Nevada Sunrise (TSX-V: NEV)(OTC: NVSGF) CEO Warren Stanyer on Geophysics Results at Kinsley & Drilling at Coronado Copper 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, Mr. Warren Stanyer. Mr. Stanyer, how are you today?

Warren Stanyer: I'm good. What an introduction. I mean, who couldn't smile after hearing that? It's like, where's the band, where's the trumpets? Anyway I'm doing well. Thank you, Gerardo. And I hope you are too?

Gerardo Del Real: I am as well, thank you for asking. Bands and trumpets abound, Warren, bands and trumpets abound.

Warren Stanyer: Yeah.

Gerardo Del Real: And listen, you had some news that I know you and I had chatted off air many, many times about, the nature of this drilling program that we finally got all the assays for at Kinsley Mountain. Of course, with partner and operator New Placer Dome Gold, which controls 80% of the project. And Nevada Sunrise Gold of course retains the other 20.01% interest if we want to be technical there.

But we had talked in the past about how essentially, it was a blind program for several reasons. There wasn't a lot of time to actually select targets based on surface work. So geophysics, geochem, trenching, a lot of that wasn't done because of the hurried nature of the drillers not being available. And if you got one, they wanted to get going ASAP. And that's kind of what happened at Kinsley this go round. Despite that, there were some very good hits.

However, there were always some misses and you always have insisted that geophysics was a very, very good tool for delineating targets and being a bit more selective. So I am excited for the upcoming drill program at Kinsley, but I wanted to talk about the 2020 geophysical results, which we got back here recently and get your take on them.

Warren Stanyer: Well yeah, I'm looking at the diagram right now, the first figure that New Placer Dome sent to us just on the weekend. And I mean, it's pretty striking that you see this pillar, this tube of chargeability and that's where a lot of mineralization has been found. And maybe there's some offshoots from that through faulting where I guess, fluids might've moved and taken gold with them. But I mean, there definitely seems to be some kind of connection in it. And when the Western flank was first found, it was found in pyrite. You couldn't see any gold at all.

So that's when our clock started ticking, is, "Hey. Well, wait a minute. If there's sulfides then why can't we see it with geophysics?" But it wasn't part of the exploration philosophy of the team at that time. Over time, and when you're drilling something that's maybe it's a little bit harder to find than an oxide blanket that's maybe shallower and you can punch holes in it in all different directions and find some heap leachable oxide deposit. This one is different, it's deeper, it's sulfidic so would geophysics actually detect the sulfides? That was always the question.

And now it seems apparent that it does. So if we can use that going forward, at least with the sulfide material, you may not see the oxides. And sometimes if the sulfides are disseminated, and I'm not a geophysicist or a geologist, but I know that if things aren't connected, then you don't get that conductive response. So that's the issue here. We can try it. And it's proof of concept now. I mean, we're kind of looking backwards and going, "Hey, look at all these mineralized drill holes" and "Hey, look at this IP response here, this chargeability" and going, "They seem to be connected. So let's go out and test it now."

Gerardo Del Real: Well, I can tell you from my site visit here recently to Kinsley that several things struck out. The first that really stood out to me was the fact that the infrastructure is just top notch, right? It's the easiest drive in and out of a project I think I've ever had, straight road, flat road. The best infrastructure you could possibly ask for Kinsley has it.

The second thing that struck me was just the size of the property and the amount of targets. And I know again, using the geophysics as a gold mineralization vector at Kinsley, I hope is an important step change for this follow-up program. Because look, there is a secret spot oxide and high-grade sulfide discovery that's new, that I believe surveys are warranted there. And the news release states that, right? It says that should happen.

Warren Stanyer: Yep.

Gerardo Del Real: The Western flank zone, it missed in several holes, but where it hit the numbers were very, very solid. And then the shell saddle zone was one that when I spoke to the geologist on site, he was very, very optimistic that there was still a discovery potential there, despite the lack of real flashy, high-grade numbers. So I say all that to say that tools are welcomed if we're going to get a better hit rate. And if we're able to duplicate the better results that we got from the first phase program.

Warren Stanyer: I agree. I'm looking forward to the next time around, because as you say, things had to go in a hurry and gold was surging and the drillers were all busy. And so I'm very pleased that New Placer Dome did this work because all we had before was some really reconnaissance nature style of geophysics, and this time there was a real grid put on it. You can see it in the diagram. And then you see the correlation with the mineralized zones that have been found and you just go, “Wow."

I mean, we were in a meeting a little while ago looking at some of this preliminary stuff and they were turning the diagram. You can see it in 3D and put the drill holes in. And it was just like, "Presto. Look, there it is." So let's see if it does work. Geophysics is not a magic bullet, but it gives you a look at the underground, it tells you something. Whether or not that's going to be mineralization or not remains to be seen, but it looks like there's a definite correlation here.

Gerardo Del Real: Copper's at $4.71, pivoting a bit here. Let's talk Coronado, right? Which is a VMS project that the company owns or has the right to earn a hundred percent interest in. It's a project I'm excited to see drill tested properly. Can you give us a bit of an update there, Warren?

Warren Stanyer: So what we're doing with Coronado right now is we're looking at the geophysics again, a different style of interpretation. One thing that we've had trouble with obviously, in three attempts now is getting through this overburden, this mud and sedimentary deposit sitting on top of the bedrock. So A, we will try to use an RC drill to get through that. B, we will look for other targets on the property as well that are appearing in this latest interpretation. And we know that there was high-grade copper intersected to the North, but there's a power line running through the area there and it was difficult to see anything. So we've got a couple of things that we're working on, and I hope to do something there in the fall.

Gerardo Del Real: I hope we do something there in the fall as well, Warren. I know you just signed an LOI on those very strategic water rates in the basin.

I also know that because it's ongoing, you would rather wait to comment and opine so I will allow you that courtesy because you deserve that courtesy, but I am enthused by the flexibility that that deal would provide Nevada Sunrise Gold shareholders like myself. And we can absolutely discuss that if and when that deal is finalized.

Warren Stanyer: Yeah. And certainly, I mean, we've got a great partner in this water rights deal and that's Cypress Development. They've turned a project that seems not impossible, but it was a bit different. And five years ago, we were looking for lithium brines and they determined that there was lithium in the clays, the clays that were bothering us while we were drilling for brines as a matter of fact, but they didn't have a brine target, but they had the clay. And the clay runs a thousand parts per million lithium. So they built it into a project. And if this closes the way it should, then we'll be shareholders in their project. So I'm looking forward to it. Yes, right now it's in that due diligence period so I won't comment too much on it, but I look forward to a successful conclusion.

Gerardo Del Real: An exciting project, a very experienced team, a lot to look forward to, Warren, given the current market cap of Nevada Sunrise Gold is somewhere in the order of $5.85 million Canadian, if I'm not mistaken.

So obviously, the market hasn't quite picked up yet, but I suspect that'll change if there is success at either Coronado or additional more targeted success at Kinsley.

Warren Stanyer: And we're doing some other things too. We get approached by prospectors all the time. The way that you find properties is from people just calling you up and telling you about something. And we've done two site visits on gold properties that are near infrastructure just in the past few days. We did one on Friday and we did one yesterday through a contract geologists that lives in Carson City.

And he met with the vendors, he's taken samples. So we're evaluating other gold properties as well. And I mean, you see some of the numbers on the assay sheets that are submitted by these vendors and you just go, "Whoa, well, you got to go..." I mean, some of them run an ounce per tonne, et cetera, of gold. So you have to send somebody there, take your own samples, we got to get them through the lab and see if there's any potential there for a new project.

Gerardo Del Real: Sounds like I should keep my checkbook handy, Warren.

Warren Stanyer: Yes. I would recommend that to all Nevada Sunrise investors. Especially me, I've been in this company now since I was appointed to director in February of 2008. I guess, our lawyer, Cory Kent is also on the board and he was one of the founding people of the company. But I mean, the two of us have been there from the beginning. We want the company to get to the end game. And what's the end game? You're involved in a deposit or a discovery that's so important that you get taken out by a bigger company.

Like look at Frontier Development and Long Canyon and how that all happens. We've all seen it many times in this business. So that is our goal. We're not going to become a miner. We're not going to start our own mine. We're going to find something that's big enough that somebody wants it and is willing to pay a premium so that all the shareholders of the company can gain from it. That's our goal.

Gerardo Del Real: If that is to be, Warren, I suspect there will be more trumpets and more bands.

Warren Stanyer: There will be much singing and dancing, that's right.

Gerardo Del Real: Warren, thank you so much for that update. I appreciate it and we'll chat soon.

Warren Stanyer: Thank you, Gerardo. It was pleasure. All the best.

Gerardo Del Real: Bye now. Stay safe out there.

Warren Stanyer: I will. You too. Thanks.

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