JV Partner Pilot Gold Reports 8.53 g/t Gold Over 36.6 Metres at Kinsley Mountain, Nevada
Vancouver, Nov 19, 2013 AEST (ABN Newswire) - Nevada Sunrise Gold Corporation ("Nevada Sunrise" or the "Company") (
CVE:NEV) (NVSGF:OTCMKTS) is pleased to announce that Pilot Gold Inc. ("Pilot Gold") (TSE:PLG) has reported to the Company that 2013 HQ core drill hole PK091CA returned the highest-grade gold intercept in more than 1,300 holes drilled to date at the Kinsley Mountain project - 8.53 g/t gold ("Au") over 36.6 metres, including 29.43 g/t gold over 7.6 metres.
Assay results from the Western Flank target, located 550 metres northwest of the past-producing pits at Kinsley Mountain ("Kinsley" or the "Project"), also expand the area of high-grade gold mineralization and demonstrate the potential for Kinsley to host significant high-grade gold mineralization. Drill hole highlights include:
* 8.53 g/t Au over 36.6 metres in PK091CA(1),
including 29.43 g/t Au over 7.6 metres
* 15.6 g/t Au over 3.0 metres in PK083C(1)
* 2.21 g/t Au over 10.7 metres in PK073
* 1.65 g/t Au over 24.4 metres in PK074
* 2.51 g/t Au over 16.8 meters in PK102
(1) Diamond Drill Core Holes, others are Reverse Circulation Holes
Pilot Gold has drilled approximately 14,200 metres in 58 holes to date for the 2013 Kinsley program, with assays pending for 26 holes.
Kinsley is located in eastern Nevada near the Utah border, approximately 160 kilometres (100 miles) southeast of Elko, NV and 320 kilometres (200 miles) west of Salt Lake City. The Project consists of 380 claims covering approximately 3,100 hectares (7,660 acres). Since August 30, 2013, when the U.S. Bureau of Land Management ("BLM") approved a Plan of Operations permitting exploration activities on the core group of claims at Kinsley, Pilot Gold has been drilling and constructing road access in three key areas, including the Western Flank, Candland Canyon and the Ken Jasperoid target.
Earlier in 2013, Pilot Gold gave notice to Nevada Sunrise that it had completed US$3.0 million in eligible expenditures to increase its participating interest in Kinsley to 65%. Pilot Gold is currently funding a $3.4-million exploration program at the Project in its entirety, which has further increased Pilot Gold's interest from 65% to approximately 78%, with Nevada Sunrise holding an approximate 22% interest.
Drilling in 2013 at the Western Flank has identified significant oxide and sulfide gold mineralization along a corridor stretching approximately 500 metres in a north-south direction. Mineralization occurs in gently west-dipping, tabular zones up to 150 metres wide and hosted within the Cambrian Candland Shale, the main gold host within the original Kinsley Mine.
Pilot Gold's recent drilling has shown that significant gold also occurs within a lower zone of silty limestone below the Candland Shale. This host horizon was neither identified nor tested by previous operators. The 2013 core drilling suggests that the tabular zones of mineralized, favourable host rock are cut by one or more high-angle structures causing collapse breccia zones where the mineralization becomes thicker and higher-grade. Drill hole PK091CA contains high-grade collapse breccia zones similar to those seen at Newmont Mining's Long Canyon project and other world class Carlin deposits.
From the south edge of the Western Flank target, mineralization is open and becomes shallower to the south over a distance of 500 meters to the Wrong Spot target, a 350-metre long NNE-trending exposure of surface jasperoids returning 1-3 g/t Au in grab samples. It has not yet been drill tested.
Pilot Gold reports that the Western Flank area hosts numerous features that are similar to the geology at the Long Canyon deposit located approximately 75 kilometres (47 miles) to the north, including evidence of potential boudinage of a 100 metre-thick dolomite horizon and focusing of gold mineralization in and around this boudin neck area, which strikes north-northeast. Long Canyon was explored and developed by Pilot Gold's Kinsley team, prior to the project's sale as part of Newmont Mining Corporation's $2.3 billion acquisition of Fronteer Gold.
The existence of similar features as the Long Canyon deposit does not mean that a mineral resource will be found to exist in the Western Flank or, if found to exist, that it will be of similar grade or quantity that is found at Long Canyon.
For a table of 2013 Kinsley drill results to date, including non-reportable intercepts, a drill map outlining the area covered by the Plan of Operations, and a photograph of PK091CA please click here:
http://www.nevadasunrise.com/View_webpage.asp?Title=Kinsley Mountain
ABOUT KINSLEY MOUNTAIN
Kinsley hosts near-surface mineralization similar to other Carlin-style, sediment-hosted gold systems along a 2.2 kilometre, SE-NW strike extent. The property hosts a past-producing mine with an extensive exploration database and numerous, untested gold targets. Gold mineralization is primarily oxidized, and occurs in strataform zones and fault collapse breccias within a sequence of Cambrian-Ordovician shelf carbonates. At depth, Pilot Gold has also drilled high-grade transitional and sulfide mineralization.
Kinsley is an early-stage exploration project and does not contain any mineral resource estimates as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). There are no assurances that the geological similarities to the Long Canyon project, or other projects along the Long Canyon Trend, will result in the establishment of any resource estimates at Kinsley, or that the Kinsley project can be advanced in a similar timeframe. The potential quantities and grades disclosed herein are conceptual in nature and there has been insufficient exploration to define a mineral resource for the targets disclosed herein. It is uncertain if further exploration will result in these targets being delineated as a mineral resource.
Pilot Gold reports that drill composites were calculated using a cut-off of 0.20 g/t. 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 g/t were re-assayed and completed with a gravimetric finish. For these samples, the gravimetric data were utilized in calculating gold intersections. For any samples assaying over 0.200 ppm an addition cyanide leach analysis is done where the sample is treated with a 0.25% NACN solution and rolled for an hour. An aliquot of the final leach solution is then centrifuged and analyzed by AAS. QA/QC for all drill samples consists of 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 51 multi-element geochemical suite by ICP-MS.
The technical information contained in this news release for the Kinsley Mountain Project was reviewed and approved on behalf of Nevada Sunrise by John R. Kerr, P.Eng., a qualified person as defined by N.I. 43-101.
For further information about Kinsley please refer to a technical report entitled "Technical Report on the Kinsley Project, Elko County, Nevada, U.S.A.", effective February 15, 2012 and dated March 26, 2012, prepared by Michael M. Gustin, CPG of Mine Development Associates and Moira Smith, Ph.D., P.Geo. and Kent Samuelson of Pilot Gold, filed on May 9, 2012 under Nevada Sunrise's Issuer Profile on SEDAR (www.sedar.com), and also available for viewing on Nevada Sunrise's website at http://www.nevadasunrise.com
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 future mineral production, reserve potential, exploration drilling, the future price of gold, potential quantity and/or grade of minerals, potential size of a mineralized zone, potential expansion of mineralization, the timing and results of future resource estimates, or other study, 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 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, 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.
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.
To view original release, please visit:
http://media.abnnewswire.net/media/en/docs/76196-CVE-NEV-20131118.pdf
Contact
Warren Stanyer
President and Chief Executive Officer
Telephone: (604) 428-8028
Facsimile: (604) 689-5528
Email: info@nevadasunrise.com
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