Nevada Sunrise Gold Corp.

TSX VENTURE : NEV


Nevada Sunrise Gold Corp.

October 09, 2012 06:45 ET

Nevada Sunrise Reports 4.6 Metres of 9.5 g/t Oxide Gold at Kinsley Mountain

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 9, 2012) - Nevada Sunrise Gold Corporation ("Nevada Sunrise" or the "Company") (TSX VENTURE:NEV) has received from Pilot Gold Inc. ("Pilot Gold") the results of the 6 remaining holes of the 2012 drilling program at the Company's Kinsley Mountain Project in Nevada. The drilling program totalled approximately 12,000 metres, including these six holes, which targeted the west side of Kinsley Mountain where a north-trending zone of gold mineralization was located more than 600 metres from the nearest pit.

"We are very pleased with the rapid progress that Pilot Gold continues to make at Kinsley Mountain. Their technical team's experience at Long Canyon and the application of this experience on the ground at Kinsley Mountain is producing very impressive exploration results," stated Bill Henderson, CEO. "We look forward to Pilot Gold's expanding exploration program at Kinsley as we move into the New Year."

NEW DRILL RESULTS

Western Flank of Kinsley Range: The mineralized zone, located approximately 600 metres northwest of the nearest historic pit, measures at least 600 metres by 100 metres and is characterized by two stacked lenses of mineralization and remains open in all directions. Reverse Circulation drilling 100 to 150 metres north of PK061 (6.03 g/t gold over 13.7 metres) returned:

  • 9.50 g/t gold over 4.6 metres including 20.5 g/t gold over 1.5 metres in hole PK067
  • 2.48 g/t gold over 6.1 metres in hole PK66

To view a location map and a table displaying the results of the 2012 drilling, please visit the Nevada Sunrise website at www.nevadasunrise.com under Exploration - Kinsley Mountain.

2012 PROGRAM HIGHLIGHTS

Over the course of the 2012 program, 12,000 metres of infill and step-out core and RC drilling were completed to define and expand mineralized zones identified by previous operators. In conjunction with drilling, a comprehensive regional effort to identify new targets was completed, encompassing both the original 141 claims as well as 128 claims staked by Pilot Gold to the north, in a largely unexplored area. Through this work, a new mineralized zone was intersected in drilling (Candland Canyon) and the Western Flank zone has been expanded to now cover an area 600 metres by 100 metres. Previously released drill highlights from the 2012 program include:

Previously-released drill highlights from the 2012 program include:

  • 6.03 g/t gold over 13.7 metres in PK061
    • Including 15.18 g/t gold over 4.6 metres
  • 5.48 g/t gold over 20.4 metres in PK014C
    • Including 16.43 g/t gold over 5.5 metres
  • 2.30 g/t gold over 19.8 metres in PK058

A three-dimensional model of geology and mineralization was created to aid in selection of new, high-grade drill targets. Surface soil and rock samples show anomalous pathfinder geochemistry extending 7 kilometres to the north of the historic open pits, indicating the presence of a large mineralized system. A Plan of Operations was submitted to the U.S. Bureau of Land Management to allow for property-wide drilling in 2013 throughout the southern claim block.

The Kinsley Mountain project is a 51%-49% joint venture between Pilot Gold and a subsidiary of Nevada Sunrise. To earn a further 14% interest in the project, Pilot Gold must spend $3 million in exploration. To date, Pilot Gold reports it has incurred approximately $2.6 million toward the second earn-in, and anticipates earning its 65% interest at Kinsley in early 2013.

The technical information in this news release is based upon information provided by Nevada Sunrise's joint venture partner, Pilot Gold. The technical information has been prepared under the supervision of Moira Smith, P.Geo., a qualified person under National Instrument 43-101, who is Chief Geologist of Pilot Gold, and independent of Nevada Sunrise. Richard Kehmeier, QP for NEV, has not reviewed the data comprising this release but accepts the information developed under the supervision of the QP for Pilot Gold as being representive of the results obtained from Pilot Gold's drill program.

Pilot Gold reports that drill core composites were calculated using a cut-off of 0.30 grams/tonne. 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 grams/tonne were re-assayed and completed with a gravimetric finish. For these samples, the gravimetric data were utilized in calculating gold intersections. QA/QC included 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-element geochemical suite by ICP-MS. Data citing ounces mined from historical production is attributed to www.metalseconomics.com.

Kinsley Mountain is an early-stage exploration project and does not contain any mineral resource estimates as defined by NI 43-1-1. 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. Further information is available in the technical report entitled: "Technical Report on the Kinsley Project, Elko County, Nevada, U.S.A.", dated March 26, 2012, and prepared by Michael M. Gustin, CPG and Senior Geologist for Mine Development Associates, Inc., available under Nevada Sunrise Gold's issuer profile on SEDAR at www.sedar.com, or at the Company's website under "Downloads".

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, totalling approximately 15,735 acres (6,368 hectares) of prospective land. Nevada Sunrise 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 Nevada Sunrise, its properties, management team and philosophy, please visit our website at www.nevadasunrise.com.

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, 2011 dated 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.

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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