TSX Venture Exchange: NEV
VANCOUVER, March 19, 2018 /CNW/ - Nevada Sunrise Gold
Corporation (TSXV: NEV) ("Nevada Sunrise" or the "Company") announced today that Emgold Mining Corporation
("Emgold") has completed a National Instrument 43-101 ("NI 43-101") Technical Report (the "Technical
Report") on the Golden Arrow property ("Golden Arrow", or the "Property") in connection with Emgold's
acquisition of a 51% interest in the Property from the Company. The Technical Report has been filed on SEDAR at www.sedar.com and can be found on the Company's website at www.nevadasunrise.ca.
The Technical Report, entitled "2018 Updated Technical Report on the Golden Arrow Project, Nye
County, Nevada, U.S.A." was prepared for Emgold and Nevada Sunrise by Mine Development Associates in Reno, Nevada, and has an effective date of November 28, 2017 and a report date
of March 2, 2018. The Technical Report was prepared by qualified persons Steven
Ristorcelli, CPG, Odin D. Christensen, PhD, CPG, and Jack S.
McPartland, MMSA (collectively, the "Authors"), in support of Emgold's first-time disclosure of a mineral resource
for the Property. The Authors are independent of both Emgold and Nevada Sunrise.
Nevada Sunrise's data archives, now available to Emgold, include geologic mapping, geochemistry, geophysics, and exploration
drill information collected by multiple companies over the past two decades. Historical information was compiled,
integrated, and reinterpreted by Nevada Sunrise. More than 400 hammer, air-track, reverse circulation ("RC"), and
diamond drill holes have been drilled to explore for and evaluate gold-silver mineralization on the Property. The vast
majority of this drilling has been focused on discovering and delineating the Gold Coin and Hidden Hill mineralized zones.
Documentation for a large part of this drilling is available, specifically 361 drill holes for a total of 201,010 feet. Of these
holes, 19 are core holes and 342 are RC.
Mineral Resource Estimate
The Technical Report discloses a mineral resource, which particulars are set out in Table 1 below. The mineral resource
was modeled for Golden Arrow and estimated by evaluating the drill data statistically and utilizing a three‐dimensional
geological solid model. Mineral domains were interpreted on northeast‐southwest geological cross sections spaced at
approximately 100 foot intervals throughout the extent of the Property mineralization. The mineral domain
interpretations were then rectified to east‐west cross sections spaced at 20 foot intervals. Estimation was done by
inverse‐distance. The Authors were certified to make their own independent investigations based on what they deemed
necessary, in their professional judgment, to be able to reasonably rely on the provided information to make the conclusions and
recommendations presented in the Technical Report.
Table 1
Golden Arrow Property Mineral Resource1,2,3,7,8
Classification
|
Cut-Off
Grade4,5
|
Tons
|
Au opt
|
Ag opt
|
Au
Ounces
|
Ag
Ounces
|
Measured
|
Variable
|
1,850,000
|
0.028
|
0.43
|
52,400
|
796,000
|
Indicated
|
Variable
|
10,322,000
|
0.024
|
0.31
|
244,100
|
3,212,000
|
Measured and Indicated
|
Variable
|
12,172,000
|
0.024
|
0.33
|
296,500
|
4,008,000
|
|
|
|
|
|
|
|
Inferred6
|
Variable
|
3,790,000
|
0.013
|
0.33
|
50,400
|
1,249,000
|
1.
|
CIM Standards were followed in reporting the mineral resource
estimate.
|
2.
|
Effective date of the mineral resource is November 28, 2017.
|
3.
|
Any known legal, political, environmental, or other risks that could
materially affect the potential development of the Mineral Reserves are detailed below in the section entitled
"Cautionary Note Regarding Forward-Looking Statements".
|
4.
|
Cut-off grades are 0.01 gold equivalent opt for oxide material and 0.015
gold equivalent opt for sulfide material. Mine Development Associated derived these cut-off grades using mining
costs of US$2.00 per ton, heap-leach costs of US$4.00 per ton, milling costs of US$12.00 per ton, and G&A costs of
US$3.50 per ton. Metallurgical recoveries were assumed to range from 70% to 95% for gold, depending upon the
oxidation state and sulfide content of the material, and heap-leach or milling scenarios envisioned. Multiple
economic evaluations were done including pit optimization that demonstrated the economic viability.
|
5.
|
Gold equivalent cut-off grade calculated using a 55:1 gold to silver price
ratio. No adjustment was made for metallurgical recovery.
|
6.
|
The quality and grade of inferred resources are uncertain in nature and
there has been insufficient exploration to define these inferred resources as measured or indicated resources and it is
uncertain whether further exploration will result in upgrading them to measured or indicated resource
categories.
|
7.
|
Mineral resources that are not mineral reserves do not have demonstrated
economic viability.
|
8.
|
The Authors verified the data in the Technical Report through a combination
of data audits, where drilling data compiled in the project database was compared to paper logs, maps, assay certificates
and other records, and independent verification sampling. There have been no limitations on, or failure to conduct
the verification
|
As outlined in the Technical Report, the Authors have determined that Golden Arrow is a property of merit that warrants
continued exploration and recommend that Emgold undertake continued systematic exploration to discover additional centers of
mineralization within the Property.
The Authors recommend a two-phased approach to advance the Property, with the goal of completing a Preliminary Economic
Assessment ("PEA") by the end of Phase 2. They recommend Phase 1 include completion of an internal economic
scoping study based on the existing mining resources to evaluate whether the PEA can be completed from the existing resource, or
whether additional drilling is needed to expand the resource prior to moving forward with a PEA. In addition, the Authors
recommend that Phase 1 include a comprehensive review of presently available technical data to define potential drilling
targets for discovery of new mineral centers and identify locations for drilling within the current resource areas to upgrade
mineral resources from Inferred to Indicated classification. Following a review of the technical data, preparation of a new
geological map for the project area is recommended for clarification of district volcanic stratigraphy, as well as preparation of
several geological cross sections based upon the mapping and drilling information. Rock-chip and soil geochemistry will
complement the geological mapping. The proposed budget for Phase 1 recommended work is US$550,000.
Following the completion of Phase 1, a decision would be made whether or how to proceed with Phase 2. Phase 2
may follow two different paths, based on the results of the Phase 1 scoping study and geological work. The budget for Phase
2 could potentially range from US$200,000 for simply completing a PEA, to $2.0 million or more for an aggressive drilling program followed by completion of a PEA. Regardless of
the results of Phase 1, exploration drilling is presently warranted, but Phase 1 will be used to design the drill program
for Phase 2.
About Golden Arrow
Golden Arrow is located approximately 40 miles east of Tonopah, Nevada. It encompasses
357 contiguous unpatented and 17 patented lode mineral claims covering an area of approximately 7,050 acres (2,845
hectares). It is an advanced-stage gold and silver exploration property with a comprehensive exploration database including
geochemical sampling, geophysics, and over 200,000 feet of reverse circulation and diamond core drilling.
To date, two main exploration targets have been drilled on the Property, focusing on bulk disseminated mineralization – the
Gold Coin and the Hidden Hill deposits. Several other targets have been identified for exploration. The management of
Emgold and Nevada Sunrise believe there is potential for expansion of both the Hidden Hill and the Gold Coin resources, and for
discovery of other bulk disseminated mineralization at Golden Arrow. In addition, historic underground mine workings exist
along the Page Fault and other structures on the Property, indicating potential for vein style mineralization that has been
subject to limited, if any, modern exploration.
Qualified Person
The scientific and technical information that forms the basis for portions of this news release was reviewed and approved by
Robert Pease, PG, CPG, who is a qualified person as defined by NI 43-101.
About Emgold
Emgold is a junior gold exploration and mine development company that has several exploration properties located in the
western U.S. and Canada. These include the Buckskin Rawhide East, Buckskin Rawhide West, and Koegel Rawhide gold and silver
properties in Nevada and the Stewart and Rozan poly-metalic properties located in British Columbia.
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 gold, lithium, cobalt and
copper mineral exploration projects, all located in the State of Nevada, USA.
The Company's two key gold assets include a 100% interest in the Golden Arrow project near Tonopah, currently the subject of a transaction with Emgold Mining Corporation (TSXV: EMR) and a 21%
interest in a joint venture at Kinsley Mountain with Liberty Gold Inc. (TSX: LGD, formerly Pilot Gold Inc.) near Wendover, with each of the properties subject to certain production royalties.
Nevada Sunrise began acquisitions of Nevada lithium properties in 2015, which includes 100%
interests in the Neptune, Jackson Wash and Aquarius projects, and a 50% interest in the Gemini
project (Eureka Resources Inc. (TSXV: EUK) holds a 50% interest), and a 100% interest in the Atlantis project, currently
under option to American Lithium Corp. (TSXV: LI). For further information on other Nevada
lithium projects operated by the Company (Aquarius, Neptune, Jackson Wash and Gemini), including
location maps, please visit the Nevada Sunrise website at: "Projects – Nevada Lithium": http://www.nevadasunrise.ca/projects/nevadalithium/
In November 2017, Nevada Sunrise announced an option to earn a 100% interest in the historic
Lovelock Cobalt Mine property, located approximately 100 miles (150 kilometers) east of Reno. In
March 2018, Nevada Sunrise announced it has acquired the rights to earn 100% interests in the
Treasure Box and Boyer Mine copper properties, subject to underlying royalties, each located approximately 10 miles (15
kilometres) southwest of the Lovelock Cobalt Mine.
Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred
Resources
This news release has been prepared in accordance with the requirements of Canadian provincial securities laws which differ
from the requirements of U.S. securities laws. Unless otherwise indicated, all mineral resource estimates included in this
news release have been prepared in accordance with Canadian National Instrument 43-101 Standards of Disclosure for Mineral
Projects ("NI 43-101") and the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) classification systems. NI
43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an
issuer makes of scientific and technical information concerning mineral projects. These standards differ significantly from
the requirements of the United States Securities and Exchange Commission (the "SEC"), and reserve and resource estimates
disclosed in this news release may not be comparable to similar information disclosed by U.S. companies.
This news release uses the terms "measured and indicated resources" and "inferred resources" to comply with the reporting
standards in Canada. The Company advises United States investors that while those terms
are recognized and required by Canadian regulations, the SEC does not recognize them. United
States investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be
converted into mineral reserves. Further, "inferred resources" have a great amount of uncertainty as to their existence and
as to whether they can be mined legally or economically. Therefore, United States
investors are also cautioned not to assume that all or any part of the "inferred resources" exist. In accordance with
Canadian securities laws, estimates of "inferred resources" cannot form the basis of feasibility or other economic studies.
It cannot be assumed that all or any part of "measured and indicated resources" or "inferred resources" will ever be upgraded to
a higher category or are economically or legally mineable. In addition, disclosure of "contained ounces" is permitted
disclosure under Canadian securities laws; however, the SEC only permits issuers to report mineralization as in place tonnage and
grade without reference to unit measures.
NI 43-101 also permits the inclusion of disclosure regarding the potential quantity and grade, expressed as ranges, of a
target for further exploration provided that the disclosure (i) states with equal prominence that the potential quantity and
grade is conceptual in nature, that there has been insufficient exploration to define a mineral resource and that it is uncertain
if further exploration will result in the target being delineated as a mineral resources, and (ii) states the basis on which the
disclosed potential quantity and grade has been determined. Disclosure regarding exploration potential has been included in
this news release. United States investors are cautioned that disclosure of such
exploration potential is conceptual in nature by definition and there is no assurance that exploration will result in any
category of NI 43-101 mineral resources being identified.
Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information (collectively, "forward-looking
statements") within the meaning of applicable Canadian and U.S. securities legislation, including the
United States Private Securities Litigation Reform Act of 1995. All statements, other than statements of
historical fact, included herein including, without limitation, statements regarding the anticipated content, commencement,
timing and cost of exploration programs in respect of the Property and otherwise, anticipated results from the exploration
activities, the discovery and delineation of mineral deposits/resources/reserves on the Property, the completion of a PEA, and
the anticipated business plans and timing of future activities of Emgold on the Property, are forward-looking statements.
Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to
be correct. Forward-looking statements are typically identified by words such as: "believe", "expect", "anticipate",
"intend", "estimate", "postulate" and similar expressions, or are those, which, by their nature, refer to future events.
In making the forward-looking statements in this news release, the Company has applied several material assumptions, including
without limitation, the metallurgical recovery ranges, a 55:1 gold to silver price ratio, that market fundamentals will result in
sustained gold demand and prices, the receipt of any necessary regulatory approvals in connection with the future development of
the Property in a timely manner, the availability of financing on suitable terms for the development, study and continued
exploration by Emgold, and the Emgold's ability to comply with environmental, health and safety laws. Nevada Sunrise
cautions investors that any forward-looking statements made by the Company are not guarantees of future results or performance,
and that actual results may differ materially from those in forward-looking statements as a result of various factors, including,
issues raised during the Emgold's due diligence on the Property, operating and technical difficulties in connection with mineral
exploration and development activities, actual results of exploration activities, the estimation or realization of mineral
reserves and mineral resources, the timing and amount of estimated future production, the costs of production, capital
expenditures, the costs and timing of the development of new deposits, requirements for additional capital, future prices of
precious metals, changes in general economic conditions, changes in the financial markets and in the demand and market price for
commodities, labour disputes and other risks of the mining industry, delays in obtaining governmental approvals, permits or
financing or in the completion of development or construction activities, changes in laws, regulations and policies affecting
mining operations, title disputes, the inability of Emgold to obtain any necessary permits, consents or authorizations required,
including TSXV acceptance of the acquisition of the Property and any other current or future property acquisitions or financings
and other planned activities, the timing and possible outcome of any pending litigation, environmental issues and liabilities,
and risks related to joint venture operations, and other risks and uncertainties disclosed in the Company's latest interim
Management's Discussion and Analysis and filed with certain securities commissions in Canada. Nevada Sunrise's and Emgold's
Canadian public disclosure filings may be accessed via www.sedar.com and
readers are urged to review these materials, including the technical reports filed with respect to each company's mineral
properties.
Readers are cautioned not to place undue reliance on forward-looking statements. The Company undertakes no obligation to
update any of the forward-looking statements in this news release or incorporated by reference herein, except as otherwise
required by law.
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
View original content with multimedia: http://www.newswire.ca/en/releases/archive/March2018/19/c8889.html