TSXV: NEV
VANCOUVER, Dec. 5, 2016 /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 lithium-bearing
brines have been intersected in the second borehole of the 2016
drilling program at the Clayton Northeast lithium brine project in
the Clayton Valley, Nevada
("Clayton NE", or the "Project"). This follows successful
results from the first borehole (see Nevada Sunrise news release
dated Nov 1, 2016). Clayton NE
borders the Silver Peak mine operated by Albemarle Corporation
("Albemarle") (NYSE: ALB), North
America's only producing lithium mine. Of particular note,
hole CNE-16-02, has intersected multiple aquifer
formations, including 188.9 metres of brine-producing strata
averaging 164.2 parts per million ("ppm") lithium from a depth of
207.3 to 396.2 metres, including a higher grade interval averaging
202.8 ppm lithium over 109.7 metres. Hole CNE-16-03, which is
still in progress, has also encountered strong brines ranging up to
138,000 ppm total dissolved solids ("TDS"), with analyses to
follow. In addition, an additional 80 acres of contiguous land
was staked in November 2016 to the
southwest at Clayton NE, bringing the total land package to 1,080
acres (437 hectares)
"Our second borehole at Clayton NE has exceeded expectations,"
said Warren Stanyer, President and
CEO of Nevada Sunrise. "The brines have a higher average lithium
content and stronger flow rates, which we believe are strong
indicators that we are intercepting the known lithium-bearing
aquifers in the Clayton Valley."
Highlights of the 2016 Drilling Program
- All three holes have intersected mineralized brine:
1st and 2nd holes have encountered
lithium-rich brines and 3rd hole (still in progress) has
encountered brines with analyses to follow.
- 3.43 kilometre (2.13 miles) mineralized brine trend:
Holes CNE-16-01 and CNE-16-02, both with significant intervals of
mineralized lithium brines, are located 3.43 kilometres apart.
- Intervals up to 202.8 ppm lithium over 109.7 metres:
Lithium brines intercepted by 2nd drill hole at Clayton NE,
CNE-16-02, have returned intervals up to 202.8 ppm lithium over
109.7 metres (286.5 to 396.2 metres), including peak values up to
227 ppm lithium over a 6.1 metre section (304.8 to 310.9 metres).
These values are comparable to Albemarle's brine samples from their
Silver Peak mining operation immediately adjacent to Clayton NE,
and are in line with results from the first hole drilled at Clayton
NE, CNE-16-01.
- More results to come: Hole CNE-16-03 has encountered
brine measuring up to 138,000 ppm TDS and is still in progress.
Analyses from holes CNE-16-01 and CNE-16-02 have shown that a
relationship of TDS to lithium grade indicates a direct correlation
between higher lithium values and higher strength brine.
- Strong brine flows: Brine flows of up to 120 gallons per
minute issued from borehole CNE-16-02 between 304.8 to 396.2 metres
(1,000 and 1,300 feet). Geochemical analysis shows this zone
carries significant lithium concentrations. High brine flows are
important for economic production.
- Clayton NE land package increased: Five new claims
totaling 80 acres were staked in November
2016, increasing the overall land package to 1,080 acres
(437 hectares).
Drill Hole Technical Details
CNE-16-01
CNE16-01 was completed to a depth of 518.2
metres (1,700 feet), intersecting the base of the Clayton Valley
salar sedimentary basin at 506 metres. Drilling has
intersected typical Clayton Valley strata consisting of alternating
layers of gravel, volcanic ash and clay. A total of 27 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 were obtained from brine formations
intermittently intersected over a 331.3 metre section (from 168.6
to 499.9 metres) within the Main Ash, Lower Aquifer System, and
Lower Gravel Aquifer systems. The highest grade results were
obtained in the Lower Aquifer System with peaks up to 218 ppm
lithium (224.0 to 227.1 metres), while the widest intervals were
reported in the deeper Lower Gravel Aquifer System, including a
103.7 metre wide interval (from 396.2 to 499.9 metres) averaging
134.8 ppm lithium. In addition, drill cuttings were collected
for each 1.5 metre interval and have been submitted for
analysis. Analytical results for the drill cuttings are
pending.
Table 1: Results of Brine Samples for CNE-16-01
Drill
Hole
|
Aquifer
System
|
Interval
|
Total Dissolved
Solids
("TDS")
ppm
|
Lithium
Range
(ppm)
|
Lithium
Average Grade
(ppm)
|
From
(metres)
|
To
(metres)
|
Width
(metres)
|
CNE-16-01
|
Main Ash
|
168.6
|
170.1
|
1.5
|
68,000
|
94.3
|
94.3
|
|
Lower Aquifer System
A
|
224.0
|
243.8
|
19.8
|
110,000
|
195 to 218
|
209.7
|
|
Lower Aquifer System
B
|
326.1
|
365.8
|
39.7
|
130,000 to
140,000
|
174 to 189
|
181.5
|
|
Lower Gravel
Aquifer
|
396.2
|
499.9
|
103.7
|
35,000 to
190,000
|
72.4 to
234
|
134.8
|
|
including
|
457.2
|
481.6
|
24.4
|
58,000 to
190,000
|
72.4 to 234
|
187.5
|
CNE-16-02
CNE-16-02 was collared approximately 3.43
kilometres (2.13 miles) northeast of CNE-16-01. The hole was
terminated within a massive clay formation within the Clayton
Valley salar sedimentary basin at a depth of 426.7 metres (1,400
feet). As was observed in hole CNE-16-01, drilling
intersected typical Clayton Valley strata consisting of alternating
layers of gravel, volcanic ash and clay. A total of 32 grab
groundwater samples were collected as brine-bearing formations were
encountered. Table 2 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 were obtained from a 188.9 metre-wide
brine-bearing formation intersected from 207.2 to 396.2 metres
within the Lower Aquifer System. This 188.9 metre interval
averaged 164.2 ppm lithium, including a higher grade interval
averaging 202.8 ppm lithium over 109.7 metres (286.5 metres to
396.2 metres) and was associated with strong brine flows of up to
120 gallons per minute between 304.8 to 396.2 metres. In addition,
drill cuttings were collected for each 6.1 metre interval and have
been submitted for analysis. Analytical results for the drill
cuttings are pending.
Table 2: Results of Brine Samples for CNE-16-02
Drill
Hole
|
Aquifer
System
|
Interval
|
Total Dissolved
Solids
("TDS")
ppm
|
Lithium
Range
(ppm)
|
Lithium
Average Grade
(ppm)
|
From
(metres)
|
To
(metres)
|
Width
(metres)
|
CNE-16-02
|
Main Ash
|
190.5
|
199.6
|
9.1
|
No
Water
|
Lower Aquifer
System
|
207.3
|
396.2
|
188.9
|
50,000 to
380,000
|
72.4 to
228
|
164.2
|
|
including
|
286.5
|
396.2
|
109.7
|
140,000 to
380,000
|
51 to
227
|
202.8
|
CNE-16-03
Hole CNE-16-03, collared approximately 670.6
metres northeast from hole CNE-16-01, is currently in progress at a
depth of approximately 274.3 metres (900 feet). This borehole
has also encountered strong brines ranging up to 138,000 ppm TDS,
as measured by a field instrument.
Regarding Sample Analysis
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 (as
proscribed by the Organization for Economic Cooperation and
Development) 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.
About the Program
The 2016 exploration drilling
program includes three vertical oriented conventional dual-tube
reverse circulation drill holes totaling approximately 1,500 metres
(approximately 4,920 feet), focussed on lithium brine targets close
to the Silver Peak mine border and several of Albemarle's
production wells. Analyses from Clayton NE drill holes have shown a
relationship of TDS to lithium grade indicating a correlation
between higher lithium values and higher strength brine. The
lithium results from the first two boreholes of the 2016 drilling
program are generally comparable to Albemarle's brine samples from
Silver Peak mine production wells as reported to the State of Nevada for the period 2011-2015,
which range from 98 ppm to 340 ppm lithium.
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 55 unpatented claims totaling approximately 1,080
acres (437 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.
Water Rights Update
On November
30, 2016, Nevada Sunrise learned that the State Engineer's
office of the Nevada Division of Water Resources ("NDWR") has
issued a ruling of forfeiture against the Company's water rights in
the Clayton Valley citing a lack of beneficial use for a
period of five years. Nevada Sunrise has recently received evidence
of water use that the NDWR requires, which will be presented during
the appeal process. The Company intends to file the appeal before
December 29, 2016.
For further information about the Company's exploration
properties and its Clayton Valley water rights, please access the
Nevada Sunrise website at:
http://www.nevadasunrise.ca/projects/nevadalithium/
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