General Precious Metals
Nevada Sunrise (TSX-V: NEV) CEO Warren Stanyer on Advancing Gold, Copper & Lithium Portfolio in 2021
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the president and CEO of Nevada Sunrise Gold, Mr. Warren Stanyer. Warren, how are you?
Warren Stanyer: I'm doing well. Gerardo. Thanks for your call. I hope you are too.
Gerardo Del Real: I am, I am. Thank you so much for that. I appreciate it. Listen, we all know that the main event in the near term, the biggest near term catalyst for Nevada Sunrise Gold, the reason that I've written multiple checks, and I'm excited to write another one for the just announced up-sized financing that you're conducting. And we'll talk about that in a bit. But, the main catalyst for me has always been the results from Kinsley Mountain. We have 40 holes in the lab that we're waiting on assays from. And then, of course, secondary to that, is the Coronado copper VMS project, which we haven't properly tested yet. But you have the option, the earn-in option, to secure up to a hundred percent of that asset which in this copper environment, and the one I suspect we're headed towards, is extremely compelling to me as a speculator.
Now, with that being said, you had some news a few days ago that I think went unnoticed and the headline read “Nevada Sunrise begins strategic review of its lithium brine projects in Nevada.” I think a lot of speculators have forgotten that you have some quality lithium assets in the portfolio along with very important strategic water rights. And I would love for you to provide a brief overview of your review and those water rights.
Warren Stanyer: Well, I'll try and make it brief because it's a long story. So in 2015, when gold was at $1,100, if it was on any day and nobody cared about Kinsley Mountain or Golden Arrow, or anything else that we had in gold. I had met some people in Reno from Western Lithium. They just raised $8 million. And I thought, what is this all about? So looked into it. We've started acquiring properties through a certain vendor. And then, the more we looked into it and we found other areas not outside the Clayton Valley, which is the most well-known valley. There was the Fish Lake Valley to the West and the Lida Valley to the South East. And so at that point, we had a portfolio of lithium properties. We did a deal with Advantage Lithium, which brought cash into the company. We sold the property to Pure Energy, which is one of the four runners of this whole lithium boom of the mid 2010s.
Shall we say? But 2015 they were doing very well. So they have the property where we hit brine in every hole. What we didn't test very well was the Lida Valley properties. We drilled one hole. Advantage Lithium funded that hole at Jackson Wash. It didn't contact brine or intersect brine, but there's potential there. I know for a fact that the Silver Peak Mine, when they're drilling in the mine area, they don't get brine on every hole, because we know the engineers and geologists that work there at various times. So these properties demand to be tested and we've got some really good geophysics that we're now putting into the compilation that was never compiled back in 2016, 2017. So that's why our strategic review is important.
Gerardo Del Real: Well articulated. Can we talk about those strategic water rights? Because my understanding is if you don't have water for your lithium brine project, it's going to make it pretty tough to mine.
Warren Stanyer: Pretty much any project in Nevada, if you don't have any water and you haven't been looking for it or know where you might get it. In the Clayton Valley, for example, where we have a more well-known water right, which we were in litigation with Albemarle for three years, we have a lot of water in that water right. 1,778 feet. So if you could imagine a one acre square ground that is 1,700 feet high full of water, a column of water, that's how much we could use in a year with that water right. We are looking for partners in the Clayton Valley for that water right. But I don't have much to report at this moment. However, in the Lida Valley, we applied for a water right and we asked for a couple of hundred acre feet so that you could drill and legally pump water out of the ground and do all the technical things that you need to do when you're exploring for lithium brines and water underground, brines underground.
So we were granted an 80 acre foot of water right. Which is enough to properly test and legally test holes where you have encountered brine where you can pump water from the ground. That did go unnoticed over the last few years. It's been in all of our disclosure, but I guess it's just not well understood. And especially by our Canadian investors, where right now I live in Vancouver, it's been raining for about a week. You know, we have lots of water. It's pouring rain right now, but in the desert you need water. And if you don't have it, you're not going to go very far.
Gerardo Del Real: You just announced an upsized, non brokered, private placement, $400,000, which was upsized from the original announcement, which was $250,000 just a few days ago. How is that coming along, Warren?
Warren Stanyer: It's going very well. We're getting international interest as of this morning so we had to move quickly. And so, we announced the upsize because the way these things work with the TSX venture exchange, it's all a matter of timing. So we've, upsized it. And we're confident that we'll get to that number.
Gerardo Del Real: Anything else to share on Coronado for the time being? I know we're waiting on Kinsley and you know, hopefully within the next couple of weeks, we have assays from other parts of the property outside of the Western flank, but anything on the Coronado front that you can share?
Warren Stanyer: Well, we've been busy obviously with interpreting and looking at our first Kinsley results, which was January 11th, and now the lithium review of those properties. So, Coronado is definitely a priority for us and we need to turn our attention to it, to figure out the best way to drill it. And this geo-physical anomaly that we call Coronado South, this is a real thing. So, how do we get through this dirt and mud and what they called colluvium that has impeded us. It's been very frustrating and probably the most frustrating drilling I've ever encountered. So, it's going to take a little more time to figure it out. And we're in the midst of a winter situation here, so it's not drilling time anyway. And we've got an active permit. So we'll figure it out in the next couple of months and hopefully we'll have something to report on a drilling plan to test the anomaly.
Gerardo Del Real: Looking forward to it, Warren. Hopefully the next time you and I are chatting, it will be about a new discovery at Kinsley. Thank you so much for your time today.
Warren Stanyer: And thank you, Gerardo, and stay safe all the best to you and your family,
Gerardo Del Real: Same to you, and same to yours. And thank you very much for that. I appreciate it, Warren.
Warren Stanyer: Thank you.
Gerardo Del Real: Bye now.
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