Nevada Sunrise and Advantage Lithium Complete Successful Drilling Program at Clayton Northeast Lithium Project, Nevada


VANCOUVER, April 3, 2017 /CNW/ - Nevada Sunrise Gold Corporation ("Nevada Sunrise" or the "Company") (TSXV: NEV) and its exploration partner, Advantage Lithium Corp. ("Advantage Lithium") (TSXV: AAL) are pleased to announce that the final two holes of the 2016-2017 drilling campaign at their Clayton Northeast property ("Clayton NE, or the "Property") in Clayton Valley, Nevada, have intersected lithium in brine of up to 238 milligrams per litre ("mg/l") in borehole CNE-17-05.

All six boreholes from the 2016-2017 program intersected lithium-bearing brines in typical Clayton Valley aquifer systems. As a result of interpreted faulting and displacement, the sixth borehole, collared in the southwest end of the Property, passed through a major fault zone and was terminated at a relatively shallow depth.

The successful conclusion of the Phase 2 drilling follows positive results from the three Phase 1 boreholes drilled in 2016 (see Nevada Sunrise news releases dated November 1, 2016, December 5, 2016, and December 21, 2016), and from the first borehole of the Phase 2 program, hole CNE-17-04, (see Nevada Sunrise news release dated March 1, 2017), which delivered the best results to date at Clayton NE, with a total composite of 426.72 metres of 243.44 mg/l lithium in brines.

2017 Drilling Program Highlights

  • All three Phase 2 boreholes intersected brine-bearing strata containing lithium. Holes CNE-17-04 and CNE-17-05 intersected multiple aquifer formations. Hole CNE-17-06 intersected one narrow aquifer zone:
    • Total composite of 426.72 metres of brine-producing strata in CNE-17-04 at an average grade of 243.44 mg/l lithium, including 274.6 mg/l lithium over 79.2 metres (530.35 metres to 609.6 metres).
    • Total composite of 164.59 metres of brine-producing strata in CNE-17-05 at an average grade of 72.47 mg/l lithium, including 101.45 mg/l lithium over 91.44 metres (304.8 metres to 396.24 metres).
    • Total composite of 6.1 metres of brine-producing strata in CNE-17-06 at a grade of 214 mg/l from a depth interval of 262.13 to 268.22 metres.
  • Successful extension of mineralized brine trend to 5.54 kilometres. Drilling has established strike length of significant lithium-bearing brines over 4.53 kilometres (between boreholes CNE-16-01 in the southwest of the Property through CNE-17-04 in the northeast). Drilling at CNE-17-06 has extended the trend of anomalous brine over an additional 1.01 kilometres to the southwest (between holes CNE-16-01 and CNE-17-06) for a total lithium-mineralized trend of 5.54km.
  • Low magnesium to lithium ratios. Four of the six boreholes drilled showed what are regarded as very low magnesium to lithium ratios, averaging approximately 1 to 1. In the southern part of the Property, boreholes CNE-16-01 and CNE-17-06 had higher magnesium ratios of approximately 2.75 to 1.
  • Nevada Sunrise and Advantage Lithium drilled deeper into potentially untested aquifers. Phase 1 and 2 boreholes targeted areas of deeper aquifers that may not have been commonly intersected by historical drilling in the Clayton Valley. Hole CNE-16-03, from the Phase 1 program, was one of the deepest boreholes drilled in the Clayton Valley and, based on results obtained, may have encountered a previously untested aquifer.
  • Permits/waivers obtained for future development of a lithium brine resource and wells. In November 2016, waivers were received from the Nevada Division of Water Resources for 5 of the 6 permitted holes, which allows for reaming a borehole to a larger diameter well, pump testing, and flow rate determination in order to provide the necessary technical information for development of an initial lithium brine resource at Clayton NE.

About the 2017 Drilling Program

The Phase 2 drilling program was comprised of a total of 1,389.89 metres (4,560 feet) in three RC holes and used a similar approach to the Phase 1 program that hit wide intercepts of lithium-bearing brine with strong brine flow rates. All six holes drilled in the 2016-2017 Clayton NE program are adjacent to Silver Peak lithium brine field operation, North America's only producing lithium mine, operated by Albemarle Corporation (NYSE: ALB) ("Albemarle"), in close proximity to several of their production wells.

The second borehole drilled in the Phase 2 program, CNE-17-05, intersected multiple aquifer formations containing brine-producing strata, but with more subdued levels of lithium in brine, which included 164.59 metres averaging 72.47 milligrams per litre ("mg/l") lithium between a depth of 256.03 and 420.62 metres, including a higher-grade interval averaging 101.45 mg/l lithium over 91.44 metres from a depth of 304.8 metres to 396.24 metres. The borehole was completed to a depth of 420.62 metres in Paleozoic bedrock.

The third and final Phase 2 borehole, CNE-17-06, passed through the Angel Island Fault Zone and encountered bedrock at a relatively shallow depth of 327.66 metres, earlier than in previous holes. The hole was completed to a depth of 347.47 metres in Paleozoic bedrock. In general, this hole produced relatively low saline-water flow. The exception was the zone from 262.13 to 268.22 metres that contained strong brine with lithium concentration of 214 mg/l.

CNE-17-05 – Technical Details

CNE-17-05 was completed to a depth of 420.62 metres (1,380 feet) into Paleozoic bedrock. The stratigraphy in the area of this hole has been affected by faulting and displacement and did not encounter the Main Ash marker unit. Lower lithium concentrations in brine were encountered in the hole than those encountered in other holes in the program. However, lithium concentrations in the zone from 304.8 to 396.24 metres averaged 101.45 mg/l, over 91.44 metres (300 feet). The highest lithium concentration was 238 mg/l in the zone from 304.8 to 310.89 metres. The entire sampled interval from 256.03 to 420.62 metres (164.59 metres) averaged 72.47 mg/l lithium.

CNE-17-06 – Technical Details

CNE-17-06 was completed to a depth of 347.47 metres (1,140 feet). It is interpreted that the hole was collared on the northeast side of the Angel Island Fault and penetrated the Angel Island Fault Zone at a depth of 170.60 metres (560 feet). Sediment cuttings indicate that the drill was in the Lower Gravel Aquifer beneath the fault to depth of 327.66 metres (1,075 feet) where the drill penetrated Paleozoic bedrock. With the exception of the narrow interval from 262.13 to 268.22 metres, this hole produced only weak brines. This interval did, however, produce relatively strong brine with a concentration of 214 mg/l lithium, high concentrations of other alkali metals, high specific gravity, and brine salinity.

Table 1: Results of Lithium in Brine Samples for CNE-17-05 and CNE-17-06



Interval (m)

Total Dissolved
Solids (TDS) mg/l

Range (mg/l)

Grade (mg/l)





Lower Gravel Aquifer




34,000 to 82,200

79.1 to 238






34,000 to 82,200

81.3 to 238



Lower Gravel Aquifer







In addition to brine samples, throughout the 2016-2017 program drill cuttings were collected for each 1.5 metre interval and over 360 samples were submitted for analysis. Analytical results received for the drill cuttings for five holes of the 2016-2017 program indicate significant lithium values in sediments that range up to 1,440 parts per million ("ppm") lithium, as shown in Table 2 below. Analytical results for cuttings samples collected from hole CNE-17-06 are pending.

Table 2. Results of Lithium in Sediment Samples for 2016-2017 Drilling Program


Interval (m)

Range (ppm)

Average Grade (ppm)








93.7 to 1,150






382 to 1,150






78.6 to 254






217 to 254






71.6 to 770






256 to 770






72.7 to 1,060






610 to 1,060






610 to 1,440






730 to 1,440








Clayton Valley Project Overview

  • Clayton NE consists of 55 unpatented claims totaling approximately 1,080 acres (437 hectares) located in the Clayton Valley sedimentary salar and is contiguous to the eastern boundary of Albemarle's Silver Peak property, North America's only lithium producer;
  • O'Keefe Drilling, of Butte, Montana, was retained for the 2016-2017 program to drill by RC equipment;
  • Several of Albemarle's lithium brine production wells are situated within approximately 100 metres and less of the Clayton NE western claim boundary;
  • Clayton NE is subject to an option earn-in agreement where Advantage Lithium can earn up to a 70% interest in the Project after fulfilling CDN$3.0 million in exploration expenditures on a package of five lithium properties optioned from Nevada Sunrise (for further details, see Nevada Sunrise news release dated June 20, 2016);
  • Nevada Sunrise is the project manager at Clayton NE on behalf of Advantage Lithium, the operator.

For further information about the Company's exploration properties, please access the Nevada Sunrise website at:

Regarding Sample Collection and Analysis

Groundwater samples were sent to Western Environmental Testing Laboratory in Reno, Nevada for analysis. General chemistry testing included analysis for specific gravity, total hardness and alkalinity, bicarbonate, carbonate, hydroxide, TDS and electrical conductivity. Anions (chloride, sulfate) were analyzed by ion chromatography. Trace metals (lithium, magnesium, boron, calcium, potassium and sodium) were analyzed by ICP-OES. TDS values obtained in the field are measured with a handheld YSI Model 556 Multiparameter Meter, which meets Good Laboratory Practice (as proscribed by the Organization for Economic Cooperation and Development) for calibration and measurement. All depth measurements reported, including sample and interval widths are down-hole. As holes are oriented vertical and geologic stratigraphy is primarily horizontal to sub-horizontal, downhole measurements are assumed to be close to true thickness.

Composite sediment samples were submitted to ALS Minerals in Reno, NV, and analyzed at ALS Minerals in Vancouver, BC. by way of 48-element, four-acid ICP-MS.

Robert M. Allender, Jr., CPG, RG, SME 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 herein.

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 nine mineral exploration projects in the State of Nevada, USA. Nevada Sunrise began acquisitions of Nevada lithium properties in September 2015, which include options to earn a 75% interest in the Neptune project (Resolve Ventures Inc. (TSXV: RSV) owns a 25% interest), a 100% interest in the Clayton Northeast project, and a 100% interest in the Aquarius Project, all located in the Clayton Valley area. The Company also holds options to earn 100% interests in the Jackson Wash and Atlantis projects, and has a 50% participating interest in the Gemini project, each located in playas proximal to the Clayton Valley. The Company has recently optioned five of the Nevada lithium projects to Advantage Lithium Corp. (TSXV: AAL), and the Atlantis project is currently under option to American Lithium Corp. (TSXV: LI). The Salt Wells Lithium project, in the Carson Basin near Reno, is currently the subject of due diligence by the Company.

The Company's three key gold assets include a 21% interest in a joint venture with Pilot Gold Inc. (TSX: PLG) at Kinsley Mountain near Wendover, a 100% interest in the Golden Arrow project near Tonopah, and an option to earn a 100% interest in the Roulette gold property in the southeastern Carlin trend near Ely, with each of the properties subject to certain production royalties.


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 the properties transaction with Advantage Lithium Corp., the successful transfer of Place of Use and Point of Diversion of water rights, proposed exploration and development of our lithium exploration properties and the potential for 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 its lithium properties, reliance on technical information provided by third parties on any of our exploration properties, including access to historical information on its lithium properties, 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 Three Months Ended December 31, 2016, which is available under Company's SEDAR profile at

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.

SOURCE Nevada Sunrise Gold Corporation

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