VANCOUVER, Nov. 17, 2014 (GLOBE NEWSWIRE) -- Nevada Sunrise Gold Corporation ("Nevada Sunrise" or the "Company") (TSXV:NEV) is pleased to announce an option agreement to purchase the Roulette gold property located in White Pine County, eastern Nevada, USA.
The Roulette property (formerly known as the Grulla Property) consists of 120 unpatented claims located approximately 30 miles (45 kilometres) north of Ely, Nevada in an active area of mineral exploration. Tied on to the north is McEwen Mining Inc.'s Limo project and to the west, Freeport-McMoran Inc. has located a large claim holding for porphyry copper/gold deposits.
Nevada Sunrise has recently expanded the claim group from the original 15 claims to its present size by way of new staking. John R. Kerr, P. Eng., Nevada Sunrise's Qualified Person, carried out a site visit in August 2014 and collected two chip samples from a jasperoid outcrop on the Roulette property, which returned the following significant gold values:
- 4.44 ppm gold over sample length of 3.30 metres (10 feet)
- 1.045 ppm gold over sample length of 2.64 metres (8 feet)
Nevada Sunrise believes additional jasperoids exist on the property and initially plans to complete an airborne geophysical survey. Follow-up exploration would include geological mapping, rock and soil geochemistry, and ground geophysics to identify drill targets.
For an option to earn up to a 100% interest in the Roulette property, Nevada Sunrise has agreed to pay the following consideration to the vendors (the "Agreement") as cash payments (the "Option Payments") on the subsequent anniversaries of the Agreement (all dollar figures are in US dollars):
|· On signing definitive agreement:||$7,500|
|· 1st Anniversary:||$12,500|
|· 2nd Anniversary||$20,000|
|· 3rd Anniversary||$25,000|
|· 4th Anniversary||$30,000|
|· 5th Anniversary||$ 35,000 (or a $200,000 buyout as described below)|
Nevada Sunrise can elect to pay 50% of any future Option Payment in common shares of Nevada Sunrise (plus a 20% surcharge in favour of the vendors if common shares of the Company are elected for 50% of the Option Payment), with the exception of the initial down payment. On the fifth anniversary, the Company would have the right to purchase a 100% interest (the "Ownership Interest") in the Roulette property for a total of $200,000 (the "Option Purchase"), subject to a 2.5% net smelter returns royalty ("NSR"). At any time before a decision to commence production, Nevada Sunrise would have the right to purchase 1.0% of the NSR for $1,000,000, and the remaining 1.5% NSR for $2,000,000.
About the Roulette Property
Historical exploration on the Roulette property discovered gold-bearing jasperoids in outcrop in the 1980s. Three to five drill holes are reported from this era however location and results are not available. From 2007 to 2009 the Roulette property was held by Columbus Gold Corporation who conducted extensive rock-chip sampling reporting gold and strong arsenic values associated with the jasperoids.
The Roulette property is located at the extreme southeast end of the Carlin Trend. The geology consists of a sequence of Devonian/Mississippian limestone and shale including the Guilmette Limestone, Pilot Shale, Joana Limestone and Chainman Shale. This same sequence of rocks hosts the Alligator Ridge and Rain deposits to the northwest. Two jasperoid bodies containing gold and arsenic are found at the Roulette property in the Joana Limestone, very near the contact with the Chainman Shale. The two samples taken by Nevada Sunrise were collected from the southern jasperoid exposure.
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. The two chip samples collected by Kerr were analyzed geochemically for gold by ALS Chemex in Reno, Nevada. In addition, the samples were analyzed for 35 elements by ICP methods, indicating strong arsenic and antimony contents.
For a map of the Roulette property showing its location see "Projects – Roulette" at: http://www.nevadasunrise.ca/projects/roulette/
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 exploration at the Roulette property, reliance on technical information provided by third parties on any of our exploration properties, including access to historical information on the Roulette 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, 2014, 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.
CONTACT: Warren Stanyer President and Chief Executive Officer Telephone: (604) 428-8028 Facsimile: (604) 689-5528 Email: email@example.comSource:Nevada Sunrise Gold Corporation