Nevada Sunrise Gold (TSX-V: NEV) CEO Warren Stanyer on Launch of Geochem Survey at Coronado VMS Project & Drill Program at Kinsley Mountain Gold 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?

Warren Stanyer: I'm doing well, Gerardo. Thank you. I hope you are, too.

Gerardo Del Real: I am. Thank you very much for asking. Nevada Sunrise Gold has gone from a very quiet company to a very busy company. $2,060 gold here in the US will do that in a hurry, especially when you have not just one, but at the very least two near-term catalysts in Kinsley Mountain – which 80% owner New Placer Dome Gold and joint venture partner is starting to drill here soon I understand  – and Coronado – which of course Nevada Sunrise Gold has the option, I believe, to earn into up to 100% of the project, royalties aside. 

Let's start with Kinsley. I know that there was news last week outlining targets at that project. I'd love to hear your thoughts as to the program and what you hope to see in the coming months.

Warren Stanyer: Well, I'm pleased that New Placer Dome has come into the project and revitalized it. Obviously, Liberty Gold had other eggs to fry, shall we say. With their Goldstrike Project in Nevada, their Black Pine in Idaho, Kinsley became less of a priority for them, but it's a large priority for New Placer Dome. Let's just say the Canadian input is what I like, being a Canadian and being geophysically-oriented in terms of looking for blind deposits where there's very little surface expression, which we do have that situation at Kinsley in some areas, especially in the north. I'm looking for some nice tight targets and some great drill results.

Gerardo Del Real: It's an aggressive program. It's targeting multiple types of mineralization. As you know, I have a long history with Kinsley Mountain and Nevada Sunrise Gold, for that matter. So I am biased, but I am, I think, as excited as you are about Kinsley and drilling there. 

I'm also extremely excited about Coronado. You had some news on that front. You just commenced a geochemical survey at that project in Nevada. Can you provide a brief overview? Then let's talk about next steps.

Warren Stanyer: Well, what we have at Coronado and what we learned from our drilling in December of 2018. We only drilled one hole. It was a torturous experience because we drilled into a fault where we didn't expect one. Why is that? If you look at the Big Mike deposit, which is nearby, the one that was mined out in the '70s. It's been pulled apart. As they dug out Big Mike, they didn't have to do a lot of drilling, but they just simply excavated it. They could see all the faults, they could see how the deposit, the blob of VMS mineralization had been broken up. 

We have to assume that that has happened to Coronado as well, assuming there's a deposit of course. So if you had a jigsaw puzzle and you laid the pieces on the table, and they were all apart from each other with a gap in between each piece, that's possibly what we have at Coronado. What this goechemical survey can help us with is it could zero in on where there is copper mineralization better than what we can see with the geophysics.

The geophysics tells us there's a conductive body. There's no question of that. It has a higher magnetic response as well. That's what drove us to continue this project. But the geochemistry is what we lack because it's completely covered in dirt, as was Big Mike. Big Mike was only developed because one outcrop had a gold result in it, about 3 grams of gold. It kind of caught people's interest, but in the 1930s, 3 grams, you wouldn't get out of bed for that. So it wasn't until the 1960s that somebody started drilling through 200 feet of dirt and then they hit the copper and they went, "Wow." It has gold and cobalt as well, so that was Big Mike. 

Nobody except us has ever drilled a hole northwest of Big Mike. As we know, VMS deposits are not just a one-off. They always appear in a series or a cluster. You can see that around the world. From the ones that were found 40 and 50 years ago, where they'd find one, and you look at what's happened in the last, say two or three decades, they find more. Because once you know where the faults are and you get a better geophysical technique, that's how you locate them. That's what we've done with the VTEM survey of July 2018. Two years ago, we were the pioneers of airborne in that area. Nobody had ever heard flown there.

Now with geochemistry, I have high hopes for this. I know that the SGH process can work, because it's worked for Great Bear Resources in Ontario. It's worked for ALX Resources in Northern Saskatchewan. Let's see what it can do for Nevada Sunrise and help us define these targets. They're just a little bit blurry right now because we don't know where the gaps are between the puzzle pieces and how they've been pulled apart. This should help us zero in on where the puzzle pieces are.

Gerardo Del Real: How long do you anticipate the survey will take before you have results and we're ready to talk about potential drilling?

Warren Stanyer: I would think we should have everything done – today's the 6th – we should be done by early next week. The samples will be shipped to Ontario, Canada to the lab that developed this particular technique. It's called Spatiotemporal Geochemical Hydrocarbon, SGH.

Gerardo Del Real: Say that four times.

Warren Stanyer: Luckily it's not a tongue twister. It's been around. I regret that I didn't learn about it sooner or understand it. I'd heard of it, but I thought SGH stood for soil gas hydrocarbon. To me, soil gas, it was something where you stick a tube in the ground, you wait for it to collect gas from below, and then you hope there's something in it. That's not it. This is a shallow soil sample that's put into a bag. You don't have to dig a deep hole because the theory is that bacteria have digested sulfides at depth and the gases that rise from that digestion are caught in the upper soil layer. That's the theory and it's being proven, but it takes a long time for people to A, try it, B, adopt it, C, trust it. It may not be perfect, but I know it's helping Great Bear because they've told us all about it. They're finding gold along a very long fault system that normally it would be harder to do.

Gerardo Del Real: You mentioned being done with the program next week. How long do you anticipate the turnaround to be for results?

Warren Stanyer: Yeah, thanks. I neglected to throw that in. Probably a couple of weeks. It depends on how busy the lab is. I think that they'll put us to the front of the line, I hope. We haven't asked for any special rush provisions or anything. Generally they turn it around at two to three weeks and you get a report that shows you where these bumps, where the peaks are in the survey. 

What I saw in Northern Saskatchewan is that where they showed that we had a nickel response, well we drilled and, guess what, there was nickel there. If it had been completely barren, well, that would be another story. But it wasn't. Here we are in a similar situation in Nevada where we've got a strong conductor that looks very promising on what could be a very fertile trend. So let's see what this survey tells us. 

We're doing some conventional soils as well, just as a kind of a test or a base, a standard, so to speak. But the idea is that SGH will capture a response near vertically. So what you're seeing from the surface samples should be nearly directly below. A conventional soil sample, that soil could have moved from some other place through erosion and wind and water action. It's not necessarily telling you exactly where a deposit would be, just a general enrichment in the area.

Gerardo Del Real: I was starting to say there, I mentioned I'm biased. I participated in the previous financing. I'm writing a check for this one as well. As you know, when we write these checks, Warren, we love soil samples and geophysics and geochem. But there's nothing like the truth machine, the drill bit.

Warren Stanyer: That's right.

Gerardo Del Real: You know what I'm asking. What can we anticipate as far as drilling here before the end of the year?

Warren Stanyer: If we get some good targets, then we'll raise money for drilling or find a partner. Maybe we'll attract somebody that really wants a copper deposit and likes what we're doing. What I'm seeing right now is that bigger companies are starting to use the juniors like they did when I first started in this business. We go out and we assemble a project, vendors approach us, that they wouldn't normally approach a big company. We put a project together. We do the first work that shows – like we've done at Coronado – there's a geophysical response. It's really interesting. Now we're doing a geochemical survey. 

We could set the table for an incoming partner. Or, if there's a strong enough response and a nice buoyant market for financing and for the metals that we're after, then we could finance it ourselves. You always run that balance between dilution of the company, of issuing shares to raise money, or bring in a partner that will spend money for a percentage. That's what we'd be facing in the next little while. It'd be nice to drill. We don't want to drill in December again. That was a tough one. The snow came and things got slippery. It'd be nice to be drilling by October, November, if we get some really good targets.

Gerardo Del Real: Warren, I suspect that with news from Kinsley and success there, you're going to have some options. That is a great, great position to be in as a shareholder. I want to thank you for your time today and the update. Is there anything else that you'd like to add to that?

Warren Stanyer: I would just like to thank everybody for everything we're all doing together to get over this epidemic. I think that there's a lot of good things to come and that we can get things back to normal. Luckily, we've been able to function here in the mineral exploration industry, keeping our people safe at the same time and the places that they visit. So all the best to everyone out there.

Gerardo Del Real: Well said. Warren, thank you.

Warren Stanyer: Thank you, Gerardo.

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