VANCOUVER, British Columbia, Dec. 9, 2014 (GLOBE NEWSWIRE) -- Nevada Sunrise Gold Corporation ("Nevada Sunrise" or the "Company") (TSX-V: NEV ) is pleased to announce that Pilot Gold Inc. ("Pilot Gold") (TSX: PLG ) has reported to the Company highlights from recently completed drilling and an update on other activities at the Kinsley Mountain Project in eastern Nevada ("Kinsley Mountain", or the "Property"), a joint venture between Pilot Gold and Nevada Sunrise. Pilot Gold holds a 79.1 per cent interest in Kinsley Mountain, and Nevada Sunrise, through a wholly-owned U.S. subsidiary, holds a 20.9 per cent interest.
Pilot Gold reports that 2014 has been a landmark year at Kinsley Mountain, with the discovery of the high-grade zone at the Western Flank, and subsequent recognition of the property-wide potential for gold mineralization in the Candland Shale and Secret Canyon formations. The 2014 drilling program consisted of 27,191 metres in 81 holes, including a water test hole, as part of a US$6.04 million exploration program, with assays still pending for 5 holes.
Highlights from recent infill drilling at the Western Flank include:
- 10.1 g/t (grams per tonne) gold over 39.6 metres in PK186C, including
- 17.4 g/t gold over 21.6 metres (Secret Canyon Shale host)
- 6.05 g/t gold over 30.5 metres in PK187C (Secret Canyon Shale host)
- 4.39 g/t gold over 29.2 metres in PK188C (Secret Canyon Shale host)
- 6.88 g/t gold over 6.1 metres in PK177C, including
- 11.0 g/t gold over 3.0 metres (Candland Shale zone)
The Racetrack zone is located 1,200 metres south of the Western Flank along a potential parallel NNE trending structure where surface mineralization in the Candland Shale was intersected over a 250 metre by 300 metre area by prior operators. Six holes were drilled, with PK180 returning mineralization in both the shallow oxide Candland Shale unit and the deeper Secret Canyon Shale.
Highlights from the Racetrack area include:
- 2.69 g/t gold over 7.6 metres (Shallow oxide in the Candland Shale host) and
- 1.25 g/t Au over 10.7 metres (Secret Canyon Shale host) in PK180
Pilot Gold also reports that gold mineralization at Kinsley Mountain is widespread in two stratigraphic units, the Secret Canyon and Candland Shales, with both emerging as viable property-wide targets, and that the latest results not only demonstrate continuity of the high grade at the Western Flank target, but also its broader potential as gold was detected in widely-spaced drill holes over the Western Flank trend.
Other targets tested along the Western Flank in 2014 include the Right Spot, where shallow, oxide gold mineralization was intersected in multiple drill holes; and the Secret Spot, where shallow, oxide mineralization, and deep mineralization in the Secret Canyon Shale were encountered. Gold was also encountered in the area between the Western Flank and the historical mine in three stratigraphic units.
Recent highlights from the Secret Spot include:
- 2.03 g/t gold over 7.6 metres (shallow oxide in the Candland Shale) in PK182
Permitting: Kinsley North
An amendment to the Kinsley Mountain Plan of Operations for conducting surface drilling and other activities was recently approved by the U.S. Bureau of Land Management. The amendment permits up to 20.5 acres (8.3 hectares) of drill roads and pads in the northern two-thirds of the Property, with access to a number of high-priority targets defined by geochemically anomalous pathfinder elements in surface samples and intersections of NNE and NW-trending faults. The "Kinsley North" claims are underlain by the same highly prospective geology and structural framework as the Kinsley Mine and the Western Flank, and have never been drilled.
Metallurgy
Composite samples from the Western Flank zone are currently undergoing metallurgical testing at Hazen Laboratory in Golden, Colorado. This work is addressing the amenability of high-grade mineralization from the Secret Canyon shale to produce a high-grade concentrate.
Targeting
Surface mapping and sampling, continued modeling of historical blast hole and drill data and drilling in 2014 have refined Pilot Gold's targeting efforts to find additional gold mineralization on the Property. Pilot Gold believes that the Secret Canyon Shale, host to the high-grade mineralization in the Western Flank, is a viable target, with gold values greater than 1.0 g/t over significant widths also drilled in the Secret Spot and Racetrack areas up to two kilometres to the south. Over the length of the Property, this horizon is virtually untested, and it is unlikely that the Western Flank is the only high-grade zone. Data support the concept that gold is concentrated at the intersections of NW to WNW and NNE to north-trending, high-angle structures. The principle target is interpreted to be the intersections of faults of these orientations with the Candland Shale and Secret Canyon Shale horizons.
For maps showing the 2014 target areas, and a table of 2014 Kinsley Mountain drill results to date, including non-reportable intercepts, please access Nevada Sunrise's website under "Exploration-Kinsley Mountain" at: http://www.nevadasunrise.ca/projects/kinsley-mountain/
John R. Kerr, P.Eng., is the Company's designated Qualified Person for this news release within the meaning of National Instrument 43-101 ("NI 43-101") and has reviewed and approved the technical information contained in this release. Drill composites were calculated using a cut-off of 0.20 g/t. Drill intersections are reported as drilled thicknesses. True widths of the mineralized intervals are interpreted to be between 30-90% of the reported lengths. Drill samples were assayed by ALS Chemex (ISO9001:2000) 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. 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. Selected holes are also analyzed for a 51 multi-element geochemical suite by ICP-MS.
About Kinsley Mountain
Kinsley Mountain hosts near-surface mineralization similar to other Carlin-style, sediment-hosted gold systems. The Property consists of 475 claims (with six unpatented claims recently added) on U.S. Bureau of Land Management land plus 6 leased patents totalling 9,575 acres (3,875 hectares) and hosts a past-producing mine with an extensive exploration database and numerous, untested gold targets.
Kinsley Mountain is an early-stage exploration project and does not contain any mineral resource estimates as defined by NI 43-101. The potential quantities and grades disclosed herein are conceptual in nature and there has been insufficient exploration to define a mineral resource for the targets disclosed herein. It is uncertain if further exploration will result in these targets being delineated as a mineral resource.
For further information about Kinsley Mountain please refer to a technical report entitled "Technical Report on the Kinsley Project, Elko County, Nevada, U.S.A." , effective February 15, 2012 and dated March 26, 2012, prepared by Michael M. Gustin, CPG of Mine Development Associates and Moira Smith, Ph.D., P.Geo. and Kent Samuelson of Pilot Gold, filed on May 9, 2012 under Nevada Sunrise's Issuer Profile on SEDAR at www.sedar.com and also available for viewing on Nevada Sunrise's website at www.nevadasunrise.ca
About Nevada Sunrise
Nevada Sunrise is a junior gold exploration company with a strong technical team based in Vancouver, BC, Canada, that holds interests in three exploration projects in Nevada, USA. Our three key assets include Kinsley Mountain near Wendover, the Golden Arrow project near Tonopah, and the recently-acquired Roulette property (formerly known as the Grulla property) near Ely, Nevada.
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 future 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 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 historic data associated with and drill results from the property, information from Pilot 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 Pilot 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 Nine Months ended June 30, 2014, 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.
For Further Information Contact: Warren Stanyer President and Chief Executive Officer Telephone: (604) 428-8028 Facsimile: (604) 689-5528 Email:
