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Nevada Sunrise Gold Corporation (TSXV:NEV) announced that Pilot Gold Inc. has reported the first independent resource estimate for the Kinsley Mountain Gold Project in eastern Nevada.
Nevada Sunrise Gold Corporation (TSXV:NEV) announced that Pilot Gold Inc. has reported the first independent resource estimate for the Kinsley Mountain Gold Project in eastern Nevada.
As quoted in the press release:
The resource estimate defines a significant high-grade zone at the Western Flank along with near-surface oxide ounces. Gold mineralization at Kinsley Mountain is sedimentary rock-hosted, similar to that mined in Nevada’s Carlin and Cortez trends. The potential for resource expansion is excellent due to widespread alteration, prospective geology and gold at surface, and over 80% of the Property is untested by drilling. All dollar amounts quoted in this news release are in US dollars.
The resource estimate for all mineralization types, using multiple cut-offs, is:
Mineralization hosted in the Secret Canyon Shale in the Western Flank zone includes 284,000 Indicated ounces at an average grade of 6.04 g/t gold. At a 3.0 g/t cut-off grade, most of the resource remains, delineating 248,000 Indicated ounces at an average grade of 9.15 g/t gold (see Sensitivity Table below). The grade improves 51%, while the gold content is only reduced by 13%. Metallurgical testing of mineralized material from this zone suggests that it is amenable to production of a flotation concentrate with grades up to 312 g/t gold and recovery of up to 95% using a flowsheet including cyanidation of the tails (see Nevada Sunrise news releases dated January 19, 2015 and July 13, 2015). The metallurgical response indicated by testing to date allows for consideration of lower cut-off grades than might ordinarily be used in modeling Carlin-type sulphide material.
Nevada Sunrise President and CEO, Warren Stanyer, stated:
This initial resource estimate validates the exceptional work completed by the Kinsley Mountain joint venture, and the quality of Pilot Gold’s operatorship at the Project over the last four years. We believe this landmark resource represents the beginning of a new era for Kinsley Mountain, and the results of the work to date demonstrate the strong potential for discovery of additional gold mineralization.
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