VANCOUVER, British Columbia, April 16, 2014 (GLOBE NEWSWIRE) -- Nevada Sunrise Gold Corporation ("Nevada Sunrise" or the "Company") (TSX-V:NEV) is pleased to announce that it has approved an increase of US$1.57 million to the 2014 exploration budget at Kinsley Mountain for an amended total of $6.04 million. Pilot Gold Inc. ("Pilot Gold") (TSX:PLG), 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 November 18, 2013, February 27, 2014 and March 12, 2014). Highlights of the Western Flank drilling results released to date include:
- 8.53 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 5 holes in the Western Flank that targeted the Secret Canyon shale.
2014 Amended Program and Budget
Pilot Gold holds a 79% interest in the Kinsley Mountain joint venture, and Nevada Sunrise, through its subsidiary Intor Resources Corporation ("Intor") holds a 21% interest. Intor has notified Pilot Gold of its election to fund its US$1.26 million 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 November 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" 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. 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 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 ("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.
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.
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 Three Months ending December 31, 2013, 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.