Nevada Sunrise Announces Exploration Update for Kinsley Mountain Gold Project, Nevada

VANCOUVER , Dec. 15, 2016 /CNW/ – Nevada Sunrise (TSXV:NEV) is pleased to announce that a helicopter-borne VTEM and magnetic survey has been completed over the Kinsley Mountain Gold Project (“Kinsley Mountain”, or the “Project”) in eastern Nevada. Kinsley Mountain is a joint venture between Pilot Gold Inc. (“Pilot Gold”) (PLG.TO) and Nevada Sunrise, with Pilot Gold holding a 79.1 percent interest, and Nevada Sunrise, through a wholly-owned U.S. subsidiary, holding a 20.9 percent interest.

2016 VTEM Airborne Survey
The VTEM survey consisted of 854 line kilometres, flown at 200 metre spacing over the northern area of the Project, and at 100 metre line spacing over the southern half, which includes the area where the Western Flank gold discovery was made in 2014. VTEM is known for its ability to detect sulphides at depths exceeding 300 metres, and can assist in defining mineralized trends. Interpretation of the survey will utilize the geophysical signature of the Western Flank Zone to assist in identifying further drill targets. Proposed drilling is primarily focused on the Secret Canyon Shale horizon, a newly-identified host horizon for high grade, Carlin-style gold mineralization lying approximately 200 metres below the historic Kinsley Mountain open pit mine.

2016 Drilling Program
Drill targets were developed by Pilot Gold for the 2016 program completed earlier this year using 3-D modeling software, including the integration of new and historical geological, geochemical and geophysical data as detailed below.  One drill target southwest of the Kinsley Main historic pit was tested with four reverse circulation holes in 2016.  The target contained similar attributes to the Western Flank deposit, including:

• The intersection of the NW-striking Kinsley fault zone with a swarm of NE-striking steep faults
• A broad, deep historical induced polarization chargeability anomaly
• Anomalous pathfinder element geochemistry in surface soil and rock samples

All four of the 2016 drill holes intersected the target Secret Canyon Shale host horizon at the expected depth in the anticipated structural environment.  All holes contained areas of moderate to strong jasperoid alteration, clay alteration and strong iron oxide and/or disseminated pyrite alteration, consistent with what is observed in the Western Flank zone.  However, only anomalous gold content was encountered.

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New Targets
Twelve new target areas have been developed for Kinsley Mountain, some of which have been confirmed to be gold-bearing based on compilation by Pilot Gold of historical drill results. The new targets have been developed within the following exploration model:

• The Secret Canyon Shale is interpreted to underlie the entire Project, encompassing over a 20 square kilometre target area.
• Gold is concentrated along NW-striking and NE-striking steep faults, and fault intersections.
• The Secret Canyon Shale has potential to host several zones of high-grade gold mineralization, similar in nature to the Western Flank Zone, and has been tested in 10 locations by widely-spaced holes over an initial 10 square kilometre area, with anomalous gold detected in all holes. Exploration is now focused primarily on this specific stratigraphic interval.

In addition to the Western Flank deposit area, Kinsley Mountain has yielded 4 additional target areas with significant intercepts of greater than 1.0 g/t gold, including:

• Western Flank East Extension: 3.46 g/t gold over 18.3 metres in PK208 (see Nevada Sunrise news release dated June 23, 2015 ).
• Secret Spot: 1.34 g/t gold over 25.9 metres, 1.09 g/t gold over 13.7 m and 3.02 g/t gold over 6.1 metres in PK153 (see Nevada Sunrise news release dated September 10, 2014 ).
• Racetrack: 1.25 g/t Au over 10.7 metres in PK180 (see Nevada Sunrise news release dated September 10, 2014).
• Central Kinsley Trend : 1.58 g/t Au over 4.6 metres in historical hole K-425 (Pilot Gold exploration files).

For maps showing the 2016 target area and the newly-developed drill targets, please access Nevada Sunrise’s website at: https://www.nevadasunrise.ca/projects/kinsley-mountain/

John R. Kerr , P. Eng., is the Company’s designated Qualified Person within the meaning of National Instrument 43-101 (“NI 43-101”) and has reviewed and approved the technical information contained in this news release.

Further information on Kinsley Mountain is available in the NI 43-101 compliant technical report entitled “Updated Technical Report and Estimated Mineral Resources for the Kinsley Project, Elko and White Pine Counties, Nevada, U.S.A. “, effective October 15, 2015 , dated December 16, 2015 and prepared by Michael M. Gustin , CPG, Moira Smith , Ph.D., P.Geo., and Gary Simmons , B.Sc. MMSA (the “Kinsley Technical Report”), available at www.nevadasunrise.ca/investors or under the  Company’s SEDAR profile at www.sedar.com.

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