Nevada Sunrise starts drilling at Coronado
NEVADA SUNRISE Gold Corp. has started a diamond drilling program at the Coronado volcanogenic massive sulphide (VMS) property, located in the Tobin and Sonoma Range of Pershing county, Nevada, approximately 30 miles (48 kilometres) southeast of Winnemucca.
Drilling is under way at the Coronado South target and is designed to test a large electromagnetic anomaly detected in an airborne survey carried out by the company in July, 2018. Two anomalous responses, Coronado North and Coronado South, were observed from the airborne survey in the southern part of the project. The Coronado South target has a 1,400 metres by 700 metres (4,600 feet by 2,300 feet) footprint and is interpreted as a northwest-southeast-striking cuboid body with estimated dimensions of approximately 900 metres by 300 metres by 150 metres (2,950 feet by 980 feet by 490 feet). The width, thickness and depth vary along strike, suggesting that the zone is broken into sections by cross faulting.
The initial drill test at Coronado South consists of three diamond drill holes totalling approximately 2,500 feet (762 metres). The United States Bureau of Land Management has approved nine drill hole locations at Coronado, where each location can host multiple holes. The current drilling plan for the Coronado South anomaly calls for up to six holes totalling 5,225 feet (1,608 metres), and at the Coronado North anomaly an additional six holes are planned, totalling 4,750 feet (1,462 metres). Additional drilling at the project will be dependent upon results from the 2018 drilling program.
About the Coronado North and South targets
Ground geological investigations carried out by Nevada Sunrise Gold at Coronado in September, 2018, within the areas of the best VTEM conductive anomalies confirmed the presence of sulphides on surface as well as other geological features consistent with the surface expression of a buried VMS deposit. Most of the surface area of the project is covered with locally derived overburden. At the Coronado South anomaly, rare outcrops exposing a section of thin-bedded-to-laminated chert exhalite and cherty tuffaceous sediments containing fine-grained oxidized (iron-stained) sulphide casts and locally relict anhedral pyrite grains (up to 1 per cent) were mapped and sampled. In addition, samples of highly altered, gossanous (oxidized disseminated sulphide casts) chert and chert breccia were collected from nearby exploration trenches. These samples occur within a structural zone that appears to intersect the northwest end of the Coronado South anomaly. Analytical results show anomalous values of arsenic, sulphur, silver and, most importantly, mercury. The presence of sulphides in the chert exhalite beds and anomalous mercury values within the structural zone located immediately adjacent to the Coronado South anomaly suggest a spatial relation to the EM conductor. Of particular importance is that this exhalite section is comparable with those found within the Big Mike mine sequence and the historic open pit located approximately 2.9 miles (4.5 kilometres) to the southeast, where peripheral mercury anomalies were also noted during geochemical exploration in the late 1960s. The presence of a number of EM anomalies along trend with Big Mike suggests districtscale potential and a typical clustering of VMS deposits.
Coronado currently consists of 225 located unpatented claims totalling approximately 4,500 acres (1,821 hectares) located over an interpreted trend adjacent to Big Mike that lies within the Middle Pennsylvanian to Late Permian-age Havallah volcanic-sedimentary sequence. Big Mike was discovered in the 1930s when a shallow, oxidized portion (gold-bearing gossan) of the deposit was located by prospectors. The area was explored further in the late 1960s by Cerro Corp. and a deeper (greater than 300 feet or 91 metres) high-grade, massive sulphide lens was discovered by diamond drilling. The deposit was considered a supergene-enriched, Cyprus-type VMS occurrence.
In 1969, Cerro published a historical resource estimate of 634,000 tons grading 3.41 per cent copper, which included 74,000 tons of massive sulphide ore grading 11.78 per cent copper, and 380,000 tons of oxide and mixed ore grading 3.16 per cent copper. This historical estimate, which is dated Feb. 21, 1969, uses categories that are not consistent with National Instrument 43-101 and cannot be readily compared with NI 43-101 categories. A qualified person has not done sufficient work to classify the estimate as a current resource and Nevada Sunrise Gold is not treating the estimate as a current resource estimate. A portion of the ground on which this estimate was based was subsequently mined; therefore, this estimate cannot be relied upon. The estimate is relevant to guiding the company’s exploration plans and provides geological information regarding the type of mineralization that could be present in the Coronado area.
In 1970, Ranchers Exploration and Development Company developed the highgrade portion of the deposit with an open-pit mine that produced approximately 25 million pounds of copper in 100,000 tons of ore grading 10.5 per cent copper, which was shipped directly to smelters in West Germany and Japan. Heap leaching of lower-grade disseminated copper ore was also carried out by Ranchers; approximately 300,000 tons of mineralized rock was treated. Historical sampling also shows the presence of cobalt at Big Mike, with values in the deposit ranging up to 2,500 parts per million (0.25 per cent) cobalt (Rye et al., Economic Geology, Vol. 79, 1984). Big Mike was mined out in 1970.
Theodore DeMatties, CPG, PG, 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 some of 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. Mineralization located on adjacent properties by historical exploration may not be present on Coronado.
About Nevada Sunrise Gold Corp.
Nevada Sunrise Gold is a junior mineral exploration company with a strong technical team based in Vancouver, B.C., Canada, that holds interests in gold, cobalt, copper and lithium exploration projects in the state of Nevada in the United States.
Nevada Sunrise Gold’s two key gold assets include a 100-per-cent interest in the Golden Arrow project, near Tonopah, currently the subject of a transaction with Emgold Mining Corp., and a 21-per-cent interest in a joint venture at Kinsley Mountain with Liberty Gold Inc., near Wendover, with each of the properties subject to certain production royalties.
We seek Safe Harbor.
Suraj Prakash Ahuja, Cory Harrison Kent, Charles E Roy, Warren William Stanyer, Michael Denis Sweatman
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