VANCOUVER, British Columbia, Feb. 27, 2014 (GLOBE NEWSWIRE) -- Nevada Sunrise Gold Corporation ("Nevada Sunrise" or the "Company") (TSX-V:NEV) is pleased to announce that Pilot Gold Inc. ("Pilot Gold") (TSX:PLG), operator for the Kinsley Mountain joint venture, has reported to the Company that new drilling in step-out hole PK127C at Kinsley Mountain's Western Flank target has intersected high-grade gold mineralization of 6.85 grams per tonne gold ("g/t Au") over 41.7 metres.
Holes PK127C and PK126C are step-out holes located approximately 30 metres east and 30 metres west, respectively, of hole PK91CA, which returned 8.53 g/t Au over 36.6 metres (see Nevada Sunrise news release dated November 18, 2013).
Highlights from the 2014 drill program's first two holes include:
-- 6.85 g/t Au over 41.7 metres in PK127C, including
- 16.6 g/t Au over 8.5 metres (oxide), and
- 20.5 g/t Au over 3.6 metres (oxide)
-- 1.70 g/t Au over 13.7 metres in PK126C, including
- 7.10 g/t Au over 1.5 metres
These assay results better define the size and shape of the high-grade zone at the Western Flank target. Intercepts in both holes are located at the approximate elevation of PK91CA, suggesting that the high-grade zone is nearly flat-lying in an east-west orientation. The bottom portion of the PK127C intercept is in highly-oxidized rock that returned strong gold recoveries in cyanide soluble assays. Assay results from four additional holes, drilled 25-50 metres to the north and south of PK91CA and PK127C, are pending. The high-grade zone is located in a previously unrecognized stratigraphic horizon below the limit of prior drilling.
Pilot Gold states that these latest results confirm that the newly-discovered zone of high-grade mineralization is open in all directions, and that prospective stratigraphy and structure occurs over 1.7 kilometres in the Western Flank, including areas under, and to the south of, the historical Kinsley Mine. As a result, Pilot Gold reports that the scale of potential has increased markedly at Kinsley Mountain.
Gold at the Western Flank is hosted in multiple units. The upper stratigraphic unit (Candland Shale) rises to the surface 500 metres to the south at the newly identified Right Spot target. Mapping and rock sampling at the Right Spot identified a 250-metre north-northeast zone of surface jasperoids returning 1-5 g/t gold in grab samples. Stratigraphic gold host units lying below the Candland Shale appear to surface an additional 500 metres to the south of the Right Spot target, where gold-bearing jasperoids are also present. Initial drill results from the Right Spot target are pending.
The Western Flank area hosts numerous features that are similar to the geology at the nearby Long Canyon deposit, including evidence of potential boudinage of a 100-metre-thick dolomite horizon and focusing of gold mineralization in and around this boudin neck area, which strikes north-northeast. There are no assurances that the geological similarities to the Long Canyon project will result in the establishment of any resource estimate at Kinsley's Western Flank, or, if found to exist, that it will be of a similar grade or quantity that is found at Long Canyon or those other deposits, or that the Kinsley project can be advanced in a similar timeframe. The Long Canyon deposit is located approximately 75 kilometres (47 miles) north of Kinsley Mountain and was explored and developed by Pilot Gold's Kinsley Mountain exploration team, prior to the sale of Long Canyon to Newmont Mining Corporation in 2011.
For a table of 2014 Kinsley Mountain drill results to date, including non-reportable intercepts, and a drill map of the Western Flank/Right Spot area, please access Nevada Sunrise's website under "Exploration - Kinsley Mountain" at: http://www.nevadasunrise.ca/kinsleymountain.asp
ABOUT KINSLEY MOUNTAIN
Kinsley Mountain hosts near-surface mineralization similar to other Carlin-style, sediment-hosted gold systems along a 2.2 kilometre, SE-NW strike extent. The Kinsley Mountain project is located in eastern Nevada near the Utah border, approximately 160 kilometres (100 miles) southeast of Elko, Nevada, and consists of 380 claims covering approximately 3,100 hectares (7,650 acres). Kinsley Mountain hosts a past-producing mine with an extensive exploration database and numerous, untested gold targets. Gold mineralization is primarily oxidized and occurs in strataform zones and fault collapse breccias within a sequence of Cambrian-Ordovician shelf carbonates. At depth, the Kinsley Mountain joint venture has also drilled high-grade transitional and sulfide mineralization.
The Western Flank target is located 550 metres northwest of the past-producing pits at Kinsley Mountain. It comprises north-northeast-plunging zones of mineralization hosted in three or more receptive stratigraphic horizons intersected by one or more steep breccia zones that may have served as conduits and porous hosts for gold mineralization. In addition to mineralization in stratigraphic units exploited in the previous mining operation, the Kinsley Mountain joint venture's drilling has revealed that high-grade gold occurs within a lower limestone unit that was neither identified nor tested by previous operators.
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 ("NI 43-101"). 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.
In 2013, Pilot Gold solely-funded a US$3.8-million exploration program at Kinsley Mountain, which increased its participating interest to approximately 78%, with Nevada Sunrise holding an approximate 22% interest.
John R. Kerr, P.Eng., 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 30-100% of the reported lengths. Drill samples were assayed by ALS Chemex (ISO9001:2000) in Reno, Nevada for gold by Fire Assay of a 30 gram (1 assay ton) charge with an AA finish, or if over 5.0 g/t were re-assayed and completed with a gravimetric finish. For these samples, the gravimetric data were utilized in calculating gold intersections. For any samples assaying over 0.200 ppm an addition cyanide leach analysis is done where the sample is treated with a 0.25% NACN solution and rolled for an hour. An aliquot of the final leach solution is then centrifuged and analyzed by AAS. QA/QC for all drill samples consists of 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 51 multi-element geochemical suite by ICP-MS.
For further information about Kinsley Mountain please refer to a technical report entitled "Technical Report on the Kinsley Project, Elko County, Nevada, U.S.A.", effective February 15, 2012 and dated March 26, 2012, prepared by Michael M. Gustin, CPG of Mine Development Associates and Moira Smith, Ph.D., P.Geo. and Kent Samuelson of Pilot Gold, filed on May 9, 2012 under Nevada Sunrise's Issuer Profile on SEDAR at www.sedar.com and also available for viewing on Nevada Sunrise's website at www.nevadasunrise.ca
FORWARD LOOKING STATEMENTS
All statements in this release, other than statements of historical fact, are "forward-looking information" with respect to Nevada Sunrise Gold Corporation ("Nevada Sunrise") within the meaning of applicable Canadian securities laws, including statements that address future mineral production, reserve potential, exploration drilling, the future price of gold, potential quantity and/or grade of minerals, potential size of a mineralized zone, potential expansion of mineralization, the timing and results of future resource estimates, or other study, proposed exploration and development of our exploration properties and the estimation of mineral resources. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Nevada Sunrise to differ materially from those anticipated in such forward-looking information.
Such factors include, among others, risks related to the interpretation and actual results of historical production at Kinsley Mountain, reliance on technical information provided by third parties on any of our exploration properties, including access to historical information on the Kinsley Mountain property as well as specific historic data associated with and drill results from the property, information from Pilot Gold Inc., current exploration and development activities; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; failure of Pilot Gold Inc., to complete anticipated work programs; labor disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration, as well as those factors discussed in the section entitled "Risk Factors" in the Company's Management Discussion and Analysis for the year ended September 30, 2012, which is available under Company's SEDAR profile at www.sedar.com.
Although Nevada Sunrise has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Nevada Sunrise disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. Accordingly, readers should not place undue reliance on forward-looking information.
Forward-looking statements are made as of the date hereof and accordingly are subject to change after such date. Except as otherwise indicated by Nevada Sunrise, these statements do not reflect the potential impact of any non-recurring or other special items or of any dispositions, monetizations, mergers, acquisitions, other business combinations or other transactions that may be announced or that may occur after the date hereof. Forward-looking statements are provided for the purpose of providing information about management's current expectations and plans and allowing investors and others to get a better understanding of our operating environment. Nevada Sunrise does not undertake to update any forward-looking statements that are included in this document, except in accordance with applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of TSX Venture Exchange) accepts responsibility for the adequacy of accuracy of this release. The Securities of Nevada Sunrise Gold Corporation have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to the account or benefit of any U.S. person.