TSXV: NEV
VANCOUVER, Nov. 1, 2016 /CNW/ - Nevada Sunrise Gold Corporation
("Nevada Sunrise" or the "Company") (TSXV: NEV) and its joint venture partner, Advantage Lithium Corp. ("Advantage Lithium")
(TSXV: AAL) are pleased to announce lithium-bearing brines have been intersected in the first borehole of the 2016 drilling program
at the Clayton Northeast lithium brine project in the Clayton Valley, Nevada ("Clayton NE", or the
"Project"). Clayton NE borders the Silver Peak mine operated by Albemarle Corporation ("Albemarle") (NYSE: ALB), North America's only producing lithium mine. Hole CNE-16-01, still in progress, has encountered
classic Clayton Valley permeable sedimentary strata and has intersected aquifer formations that host brines at depths between 553
and 1,200 feet (169 to 366 metres). Lithium values in the first five grab samples taken within the aquifer zones are highly
anomalous, including up to 218.0 parts per million ("ppm"), with three of the five samples averaging 209.0 ppm lithium. Target
depth for hole CNE-16-01 is estimated at 1,500 feet (457 metres), or until contact with bedrock.
"Our first borehole has confirmed the prospectivity of the Clayton NE property for lithium-bearing brines," said Warren Stanyer, President and CEO of Nevada Sunrise. "Exploration drilling into aquifer zones is a demanding
task, and the success of this inaugural hole is a tribute to the collective experience of our geological team and our drill
crew."
Conventional dual-tube reverse circulation ("RC") drilling intersected typical Clayton Valley strata consisting of alternating
layers of gravel, volcanic ash and clay. The Main Ash and the Lower Aquifer System, as described by Zampirro, (2003) were
encountered beginning at 553 feet (169 metres). A zone of increased water flow was encountered between 735 and 800 feet (224 to 244
metres) in the borehole. Three water samples were collected from this zone. Analysis of these samples shows this zone (interpreted
to be the Lower Aquifer System) to carry significant lithium concentrations (see table below).
Clayton NE Lithium Brine Exploration Project - Initial Results (as of October 30,
2016)
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Interval (feet)
|
Total Dissolved
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Lithium
|
Drill Hole
|
Aquifer System
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From
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To
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Width
|
Solids (ppm)
|
(ppm)
|
CNE-16-01
|
Main Ash Aquifer
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553
|
558
|
5
|
68,000
|
94.3
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|
Lower Aquifer System
|
735
|
745
|
10
|
110,000
|
218.0
|
|
|
735
|
745
|
10
|
110,000
|
216.0
|
|
|
780
|
800
|
20
|
110,000
|
195.0
|
|
|
815
|
820
|
5
|
7,200
|
15.6
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|
|
1070
|
1075
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5
|
*97,840
|
Pending
|
|
|
1075
|
1082
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7
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*97,020
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Pending
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|
|
1095
|
1099
|
4
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*100,100
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Pending
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|
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1194
|
1195
|
1
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* 81,110
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Pending
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*Field instrument measurement
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|
|
|
|
|
Approximately 240 drill cutting samples of the sediments have been collected for each 5-foot interval within the borehole, from
which representative samples will be selected for analysis.
Total dissolved solids ("TDS") values for the first five brine samples from borehole CNE-16-01 ranged from 110,000 ppm for the
samples containing the highest lithium values, to a low of 7,200 ppm for the sample containing the lowest lithium value. A direct
correlation between higher lithium values and higher strength brine is indicated. These initial results from CNE-16-01 for three of
the first five samples are generally comparable to Albemarle's brine samples from production wells as reported from 2009-2013 to
the State of Nevada for Annual Water Pollution Control Permits (Source: Pure Energy Minerals
Ltd. National Instrument 43-101 Technical Report entitled "Inferred Resource Estimate for Lithium, Clayton Valley South Project,
Clayton Valley, Esmeralda County, Nevada USA", dated July 17,
2015).
2016 Exploration Program Highlights
- The 2016 exploration drilling program is planned to include three RC drill holes totaling approximately 4,920 feet (1,500
metres), focussed on lithium brine targets close to the Silver Peak mine border and several of Albemarle's production wells;
- In September 2016, an 11.0 line-km Volterra 3D-IP ground geophysical survey successfully imaged
highly-conductive horizons to the survey depth limit of approximately 2,600 feet (800 metres) - these conductive zones have been
confirmed in hole CNE-16-01 as brine-bearing formations;
- The three high-priority drill targets were chosen to best intersect the broadest and most conductive zones detected by the
geophysical survey;
- The drill will be mobilized to the second target of the program upon completion of borehole CNE-16-01;
- Nevada Sunrise and Advantage Lithium are the only lithium explorers in the Clayton Valley, other than Albemarle, with access
to certified water rights for the purposes of future development.
For further information on Clayton NE, including location maps, see the Company's website under "Projects-Nevada Lithium" at:
http://www.nevadasunrise.ca/projects/nevadalithium/
Groundwater samples were sent to Western Environmental Testing Laboratory in Reno, Nevada for
analysis. General chemistry testing included analysis for specific gravity, total hardness and alkalinity, bicarbonate, carbonate,
hydroxide, TDS and electrical conductivity. Anions (chloride, sulfate) were analyzed by ion chromatography. Trace metals (lithium,
magnesium, boron, calcium, potassium and sodium) were analyzed by ICP-OES. TDS values obtained in the field are measured with a
handheld YSI Model 556 Multiparameter Meter, which meets Good Laboratory Practice for calibration and measurement. All depth
measurements reported, including sample and interval widths are down-hole. As holes are oriented vertical and geologic
stratigraphy is primarily horizontal to sub-horizontal, downhole measurements are assumed to be close to true thickness.
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.
About Clayton NE
- Consists of 50 unpatented claims totaling approximately 1,000 acres (405 hectares);
- Clayton NE is subject to an option earn-in agreement where Advantage Lithium can earn up to a 70% interest in the Project
after fulfilling CDN$3.0 million in exploration expenditures on a package of five lithium
properties optioned from Nevada Sunrise (for further details, see Nevada Sunrise news release dated June
20, 2016);
- Nevada Sunrise is the project manager at Clayton NE on behalf of Advantage Lithium, the operator.
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 nine mineral exploration
projects in the State of Nevada, USA. Nevada Sunrise began acquisitions of Nevada lithium properties in September 2015, which include options to earn a 75%
interest in the Neptune project (Resolve Ventures Inc. (TSXV: RSV) owns a 25% interest), a 100% interest in the Clayton Northeast
project, and a 100% interest in the Aquarius Project, all located in the Clayton Valley area. The Company also holds options to
earn 100% interests in the Jackson Wash and Atlantis projects, and has a 50% participating interest in the Gemini project, each
located in playas proximal to the Clayton Valley. The Company has recently optioned five of the Nevada lithium projects to Advantage Lithium Corp. (TSXV: AAL), and the Atlantis project is currently under
option to American Lithium Corp. (TSXV: LI).
The Company's 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 an option to earn 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.
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 the properties transaction with Advantage Lithium Corp., the successful transfer of Place of Use and Point of
Diversion of water rights, 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 of historical exploration and actual results of
current exploration by Nevada Sunrise at its lithium properties; reliance on technical information provided by third parties on any
of our exploration properties, including access to historical information on its lithium 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, 2016, 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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