Nevada Sunrise (TSX-V: NEV)(OTC: NVSGF) CEO Warren Stanyer on Making Christmas Happen in June



Gerardo Del Real

Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the president and CEO of Nevada Sunrise Lithium, I kid, Nevada Sunrise Gold, Mr. Warren Stanyer. Warren, how are you?

Warren Stanyer

Warren Stanyer: Oh, you're such a kidder. I'm great, Gerardo. Thanks for asking, hope you're doing well.

Gerardo Del Real

Gerardo Del Real: I'm well, thank you for asking. I'm obviously joking. Although, it seems like in the not too distant future, Nevada Sunrise Lithium and Gold or Nevada Sunrise Resources may be in the cards. I say that because you just received final lithium analysis from borehole two and, to keep it really simple for everyone, pretty much got a similar result as borehole one, in the sense that the mineralization improved substantially after you went ahead and received those final analysis. Can you speak to the increase in the grade and the length of the mineralization for both holes one and two now that you have final results there?

Warren Stanyer

Warren Stanyer: Well, it's a bit of a pioneering enterprise here when you're drilling holes where nobody's ever drilled and you encounter clay layers, you don't know really what's in them. There is an analyzer that we'll have to get, it's about 40 or $50,000 unit, and it will analyze for lithium on site. Not very many people have those out in the field, but it would've told us more. We would've known sooner and we probably would've drilled deeper, but these clay layers are slow to get through because of the nature of the clay itself.

There's a certain fatigue level that sets in in the crew. It just took a long time and we're subject to the driller shifts, which are 10 days on, four days off. That's the way everything works there. Anyway, we stopped the holes where we did. To get these results back from hole two, I mean my eyes just bugged out when I saw the numbers. We had up to 3,800 PPM lithium in the final sample, so that's where you get that, including 50 feet of 3,304 PPM lithium. That's the very bottom of hole two at 1,100 feet.

Definitely we will be extending these holes a little further in the future, depending on what's underneath, say, the thousand foot level. As we drill to the north, we think we'll be hitting things shallower. That's our projection, and we'll see what the geophysics tells us that we just completed.

Gerardo Del Real

Gerardo Del Real: You now have results for two holes that are 1.1 kilometers apart. Clearly, although we've seen shares rise here pretty substantially from 52 week lows, we most definitely don't have the kind of market cap at 13 million Canadian that screams significant discovery. Do you believe that this is a significant discovery? If so, why do you think the disconnect exists between the share price and what potentially could be a discovery in Nevada with excellent infrastructure without much around it? I can't think of a better scenario or a better location for a brand new lithium discovery.

Warren Stanyer

Warren Stanyer: Well, I believe it's a discovery. I mean it's something that nobody knew was there. As I've said before, we learned of this in 2015, 2016. We staked the claims, still not knowing what might be there. The fact that the two holes that we've drilled, I mean that's probably why people are maybe skeptical or they want to see, show me the money, so that's exactly what we want to do. We have to drill more holes that are a kilometer apart probably to just see how big this clay deposit can be.

I mean there's some kind of a deposit there. The geophysics tells us it's open and it's going in a certain direction. We think it's bounded by the gravity low that was surveyed by the University of Texas professor, Dr. John Aldo. This is what we are attempting to prove here with our geophysical survey that just finished yesterday. We don't have any results from it.

Gerardo Del Real

Gerardo Del Real: There you go. You beat me to the question.

Warren Stanyer

Warren Stanyer: Yeah. Being a remote area, it's not like having some kind of internet network nearby. Internet is very spotty, so we're getting the results shipped up on a hard drive. Then, our consultants here in Vancouver will give us the picture. What we want to do now is look at this in 3D, we will have enough information to see what the morphology or the shape of this clay layer is and how far it goes.

Gerardo Del Real

Gerardo Del Real: I think it's worth reminding everyone, and I joked up top about Nevada Sunrise Lithium and Gold, but there is still a significant exposure to gold that should be unlocked and active in the second half of this year. CopAur Minerals just finished its acquisition of New Placer Dome Gold which, of course, held the 80% interest in Kinsley Mountain. Nevada Sunrise Gold retains 20% interest in that project.

That's a project I've long thought hadn't been drilled out in a manner which tested some of the targets to the north, which I think are ripe for discovery. Frankly, I don't believe that the current resource as it sits is going to be all that's ever discovered at Kinsley. I'm excited obviously for the drilling there in the second half of this year. Can you provide just a brief take on Kinsley Mountain? I know all eyes are on the lithium right now, but I think it's worth reminding folks out there that you can get not only good lithium exposure here, but also some gold exposure.

Warren Stanyer

Warren Stanyer: I think that Kinsley Mountain is really we're just getting started now. New Placer Dome Gold Corp did a great job on the geophysical program. That was the last work that they did at the project, and they went to the north. I haven't seen the results of all that yet because with this takeover or the plan of arrangement with CopAur, well, it kind of puts everything on hold and you don't see the results. Nothing's been released, but I would like to see what's up there.

What we now know is from the geophysics that was previously disclosed, that the Western Flank Zone has a chargeability high and many of the mineralized holes are going straight into it. It's quite striking. It's on our website. It's on, I guess, New Placer Dome, maybe that's all being shut down now. These drill holes are going into the chargeability high and we have other chargeability highs that haven't been tested.

How many of those are at Kinsley North? I don't know yet, but I'm looking forward to seeing all these results. CopAur is going to take a deep dive into all this data and come up with a program and budget. I had the pleasure of meeting them on Tuesday at the VRIC in Vancouver and they're a committed group. They really are looking forward to this. They love the idea of half a million ounces with all this potential to expand.

Gerardo Del Real

Gerardo Del Real: I'm looking forward to the drilling for gold. I'm looking forward to more drilling for lithium. I can't wait for the geophysics results. Anything to add to that? What else should we be waiting for? Warren, I know there's some water analysis.

Warren Stanyer

Warren Stanyer: It's going to be Christmas in June. It feels like every time a new present, you open it up and it's better than the last one, so we're just waiting for results. We're going to permit new drill holes. We had originally been permitted for 10 holes at Gemini. We've drilled two. Under our current permit, which we can extend and amend, we're going to add eight more locations. Some of them will remain the same and others likely will change depending on these geophysics, so that's the plan going forward. We'll have everything figured out in the next few weeks, and hopefully we'll be at it as soon as we can get a drill on the ground.

Gerardo Del Real

Gerardo Del Real: Exciting times. I have to add that there's also the potential for earning into 100% interest in the Coronado VMS Project, which provides some copper exposure. This is a past producing property with some high grade copper on it that if anyone is familiar with VMS style deposits, we know they typically happen in clusters. There's only been one discovery made on that property. I think that's got excellent potential.

Between the copper, the gold and the lithium, Warren, I couldn't be more excited to be a shareholder. I'm biased. I've been adding in the open market. I have a position already from prior financing, so everyone should know that. As everyone knows, if I'm speaking to someone in a public forum, I'm probably biased or I wouldn't be speaking to them, right?

Warren Stanyer

Warren Stanyer: Well, you've always been a believer in what we do and Nevada is a great place to believe in. There's just so much to offer. I mean look at Gemini. There was something there that was buried that nobody knew was there. Coronado could be the same, Kinsley the same. It's just a matter of using these new tools, drilling holes, taking those risks, and the rewards could be huge.

Gerardo Del Real

Gerardo Del Real: Looking forward to Christmas in June, if that is indeed the case. Thank you so much.

Warren Stanyer

Warren Stanyer: Thank you, Gerardo.

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