise news release dated
November 5,
2015
).
1
Cut-off grades assume an open-pit mining scenario, using a pit floor elevation generated
using Whittle software, reasonable assumptions for mining and milling costs, and a
US$1,300
/ounce gold price.
A total of seven reverse circulation holes were started in the 2018 program, with five holes
completed and two lost at shallow depths due to voids and fault zones encountered. Total meterage
for the 2018 program was approximately 1,830 metres (6,005 feet). Highlights of the drilling were as
follows:
PK228
intersected
5.42 g/t gold over 9.1 metres
from 275.8 metres to 285.0 metres
,
including 7.77 g/t gold over 6.1 metres
from 277.4 metres to 283.5 metres, at the Secret
Canyon-Geddes contact, 50 metres east of 2017 hole PK221, which intersected 5.30 g/t over
29 metres. This new intercept in PK228 represents a significant step out in the Western Flank
Zone ("WFZ") east extension exploration.
Liberty Gold
has recommended follow up in
subsequent drill programs.
PK229
and
PK229A
were drilled to intersect the Secret Canyon shale beneath the Ridge Pit
area. Both of these holes were cut short due to drilling problems related to voids and fault
zones in the shallow units. However, these holes did provide valuable data in specific fault zone
locations and mineralized breccia zones near the faults. Of note, PK229A returned
1.15 g/t
gold over 15.2 metres
from 91.4 metres to 106.7 metres
,
in brecciated Notch Peak and
Hamburg Dolomite adjacent to the KNW fault zone. This is very encouraging for follow-up
testing of the lower units in this vicinity, as it indicates strong hydrothermal fluid flow during the
local mineralization event.
PK226
was the first hole of the program in the WFZ east extension area, targeted to test a
modelled east-west trending zone between the WFZ and the historical PK200/PK215 intercepts
about 170 metres east of the WFZ high-grade zone. This hole returned multiple mineralized
intercepts, including
1.54 g/t gold over 6.1 metres
from 135.6 metres to 141.7 metres in the
Dunderberg Shale, and
0.77 g/t gold over 7.6 metres
from 249.9 metres to 257.6 metres in
the Secret Canyon Shale.
The first hole of the program, PK225 was drilled into the Anticline Target, an area with no previous
drilling, to test the Secret Canyon Shale southeast of the Western Flank Zone and returned a lower-
grade interval of 0.45 g/t gold over 1.5 metres in the shallow Notch Peak limestone. Hole PK227
was drilled to test the Secret Canyon-Geddes contact and returned a lower-grade interval in the
Dunderberg Shale of 0.55 g/t gold over 6.1 metres from 141.7 metres to 147.8 metres. The last
hole of the program, PK230, encountered voids and fault zones, but showed no significant results.
For maps showing the 2018 target areas and drill hole locations, please access Nevada Sunrise's
website at:
http://www.nevadasunrise.ca/projects/kinsley-mountain/
Drill composites were calculated using a minimum 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.
About Kinsley Mountain
Kinsley Mountain is located approximately 80 kilometres (50 miles) south of
Wendover, Nevada
, and
consists of 513 unpatented lode claims on U.S. Bureau of Land Management land plus 5 leased
patents totaling 4,160 hectares (10,280 acres). Kinsley Mountain hosts near-surface mineralization
similar to other Carlin-style, sediment-hosted gold systems, and hosts a past-producing mine with an
extensive exploration database and numerous untested gold targets.
Further information on Kinsley Mountain is available in the National Instrument 43-101 compliant
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 (the "Kinsley Technical Report"), available at
www.nevadasunrise.ca/investors
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 gold, cobalt, copper and lithium exploration projects
in
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) near
Wendover
, with each of the properties subject to certain production royalties.
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
, the Company announced options to earn 100% interests in the Treasure Box and
Boyer Mine copper properties, located approximately 3.6 miles (5.8 kilometers) southwest of the
Lovelock Cobalt Mine.
Nevada Sunrise began acquisitions of
Nevada
lithium properties in 2015, which includes 100%
interests in the Neptune,
Jackson Wash
and Aquarius projects, 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).
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 exploration and production at Kinsley Mountain, reliance on technical information
provided by third parties on any of our exploration properties, including access to historical
information on the Kinsley Mountain property as well as specific historical data associated with drill
results from the Kinsley Mountain property, information from Liberty Gold Inc., 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 and/or Liberty Gold Inc. 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, 2018
, 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
View original content with multimedia:
http://www.newswire.ca/en/releases/archive/August2018/02/c4965.html
%SEDAR: 00026824E
For further information:
Warren Stanyer, President and Chief Executive Officer, Telephone: (604)
428-8028
Facsimile: (604) 484-7143, Email: [email protected]
CO: Nevada Sunrise Gold Corporation
CNW 08:30e 02-AUG-18