Nevada Sunrise Gold (NEV-V) April 16, '14 has approved an increase of $1.57-million (U.S.) to the 2014 exploration budget at Kinsley Mountain for an amended total of $6.04-million. Pilot Gold Inc., the operator of exploration at Kinsley Mountain, proposed a budget increase to the Kinsley Mountain joint venture after strong gold mineralization was encountered in the 2013 and 2014 drilling programs at the Western Flank target (see Nevada Sunrise's news releases of Nov. 18, 2013, Feb. 27, 2014, and March 12, 2014). Highlights of the Western Flank drilling results released to date include:- 8.53 grams per tonne (g/t) Au over 36.6 metres in PK091CA, including 29.43 g/t Au over 7.6 metres;
- 6.85 g/t Au over 41.7 metres in PK127C, including 16.6 g/t Au over 8.5 metres;
- 10.5 g/t Au over 42.7 metres in PK131C, including 18.3 g/t Au over 22.9 metres;
- 7.53 g/t Au over 53.3 metres in PK132C, including 14.9 g/t Au over 22.9 metres.
These results support the fact that the Kinsley project can host significant high-grade mineralization in the Secret Canyon shale. Results are still pending from the 2014 phase 1 drilling for an additional five holes in the Western Flank that targeted the Secret Canyon shale.
2014 amended program and budget
Pilot Gold holds a 79-per-cent interest in the Kinsley Mountain joint venture, and Nevada Sunrise, through its subsidiary Intor Resources Corp., holds a 21-per-cent interest. Intor has notified Pilot Gold of its election to finance its $1.26-million (U.S.) share of the amended 2014 program.
A phase 2 drill program of approximately 25,600 metres is scheduled to begin with two drills on May 7, 2014, and is planned to include:
- 12,500 metres of core drilling and reverse circulation (RC) drilling for the Western Flank target;
- 3,000 metres RC drilling for the Right Spot target;
- 2,000 metres RC drilling for the Secret Spot target;
- 2,000 metres of core and RC drilling near the historical pits, last mined in the 1990s.
Other targets slated for drilling in 2014 are Ken's Jasperoid, Racetrack, Baja Racetrack, Access Extension and Kinsley North. Drill testing of priority exploration targets up to seven kilometres to the north of the historical mine area within Kinsley North is expected to occur upon receipt of an amended plan of operations. Large geochemical anomalies, strong gold values in surface rock samples and extensive geologic mapping have confirmed the presence of key structures and regional stratigraphic gold hosts at Kinsley North. An amendment to the existing plan of operations was submitted on Nov. 6, 2013.
For a map showing the 2014 drilling target areas, a long section of the Western Flank/Right Spot area, and a table of 2014 Kinsley Mountain drill results to date, including non-reportable intercepts, please access Nevada Sunrise's website under "Exploration -- Kinsley Mountain."
About Kinsley Mountain
Kinsley Mountain hosts near-surface mineralization similar to other Carlin-style, sediment-hosted gold systems. The Kinsley Mountain project is located in eastern Nevada near the Utah border, approximately 160 kilometres (100 miles) southeast of Elko, Nev., and consists of 446 claims covering approximately 3,387 hectares (8,370 acres). Kinsley Mountain hosts a past-producing mine with an extensive exploration database and numerous, untested gold targets.
Kinsley Mountain is an early-stage exploration project and does not contain any mineral resource estimates as defined by National Instrument 43-101 standards of disclosure for mineral projects. The potential quantities and grades disclosed herein are conceptual in nature and there has been insufficient exploration to define a mineral resource for the targets disclosed herein. It is uncertain if further exploration will result in these targets being delineated as a mineral resource.
John R. Kerr, PEng, is the company's designated qualified person for this news release within the meaning of NI 43-101 and has reviewed and approved the technical information contained in this release. Drill composites were calculated using a cut-off of 0.20 g/t. Drill intersections are reported as drilled thicknesses. True widths of the mineralized intervals are interpreted to be between 30 to 100 per cent of the reported lengths. |
