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Nevada Sunrise (TSX-V: NEV)(OTC: NVSGF) CEO Warren Stanyer on Emerging Lithium Discovery in Nevada
Gerardo Del Real: his is Gerardo Del Real with Resource Stock Digest. Joining me today is the president & CEO of ‘Christmas in June’ — Mr. Warren Stanyer. And of course, I'm referring to Nevada Sunrise Gold for the time being. Warren, how are you today?
Warren Stanyer: I'm doing well, Gerardo. Thanks for the call.
Gerardo Del Real: Look, I joked about Christmas in June, and, of course, I'm referencing our last interview where we talked about how exciting the additional lithium analysis results were for holes one and two and how excited we were for the geophysical survey that is eagerly awaited and, I understand, imminent. And so I'm looking forward to results there.
But we also got news yesterday of 327.7 milligrams per liter lithium in water over 220 feet at the Gemini Lithium Project. The stock reacted very well today both in terms of price action and volume. On the news, I, as a biased shareholder who's written many, many checks into Nevada Sunrise Gold, am extremely biased and, of course, rooting for you and the team.
But I have to tell you, it does really feel like Christmas in June because everything seems to be lining up. And given where the market cap is, there is a lot of runway if I look at some of your Nevada lithium peers.
Warren Stanyer: Well, no one has found lithium in water in those concentrations. Well, back in the day, 2016-17, we drilled right beside the Silver Peak Mine, and we got up to 250 to 300 milligrams per liter lithium in a classic brine. I say ‘classic’ because it looks like salt water when it splashes on the ground… there's a white precipitate, shall we call it. But this was different; this is a carbonate-style brine.
And when we realized what was going on and as the results were starting to come in from the lab, we started searching for these types of brines. And for example, in Alberta, Canada, the brines that are found in the oil and gas drilling are often very carbonate-rich. So there's a different style. They looked different. They didn't look like the salty chlorides-type brine. And that's why we were so surprised. But there's no doubt the lithium is there.
So the next step is to drill more holes; drill deeper. Where did this carbonate-style brine come from and how deep is it? We think it's below the clay layer. And we stopped in the clay layer because it was very slow drilling and it was becoming tedious and expensive and we were rushing samples and we knew that we had lithium in the clay. But now, we are aiming to find shallower formations of this clay with the geophysics that's just been completed.
And that's our hope that it'll show that these horizons are actually coming up closer to surface and, therefore, we would potentially get through them sooner. And if there's a brine aquifer underneath, well, that's our goal to find it.
Gerardo Del Real: What is… and I know it's early days so we'll talk about what comes next… obviously, the geophysics results will help answer and provide insight into this question… but what's the potential scale as far as the current land package and a review of the data that you do have in-hand — what's the scale here potentially, Warren? I don't think that most people have a grasp on that yet.
Warren Stanyer: Well, we don't either until the geophysics comes back and we can map this conductive zone, see how thick it is, where it's most conductive. On our website, there's a drawing just close to the end of the Gemini section. And you can see that the intensity of the conductivity was increasing towards the bottom of hole one. And we stopped it at 900 feet. What's down there, and, then, how broad is this conductive zone? And the geophysics will help explain that.
So I hope I answered your question. But again, we don't know how big it is yet. What we do know is, well, 5,700 acres. Is a square mile not 640 acres? So that's 8.9 square miles that we've staked.
Gerardo Del Real: And again, just to update the position there because I think this is an important point before you continue there, Warren, you've done a brilliant job of getting ahead of this and staking. Can you explain how that process has been?
Warren Stanyer: Well, we became aware that in the Clayton Valley — and there's a number of lawsuits that are going on according to our Reno lawyer — there are parties that are coming in. Sometimes they're mining companies from other countries. And then, as our lawyer said, they'll hire stakers that don't know what they're doing, and they'll come in and over-stake.
So we had to be very careful that everything we did was perfect. And we have a great staker out of Reno, and he's very well-known for the quality of his work. So when people see his name on the location documents that are on every stake in a little tube — paper rolled up in a plastic tube — they tend to leave it alone.
And so by using that particular staker — doing the work very well and being careful about our announcements — we managed to completely cover that 8.9 square miles with lode claims and placer claims. Because if we didn't, then somebody else would probably try and put something on top of what we already had.
Gerardo Del Real: When do you anticipate being able to share the results from the geophysics?
Warren Stanyer: I'm hoping we get it at the end of this week. So today being the 7th, hopefully by next week because that's going to determine our next drill hole locations. When we filled out our permit application in 2016, we were really and truly just guessing on the information that we had. But you have to put in locations. And that's how they determine your performance bond: how much you disturb the ground determines how much you have to put down, say, $15,000 up to $20,000 for the permit.
So all of those locations were speculative. And so we drilled two of them here, and now we know the value of what we guessed at. But now we'll have even better information. And now we know what was in hole one and two. So that will help us understand what's coming next.
Gerardo Del Real: Two pretty darn good guesses! I can't wait to see what you're able to do with a more informed approach. I am looking forward to having you back when we get the results of the geophysics. And it may not be Christmas in June yet but it certainly is feeling like it's snowing outside. And so let's see what the geophysics delivers. Warren, thank you so much for your time. Anything to add to that?
Warren Stanyer: Just that we're very pleased with how this has gone. And it was a total pioneering program. Nobody had ever drilled there before. There's gold around our area up in the rocks but we're down in the flats; nobody ever drilled there before. So to have all of this happen has been pretty exciting and great for the company and for all of our shareholders.
Gerardo Del Real: Next time we chat, I think we'll be chatting about geophysics here at Gemini, which is, of course, the flagship as of right now as it relates to the lithium portion of the portfolio. But I would encourage everybody to go to the Nevada Sunrise website because there are other very prospective lithium properties in the portfolio. And maybe that's a conversation that we'll have next time we chat, Warren.
Warren Stanyer: Yeah, we're working on Jackson Wash, and it's a little bit behind Gemini, obviously. It hasn't had as much work but it did have a hole drilled there in 2017 that found water at great depth. So I think that'll help us in our assessment of how we proceed with our water rights and obtaining more.
Gerardo Del Real: Warren, thank you for your time. We'll chat soon.
Warren Stanyer: Thank you, Gerardo. It was a pleasure.