SEPTEMBER 2, 2015, Vancouver, British Columbia – Nevada Sunrise Gold Corporation (“Nevada Sunrise” or the “Company”) (TSXV: NEV) is pleased to announce it has entered into a letter agreement for an option to purchase the Neptune property (“Neptune, or the “Property”) located in the Clayton Valley, Esmeralda County, Nevada, USA.
Neptune (formerly known as the Clayton Deep property) is located approximately 37 miles (55 kilometres) southwest of Tonopah, Nevada in an active area of lithium exploration and mining. The Silver Peak lithium mine, now owned by Albemarle Corporation, has extracted lithium minerals from brines continuously since 1966, approximately 10 miles (15 kilometres) to the north of the Property. Pure Energy Minerals Ltd. (“Pure Energy”, TSXV: PE), a Canadian-based exploration company, has recently published a technical report on an inferred lithium resource for its Clayton Valley South project located near the Silver Peak mine. Nevada Sunrise believes Neptune has the potential to host lithium-bearing brines in subterranean aquifers beneath the Clayton Valley floor.
“Tesla Motors Inc.’s plan to manufacture lithium ion batteries at its Gigafactory in Reno has brought a great deal of attention to the potential for lithium sources in Nevada,” said Warren Stanyer, President and CEO of Nevada Sunrise. “With growing world demand for lithium, we believe lithium brine assets can provide a strong complement to our Nevada gold exploration activities, and look forward to advancing Neptune.”
For an option to earn up to a 100% interest in Neptune, Nevada Sunrise has agreed to pay the following consideration to the vendors upon signing a definitive agreement (the “Agreement”) and on subsequent anniversaries of the Agreement:
- On signing the Agreement: 200,000 common shares
- 1st Anniversary: 300,000 common shares
- 2nd Anniversary 500,000 common shares
Neptune consists of 39 unpatented association placer claims totaling approximately 3,120 acres (1,263 hectares). Under the terms of the letter agreement, Nevada Sunrise can specify which of the 39 claims it wishes to option from the vendors. A 1.5 mile (2.25 kilometre) area of interest applies to the Property.
The letter agreement is subject to certain conditions, including a 30-day due diligence period, approval by the Board of Directors of the Company, and acceptance by the TSX Venture Exchange. Neptune is subject to a 3.0% gross overriding royalty (“GOR”). On the 3rd anniversary of the signing of a definitive agreement, Nevada Sunrise would have the right to purchase 1.0% of the GOR for US$1,000,000.
Historical reports obtained by Nevada Sunrise indicate that geologic formations and structures exist at Neptune that are similar to lithium-bearing brine deposit models present elsewhere in the Clayton Valley. Ground gravity and controlled source audio-frequency magnetotellurics (“CSAMT”) surveys were carried out over Neptune in 2011. CSAMT is a geophysical survey method that measures ground resistivity with considerable depth penetration and high lateral resolution suitable for the exploration of fractured bedrock aquifers. Gravity surveys can outline basin depth and controlling structures. Brine-rich aquifers are expected to exhibit low resistivities and be stratiform in geometry, and the conductive layer interpreted from the CSAMT in the Neptune basin fits these criteria. Drilling up to 3 vertical holes between 400 to 500 metres deep into the interpreted basin and analyzing any groundwater encountered is considered to be the next step for exploration at Neptune.
About Neptune and the Clayton Valley
Neptune is located in the southwest corner of the Clayton Valley flanked by the Silver Peak Mountains to the west, the Palmetto Mountains to the south, and the Clayton Ridge and Montezuma Mountains to the east. The Clayton Valley playa is characterized as an immature clastic salar, or salt flat. Other than the 2011 geophysical surveys carried out by a previous operator, historical exploration for lithium brines at Neptune is sparse. A large scale ground gravity survey by the United States Geological Service (“USGS”) in 1980 outlined two gravity lows in the south end of the Clayton Valley – the “South Central Low” underlies land controlled by Pure Energy, and the “Southwest Low” underlies Neptune. (Source: from R. M. Allender, Jr., “Technical Report on the Clayton Deep Lithium Brine Project, Clayton Valley, Esmeralda County, Nevada, USA”, 2011).
In 2013, the USGS released a paper describing the Clayton Valley’s potential to host lithium deposits based on the hypothesis that lithium is liberated by weathering of host rocks or derived from hydrothermal fluids from a variety of rock sources within a closed basin. The floor of Clayton Valley has an area of about 100 square kilometers and a catchment of about 1,400 square kilometres, and is the topographically lowest of at least five adjacent basins that are hydrologically linked by groundwater flow (Zampirro, 2004). It is the combined area of all five linked catchments that matters, making the effective area of the Clayton Valley lithium-brine system much larger than the footprint of the Clayton Valley proper (Source: from USGS Open File 13-1006, 2013).
John R. Kerr, P. Eng., is the Company’s designated Qualified Person for this news release within the meaning of National Instrument 43-101 and has reviewed and approved the technical information contained in this news release.
For further information on Neptune including a map showing its location, see “Projects – Neptune Lithium” at: http://www.nevadasunrise.ca/projects/Neptune/
About Nevada Sunrise
Nevada Sunrise is a junior mineral exploration company with a strong technical team based in Vancouver, BC, Canada, that holds interests in three exploration projects in Nevada, USA. Our three key gold assets include a 21% interest in a joint venture with Pilot Gold Inc. at Kinsley Mountain near Wendover, a 100% interest in the Golden Arrow project near Tonopah, and a 100% interest in the Roulette gold property (formerly known as the Grulla property) in the southeastern Carlin trend near Ely, Nevada, with each of the properties subject to certain production royalties.
FOR FURTHER INFORMATION CONTACT:
Warren Stanyer, President and Chief Executive Officer
Telephone: (604) 428-8028 Facsimile: (604) 484-7143
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 lithium, 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 exploration at the Neptune property, reliance on technical information provided by third parties on any of our exploration properties, including access to historical information on the Neptune property, 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; 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 Nine Months ended June 30, 2015, 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.