TSXV: NEV
VANCOUVER, March 1, 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 the first borehole of the 2017 drilling campaign at their Clayton Northeast
property ("Clayton NE, or the "Property") in Clayton Valley, Nevada, has intersected
lithium-bearing brines. This follows successful results from the first three boreholes drilled in 2016 (see Nevada Sunrise
news releases dated November 1, 2016, December 5, 2016, and
December 21, 2016). Hole CNE-17-04, drilled to a total depth of 609.6 metres (2,000 feet),
has intersected multiple aquifer formations, including 426.72 metres of brine-producing strata averaging 243.44 milligrams per
litre ("mg/l") lithium between a depth of 140.21 to 609.6 metres, including a higher-grade interval averaging 274.6 mg/l lithium
over 79.2 metres from a depth of 530.35 metres to 609.6 metres.
"Exploration drilling at Clayton NE continues to intersect classic Clayton Valley aquifer systems containing lithium," said
Warren Stanyer, President and CEO of Nevada Sunrise. "Every successful hole brings us closer to
our goal, and that of our partner, Advantage Lithium, of producing a lithium brine resource estimate for Clayton NE."
The Phase 2 drilling program is 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 program
that hit wide intercepts of lithium brine with strong brine flow rates, these new holes are focused 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 four holes drilled to date are adjacent to Silver Peak lithium brine field operation, North
America's only producing lithium mine, operated by Albemarle Corporation ("Albemarle") (NYSE: ALB) in close proximity to
several of their production wells.
2017 Drilling Program Highlights
-
Continued 100% Drilling Success Rate with Strong Lithium Brine Results. Hole CNE-17-04 has intersected multiple
aquifer formations:
- Total composite of 426.72m of brine producing strata at an average grade of 243.44 mg/l lithium, including:
- 274.6 mg/l lithium over 79.2 metres (530.35m to 609.6m)
- Extension of mineralized brine trend to 4.46km. The highly-successful Phase 1 program defined a 3.43km mineralized
trend. The results of Phase 2 drilling to date has extended this trend length to 4.46km.
- Drilling deeper into potentially untested aquifers. Phase 2 holes are targeting possible deeper aquifers that may
not have been intersected by previous drilling in the Clayton Valley. Previous 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 untested
aquifer.
- Permits/waivers obtained for future development of a lithium brine resource and wells. In November 2016, waivers were received 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 an initial lithium brine resource at Clayton NE.
CNE-17-04 – Technical Details
CNE-17-04 was completed to a depth of 609.6 metres (2,000 feet), intersecting the base of the Clayton Valley salar sedimentary
basin at 579.12 metres (1,885 feet). Drilling has intersected typical Clayton Valley strata consisting of alternating
layers of gravel, volcanic ash and clay as well as units consisting of carbonate deposits and other evaporites. A total of
80 grab groundwater samples were collected as brine-bearing formations were encountered. Table 1 presents a compiled
summary of the depths of the aquifer systems with brine interval thickness and associated average lithium grades and TDS
concentrations. Anomalous lithium results with average concentration of 243.44 mg/l were obtained from six (6) discrete
brine-bearing formations intersected over a 469.39 metre section (from 140.21 to 609.6 metres) within the Salt Aquifer, Main Ash
Aquifer, Tufa Aquifer, Lower Aquifer System, Lower Gravel Aquifer, and a possible fractured bedrock aquifer.
Table 1: Results of Brine Samples for CNE-17-04
Drill
Hole
|
Aquifer
System
|
Interval (m)
|
Total Dissolved
Solids (TDS) mg/l
|
Lithium
Range (mg/l)
|
Lithium
Average
Grade (mg/l)
|
From
|
To
|
Width
|
CNE-17-04
|
Salt Aquifer System - A
|
140.21
|
146.30
|
6.10
|
230,000
|
N/A
|
182.00
|
|
Salt Aquifer System - B
|
152.40
|
158.50
|
6.10
|
255,000
|
N/A
|
238.00
|
|
Main Ash - A
|
182.88
|
188.98
|
6.10
|
310,000
|
N/A
|
310.00
|
|
Main Ash - B
|
195.07
|
201.17
|
6.10
|
175,000
|
N/A
|
177.00
|
|
Tufa Aquifer
|
201.17
|
219.46
|
18.29
|
114,000 - 183,000
|
63 - 105
|
89.17
|
|
Lower Aquifer System - A
|
219.46
|
249.94
|
30.48
|
118,200 - 154,000
|
194 - 301
|
266.80
|
|
Lower Aquifer System - B
|
256.03
|
469.39
|
213.36
|
161,000 - 234,000
|
162 - 274
|
242.29
|
|
Lower Gravel Aquifer
|
469.39
|
579.12
|
109.73
|
200,000 - 268,000
|
223 - 283
|
260.11
|
|
Bedrock
|
579.12
|
609.60
|
30.48
|
219,000 - 242,000
|
269 - 286
|
274.00
|
Within this section, a 24.38 metre interval composed of compacted, confining clay was intersected from depth of 158.50 to
182.88 metres. Water was not produced from this unit. This zone is not included in the calculation of total average lithium
concentrations. In addition, recoverable water was not present in three 6.1-metre intervals within this 469.39-metre section
because of excessive fine-grained solids content. The Salt Aquifer System contains two brine-bearing zones (A and B as shown in
table 1) separated by an unsampled zone from 146.30 to 152.40 metres. The Main Ash Aquifer contains two brine-bearing zones (A
and B as shown in Table 1) separated by an unsampled zone from 188.98 to 195.07 metres. The Lower Aquifer System contains one
unsampled zone from 249.94 to 256.03 separating the aquifer into two brine-bearing zones as shown in Table 1 (Lower Aquifer
System – A and B). These three unsampled zones are not included in the calculation of total average lithium concentrations for
these aquifers.
The highest grade results were obtained in the Main Ash Aquifer with a peak concentration up to 310 mg/l lithium (182.88 to
201.17 metres), and in the deeper Lower Gravel Aquifer, with a peak concentration up to 301 mg/l (219.46 to 225.55 metres).
In addition to brine samples, drill cuttings were collected for each 1.5 metre interval and 87 samples have been submitted for
analysis. Analytical results for the drill cuttings are pending.
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 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 equipment;
- 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 Salt Wells Lithium project, in the Carson Basin near Reno, is currently the subject of due diligence by the Company.
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 lithium exploration properties and the potential
for 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 Year Ended September 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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