Nevada Sunrise Gold Corporation
TSX VENTURE : NEV

February 10, 2012 09:37 ET

Nevada Sunrise Receives Kinsley Mountain Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 10, 2012) - Nevada Sunrise Gold Corporation ("Nevada Sunrise" or the "Company") (TSX VENTURE:NEV) is pleased to announce that Pilot Gold Inc. ("Pilot Gold") reports initial drilling at Kinsley Mountain has returned impressive intervals of gold mineralization and believes the mineralized system is strongly analogous to nearby Long Canyon in northeastern Nevada. In September 2011, Pilot Gold purchased an option agreement to earn a 51% interest on the Kinsley Mountain project with Nevada Sunrise by incurring US$1.18 million in exploration expenditures by March 30, 2013, with the option for Pilot Gold to earn an additional 14% interest by electing to incur a further US$3.0 million in exploration expenditures within five years of meeting the initial earn-in.

Pilot Gold's first work program included 1,250 metres (six holes) of diamond drilling designed to confirm mineralization in historical reverse circulation holes near the margins of open pits at the past-producing Kinsley Mountain Mine. Many of the historical drill holes, averaging 65 metres in depth, stopped short of potentially mineralized zones. Approximately 138,000 oxide ounces were mined from seven pits by Alta Gold, which ceased operations in the late 1990s due to financial difficulties and low gold prices.

Drill highlights from the 2011 program include (full table at bottom of release):

  • 5.91 g/t gold over 18.4 metres, including 11.93 g/t gold over 7.8 metres in hole PK-04;
  • 6.75 g/t gold over 7.5 metres, including 13.52 g/t gold over 3.2 metres in PK-03;
  • 6.23 g/t gold over 8.7 metres, including 12.05 g/t gold over 3.0 metres in hole PK-02.

NOTE: Primary drill composites were calculated using a cut-off of 0.30 g/t, with variably higher cut-offs for the sub-intervals. Drill intersections are reported as drilled thicknesses. True widths of the mineralized intervals are interpreted to be between 60-100% of the reported lengths.

The six holes drilled in 2011 are near-twins of existing holes in two locations, one to the north of the main pit and one located between two satellite pits to the southeast. These initial drill results provide confidence that historical drilling accurately quantified the gold endowment at Kinsley Mountain.

Pilot Gold further reports that Kinsley Mountain shares the same unique combination of rocks, stratigraphy, structure and mineralization as Long Canyon, a high-quality deposit their technical team defined and advanced to a multi-million-ounce gold resource prior to Fronteer Gold's acquisition by Newmont Mining Corporation in April, 2011. Kinsley Mountain is located approximately 60 miles (90 kilometres) to the southeast of Long Canyon. In October, 2011, Pilot Gold staked an additional 128 new claims to almost double the project area to 5,426 acres (2,196 hectares).

Bill Henderson, President and CEO of Nevada Sunrise commented, "The quality of Pilot Gold's exploration team and their prior success at Long Canyon made them a natural choice as our earn-in joint venture partner at Kinsley Mountain. Since Kinsley Mountain and Long Canyon share so many attributes in common, we are very pleased that the first round of drilling by Pilot Gold at Kinsley Mountain resulted in such a successful program."

2012 WORK PROGRAM

As with Long Canyon, Pilot Gold plans on advancing Kinsley Mountain through detailed geological analysis, aggressive drilling and deposit modeling. They anticipate earning their initial 51% interest in the project by Q2 2012. Their planned 2012 work-program includes:

  • Deposit modelling: Creation of a three-dimensional model of geology and mineralization to aid in the selection of new drill targets, and further compilation of extensive historic databases.
  • Drilling: 12,000 metres of drilling is planned. The first priority will be infill and step-out drilling on mineralized zones identified in historic drill programs. In addition to near-mine drilling and resource definition, a comprehensive effort to identify new targets will be undertaken, encompassing both the original 141 claims as well as the 128 claims staked by Pilot Gold to the north, a largely unexplored area.
  • Resource estimation: Pilot Gold anticipates completing a project first resource by year-end.
  • Development activities: Preliminary metallurgical work, hydrological, environmental and baseline studies; and, submission of a Plan of Operation to the U.S. federal government to allow for property-wide drilling.

FOR DOWNLOAD (Courtesy of Pilot Gold)

- Drill results map: http://www.pilotgold.com/sites/default/files/KinselyDrillMap_1202.pdf

- Long Canyon comparison / Mineralization: http://www.pilotgold.com/sites/default/files/KinsleyMineralizationComparison_1202.pdf

- Project overview: http://pilotgold.com/our-projects/kinsley

2011 DRILL RESULTS
Hole ID From
(metres)
To
(metres)
Interval
(metres)
Gold
g/t
Silver
g/t
PK-001C 88.5 105.3 16.8 1.64 3.3
PK-002C 111.7 120.4 8.7 6.23 2.1
Including 117.3 120.4 3.0 12.05 3.5
and 131.7 135.0 3.4 0.33 1.9
PK-003C 102.7 110.2 7.5 6.75 1.4
Including 107.0 110.2 3.2 13.52 2.3
PK-004C 42.7 61.1 18.4 5.91 2.5
Including 45.7 53.5 7.8 11.93 4.2
and 148.0 152.1 4.1 0.54 2.1
PK-005C 36.9 39.6 2.7 0.65 0.2
and 159.6 165.0 5.5 0.58 1.6
166.7 167.6 0.9 0.06 2790.0
PK-006C 53.0 63.4 10.4 0.95 2.8

About Nevada Sunrise

Nevada Sunrise (TSX VENTURE:NEV) is a publicly-traded gold exploration company that holds a portfolio of three projects in Nevada, namely Kinsley Mountain, Golden Arrow, and Pinnacle, totaling approximately 15,735 acres (6,368 hectares) of prospective land. The Company applies the exploration experience and technical skills of its founders to search for and acquire new gold exploration projects that are developed internally and then offered for joint venture.

For the latest details on the Company, its properties, management team and philosophy, please visit our website at www.nevadasunrise.com.

This news release was prepared by Company management, who take full responsibility for its content. The technical disclosure in this news release has been reviewed by Richard Kehmeier, C.P.G., a Qualified Person as defined by National Instrument 43‐101 of the Canadian Securities Administrators.

Forward Looking Statements

This news release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements that address activities, events or developments that the Company expects or anticipates will or may occur in the future, including such things as future business strategy, competitive strengths, goals, expansion, growth of the Company's businesses, operations, plans and with respect to exploration results, the timing and success of exploration activities generally, including those exploration activities at Kinsley Mountain operated by Pilot Gold, permitting time lines, government regulation of exploration and mining operations, environmental risks, title disputes or claims, limitations on insurance coverage, timing and possible outcome of any pending litigation, and timing and results of future resource estimates or future economic studies.

Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "planning", "planned", "expects" or "looking forward", "does not expect", "continues", "scheduled", "estimates", "forecasts", "intends", "potential", "anticipates", "does not anticipate", or "belief", or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.

Forward-looking statements are based on a number of material factors and assumptions, including, the result of drilling and exploration activities, that contracted parties provide goods and/or services on the agreed timeframes, that equipment necessary for exploration is available as scheduled and does not incur unforeseen break downs, that no labour shortages or delays are incurred, that plant and equipment function as specified, that no unusual geological or technical problems occur, and that laboratory and other related services are available and perform as contracted. Forward-looking statements involve known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, prediction, projection, forecast, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the interpretation and actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of minerals; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of exploration, as well as those factors disclosed in the company's publicly filed documents. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, 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 forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

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.

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.

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