Nevada Sunrise Announces Pilot Gold 65% Earn-in on Kinsley Mountain and Proposed 2013 Kinsley Mountain Work Program
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 04/10/13 -- Nevada Sunrise Gold Corporation ("Nevada Sunrise" or the "Company") (TSX VENTURE: NEV) announces that Pilot Gold Inc. ("Pilot Gold") has completed US$3 million in eligible expenditures to increase its participating interest in the joint venture governing the Kinsley Mountain project ("Kinsley Mountain", or the "Project") located in northeastern Nevada to 65%. Pilot Gold is the operator of the Project.
The Company has also received an exploration program proposal for 2013 for Kinsley Mountain which has an estimated US$5.21 million budget. Nevada Sunrise holds a 35% participating interest in the Project, and subject to finalization of the joint venture agreement expects that it will provide its proportional share of projected exploration expenditures at quarterly intervals through 2013.
Proposed 2013 Exploration Program
The 2013 exploration program proposed by Pilot Gold for Kinsley Mountain includes the following:
-- 22,000 meters (72,178 feet) of drilling planned, including 14,000 meters
(45,932 feet) of reverse circulation ("RC"), and 8,000 meters (26,247
feet) of diamond drilling;
-- Resource estimation to be initiated as drilling progresses;
-- Metallurgical studies are planned in connection with the resource
estimate;
-- Total 2013 proposed exploration budget estimated at US$5.21 million.
2013 Exploration Target Areas
Western Flank
Pilot Gold's drilling in 2012 identified a north-trending, mineralized zone located approximately 600 meters northwest of the nearest historical pit, measuring at least 600 meters by 100 meters, characterized by two stacked lenses of mineralization remaining open in all directions. Follow-up drilling is planned to potentially expand the mineralization found in 2012 drill holes PK061 (6.03 g/t gold over 13.7 meters, including 15.18 g/t gold over 4.6 meters), PK66 (2.48 g/t gold over 6.1 meters), and PK067 (9.50 g/t gold over 4.6 meters, including 20.5 g/t gold over 1.5 meters). The north-to-northeast trend that includes the Western Flank zone appears to validate the "Long Canyon model" developed by Pilot Gold's technical team.
There are no assurances that the geological similarities to Newmont Mining's Long Canyon Project, or Pilot Gold's previous experience at Long Canyon will result in the establishment of any resource estimates at Kinsley, or that the Kinsley Project can be advanced in a similar timeframe.
Candland Canyon
A new zone of mineralization was discovered in lower Candland Canyon in 2012, approximately 450 meters away from any previously-known mineralization, as shown in PK39 (1.08 g/t Au over 10.7 meters) and PK40 (0.74 g/t Au over 7.6 meters). Further drilling is planned in 2013 to explore offsets and extensions of this mineralization.
Other Target Areas
Drilling results in the Main Extension zone during 2012 showed that mineralization continues down dip of the historical Main Pit, and follow-up drilling is planned in 2013. Other new target areas have been developed from the results of 2012 surface sampling that discovered gold-bearing jasperoids up to 2 kilometers north of the historical pits, which when viewed in conjunction with the recent mapping of steep northwest and north-northeast striking faults, may reflect the presence of gold mineralization at depth.
To view a location map and a table displaying the results of the 2012 exploration program at Kinsley Mountain, please visit the Nevada Sunrise website at www.nevadasunrise.com.
About Kinsley Mountain
Kinsley Mountain is located in Elko County, Nevada, about 83 kilometers (51 miles) south of the town of Wendover. The Project lies within a seven-mile long, north-northeast trending ridge at the northern extension of the Antelope Range, and consists of 380 contiguous claims totaling 3,096 hectares (7,650 acres). Historical open-pit mining operations by Alta Gold Company extracted 138,151 ounces of gold from the property from 1994 to 1999. Kinsley Mountain is an early stage development project without any current resource estimates and there is no certainty that any such resource estimates will ever be established.
Pilot Gold reports that drill core composites were calculated using a cut-off of 0.30 grams/tonne. Drill intersections are reported as drilled thicknesses. True widths of the mineralized intervals are interpreted to be between 30-100% of the reported lengths. Drill samples were assayed by ALS Chemex (ISO9001:2000) in Reno, Nevada for gold by Fire Assay of a 30 gram (1 assay ton) charge with an AA finish, or if over 5.0 grams/tonne were re-assayed and completed with a gravimetric finish. For these samples, the gravimetric data were utilized in calculating gold intersections. QA/QC included the insertion and continual monitoring of numerous standards and blanks into the sample stream, and the collection of duplicate samples at random intervals within each batch. Selected holes are also analyzed for a 72-element geochemical suite by ICP-MS.
About Nevada Sunrise
Nevada Sunrise (TSX VENTURE: NEV) is a publicly-traded gold exploration company that holds a portfolio of three projects in Nevada, namely Kinsley Mountain, Golden Arrow, and Pinnacle, totalling approximately 6,368 hectares (15,735 acres) of prospective land. Nevada Sunrise applies the exploration experience and technical skills of its founders to search for and acquire new gold exploration projects that are developed internally and then offered for joint venture. For the latest details on Nevada Sunrise, its properties, management team and philosophy, please visit our website at www.nevadasunrise.com or contact Bill Henderson, President and CEO at (530) 887-9901.
This news release was prepared by Company management, who take full responsibility for its content. The technical disclosure in this news release has been reviewed by Richard Kehmeier, C.P.G., a Qualified Person as defined by National Instrument 43-101 of the Canadian Securities Administrators.
FORWARD-LOOKING STATEMENTS
All statements in this release, other than statements of historical fact, are "forward-looking information" with respect to Nevada Sunrise within the meaning of applicable Canadian securities laws, including statements that address proposed exploration plans and budget for work at Kinsley Mountain and the potential results thereof, the finalization of the joint venture agreement in respect of Kinsley Mountain, Nevada Sunrise's anticipated participation in Kinsley Mountain. 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 production at Kinsley Mountain, reliance on technical information provided by third parties on any of our exploration properties, including access to historical information on the Kinsley Mountain property as well as specific historic data associated with and drill results from the property, information from Pilot Gold Inc., 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; failure of Pilot Gold Inc., to complete anticipated work programs; labor disputes and other risks of the mining industry; delays in obtaining governmental approvals and permits, 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, 2012 dated 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.
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.
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.
Contacts:
Nevada Sunrise Gold Corp.
William B. Henderson
President and Chief Executive Officer
(530) 887-9901
(530) 884-3822 (FAX)
info@nevadasunrise.com
www.nevadasunrise.com