VANCOUVER, April 6, 2017 /CNW/ - Nevada Sunrise Gold Corporation ("Nevada Sunrise" or the "Company") (TSXV: NEV) and its exploration partner Advantage Lithium Corp. ("Advantage Lithium") (TSXV: AAL) are pleased to announce that a regional drilling program has commenced at the Neptune Lithium Project ("Neptune") located in the southern Clayton Valley of Nevada, USA. One borehole to a depth of approximately 610 metres (2,000 feet) is planned to follow up on encouraging results from a 2016 lithium brine drilling program carried out by Nevada Sunrise. Other boreholes are planned at the Jackson Wash, Aquarius and Gemini projects in the coming months.
Neptune is the subject of an earn-in agreement between Nevada Sunrise and Advantage Lithium where Advantage Lithium can earn a 50% interest in Neptune from the Company by spending CDN$700,000 over a three-year period (see Nevada Sunrise news release dated June 20, 2016). At present, Neptune ownership is 75% Nevada Sunrise and 25% Resolve Ventures Inc. (TSXV: RSV), subject to a 3% gross overriding royalty according to the terms of an underlying option agreement with a Nevada vendor.
Nevada Sunrise completed two exploration holes at Neptune in late 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). A third hole is underway approximately 1.6 kilometres (1 mile) to the east of hole N-2016-1 in an area interpreted from a 2016 geophysical survey to be a potential trap where denser, lithium-bearing brines could accumulate. If results from the third Neptune borehole warrant further work, a drill pad and access road have been prepared for a fourth hole location.
About Neptune
Neptune consists of 316 unpatented 20-acre placer claims totaling approximately 6,320 acres (2,557 hectares) and is located in an active area of lithium exploration and mining. The Silver Peak lithium mine operation, acquired by Albemarle Corporation (NYSE: ALB) in 2015, has extracted lithium minerals from brines continuously since 1966 and is located approximately 10 miles (15 kilometres) to the north of Neptune. Nevada Sunrise has an option to earn a 100% interest in Neptune, subject to a 3.0% gross overriding royalty (see Nevada Sunrise news release dated September 21, 2015 for further details of the Neptune underlying option agreement).
About Lithium Exploration at Neptune
Drill targets at Neptune have been generated from the integration of the results of: (1) a detailed gravity survey by a previous operator that outlined a deep, fault-bounded sub-basin, (2) a controlled source audio magnetotellurics follow-up survey that detected conductive horizons within the sub-basin, and (3) a 2016 time-domain electromagnetic survey that provided additional detail about the conductive horizons. In each of the two holes completed in 2016, permeable sedimentary, lacustrine strata interbedded with volcanic ash and other ejecta was logged at various levels throughout the holes. This type of sedimentary strata is interpreted as a requisite host horizon for lithium-bearing brines as seen in the northern Clayton Valley.
For further information on Neptune including maps showing its location and exploration plans please visit the Nevada Sunrise website at: "Projects – Nevada Lithium": http://www.nevadasunrise.ca/projects/nevadalithium/
A National Instrument 43-101 ("NI 43-101") compliant technical report on Neptune dated February 29, 2016 can be accessed on the Nevada Sunrise website at "Investors – Downloads": http://www.nevadasunrise.ca/investors/
Initial water and sediment samples collected in 2016 were submitted to ALS Minerals in Reno, NV, and analyzed at ALS Minerals in Vancouver, BC. Water samples were analyzed by ICP-AES and ICP-OES, and composite sediment samples were analyzed by 48-element, four-acid ICP-MS. Re-analysis of groundwater was carried out by Western Environmental Testing Laboratory in Reno, Nevada, where testing included analysis for specific gravity, total hardness and alkalinity, bicarbonate, carbonate, hydroxide, TDS and electrical conductivity. Anions (chloride, sulfate) were analyzed by ion chromatography. Trace metals (lithium, magnesium, boron, calcium, potassium and sodium) were analyzed by ICP-OES. All depth measurements reported, including sample and interval widths are down-hole. As holes are oriented vertical and geologic stratigraphy is primarily horizontal to sub-horizontal, downhole measurements are assumed to be close to true thickness.
Robert M. Allender, Jr., CPG, RG, SME is the Company's designated Qualified Person for this news release within the meaning of NI 43-101 and has reviewed and approved the technical information contained herein.
About Nevada Sunrise
Nevada Sunrise is a junior mineral exploration company with a strong technical team based in Vancouver, BC, Canada, that holds interests in nine mineral exploration projects in the State of Nevada, USA. Nevada Sunrise began acquisitions of Nevada lithium properties in September 2015, which include options to earn a 75% interest in the Neptune project (Resolve Ventures Inc. (TSXV: RSV) owns a 25% interest), a 100% interest in the Clayton Northeast project, and a 100% interest in the Aquarius Project, all located in the Clayton Valley area. The Company also holds options to earn 100% interests in the Jackson Wash and Atlantis projects, and has a 50% participating interest in the Gemini project, each located in playas proximal to the Clayton Valley. The Company has optioned five of the Nevada lithium projects to Advantage Lithium Corp. (TSXV: AAL), and the Atlantis project is currently under option to American Lithium Corp. (TSXV: LI). The Salt Wells Lithium project, in the Carson Basin near Reno, is currently the subject of due diligence by the Company.
The Company's three key gold assets include a 21% interest in a joint venture with Pilot Gold Inc. (TSX: PLG) at Kinsley Mountain near Wendover, a 100% interest in the Golden Arrow project near Tonopah, and an option to earn a 100% interest in the Roulette gold property in the southeastern Carlin trend near Ely, with each of the properties subject to certain production royalties.
