Nevada Sunrise Gold Corp.
TSX VENTURE : NEV

Nevada Sunrise Gold Corp.

April 08, 2010 09:35 ET

Nevada Sunrise Grants Option to Animas Resources Ltd. on Its Golden Arrow and Kinsley Mountain Properties

- Golden Arrow

-- Animas to spend $3,500,000 within 3 years to earn 51% interest in the property.

-- NI 43-101 M&I resource of 296,500 ounces gold and 4,008,000 ounces silver.

- Kinsley Mountain

-- Animas to spend $1,500,000 within 3 years to earn 51% interest in the property.

-- Past producer - Alta Gold produced 134,777 ounces gold prior to bankruptcy in 2000.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 8, 2010) - Nevada Sunrise Gold Corporation (TSX VENTURE:NEV) -

Golden Arrow Property, Nye County, Nevada

The Golden Arrow property is located in south-central Nevada, approximately 40 miles (60 kilometers) east of Tonopah on the western flank of the Kawich Range within the Golden Arrow mining district of central Nye County. The property consists of 279 unpatented mining claims encircling 17 patented lode mining claims covering an area of approximately 5,684 acres (2,300 hectares). Favorable attributes for the exploration of the property include its relatively gentle topography, mild climate, available ground water and close proximity to maintained roads and highways.

Nevada Sunrise has previously reported in its April 1, 2009 news release, an NI 43-101 compliant Mineral Resource estimate at a variable cut‐off grade of 0.010 ounces per ton (opt) gold for oxide material and 0.015 opt gold for non‐oxidized material consists of:

  • A measured and indicated resource of 296,500 ounces of gold at an average grade of 0.024 opt Au, and 4,008,000 ounces silver at an average grade of 0.33 opt Ag (12,172,000 tons).
  • An additional inferred resource of 50,400 ounces gold at an average grade of 0.013 opt Au, and 1,249,000 ounces silver at an average grade of 0.33 opt Ag (3,790,000 tons).

In accordance with the terms of the Letter Agreement dated March 29, 2010, Nevada Sunrise grants to Animas Resources Ltd. the option to acquire a 51% legal and beneficial interest in the Golden Arrow Property. Animas may exercise this option by spending $3,500,000 in exploration expenditures, including all annual property maintenance fees and lease payments, by the third year (of which $1,000,000 must be spent during calendar year 2010). 

Upon earning its 51% interest in Golden Arrow, the two companies will form a joint venture for further exploration work to be carried out on the property consistent with the Rocky Mountain Mineral Law Foundation – Mining Venture Agreement.

Once Animas has earned its 51% interest in Golden Arrow, it will be granted an additional option to earn an additional 9% interest by spending $4,000,000 in exploration expenditures within five years bringing its interest in the Golden Arrow Property to 60%.

Kinsley Mountain Property, Elko County, Nevada

The Kinsley Mountain Property is located in Elko County, Nevada, between the towns of Ely and Wendover. The Property consists of 141 unpatented lode claims covering an area of approximately 2,807 acres (1,136 hectares). Gold mineralization occurs within a stratigraphic section of Middle to Upper Cambrian-age sedimentary rock units including limestone, dolomite and shale. This mineralization exhibits characteristics similar to other sedimentary rock-hosted Carlin-type gold deposits in Nevada. Alta Gold produced 134,777 ounces gold from small oxide pods of mineralization from 1994 to 1999 in the run-up to their bankruptcy.

Animas has the option to earn a 51% interest in the Kinsley Mountain Property by spending $1,500,000 in exploration expenditures during the next three years in accordance with the previously mentioned Letter Agreement. Animas must spend $200,000 in exploration expenditures during calendar year 2010 to maintain its option.

Upon earning its 51% interest in Kinsley Mountain, the two companies will form a joint venture for further exploration work to be carried out on the property consistent with the Rocky Mountain Mineral Law Foundation – Mining Venture Agreement.

Once Animas has earned its 51% interest in Kinsley Mountain, it will be granted an additional option to earn an additional 14% interest by spending $3,000,000 in exploration expenditures within five years, bringing its interest in the Kinsley Mountain Property to 65%.

Animas will be the operator at Golden Arrow and Kinsley Mountain during the 51% earn-in phase of the Joint Ventures.

The parties have agreed to enter into definitive agreements in respect of each of the options on or before May 31, 2010. The execution of the definitive agreements is subject to Animas being satisfied, in its sole discretion, with its due diligence review of the Golden Arrow Property and the Kinsley Mountain Property, and approval of the board of directors of Animas and Nevada Sunrise.

Bill Henderson, President and CEO of Nevada Sunrise remarked, "I am pleased with our new Joint Ventures with Animas and I am especially pleased that Dr. Odin Christensen is expected to play a major role in the ongoing exploration of Golden Arrow and Kinsley Mountain. This allows Nevada Sunrise to focus its energy on advancing Juniper and Iron Point, the two remaining properties in our portfolio. I believe that these are the ingredients of a winning strategy for us in the current market environment."

Dr. Odin Christensen, a qualified person under National Instrument 43-101 (who is independent of Nevada Sunrise), supervised the preparation of the technical disclosure in this press release.

About Nevada Sunrise Gold Corporation

www.nevadasunrise.com

About Animas Resources Ltd.

www.animasresources.com

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