OCTOBER 7, 2015, Vancouver, British Columbia - Nevada Sunrise Gold Corporation (“Nevada Sunrise” or the “Company”) (TSXV: NEV) is pleased to announce it has entered into interim letter agreements for an option to purchase two additional lithium exploration properties located in Esmeralda County, Nevada, USA. The Company previously announced the acquisition of the Neptune lithium exploration property in the Clayton Valley area near Silver Peak, Nevada (see Nevada Sunrise news release dated September 21, 2015).
Clayton Northeast Property
The Clayton Northeast property (“Clayton NE”) consists of 16 unpatented association placer claims totaling 526 acres (213 hectares) contiguous to the Silver Peak lithium mine property (“Silver Peak”) operated by Albemarle Corporation. It is reported in the United States Geological Survey (“USGS”) Open-File Report 82-415 (1982) that a historical drill-hole (CV-5) is located on the property. CV-5 was drilled to a depth of 479 feet and encountered lithium values in ground water ranging from 24 parts per million (“ppm”) to 110 ppm, averaging 69.3 ppm for a group of 11 samples, and averaging 65.75 ppm for another group of 12 samples, analyzed both in the laboratory and in the field. The hole was part of a 1977 regional drilling program carried out by the USGS. Nevada Sunrise believes that drilling deeper holes at Clayton NE could intersect additional aquifers potentially hosting brines of similar or better contents of lithium than were encountered in the relatively shallow historical hole.
Jackson Wash Property
The Jackson Wash property (“Jackson Wash”) consists of 58 unpatented association placer claims totaling approximately 2,215 acres (900 hectares) located approximately 20 miles (30 kilometers) southeast of Silver Peak on the east side of the Montezuma Range. Detailed gravity and electromagnetic investigations carried out in 2011 by a previous operator identified a layered sequence of interpreted saturated sedimentary formations filling a deep basin beneath Jackson Wash. Drilling and sampling of the sediments and groundwater in the interpreted basin are the next steps in the exploration process for Jackson Wash. Nevada Sunrise is currently reviewing all historic data, including a proposed four-hole drill program to test specific structural and stratigraphic targets believed prospective for brine deposits. This program was designed by the previous operator.
For further information on Clayton NE and Jackson Wash (the “Properties”) including a map showing their locations, see the Company’s website under “Projects-Nevada Lithium” at: http://www.nevadasunrise.ca/projects/nevadalithium
Details of the Option to Purchase Agreements for Clayton NE and Jackson Wash
For an option to earn up to a 100% interest in either of the Properties, Nevada Sunrise has agreed to pay a total of 1,000,000 common shares of Nevada Sunrise (i.e., 500,000 common shares for each property) to the vendors upon signing definitive agreements (the “Agreements”) for the Properties, and on subsequent anniversaries of the Agreements:
On signing the Agreements: 200,000 common shares
1st Anniversaries: 300,000 common shares
2nd Anniversaries: 500,000 common shares
A 1.5 mile (2.25 kilometer) area of interest applies to each of the Properties. The Properties are each subject to a 3.0% gross overriding royalty (“GOR”). On the 3rd anniversary of the signing of the Agreements for either of Clayton NE or Jackson Wash, Nevada Sunrise would have the right to purchase 1.0% of the respective GORs for US$1,000,000.
The interim letter agreements for the Properties are each subject to certain conditions, including a 30-day due diligence period, approval by the Board of Directors of the Company, and acceptance by the TSX Venture Exchange.
About the Clayton Valley and Jackson Wash
In 2013, the USGS released a paper describing the Clayton Valley’s potential to host lithium deposits based on the hypothesis that lithium is liberated by weathering of host rocks or derived from hydrothermal fluids from a variety of rock sources within a closed basin. The floor of Clayton Valley has an area of about 100 square kilometers and a catchment of about 1,400 square kilometres, and is the lowest (topographically) of at least five adjacent basins that are hydrologically linked by groundwater flow (Zampirro, 2004). It is the combined area of all five linked catchments that makes the effective area of the Clayton Valley lithium-brine system much larger than the footprint of the Clayton Valley proper (Source: from USGS Open File 13-1006, 2013).
Jackson Wash lies in an adjacent valley to the southeast of the Clayton Valley demonstrating similar geological characteristics. It is considered to be prospective for hosting lithium-bearing brines within a discrete, deep basin, interpreted from the 2011 gravity and electromagnetic surveys carried out by a previous operator. Nevada Sunrise is not aware of any modern exploration or drilling for lithium-bearing brines at Jackson Wash.
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 Nevada Sunrise
Nevada Sunrise is a junior mineral exploration company with a strong technical team based in Vancouver, BC, Canada, that holds interests in four exploration projects in Nevada, USA. Our three key gold assets include a 21% interest in a joint venture with Pilot Gold Inc. (TSX: PLG) at Kinsley Mountain near Wendover, a 100% interest in the Golden Arrow project near Tonopah, and a 100% interest in the Roulette gold property in the southeastern Carlin trend near Ely, with each of the properties subject to certain production royalties. The Neptune lithium property near Silver Peak is the Company’s first acquisition in the field of lithium exploration.
FOR FURTHER INFORMATION CONTACT:
Warren Stanyer, President and Chief Executive Officer
Telephone: (604) 428-8028 Facsimile: (604) 484-7143 email: warrenstanyer@nevadasunrise.ca
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 lithium, 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 exploration at the Clayton NE and Jackson Wash properties, reliance on technical information provided by third parties on any of our exploration properties, including access to historical information on the Clayton NE and Jackson Wash properties; 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; 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, 2015, 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.
Copyright © 2015 Nevada Sunrise Gold Corporation, All rights reserved.
