Nevada Sunrise Gold (TSX-V: NEV) CEO Warren Stanyer on Kinsley Mountain Gold Project Drilling Program & SGH Defined Drill Targets at the Coronado VMS Project

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. How are you, Warren? I added the gold in there for you.

Warren Stanyer: I heard that. Well, we are a gold company. That's how we started and we branched out a little, but everything's still in Nevada, which I think you know. Nice to be here, thank you.

Gerardo Del Real: Thank you for coming on. It is still Nevada. It is still gold. But we also have an exciting copper project and a target that's emerging that I really, really am looking forward to chatting with you about. 

But before we talk copper in Nevada, let's talk gold in Nevada. We now know from the announcement from your 80% partner and operator New Placer Dome Gold and from the release today from Nevada Sunrise, that at least 23 holes have been drilled and 9 at the very least, as of October 1st, have been sent to the lab. Can you speak to where those holes were drilled, what we're hoping for? And then we'll continue on and talk Coronado and copper.

Warren Stanyer: Sure. Well, not being the operator, we are not looking over the shoulder of New Placer Dome, so to speak. We get updates from time to time. I know that the samples are at the lab, and I know about as much as the average person looking in. Looking from the outside at this point, I'm happy about the production. They've definitely done a great job. There's lots of RC holes as well. The core holes give us more information about the orientation of the rocks. Generally, it's a more reliable sample. The RC will tell you what you're in, but you're not looking at core. You're looking at tiny little chips that have been gouged or carved out by the bit. It's cheaper and faster and, yes, it's a great way to explore. But the core holes, that's how we discovered the Western Flank Zone in the first place, was with the core drill back in 2013 when Pilot Gold was drilling. So yeah, I'm excited about the possibilities here, definitely.

Gerardo Del Real: 9 holes at the very least, again, as of a week ago are at the lab and it looks like, and I'm excited for this, that the holes at the lab are from the high-grade Western Flank Gold Zone and the Kinsley Northwest Fault Big Bend area. You are familiar with both and the historic results that we've gotten incredible grades and widths. Can you speak to that a bit just to set the table and hopefully we're able to duplicate, right, those types of results, or exceed?

Warren Stanyer: Absolutely. This project generated a lot of excitement back in 2014. The discovery hole of the Western Flank, it kind of got a ho-hum back in November of 2013, but I guess the gold price started kicking up a bit and with Pilot's reputation and them telling the world that this was a great project, it really accelerated. There hasn't been any core drilling on this property since probably 2015. We've only drilled RC holes. So this is just an incredible opportunity for Nevada Sunrise shareholders, because when it was in low gear for 2016, '17, '18, '19, we just weren't seeing this application of work.

Whatever is in these holes, this is what Mother Nature gives us, as you and I discuss from time to time. All we can do is wait for the results. There could be new offshoots that they have targeted. We just don't know what these holes are going to carry yet. But what we do know is when the grades hit, they're phenomenal grades, where you can have 10 meters of 20 grams or 20 meters of 30 grams. Those are a couple of the best holes that I can quote, I can't remember the numbers exactly. But if you look down the list on our website, you can see some of the grades that have been found in previous years because we still have it posted there.

Gerardo Del Real: To New Placer Dome Gold's credit, they have three rigs on the property. They have to be close to 30 holes in. Again, to their credit, they're not only seeking extensions of the high-grade Western Flank Gold Zone, but they're also doing some wildcat exploration drilling in areas that have been always considered very prospective, but have never seen, as you mentioned, proper test or drilling. 

I know as a shareholder of Nevada Sunrise Gold, I'm extremely excited for the initial results and the ones that are to come. I'm sure that you are as well, Warren.

Warren Stanyer: I sure am. What we need to do is add ounces to this project. The way that you do it is by drilling a lot of holes. Like I say, when it was in low gear for a few years and gold was not doing that well, there was just a minimum amount of work done. To their credit, to Max Sali's credit and his board, they've really taken a whack at this thing and they've gone at it and like a company, like BHP or Barrick, not the BHP's much into gold. They're doing a major scale program. I think that's just a huge benefit for us.

Gerardo Del Real: Excellent. Let's talk about Coronado. You had some news today that again, I hate to keep using the word exciting, but we have the potential here to earn into 100% of a project that is now looking incredibly drill ready. The news release from today says, “Nevada Sunrise Defines Drill Targets at Coronado VMS Project in Nevada.” You took a rather unique approach to developing the targets. It's more than what's in this release. Can you please explain the process and why I'm excited and why you're excited? Because we talked a bit off air.

Warren Stanyer: The SGH (Spatiotemporal Geochemical Hydrocarbons) process?

Gerardo Del Real: Correct.

Warren Stanyer: It was developed by a Canadian scientists in the mid-2000s. It didn't get a lot of attention at first, although around that time there were a number of different methods of geochemistry where people were experimenting with soil gas, what kind of gases can you capture on surface that are coming up vertically from a buried deposit. Because so many things now of course are varied. The days of a prospector walking along and kicking some moss off a rock and going, "Oh, look how shiny that is." That's very, very rare. Voisey's Bay was a huge discovery, it was kind of like that. You're probably familiar with it. It was a rusty gossan that people had sampled over the years. But the guys from Diamond Fields, they actually dug in and went deep into the gossan and found high grades of nickel and copper. It's very rare to find something like that on surface.

What we have at Coronado is we have the potential for a buried deposit. How do we get some credible information that something's there without taking a huge risk with the drill. That's where these geochemical techniques that were developed in the 2000s, one of them was MMI. MMI has its fans and has its detractors, but SGH kind of motored along. It stands for Spatiotemporal Geochemical Hydrocarbon. People called it soil gas hydrocarbon for a long time. 

Actually, it's the minute hydrocarbons that are released by the digestion of sulfides by bacteria. I'm not making this up. It's very science fiction. We know that bacteria, it's used sometimes in tailing situations to digest copper, deleterious elements that are in tailings areas or something that's coming out of a tailings area. We know that bacteria does this and these geochemists worked on this for years and years.

They developed a method of detecting these hydrocarbons at surface, right at surface, you don't even have to dig a deep hole, to find a signature of what that bacteria has been digesting. In our case, not only did they find a strong VMS signature, but the picture we put out today, because it was so vivid was the copper, which is a separate analysis. That outline of the copper mineralization sitting on top of the conductor. It just can't be more powerful.

Gerardo Del Real: It seems like to a non-geologist, non-technical person like myself, you have arrows that are literally guiding you as to where to stick a drill hole or several drill holes into, right?

Warren Stanyer: Well, I've been saying this for a while, since I first realized what SGH actually is. I've done surveys where you put a glass tube on the ground, you wait for a week and then you go back and seal it up and send it to the lab and it's expensive and it would hardly tell you anything, it seemed. There's other methods of using very expensive machines, little digital boxes that you put on the ground and they have to sit there for weeks. 

SGH, if this provides a deposit for our shareholders – and it's been working in Ontario for Great Bear Resources, they're not even talking about it anymore. Even in the SGH materials that you receive in your report, they talk about all the companies that are using this that don't want to discuss it for competitive reasons. Well, I guess we just lifted the curtain on that, right here and right now. But it's a total – I don't like the phrase, it's hackneyed now – game changer for explorationists when we're looking for deposits in buried terrains.

If this thing works for us, well, I've already used it in other companies and I know it works because where we used it in Saskatchewan over a nickel conductor, we found nickel with the drill. If that hole had been completely barren, you and I wouldn't be talking today about SGH right now the way that that we are. I believe that SGH has a good chance of, yes, guiding you to mineralization. We need to get a drill there. We're getting a quote right now. Drills are a little hard to come by in Nevada, partly because the COVID epidemic has impacted the availability of crews. This is the latest I've heard, but I do have a very strong connection with a drilling company in Reno and we're waiting for the quote and we want to get going.

Gerardo Del Real: Well, you answered my next question, Warren. For the skeptics amongst us, when do we get to test it with the truth machine? It sounds like you're working on that as we speak and likely will have a further update hopefully soon, right?

Warren Stanyer: Yeah, unless we encounter some delays that they're just impossible to overcome, we want to drill before Christmas. We don't want it to happen too late because we're in a 4,000 foot elevation. All of Nevada pretty much is that, right? So that means you can get snow and snow causes problems. It makes everything slippery, even a little bit of it. Generally, it'll be good until January, but in 2018 we ran into snow. We had to move our drill. We moved it just enough, as you can see in our drawing, to miss the best part of the anomaly. 

We did not have the benefit of this SGH survey at the time. But now we see that we're right on the flanks of the whole thing. We went down into a fault and it was a torturous hole, very expensive. This is going to be different. We're going to have access to the best parts of the property, the ones that we originally wanted to drill and now we've got a geochemical result that can help us.

Gerardo Del Real: Well, between assays out of Kinsley, which we anticipate within the next three to four weeks, and potentially being able to drill this and test it properly, it sounds like a heck of a 4th quarter shaping up for Nevada Sunrise and shareholders and potential shareholders that are looking at the company. The bottom line is you have a minuscule market cap given the potential at both Kinsley and Coronado. Warren, anything else to add to that?

Warren Stanyer: As my friend Charlie O'Sullivan used to say, "We're only one drill hole away from being a billion dollar company."

Gerardo Del Real: There's at least 30 drill holes already in at Kinsley and we're going to put a couple of Coronado, so it won't be for lack of effort.

Warren Stanyer: Well, remember those were Charlie's words but I like that phrase because I've been in companies where we were trading below a dime that went to $7 and we did become a billion dollar company, based on what we found in the drill. So let's go drilling.

Gerardo Del Real: Let's go drilling. Warren, thank you so much.

Warren Stanyer: You're welcome, Gerardo. Thank you.

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