VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 04/10/13 -- Nevada Sunrise Gold Corporation ("Nevada Sunrise" or the "Company") (TSX VENTURE: NEV) announces that Pilot Gold Inc. ("Pilot Gold") has completed US$3 million in eligible expenditures to increase its participating interest in the joint venture governing the Kinsley Mountain project ("Kinsley Mountain", or the "Project") located in northeastern Nevada to 65%. Pilot Gold is the operator of the Project.
The Company has also received an exploration program proposal for 2013 for Kinsley Mountain which has an estimated US$5.21 million budget. Nevada Sunrise holds a 35% participating interest in the Project, and subject to finalization of the joint venture agreement expects that it will provide its proportional share of projected exploration expenditures at quarterly intervals through 2013.
Proposed 2013 Exploration Program
The 2013 exploration program proposed by Pilot Gold for Kinsley Mountain includes the following:
-- 22,000 meters (72,178 feet) of drilling planned, including 14,000 meters (45,932 feet) of reverse circulation ("RC"), and 8,000 meters (26,247 feet) of diamond drilling;-- Resource estimation to be initiated as drilling progresses;-- Metallurgical studies are planned in connection with the resource estimate;-- Total 2013 proposed exploration budget estimated at US$5.21 million.
2013 Exploration Target Areas
Pilot Gold's drilling in 2012 identified a north-trending, mineralized zone located approximately 600 meters northwest of the nearest historical pit, measuring at least 600 meters by 100 meters, characterized by two stacked lenses of mineralization remaining open in all directions. Follow-up drilling is planned to potentially expand the mineralization found in 2012 drill holes PK061 (6.03 g/t gold over 13.7 meters, including 15.18 g/t gold over 4.6 meters), PK66 (2.48 g/t gold over 6.1 meters), and PK067 (9.50 g/t gold over 4.6 meters, including 20.5 g/t gold over 1.5 meters). The north-to-northeast trend that includes the Western Flank zone appears to validate the "Long Canyon model" developed by Pilot Gold's technical team.
There are no assurances that the geological similarities to Newmont Mining's Long Canyon Project, or Pilot Gold's previous experience at Long Canyon will result in the establishment of any resource estimates at Kinsley, or that the Kinsley Project can be advanced in a similar timeframe.
A new zone of mineralization was discovered in lower Candland Canyon in 2012, approximately 450 meters away from any previously-known mineralization, as shown in PK39 (1.08 g/t Au over 10.7 meters) and PK40 (0.74 g/t Au over 7.6 meters). Further drilling is planned in 2013 to explore offsets and extensions of this mineralization.
Other Target Areas
Drilling results in the Main Extension zone during 2012 showed that mineralization continues down dip of the historical Main Pit, and follow-up drilling is planned in 2013. Other new target areas have been developed from the results of 2012 surface sampling that discovered gold-bearing jasperoids up to 2 kilometers north of the historical pits, which when viewed in conjunction with the recent mapping of steep northwest and north-northeast striking faults, may reflect the presence of gold mineralization at depth.