Nevada Sunrise not financing initial Kinsley Mtn work
Aug 15, 2013 - News Release
Nevada Sunrise Gold Corp. will not contribute to the initial work program and budget for the Kinsley Mountain joint venture project. The initial program and budget proposed by the joint operating company, Kinsley Gold LLC, includes 20,000 metres of drilling at a budget of approximately $5.2-million (not including bonding requirements). As a result of the company's election, it expects its interest in the joint venture to be diluted to approximately 20 per cent (prior to inclusion of funds for bonding, currently estimated at $700,000). Although some drilling has commenced, the joint operating company is awaiting final permits from the Bureau of Land Management before it can implement the full program. The company continues to negotiate the terms of the joint operating agreement with Pilot Gold Inc. The decision not to participate in the work program was made after careful assessment of numerous factors, including the current state of the capital markets. In conjunction with this decision, the company has implemented a number of cost-reduction measures, including terminating the lease on the Pinnacle property and the closure of its Auburn, Calif., office. These measures are being taken to ensure the continued viability of the company and possibly enable the company to participate in future work programs at Kinsley Mountain.
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