Nevada Sunrise Gold (TSX-V: NEV) CEO Warren Stanyer on Gravity Survey Results at Coronado VMS Project & Upcoming Drill Programs at Optioned Projects

May 3, 2019

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Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the President and CEO of Nevada Sunrise Gold (TSX-V: NEV)(OTC: NVSGF), Mr. Warren Stanyer. Warren, how are you? 

Warren Stanyer: What an introduction, Gerardo. Thank you so much. I'm fine. How are you?

Gerardo Del Real: I'm fantastic. It's Thursday. I joked off-air that I like to call Thursday, “Friday Junior.” So let's be upbeat. Let's put a smile on and then let's get towards the weekend. But before we do that, Warren, I'd love to talk about they just announced the results from the gravity survey at your 100% – or I should say with the option to own up to 100% earn into Coronado Project in Nevada.

The jurisdiction is excellent. You have a past-producing, high-grade Big Mike Mine nearby. It was an open pit copper mine. You have some very, very, very interesting anomalies. Now you have a gravity survey that didn't match up to what the expectation was but that's not necessarily a bad thing in this case. I want you to explain why to everybody.

Warren Stanyer: I'm happy to, Gerardo. What we know about Big Mike is it had a lower density cap of mineralization over top of the massive sulfide. The lower density mineralization ran about anywhere between 1.5% and 4%, but we believe it could have been averaged as high as 3%. The massive sulfide high-density material was 10% copper plus, along with gold and cobalt and things like that that weren't even really registered because it was shipped direct to smelter and they probably just ... I don't know what the arrangement was between the miners and the people who smelted it.

However, that being said, what we believe is that what we're seeing here is it's still a conductive body. We don't see graphite in our first drill hole. We show no reason for the anomaly other than that there's potential massive sulfides there. This low gravity just tells us that there could be a weathered cap, a gossans cap and so we're still interested in drilling it. It could be very good and it could be that the low density cap is actually masking something else or the hanging walls of other country rocks. We just don't know until we drill it.

Gerardo Del Real: Now, you've actually been fortunate enough to walk over to Big Mike and take a couple of samples and chip some rock there and get some density numbers from that. Is that accurate?

Warren Stanyer: Yes, it is. The pit is open. It's a curiosity. I'm sure that lots of geologists go there to visit it. There's samples, rocks laying around on the ground. From what we have seen and read and in our own experience the density of the low, the gossans low-density stuff can run as high as 1.65% with the specific gravity of 2.77 grams per cubic centimeter. Pardon me if I sound too technical.

Whereas, the massive sulfide high-density core of the deposit, we have seen samples as high as 17% copper with a gram of gold and a specific gravity of 4.66 grams per cubic centimeter. So, there is a wide variety there in that deposit and we believe that that could extend to these other possible deposits in the region.

Gerardo Del Real: Now, you believe that the geophysical scenario that was identified at the Coronado anomalies is strikingly similar. Your word is “remarkably similar” to what exists at Big Mike, right?

Warren Stanyer: Well, the fact is that Big Mike has been mined out so we can theorize what its conductivity would have been. It was found by drilling not by geophysics. We're sort of trailblazing in that area because of the buried terrain covered in dirt for many, many meters and gravel. Nobody has explored the way that we are doing. So, we see a strongly conductive body. It has a higher mag response than the country rocks, the rocks that are surrounding the conductor.

And now this low gravity, it was a bit of a head scratcher but what the geologist like the one we have, Ted DeMatties, who has been instrumental in locating VMS deposits in Wisconsin and in buried terrain, he feels that this provides a very apt explanation for the whole thing.

Gerardo Del Real: We have Coronado South. We also have Coronado North. I understand that you plan to continue the testing of the conductors and I also understand that that will lead to a drill program. Can we talk about what that looks like?

Warren Stanyer: Yeah, right now we're just setting up a request for proposals to various drillers. There's lots of drillers that want to work right now. I guess it's not that busy in Nevada at the moment so we'll be sending those out. Raising some money, we believe, and go out and drill some holes. A couple at Coronado South in conjunction with borehole surveys that will help us guide the drill or help map what we see at the bottom of the hole. Coronado north is also in the picture for a test.

Gerardo Del Real: Excellent. When do we anticipate getting that drill bit turning?

Warren Stanyer: I'd like it to be by the end of this month.

Gerardo Del Real: Wonderful.

Warren Stanyer: So, we're aiming for that. Some of our people have commitments in June so we'd like to get started and be done by the middle of June.

Gerardo Del Real: Wonderful. Can we talk briefly about the other activity within the company? You've done a wonderful job of bringing in assets and joint venturing them, allowing others to earn into those assets with their money and giving you some exposure, frankly, if they're able to hit on some of these other projects. You've executed that project generator model well with the other properties. How are things coming along on the portfolio front?

Warren Stanyer: Well, it's gotten more exciting lately. Global Energy Metals Corp. optioned the Lovelock Cobalt Mine and the Treasure Box property from us. They're actually going up there, and that's next week, to do some sampling. They have a drilling plan in mind. They just raised some money so I'm happy that they're carrying out this work. They've received funding from people that are still bullish on cobalt, even after the dip that it took. It's exciting. I want them to find something. I've been there. You pick up a rock and run it through the lab, it runs 2% cobalt. I mean, gee whiz, there's something there and it hasn't been looked at for over 100 years. I'm very happy that Global Energy Metals Corp., that's GEMC is their symbol [on TSX-V], they're taking a really hard look at it and it's becoming one of their premier properties.

Also, we have Kinsley Mountain. I'm just working on a plan with Liberty Gold Corp. on a drilling plan for 2019. We have a 20% share or 21% so it's not a huge cash problem for us to fund that amount. It's still a significant percentage of that project. There are a half million ounces of gold all categories together. The deep, higher grade deposit and then the more shallow, lower grade oxide ore. Pardon me I used the word ore there.

Gerardo Del Real: No worries, no worries. Let's talk Kinsley Mountain. I did very well on the back of excellent drill results once upon a time with Kinsley Mountain. It's what attracted me to Nevada Sunrise in the first place. What was once an aggressive exploration program there, it slowly but surely kind of went backwards as the company pivoted to other assets that were more near surface, lower grade, bulk tonnage assets.

Warren Stanyer: Right.

Gerardo Del Real: How aggressive will the drill program be there? I know you just said that you're still working out the details. But, I guess what I'm asking you is not how aggressive in terms of meters, Warren, but how aggressive in terms of the northern claims have not been drilled yet. We know that the western flank where we've received the high-grade results at depth will likely have extensions if you keep stepping out 20 and 50 meters. Do you know if there's plans or are there discussions going on about putting a few holes in those northern claims?

Warren Stanyer: We have discussed the northern claims so they're relatively untouched. Moira Smith is a very capable geologist. She worked with Frontier before they were taken out by Newmont at Long Canyon. She has some ideas there that she's working on. We're anxious or excited to hear about what they are and that'll be coming pretty soon here.

Gerardo Del Real: Wonderful. Warren, what's the market cap? A lot of news, a lot going on. Potential drilling, you mentioned the small financing. I will continue to be supportive of the stock. As you know there has been a rush recently of strategic investments by the majors at significant premiums not just in the gold space but in the copper space and just today in the lithium space. I'm talking premiums of 35, 50, 45%.

I say all that to say I'll be participating in the next financing. I know the upside and how quick a company with a tiny market cap can turn into a company that makes you multiples and multiples many times over. Where's your market cap today?

Warren Stanyer: Let's see, what did we close at? If it was $0.075 we're somewhere about $3.25 million Canadian.

Gerardo Del Real: A lot of shots on goal for the market capital of $3.5 million, Warren.

Warren Stanyer: Yeah. I've been in this game now for quite a while too and it's always exciting to be in a discovery scenario and I've been there. I think we can do it again.

Gerardo Del Real: I hope so. Fingers are crossed. Toes are crossed. We'll know more soon, right?

Warren Stanyer: That's right.

Gerardo Del Real: Excellent. Warren, thank you so much.

Warren Stanyer: Thank you, Gerardo. 

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