Nevada Sunrise (TSX-V: NEV)(OTC: NVSGF) CEO Warren Stanyer on Extending Continuity of Conductive Zones at 100% Owned Gemini Lithium Discovery

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, overdue for a catch up and I know like many shareholders I have some questions, so it's great to have you back on. How are you today?

Warren Stanyer: I'm great. I got up with the sunrise so it was just one of those days. You know the summer makes you wake up earlier. It's awesome.

Gerardo Del Real: Absolutely. Let's be, as always, let's be frank. The share price has pulled back. As a biased shareholder, I don't really care. I didn't write a check at 3 cents and 5 cents and 10 cents and 20 cents and 30 cents a few years ago to make a couple of pennies, but obviously there's people that are newer to the market or people frankly that are trading the stock that are concerned when they see a stock reaching a 52 week high of 36, 37 cents and then have it pull back to the 20 cent, 19, 18 cent level. You had some news today that I think is going to be the beginning of consistent news flow for the rest of the second half of this year. You received initial geophysical survey results from the hundred percent owned Gemini Lithium Project in Nevada. It's a new lithium discovery. No one's ever drilled for lithium in this part of Nevada. It's an exciting discovery. Give me the context. Provide the context. Tell me what you're seeing.

Warren Stanyer: Well, what we see in the geophysics on the new lines, we're definitely seeing conductive horizons. The one challenge we have right now is matching the 2016 data which was from two separate contractors and the 2022 data which is from one of those two contractors. What's happened in the last six years, there's changes in the modeling protocols, in the coding. This is how it's explained to me so it took us a bit longer than we expected and we're still working on them, but what we do see so far is that there's near the holes one and two, that the adjacent line that you can see on the diagram that was put out today to the west, the north-south line to the west, you can clearly see the conductivity on that line.

So those lines are about, I'm just looking at the scale bar here, about a kilometer apart, a thousand meters. So 1,100 yards or so. So we're very happy with that and all the way down the line you can see the conductivity. We just want it to mesh better into the model and we may have to do some additional infill lines to really flesh it out, but certainly we've got enough confidence here for future drill targets and that's what we're about to submit to the Bureau of Land Management.

Gerardo Del Real: You're slowly but surely adding potential scale to this new discovery, right? And again, it's early on, you're doing that through the geophysics with conductive zones that are interpreted to be clay layers, but I have to say as exciting as a lithium bearing clay deposit is, the potential for a lithium bearing brine deposit in this part of the world, in this particular time, in the world's history where everything is going towards the electrification of everything, right? I mean your timing couldn't be better if you're able to discover a brine deposit of significance. How do you proceed? You mentioned the amendment, you mentioned upcoming drilling. We know we're all excited for that. We just raised some money here recently to kind of get us there. What comes next, Warren?

Warren Stanyer: So the amendment to the notice of intent to drill goes in to the BLM. What will happen after that, there's going to be an adjustment to our bond, which they will calculate. My guess is it's going to nearly double to about $20,000. It's a reclamation bond so that BLM is protected and the United States government is protected if somebody walks away and doesn't clean up their drill sites and any trails that they built and you have to reseed and do all these things. It takes a long time to actually get your money back because we're sowing grass in the desert. So you can only really do that in November, and you hope that it takes. So, that's what the bonding is about. So amendment, bond, drilling contractor, so today I had a conversation with a drilling contractor that we had used six years ago, and they're a major company.

And I heard what I hoped to hear, that this contraction that we see, which you referred to in our share price, and you just look around there's a lot of people in the same position where the highs that we had in April are suddenly shot down in May or June in this case. But those factors are influencing the number of drills and crews available. The cost of diesel was mentioned that people are cutting back on the size of their programs. They're not going to do as many meters or drill for as long, so what I'd hoped was that we could have a drill signed up for August or September, and I'm pretty, pretty confident that's going to happen because of what all the factors that are affecting our business right now.

Gerardo Del Real: So luckily we're hoping for drilling in mid to late August, sounds like early, early September at the very latest. So fingers crossed for mid to late August. That's just a month away and that'll go quick with the summer being here. I want to provide a conservative, but also a hopeful view on what you're hoping to define here with this next round of drilling, Warren.

Warren Stanyer: Well, certainly we will, I'm certain we will hit clay. What we want to do is get below it. And one of the limitations on our first program, literally when you're pioneering you don't know what to expect. You don't know how deep anything is, what you're going to find. The drill that we had was capable of getting to say a thousand feet or 1,200 feet, but after that it gets very tiresome and slow. That's why we're going for a more powerful drill that can maybe drill faster and drill deeper. So we believe that there could be brines below that thousand foot, 1,200 foot level that we just got a piece of in our first two drill holes. So that's the quest, see how much clay there is certainly, but get through it and see what's below it. The water.

Gerardo Del Real: Yeah, that would be an absolute game changer, right?

Warren Stanyer: Because well, direct lithium extraction it's a small footprint. It's attractive in the ESG world that we're in. Plus we have that solar energy zone right next door. So there's a practically unlimited amount of power. And for Nevada, for solar energy, it's got to be one of the best places in the world. I would guess it's sunny at least 300 days a year. So put all those things together, small footprint, availability of electricity, and yeah, it could get very exciting and that's why we're going out to drill some more.

Gerardo Del Real: How's the infrastructure Warren?

Warren Stanyer: Oh, I'm looking at the map. I mean, the roads go through it. There's roads everywhere.

Gerardo Del Real: There's roads, there's power, it's Nevada. There's a potential for a brine deposit of significance that's, you know, we'll wait and see on that. We definitely have a clay deposit that seems to be significant. You have a tiny market cap and you also still have 20% of Kinsley Mountain, which again is another project, a gold project which I really like that'll see some pretty significant drilling in the second half of this year. Warren, anything to add to that? I know there's also a couple of other lithium projects in the portfolio that I frankly don't even want to get into yet, because I sense there will be a more informed conversation to be had after this round of drilling as to the strategy there, but is there anything else that you'd like to add to our conversation today?

Warren Stanyer: Well, Jackson Wash is to the north. We really haven't done that much work on it. There was a hole drilled there five years ago that hit fresh water even below 2,000 feet so we think that could help us in the future for the water allocations that are present in the Lida Valley. So we're working on that in the background. As I've mentioned before, the whole area is blanket staked so it'll be interesting to see what companies emerge and with what claims and what they intend to do, the people that surround us. So that'll be, that's of interest to me because right now, I don't know.

Gerardo Del Real: And again, just to kind of wrap it up here, Gemini has a water right that is going to be, I suspect, very valuable and strategic in the future.

Warren Stanyer: Well, certainly it helps your development, at the early stages of development. We have enough water to do that. So the next stage is to get more water.

Gerardo Del Real: Warren, sounds like an exciting second half of the year. I can't wait for the drills to turn. I'm looking forward to the 3D model from the geophysics. I understand that obviously hasn't been an issue of you're not seeing the results that you want. It's been more or less supply chain delays with people traveling in the summertime as with everything else. Would that be an accurate assessment there?

Warren Stanyer: Absolutely. And just a smaller company that all their people are stretched to the limit. So, we're getting what we can and they're working on it. The processing is ongoing just as I said today.

Gerardo Del Real: Perfect. We'll, chat soon. Thank you again for the update.

Warren Stanyer: Thank you, Gerardo.

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