Ne­vada Sun­rise starts drilling at Coron­ado

Stockwatch Daily - - MINES & METALS - Mr. War­ren Stanyer re­ports

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.

About Coron­ado

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

(NEV) Shares: 45,044,133

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