Lithium, Cobalt, Copper and Gold in North America’s Premier Mining Jurisdiction
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Nevada Sunrise (TSXV:NEV) is a junior mineral exploration company focused on gold, cobalt, copper and lithium in the mining-friendly state of Nevada. The company has developed a diverse portfolio of properties in the region’s best mining camps, including the most prospective area of Nevada for lithium brine exploration. Nevada Sunrise holds interests in a total of five lithium properties covering a combined 11,140 acres within and adjacent to the prolific Clayton Valley, which hosts the only producing lithium mine in the US operated by Albemarle Corporation (NYSE:ALB).
The company’s portfolio also includes the Coronado VMS project, the Kinsley Mountain gold project with calculated resources and the Lovelock Cobalt mine and Treasure Box projects which were recently optioned to Global Energy Metals Corp. (TSXV:GEMC) in Churchill County, Nevada.
Nevada Sunrise’s lithium properties include 100 percent interests in the Neptune, Jackson Wash, Atlantis, Aquarius and Gemini projects.
Nevada Sunrise’s Company Highlights
- Lithium projects located in the superior jurisdiction of Nevada and near the only producing lithium mine in the US.
- Definitive purchase agreement for water rights fundamental to exploration and development in Clayton Valley.
- Experienced technical team with expertise in gold, cobalt and lithium exploration.
- Quality gold properties in prolific gold mining jurisdiction of Nevada where mining infrastructure and services are well developed.
- Kinsley Mountain gold project includes a past-producing mine; the recent discovery of high-grade gold mineralization; operated by Liberty Gold Corp. (TSX:LGD) formerly Pilot Gold Inc.); results from the 2018 drill program include 5.42 g/t gold over 9.1 meters.
- Ongoing exploration program at Coronado VMS project in Nevada.
Nevada Sunrise’s Lithium Properties
Clayton Valley Lithium Properties
Neptune Lithium Project
The Neptune property is located approximately 10 miles (15 kilometers) south of Silver Peak, Nevada, in an active area of lithium exploration and mining. Neptune consists of a block of 93 unpatented placer claims totaling approximately 1,860 acres (753 hectares).
In 2015, Nevada Sunrise acquired historical geophysical data indicating Neptune has the potential to host lithium-bearing brines in subterranean aquifers beneath the Clayton Valley floor.
Neptune Drill Results
Nevada Sunrise completed two exploration holes at Neptune in March 2016. Borehole N-2016-1, drilled to 457.2 meters (1,500 feet) showed anomalous lithium in a grab sample of groundwater of 6.8 mg/l lithium at a depth of 438.9 meters (1,440 feet).
In April 2017, Nevada Sunrise announced the commencement of a regional drilling program at Neptune, located in the southern Clayton Valley. Hole N-2017-1 was drilled to a depth of approximately 1,500 feet, about 75 percent of the interpreted target depth, but the hole was lost due to unstable ground conditions. As a result, no brines were encountered in the borehole.
Aquarius consists of 90 unpatented placer claims totaling 1,800 acres (729 hectares) located in the Clayton Valley, approximately three miles (five kilometers) southwest of the Silver Peak mine. Nevada Sunrise owns a 100 percent interest in the property with no applicable royalties.
Aquarius was staked in early 2016 following a review of the results of proprietary gravity surveys carried out by a geological team led by Dr. John Oldow of the University of Texas, Dallas, which outlined a strong gravity low indicative of a deep, faulted sub-basin. A follow-up time-domain electromagnetic survey carried out by Nevada Sunrise in March 2016 detected conductive horizons at depths ranging between 250 and 450 meters.
Nevada Sunrise has received a permit from the BLM for a drill program of up to 10 boreholes to test for lithium brines at Aquarius.
Jackson Wash Property
Jackson Wash is located in the Lida Valley on the east side of the Montezuma Range approximately 20 miles (30 kilometers) southeast of Silver Peak and 13 miles (21 kilometers) southwest of Goldfield, Nevada. The Lida Valley hosts similar geology to the Clayton Valley basin.
A drill permit for up to 10 holes over a two-year period was granted by the BLM in February 2016. In June 2017, a borehole was drilled at Jackson Wash to a depth of 826 meters (2,710 feet) through interbedded sequences of sand, gravel and clay. Hot freshwater was encountered in the borehole reaching a temperature of approximately 41 degrees Celsius (106 degrees Fahrenheit) but no brines were detected.
The Gemini lithium project is located in the Lida Valley about six miles (nine kilometers) east of the town of Lida, Nevada and 26 miles (39 kilometers) southeast of the Silver Peak mine. The property consists of 134 claims totaling 2,680 acres adjacent to a BLM land reserve for solar power generation.
In 2016, Nevada Sunrise conducted a reconnaissance moving-loop TDEM survey at Gemini. Preliminary results show the survey detected a conductive layer 150 meters to 250 meters deep that appears to cover most of Gemini West and Gemini East sub-basins, and several isolated strong conductive zones were interpreted at depths from 400 to 600 meters.
“Gemini was hiding in plain sight, and the discovery of conductive zones bodes well for defining future lithium brine drill targets,” said Stanyer.
Nevada Sunrise has received a permit from the BLM for a drill program to test for lithium brines at Gemini.
Atlantis is comprised of unpatented placer claims and placer association claims totaling 2,900 acres (1,174 hectares) located in the Fish Lake Valley approximately 25 miles (38 kilometers) northwest of the Silver Peak lithium brine mine.
Nevada Sunrise acquired Atlantis after a geological review showed the presence of lithium-bearing rocks in the ranges draining into Atlantis, anomalous contents of lithium reported in surface and historical drill hole brines in the Fish Lake Valley within three miles of the property, and historical ground gravity data that showed a distinct gravity low in the heart of the Atlantis claims. Dr. John Oldow’s detailed gravity survey work in Esmeralda County has better defined the historical gravity low at the property as a deep, sub-basin, which led Nevada Sunrise to stake additional claims at Atlantis in January 2016.
Atlantis is currently under option to American Lithium Corp. (TSXV:LI) and only a limited amount of exploration work has been carried out at the property.
Nevada Sunrise’s Copper and Cobalt Properties
Lovelock Cobalt Mine
The Lovelock cobalt mine property covers 283 hectares and is located approximately 150 kilometers east of Reno, Nevada. The Lovelock cobalt mine was recently optioned to Global Energy Metals.
First discovered in 1880, the mine reportedly produced nickel, copper and cobalt from 1883 to 1890. Historical geochemical data indicated that the average composition of the cobaltite contained 17.30 percent cobalt and 13.62 percent nickel.
As part of the due diligence for the acquisition of the property in December 2017, Nevada Sunrise’s consulting geologists conducted two site visits in which they collected 28 rock samples from historic mine waste and bedrock occurrences in the mine adit. Results from these samples included values of up to 1.81 percent cobalt, 3.05 percent nickel and 5.99 percent copper. Samples collected in early 2018 also showed results of up to 1.98 percent cobalt.
The company also conducted an initial 4.2-kilometer DC resistivity polarization survey. The survey uncovered historic, near-surface mine workings and also showed chargeability features that indicate possible mineralization to a depth of approximately 200 meters.
Treasure Box Property
The Treasure Box property is made up of 1,300 acres of claims that cover both the historic Treasure Box and Boyer mines. Near the Lovelock property, the consolidated property sits 150 kilometers away from Reno, Nevada. Each of the properties host mine workings that were developed for limited copper production in the early twentieth century.
A historic hole on the property was drilled in 1910 at the Treasure Box property and intersected 1.52 percent copper over 25.9 meters. The Boyer mine property saw exploration in 2014 and 2015, during which time Discovery Harbour Resources Corp. drilled 12 holes with intersections of 0.84 percent copper over 6.4 meters and 0.37 percent over 18.29 meters. As part of the due diligence in the area, the company collected grab samples that showed values of up to 16.57 percent copper, 2.22 g/t gold and 21.10 g/t silver. Samples collected in early 2018 also showed results of up to 41.56 percent copper.
Nevada Sunrise has a definitive option agreement with GEMC which gives GEMC the right to earn an 85 percent interest in the Lovelock and Treasure Box projects. In summer 2019, GEMC initiated an underground mapping and sampling program at Lovelock.
Nevada Sunrise’s Gold Properties
Coronado VMS Project—Pershing County, Nevada
Nevada Sunrise has an option to earn a 100-percent interest in the Coronado VMS property located near the past-producing Big Mike copper mine in the Tobin and Sonoma Range of Pershing County, Nevada.
“Coronado is an underexplored property located on trend to a historic, high-grade copper mine,” said Stanyer. “In the modern era of mineral exploration, the search for buried deposits demands high-tech solutions. We believe Nevada Sunrise has received a unique opportunity in Nevada, one of the best mining jurisdictions in the world, and our team looks forward to unlocking the geological secrets of Coronado.”
2019 Gravity Survey Results
A strong airborne electromagnetic (EM) anomaly, the Coronado South target, was first detected by Nevada Sunrise in 2018. In April 2019, the company completed a ground gravity survey over the most conductive part of the Coronado South target. Eighty-four gravity readings were taken at 100-meter station intervals on four lines extending 1,000 meters on either side of the interpreted conductor axis to delineate the gravity profile. An additional 84 gravity readings were also taken over the Coronado North target located approximately 1,750 meters to the north.
The gravity survey outlined zones of low gravity coincident with the Coronado North and South EM anomalies, which was an unexpected result for such highly-conductive zones with higher magnetic susceptibility. Based on samples taken within the property area, Nevada Sunrise believes that the measured gravity lows could represent the weathered caps of flat-lying or gently dipping VMS-style mineralization.
The company plans to continue testing the strong EM conductors at Coronado North and South in an upcoming drilling program in conjunction with downhole EM surveys designed to gather geophysical information at depth.
Kinsley Mountain—Elko County, Nevada
The Kinsley Mountain property is located between the towns of Ely and Wendover in Elko County, Nevada, encompassing 10,410 acres. The property is owned by Kinsley Gold LLC, a joint venture between Nevada Sunrise (20.9 percent) and Liberty Gold Corp (79.1 percent). Kinsley Mountain hosts near-surface mineralization similar to other Carlin-style, sediment-hosted gold systems. The property is also home to a past-producing mine with an extensive exploration database and numerous, untested gold targets.
The Western Flank zone of the property contains a sulfide resource estimated at 284,000 Indicated ounces of gold grading 6.04 grams/tonne, and 39,000 Inferred ounces grading 2.41 g/t gold.
High-Grade, Low-Cost Production Potential
In January and July 2015, Nevada Sunrise and Liberty Gold Corp announced the results from metallurgical programs, which demonstrated that high-grade sulfide mineralization from the Western Flank zone can produce a high-grade concentrate with excellent gold recoveries, at potentially low capital and operating costs.
2018 Exploration Results
Liberty Gold Corp., as the operator, commenced a 2018 drill program at Kinsley designed to target possible extensions of the Western Flank deposit.
Highlights from the results include:
- PK228 intersected 5.42 g/t gold over 9.1 meters from 275.8 meters to 285 meters, including 7.77 g/t gold over 6.1 meters from 277.4 meters to 283.5 meters, at the Secret Canyon-Geddes contact, 50 meters east of 2017 hole PK221, which intersected 5.30 g/t over 29 meters.
- PK229A returned 1.15 g/t gold over 15.2 meters from 91.4 meters to 106.7 meters, in brecciated Notch Peak and Hamburg Dolomite adjacent to the KNW fault zone.
- PK226 returned multiple mineralized intercepts, including 1.54 g/t gold over 6.1 meters from 135.6 meters to 141.7 meters in the Dunderberg Shale, and 0.77 g/t gold over 7.6 meters from 249.9 meters to 257.6 meters in the Secret Canyon Shale.
Nevada Sunrise’s Management Team
Warren W. Stanyer — President, CEO and Director
Warren Stanyer is a mineral exploration industry executive with over 20 years of experience in Canadian public company administration. He previously served as an officer of Pioneer Metals Corporation, which was acquired by Barrick Gold Corporation in 2006, and as an officer until 2007 of UEX Corporation. Stanyer served as President, CEO and a director of Northern Continental Resources, which was acquired by Hathor Exploration in November 2009, and in recent years as an officer and director of Alpha Minerals, which was acquired by Fission Uranium in 2013. He is currently a director of ALX Uranium Corp., Eureka Resources Inc., and is an officer and director of New Moon Minerals and Trailblazer Exploration, both private mineral exploration companies.
Michael D. Sweatman — Director and Chairman, Interim CFO
Michael Sweatman is a Chartered Accountant and has operated MDS Management, a Vancouver-based management consulting company, since November 1992. He obtained his Bachelor of Arts degree in economics and commerce from Simon Fraser University, gained his CA designation in 1982, and is a member of the Institutes of Chartered Accountants of both British Columbia and the Yukon Territory. He has served as a director and officer of a number of public companies over the past 20 years. He is currently President & CEO and a director of Eureka Resources.
Christina Boddy—Corporate Secretary
Christina Boddy is a member of the Canadian Society of Corporate Secretaries and has acted as Corporate Secretary for a number of public companies in recent years, including Resinco Capital Partners (TSXV:RIN), Teslin River Resources (TSXV:TLR), Cue Resources Ltd. (TSXV:CUE) and Prophecy Platinum Corp. (TSXV:NKL). She acts as a consultant to public and private companies through Rhodanthe Corporate Services, a B.C.-based private company.
Charles E. Roy — Director
Charles Roy was employed by the mining engineering and geological consulting firm of David S. Robertson and Associates and worked in Canada, the United States and in Africa early in career. In 1979, Roy joined a predecessor company of Cameco Corporation as a Project Geologist, thus beginning a career with Cameco that would span 33 years. During this period Roy oversaw exploration teams that discovered and delineated seven significant uranium deposits, including Millennium. Later at Cameco, he worked to negotiate new exploration opportunities and helped to consolidate and streamline its worldwide exploration portfolio.
Suraj P. Ahuja — Director
Suraj Ahuja, M.Sc., P.Geo., is President and Principal Geological Consultant of SKAN Consulting, based in West Vancouver, BC, Canada. Ahuja has over 40 years of mineral exploration and management experience in Canada, the U.S., and South America. Since 2001, he has provided consulting services to several major and junior exploration companies in Canada and overseas, and has designed, developed and managed successful mineral exploration programs from grassroots to detailed property evaluations, including mine geology and feasibility studies. Prior to forming his own company, Ahuja also worked for Saskatchewan Mining and Development Corporation, a predecessor company to Cameco Corporation, and PNC, a Japanese-based uranium exploration company. He has served as a director of UEX Corporation since 2004.
Cory H. Kent — Director
Cory Kent has been a lawyer and partner at McMillan LLP since February 2003, practicing in the area of securities and corporate law with a focus on companies in the mineral resources industry. He has a LLB from the University of British Columbia and Bachelor of Arts from Carleton University. Kent is also a director of Starcore International Mines and PNI Digital Media.
Dan Zampirro, CPG – Technical Advisor
Dan Zampiro began his geology career in 1986 at the Round Mountain Gold Mine in central Nevada, and became the supervisor in charge of hydrogeology, well drilling and dewatering, He joined Chemetall‐Foote Corp in 2000 at the Silver Peak lithium mine where he was responsible for the lithium brine well field system, delineating Clayton Valley aquifers, exploration drilling to define the lithium brine reserves and increase brine production. Zampirro is the author of the landmark 2003 paper, “Hydrogeology of Clayton Valley Brine Deposits, Esmeralda County, Nevada”.
John R. Kerr, P. Eng. – Qualified Person
John Kerr has over 50 years of continuous employment in the mining industry, with 45 years’ experience in Nevada. His expertise is in epithermal and sedex-hosted precious metal deposits in the SW United States, gold deposits and porphyry copper/gold/molybdenum deposits of the western Cordillera. Kerr was instrumental in the discovery of the Santa Fe gold mine, the Mindora gold/silver deposit, and identification of the Calvada gold mine, all located in Mineral County, Nevada.
Robert (“Chip”) Allender, Jr., CPG– Technical Advisor, Qualified Person
Chip Allender’s 38-year career as a geologist spans six continents and twenty countries. He has a broad range of experience in exploration and mine development in precious metals, base metals, industrial minerals and fuel minerals. Allender has acted as Qualified Person and authored recently-updated technical reports for Neptune and Jackson Wash. He is contracted to supervise drilling on-site at Neptune in 2016.
Theodore (“Ted”) DeMatties, CPG, PG—Technical Advisor
Ted DeMatties is a U.S.-based consulting geologist with experience in exploring the geology and mineral deposits of the Stillwater Range in Nevada. His recent work in the Stillwater Range has led to the better understanding of the potential for iron oxide-copper-gold (“IOCG”) deposits in the area. He is the author of a technical report for the Treasure Box-Boyer Mine area entitled “An Evaluation of the 2BAR Copper-Oxide Property, Churchill County, Nevada, U.S.A.” dated March 1, 2016.
During his 40-year career as a geologist, he has been responsible for planning, management, and execution of mineral exploration programs, and detailed mining and mineral property evaluations for numerous clients. Deposit-type experience includes volcanogenic and sediment-hosted massive sulfide deposits in Precambrian and younger terranes, shear zone and iron formation-hosted gold deposits, as well as copper-nickel-PGM deposits associated with mafic-ultramafic rocks. He acted as field manager for a major, long-term, multimillion-dollar joint-venture volcanogenic massive sulfide (VMS) exploration program in Wisconsin, which led to the discovery of the Bend copper-gold deposit.
In 2017, he published a paper in Ore Geology Reviews entitled: “The Jurassic – Tertiary unconformity: A new exploration target for supergene-enriched iron oxide copper-gold –style mineralization in the Humboldt mafic complex, Nevada, USA”, which specifically discusses the copper, nickel and cobalt deposits of the eastern Stillwater Range.
Dr. John Oldow – Technical Advisor
Dr. Oldow has over 40 years of experience in the field of geology, and is currently Director of the Ellison Miles Center for Geological Field Studies at the University of Texas, Dallas. His work is largely field based and includes geologic mapping and the application of structural and stratigraphic analysis, potential-field geophysics, GPS geodesy and Terrestrial Laser Scanning to better understand regional tectonics. He attained a Bachelor of Science, Geology from the University of Washington in 1972 and his Ph.D. in Geology from Northwestern University in 1978. Among the many tributes he has received in his long academic and professional career, Dr. Oldow has served by invitation on numerous committees for the National Science Foundation, and is a Fellow of the Geological Society of America (1992).
Lon Shaver – Strategic Advisor
Lon Shaver is a strategic and financial advisor with over 19 years of experience in the Canadian mining sector, including investment banking roles with Raymond James Ltd., Merrill Lynch Canada Inc. and Midland Walwyn Capital Inc., where he completed numerous financing and M&A mandates. His corporate experience includes CFO roles with a publicly-listed mining company and a private technology company. Mr. Shaver began his career in equity research at Gordon Capital Corporation, where he focused on mining and fertilizer companies. He has a B. Comm. degree from Concordia University and holds the CFA designation.
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