Nevada Sunrise Gold (NEV-V) partner Pilot Gold (PLG-T) earns in 65% Kinsley share
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April 10, 2013 - News Release
Nevada Sunrise Gold Corp.'s operator Pilot Gold Inc. has completed $3-million (U.S.) in eligible expenditures to increase its participating interest in the joint venture governing the Kinsley Mountain project, located in northeastern Nevada, to 65 per cent. Pilot Gold is the operator of the project.
The company has also received an exploration program proposal for 2013 for Kinsley Mountain which has an estimated $5.21-million (U.S.) budget. Nevada Sunrise holds a 35-per-cent participating interest in the project, and subject to finalization of the joint venture agreement expects that it will provide its proportional share of projected exploration expenditures at quarterly intervals through 2013.
Proposed 2013 exploration program
The 2013 exploration program proposed by Pilot Gold for Kinsley Mountain includes the following:
22,000 metres (72,178 feet) of drilling planned, including 14,000 metres (45,932 feet) of reverse circulation and 8,000 metres (26,247 feet) of diamond drilling; Resource estimation to be initiated as drilling progresses;
Metallurgical studies are planned in connection with the resource estimate;
Total 2013 proposed exploration budget estimated at $5.21-million (U.S.).
2013 exploration target areas
Western flank
Pilot Gold's drilling in 2012 identified a north-trending, mineralized zone located approximately 600 metres northwest of the nearest historical pit, measuring at least 600 metres by 100 metres, characterized by two stacked lenses of mineralization remaining open in all directions. Follow-up drilling is planned to potentially expand the mineralization found in 2012 drill holes PK061 (6.03 grams per tonne gold over 13.7 metres, including 15.18 grams per tonne gold over 4.6 metres), PK66 (2.48 grams per tonne gold over 6.1 metres), and PK067 (9.50 grams per tonne gold over 4.6 metres, including 20.5 grams per tonne gold over 1.5 metres). The north-to-northeast trend that includes the Western flank zone appears to validate the Long Canyon model developed by Pilot Gold's technical team.
There are no assurances that the geological similarities to Newmont Mining's Long Canyon project or Pilot Gold's previous experience at Long Canyon will result in the establishment of any resource estimates at Kinsley, or that the Kinsley project can be advanced in a similar time frame.
Candland Canyon
A new zone of mineralization was discovered in lower Candland Canyon in 2012, approximately 450 metres away from any previously known mineralization, as shown in PK39 (1.08 grams per tonne gold over 10.7 metres) and PK40 (0.74 gram per tonne gold over 7.6 metres). Further drilling is planned in 2013 to explore offsets and extensions of this mineralization.
Other target areas
Drilling results in the Main extension zone during 2012 showed that mineralization continues down dip of the historical Main pit, and follow-up drilling is planned in 2013. Other new target areas have been developed from the results of 2012 surface sampling that discovered gold-bearing jasperoids up to two kilometres north of the historical pits, which when viewed in conjunction with the recent mapping of steep northwest and north-northeast-striking faults, may reflect the presence of gold mineralization at depth.
To view a location map and a table displaying the results of the 2012 exploration program at Kinsley Mountain, please visit the Nevada Sunrise website.
About Kinsley Mountain
Kinsley Mountain is located in Elko county, Nevada, about 83 kilometres (51 miles) south of the town of Wendover. The project lies within a seven-mile-long, north-northeast-trending ridge at the northern extension of the Antelope Range, and consists of 380 contiguous claims totalling 3,096 hectares (7,650 acres). Historical open-pit mining operations by Alta Gold Company extracted 138,151 ounces of gold from the property from 1994 to 1999. Kinsley Mountain is an early stage development project without any current resource estimates and there is no certainty that any such resource estimates will ever be established.
Pilot Gold reports that drill core composites were calculated using a cut-off of 0.30 gram per tonne. Drill intersections are reported as drilled thicknesses. True widths of the mineralized intervals are interpreted to be between 30 and 100 per cent of the reported lengths. Drill samples were assayed by ALS Chemex (ISO9001:2000) in Reno, Nev., for gold by fire assay of a 30-gram (one-assay-ton) charge with an AA finish, or if over five grams per tonne were reassayed and completed with a gravimetric finish. For these samples, the gravimetric data were utilized in calculating gold intersections. Quality assurance/quality control included the insertion and continual monitoring of numerous standards and blanks into the sample stream, and the collection of duplicate samples at random intervals within each batch. Selected holes are also analyzed for a 72-element geochemical suite by ICP-MS.
This news release was prepared by company management, taking full responsibility for its content. The technical disclosure in this news release has been reviewed by Richard Kehmeier, CPG, a qualified person as defined by National Instrument 43-101 of the Canadian Securities Administrators.
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