Nevada Sunrise Gold (TSX-V: NEV) CEO Warren Stanyer on Drill Program at the Coronado VMS Project in Nevada
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 this morning?
Warren Stanyer: I'm doing great, Gerardo. Thanks for the call.
Gerardo Del Real: Thanks for coming on. I am incredibly excited, as everybody already knows, about the pending assays from Kinsley Mountain of which Nevada Sunrise, of course, owns 20%. I would love a brief comment on the latest bit of news from 80% owner and operator New Placer Dome Gold in regards to the 39 holes that have been drilled and the expectation that we'll see assays within the next couple of weeks. I believe mid-November was the target date that they had provided.
Warren Stanyer: I believe so. It could be sooner. I doubt it will be later. We fired a lot of bullets at Kinsley Mountain, so let's see what comes back here.
Gerardo Del Real: And we're firing bullets at Coronado. Of course, Kinsley Mountain, Nevada Sunrise Gold has a 20% ownership interest. Coronado is special because if the company is successful in making a significant discovery, you have the right to earn into 100% of the property, correct?
Warren Stanyer: That's right.
Gerardo Del Real: Let's talk this morning's news. Drilling will commence shortly, and by shortly, we're talking days not weeks, right?
Warren Stanyer: That's right. This week. We were lucky. I have a contact in Reno that we've never been able to do work together for diamond drilling because we were always RC drilling in the past. In this case, they had a diamond drill near Winnemucca and a crew that was finishing. They've just finished a couple of days ago, so they've taken some time off and then they're coming back. In the meantime, we built our drill road. We've got a guy lined up. The geologist is en route, and we should be drilling by the end of the week.
Gerardo Del Real: We tested – and when I say we, everybody knows I'm biased. I own quite a few Nevada Sunrise Gold shares.
Warren Stanyer: You can say we. Not many people we let say we, but you can.
Gerardo Del Real: We tested Coronado South in 2018. The drill hole was about 170 meters from where we really wanted to put it, and it was a near hit as George Carlin likes to say. Not a near miss, right? It was a near hit, right? Can you provide some context there?
Warren Stanyer: That's right, Gerardo. There were so many good things in that hole. There were some sulfides. There was all kinds of alteration, all the rocks that we want to see for a VMS deposit as described to me by Ted DeMatties and Chip Allender, our two geologists that have worked on this project. What was really heartening was that they enlisted a geophysicist who's retired from BHP, who looked at all of our data from scratch, came up with basically the same interpretation that we had earlier, and this led to this realization that moving that hole back in 2018, it was just a little bit too far off where we really wanted to be. It strengthened our resolve on these targets that we'd already developed, and now with this beautiful weather we're having, we can get to them.
Gerardo Del Real: The initial test will be up to three diamond drill holes. And then of course we'll kind of reassess, look at the data, and if there's a discovery, obviously talk about further drilling. Tell me about the initial target there.
Warren Stanyer: Well, as I said, these are targets that we'd picked before, but in this particular case, we think we have a better handle on the dip of the conductor. We're angling the first hole and the second hole from the same setup. We feel that we should have a very good chance of intersecting whatever provided that strong conductive response. Also, of course, that's coincident with the area of this geochemical anomaly, the SGH anomaly, that we just outlined in August and into September. So this is a very strong drill target
Gerardo Del Real: With the assay labs backed up the way they are, when do you anticipate the first set of results? Of course, it's a bit different when you drill into a copper system because if you hit, you're likely going to know pretty quickly, right?
Warren Stanyer: We would know pretty quickly. We would be shipping these samples up to Canada in bags whole, so to speak. The drill core we leave in a storage locker in Winnemucca, but I have a contact in Saskatoon and I think we'll get the samples back pretty quickly. The American-based labs are very, very busy with everything that's happening with gold in the last few months. Nevada has been busy, but SRC in Saskatoon, they're moderately busy, but I think that we'll get the results back a lot quicker and they're competitive on price. I've known them for a long time and they're an excellent lab. That's where we had our last samples done for Coronado. We shipped them to Saskatoon the first time. So, we're just preserving that continuity.
Gerardo Del Real: I'm going to get ahead of myself a bit, and assume that there is a discovery made. There are other targets on this property that are also pretty compelling. Again, getting way ahead of myself here and assuming there is success within the next couple of weeks at Coronado, can we talk about some of the other targets that a discovery would allow for us to explore and drill out as well?
Warren Stanyer: Well, the Red Metal target is something we haven't discussed, but there was high-grade copper found in narrow intervals there back in the 1970s, 1980s. I'd have to go back to the technical report that we put together because really it's not at the top of our radar. The reason that Coronado South got the attention that it did is because it was a very large, highly conductive anomaly with the coincidence high magnetic response. With the money that we've had to put into Coronado, it seemed to be the most logical place to go.
But we do have other targets on the property as well that we've never really exploited or talked about, but we know that these results occurred by a previous explorer far to the north of Coronado. That's something that we'll be looking at in the future because we've just paid our BLM fees for the whole year, so we want to know what some of these other parts of the property have to offer. We could be doing that in the spring. It's a little bit harder to do right now. We have visited it and we have sampled it and there is mineralization on surface in these little gossans, but the drill bit did find something there years ago. We just haven't had a chance to go after it.
Gerardo Del Real: Well, November is shaping up to be a critical month for the company. We have Kinsley, we have Coronado. We'll be talking in the next week or two, Warren. I hope it's a pleasant conversation.
Warren Stanyer: Me too. Yeah, I guess you'll be looking for me.
Gerardo Del Real: Absolutely, absolutely.
Warren Stanyer: I'll be happy to talk about it.
Gerardo Del Real: Thank you so much. I appreciate the time.
Warren Stanyer: And thank you, Gerardo. Stay safe and well in Texas.
Gerardo Del Real: Same your way.
Warren Stanyer: Thank you.