VANCOUVER, Dec. 14, 2017 /CNW/ - Nevada Sunrise Gold Corporation ("Nevada Sunrise" or the "Company") (TSXV: NEV) is pleased to announce it has completed an initial geological sampling program and a reconnaissance geophysical survey at the historic Lovelock Cobalt Mine (the "Lovelock Mine", or the "Property"), located in Churchill County, approximately 100 miles (150 kilometres) east of Reno, Nevada. The Property is subject to the terms of a letter agreement with an underlying vendor signed in November 2017 (for further details see Nevada Sunrise news release dated November 21, 2017).
Two site visits by consulting geologists to Nevada Sunrise were completed in November and December 2017, and a total of 28 rock samples have been collected and submitted for analysis. Rocks sampled include historical mine waste, and bedrock occurrences within and around the various adits and shafts that are accessible at the Lovelock Mine site. A 53-element analytical package, including platinum group metals, has been ordered by the Company and geochemical results are expected in early January 2018.
In addition, an initial 4.2 kilometre DC induced polarization/resistivity ("DC-IP") survey consisting of stations spaced 25 to 50 metres apart on five lines has been completed by SJ Geophysics of Delta, B.C., using their proprietary Volterra acquisition system. The Volterra system allows crews to navigate around challenging terrain features such as lakes, swamps and cliffs or to adjust station locations to optimize ground contact. This DC-IP survey, projected to have a depth of investigation of approximately 250 metres (820 feet), is very likely the first ground geophysical program ever completed at the Property. In-depth processing and modelling of the data is underway and the Company plans to integrate the results with mapped geology to develop targets for a first-pass drilling program in the spring of 2018. There are no known historical drill holes at the Lovelock Mine.
"The Lovelock Mine is literally a time capsule never tested by modern exploration methods," said Warren Stanyer, President and CEO of Nevada Sunrise. "Our preliminary geophysical survey results show chargeability responses that could represent deeper zones of mineralization than the miners of the 1880s ever reached. The exploration goal at the Lovelock Mine is to find a deep-seated source for the historical cobalt mineralization."
About the Lovelock Mine
The Lovelock Mine property area consists of 37 unpatented claims in the Cottonwood Canyon area of Stillwater range totaling approximately 740 acres (300 hectares). It was reportedly discovered by George Lovelock and Charles Bell about 1880. According to U.S. Government annual reports, the Lovelock Mine saw limited production of nickel, copper and cobalt beginning in 1883. The primary cobalt mineral was identified as "cobaltite", a compound of cobalt, sulphur and arsenic with some nickel replacement of cobalt normal. Records of a geochemical analysis from that era indicate that the average composition of the cobaltite contained 17.30% cobalt and 13.62% nickel. The mine operated from 1883 to 1890 to the 100-foot level, reporting 500 tons of concentrated cobalt and nickel mineralized material shipped to England for processing. After intermittent production, a British company attempted smelting on site in 1898 but the smelter suffered equipment failures and production ceased. (Source: "Mineral Resources of the United States for 1885", 1886). No further production from the Lovelock Mine is known for well over a century.
For further information about the Lovelock Mine, including scanned copies of certain historical reports produced by the Nevada Bureau of Mines and precursors of the United States Geological Survey, please visit the Company's website at: http://www.nevadasunrise.ca/projects/lovelock-cobalt-mine/
Geology and Mineralization of the Lovelock Mine
The rocks of the Lovelock Mine area include highly-altered sedimentary and volcanic rocks cut by a larger mass of diorite and by aplitic dikes, all of which are highly altered. The altered volcanic rocks lie in a syncline bordered on the west, north and east by the altered sedimentary rocks. Probable faults, inferred from the nature of the contacts, form the boundaries between the sedimentary and volcanic rocks northwest of the Lovelock Mine.
The cobalt and nickel minerals of the Lovelock Mine and the nearby Nickel Mine occur in stringers that cut the rock immediately surrounding the diorite. In the case of the Lovelock Mine, the stringers cut a highly-altered greenstone. The minerals recognized are tetrahedrite, erythrite (cobalt bloom), azurite, and green crusts that contain copper and nickel arsenates and sulphates. Other sources reported the principal mineral present is cobaltite. It was postulated by historical observers that there has been post-mineral faulting with downthrow on the west, and that the extension of the productive zone is west of the Lovelock Mine shaft and at greater depth than the historical workings could reach (Source: "Nickel Deposits in Cottonwood Canyon, Churchill County, Nevada", H.G. Ferguson, 1939).
Robert M. Allender, Jr., CPG, RG, SME is the Company's designated Qualified Person for this news release within the meaning of National Instrument 43-101 and has reviewed and approved the technical information contained herein. Readers are cautioned that the technical information described in this news release is historical in nature; however, the information is deemed credible and was produced by professional geologists of the eras discussed.
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 gold, lithium and cobalt mineral exploration projects in the State of Nevada, USA.
Nevada Sunrise began acquisitions of Nevada lithium properties in September 2015, and currently owns a 100% interest in the Aquarius project, and a 75% interest in the Neptune project (Resolve Ventures, TSXV: RSV, owns a 25% interest in Neptune), each located in the Clayton Valley area. The Company also holds options to earn 100% interests in the Jackson Wash and Atlantis lithium projects, and holds a 50% interest in the Gemini lithium project, all located in playas proximal to the Clayton Valley. The Company's Atlantis project is currently under option to American Lithium Corp. (TSXV: LI).
