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Nevada Sunrise and Advantage Lithium begin Phase 2 drilling program at Clayton Northeast Lithium Project in Nevada

V.NEV

Canada NewsWire

TSXV: NEV

VANCOUVER, Jan. 17, 2017 /CNW/ - Nevada Sunrise Gold Corporation ("Nevada Sunrise" or the "Company") (TSXV: NEV) and its exploration partner, Advantage Lithium Corp. ("Advantage Lithium") (TSXV: AAL) are pleased to announce that a Phase 2 drilling program has begun at their Clayton NE property, which borders the lithium brine mine operated by Albemarle Corporation ("Albemarle") (NYSE: ALB) at Silver Peak in Clayton Valley, Nevada.  Drilling will be comprised of a total of approximately 1,800 metres (5,905 feet) in three reverse circulation ("RC") holes expected to test depths of a minimum 600 metres each. Using a similar approach to the successful Phase 1 2016 program that hit wide intercepts of lithium brine with strong brine flow rates, these new holes will focus on high-priority conductive horizons identified and imaged in the 2016 3-D resistivity survey and confirmed by drilling to be lithium-bearing brines.  All three holes are adjacent to Albemarle's Silver Peak lithium brine field operation in close proximity to several of their production wells. 

"Advantage Lithium has made the decision to proceed with additional drilling at Clayton NE, and we are pleased that this work is underway," said Warren Stanyer, President and CEO of Nevada Sunrise. "Good results from the Phase 2 program will bring us a step closer to evaluating the potential lithium brine resource on the Property."

2017 Drilling Program Highlights

  • Potential extension of 3.43 kilometre-long mineralized brine trend. The highly-successful Phase 1 program has already defined a 3.43 kilometre-long mineralized trend. Phase 2 drilling has the potential to extend this trend strike length to 5.6 kilometres with successful holes.

  • Drilling deeper into potentially untapped aquifers. Hole CNE-16-03, from the Phase 1 program, was one of the deepest boreholes drilled in the Clayton Valley and, based on results obtained, may have hit a previously untapped aquifer. As a result, Phase 2 holes will target this deeper aquifer.

  • Permits/waivers obtained for future development of a lithium brine resource and wells. In November 2016, the Company received waivers from the Nevada Division of Water Resources for 5 of the 6 permitted holes, which allows for reaming a borehole to a larger diameter well, pump testing, and flow rate determination in order to provide the necessary technical information for development of a lithium brine resource at Clayton NE.

  • Clayton NE exhibits very strong brine flows. Brine flows of up to 120 gallons per minute were encountered in the 2016 program, and if a larger diameter hole is drilled to further develop an exploratory borehole, it is anticipated that brine flows will increase significantly. High brine flows are important for economic production of lithium from brines.

Clayton Valley Project Overview

  • Clayton NE consists of 55 unpatented claims totaling approximately 1,080 acres (437 hectares) located in the Clayton Valley sedimentary salar and is contiguous to the eastern boundary of Albemarle's Silver Peak mine property, North America's only lithium producer;

  • O'Keefe Drilling, of Butte, Montana, has been retained for the Phase 2 program to drill by RC method;

  • Several of Albemarle's lithium brine production wells are situated within approximately 100 metres and less of the Clayton NE western claim boundary.

  • 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.

For further information about the Company's exploration properties, please access the Nevada Sunrise website at: http://www.nevadasunrise.ca/projects/nevadalithium/

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 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 and actual results of historical exploration 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

To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/January2017/17/c8058.html



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