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 United States operated by Albemarle Corporation (NYSE: ALB).
The company’s portfolio also includes two gold properties with calculated resources, and the recently acquired Lovelock Cobalt Mine and Treasure Box projects in Churchill County, Nevada.
Nevada Sunrise’s lithium properties include 100 percent interests in the Neptune, Jackson Wash, Atlantis, and Aquarius projects. The company also holds a 50 percent interest in the Gemini project, with Eureka Resources Inc. (TSXV: EUK) holding a 50 percent interest.
In late 2017, Nevada Sunrise sold its share of the Clayton NE lithium project, which it jointly held with Advantage Lithium Corp., to Pure Energy Minerals (TSXV: PE) – the leading lithium exploration company in the Clayton Valley region. “The sale of Clayton NE to Pure Energy represents the culmination of a successful exploration program in Nevada’s most prolific lithium district,” said Warren Stanyer, President and CEO of Nevada Sunrise. “The Clayton NE claims are a complement to Pure Energy’s current lithium brine project and we are pleased to participate as their shareholder during future development in the area.”
- Lithium projects located in the superior jurisdiction of Nevada and near the only producing lithium mine in the United States.
- Drill permits received in 2016-2017 for Neptune, Jackson Wash, Aquarius, Atlantis and Gemini.
- Definitive purchase agreement for water rights fundamental to exploration and development in Clayton Valley, currently under forfeiture for alleged non-use, but in appeal.
- 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; recent discovery of high-grade gold mineralization; operated by Liberty Gold Corp. (TSX: LGD, formerly Pilot Gold Inc.); 5-hole drill program completed in spring of 2017 and property-wide VTEM airborne survey completed in December 2016.
Nevada Lithium Properties
Clayton Valley Lithium Properties
Neptune Lithium Project
The Neptune property is located approximately 10 miles (1 5 kilometres) 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 metres (1,500 feet) showed anomalous lithium in a grab sample of groundwater of 6.8 mg/l lithium at a depth of 438.9 metres (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% 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 Lithium Property
Aquarius consists of 90 unpatented placer claims totaling 1,800 acres (729 hectares) located in the Clayton Valley, approximately 3 miles (5 kilometres) southwest of the Silver Peak Mine. Nevada Sunrise owns a 100% 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 metres.
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 2-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 metres (2,710 feet) through interbedded sequences of sand, gravel, and clay. Hot fresh water was encountered in the borehole reaching a temperature of approximately 41 degrees C. (106 degrees F.) but no brines were detected.
Gemini Lithium Property
The Gemini lithium project is located in the Lida Valley about 6 miles (9 kilometres) east of the town of Lida, Nevada and 26 miles (39 kilometres) 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 150–250 meters deep 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 Lithium Property
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 kilometres) 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 3 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 staking 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 Copper and Cobalt Properties
Lovelock Cobalt Mine Property
The Lovelock Cobalt Mine property covers 283 hectares and is located approximately 150 kilometers east of Reno, Nevada. 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.
“The acquisition of the Lovelock Mine is yet another facet of our exploration operations in Nevada,” said Stanyer. “The mineral endowment of Nevada is vast and the Lovelock Mine is a hidden gem within that legacy, considering the renewed interest in cobalt during the past year. Nevada Sunrise looks forward to applying modern exploration methods to the Lovelock Mine, which in today’s terms could be judged as artisanal workings.”
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.
With plans to conduct initial drilling on the property, the company has applied to the US Bureau of Land Management (BLM) for an exploration permit.
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 20th 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.
In March 2018, Nevada Sunrise acquired options to acquire 100 percent of both historic copper properties from two separate vendors.
“This is the first consolidation of the Treasure Box and Boyer Mine properties in decades,” said Stanyer. “Our exploration in this mineral-rich area began with the Lovelock Cobalt Mine and we now recognize the hallmarks of a supergene-enriched deposit model that includes the potential for discovery of high-grade copper mineralization.”
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 Gold Properties
Kinsley Mountain—Elko County, Nevada
The Kinsley Mountain property is located betweenthe 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 sulphide resource estimated at 284,000 Indicated ounces of gold grading 6.04 grams/tonne, and 39,000 Inferred ounces grading 2.41 grams/tonne gold.
High-Grade, Low-Cost Production Potential
In January and in July 2015, Nevada Sunrise and Liberty Gold Corp announced the results from metallurgical programs, which demonstrated that high-grade sulphide mineralization from the Western Flank zone can produce a high-grade concentrate with excellent gold recoveries, at potentially low capital and operating costs.
2017 Exploration Results
Liberty Gold Corp. , as operator, commenced a 2017 drill program at Kinsley designed to test new targets on the property. The drilling focused on the Western Flank East Extension of the Western Flank deposit.
Highlights from the results include:
Liberty Gold Corp. , as operator, commenced a 2017 drill program at Kinsley designed to test new targets on the property. The drilling focused on the Western Flank East Extension of the Western Flank deposit.
Highlights from the results include:
From the Secret Canyon Shale Zone (lower host):
- Hole PK221: 5.30 g/t gold over 29.0 meters including 7.84 g/t gold over 16.8 meters
- Hole PK224: 3.68 g/t gold over 3.0 meters
From the Dunderberg Shale Zone (upper host):
- Hole PK221: 12.4 g/t gold over 4.6 meters including 35.1 g/t gold over 1.5 meters
- Hole PK224: 6.84 g/t gold over 7.6 meters including 12.8 g/t gold over 3.0 meters
Golden Arrow—Nye County, Nevada
The Golden Arrow property covers 5,684 acres in the western flank of the Kawich Range in Nye County, Nevada, and consists of 357 unpatented claims and 17 patented claims. The property lies along the eastern margin of the Walker Lane Structural Belt which has past production and defined resources of more than 30 million ounces of gold and 400 million ounces of silver. This prolific mining district is home to some of the most significant gold mines in Nevada, such as Round Mountain.
Plan of Operations Approved
Nevada Sunrise’s plan of operations for Golden Arrow was approved by the BLM in June 2016. The plan includes about 240,000 feet of drilling in up to 240 holes to explore new areas of gold mineralization on the property, and to potentially expand the known gold resources. Following an extensive environmental assessment and public review, the BLM concluded the plan does not pose significant impacts on the project area.
The approval of the Golden Arrow exploration plan is an important step in meeting the company’s objective to increase the size and quality of the gold resources at Golden Arrow. In December 2017, Nevada Sunrise announced an amended option agreement for Golden Arrow with Emgold Mining Corporation (TSXV: EMR) where Emgold can earn up to an 80% percent interest over 3 years from the closing date of the transaction. Emgold has also acquired a second option to acquire the remaining 20 percent after the completion of the first option.
Measured and Indicated Resource Estimate
Recent exploration at Golden Arrow has mainly focused upon definition of large-tonnage disseminated mineralization, with the discovery and delineation of two centers of mineralization – the Gold Coin and Hidden Hill deposits.
Golden Arrow hosts a calculated Measured and Indicated resource of 296,500 ounces of gold and 4,008,000 ounces of silver contained in 12,172,000 tonnes at an average grade of 0.024 ounces/tonne gold, and 0.33 ounces/tonne silver, and a calculated Inferred resource contained in 3,790,000 tonnes of 50,400 ounces gold at an average grade of 0.013 ounces/tonne and 1,249,000 ounces of silver at an average grade of 0.33 ounces/tonne.
Warren W. Stanyer — President, CEO & 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
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.
Brent Petterson — CFO
Brent Petterson is a Certified General Accountant since 1989, and operates his own private consulting company, MBP Management Ltd. Mr. Petterson spent 20 years in public practice with Wolrige Mahon, Chartered Accountants, and Amisano Hanson, Chartered Accountants, both based in Vancouver, B.C. He has considerable experience working with public mineral exploration companies and currently serves as a director of Garibaldi Resources Corp. (TSXV:GGI) since November 2007, and Rotation Minerals Ltd. (TSXV:ROT) since February 2011.
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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