NEV Nevada Sunrise Metals Corporation

TSXV: NEV

VANCOUVER, Dec. 5, 2016 /CNW/ - Nevada Sunrise Gold Corporation ("Nevada Sunrise" or the "Company") (TSXV: NEV) and its exploration partner, Advantage Lithium Corp. ("Advantage Lithium") (TSXV: AAL) are pleased to announce lithium-bearing brines have been intersected in the second borehole of the 2016 drilling program at the Clayton Northeast lithium brine project in the Clayton Valley, Nevada ("Clayton NE", or the "Project").  This follows successful results from the first borehole (see Nevada Sunrise news release dated Nov 1, 2016). Clayton NE borders the Silver Peak mine operated by Albemarle Corporation ("Albemarle") (NYSE: ALB), North America's only producing lithium mine. Of particular note,  hole CNE-16-02, has intersected multiple aquifer formations, including 188.9 metres of brine-producing strata averaging 164.2 parts per million ("ppm") lithium from a depth of 207.3 to 396.2 metres, including a higher grade interval averaging 202.8 ppm lithium over 109.7 metres. Hole CNE-16-03, which is still in progress, has also encountered strong brines ranging up to 138,000 ppm total dissolved solids ("TDS"), with analyses to follow. In addition, an additional 80 acres of contiguous land was staked in November 2016 to the southwest at Clayton NE, bringing the total land package to 1,080 acres (437 hectares)

"Our second borehole at Clayton NE has exceeded expectations," said Warren Stanyer, President and CEO of Nevada Sunrise. "The brines have a higher average lithium content and stronger flow rates, which we believe are strong indicators that we are intercepting the known lithium-bearing aquifers in the Clayton Valley."

Highlights of the 2016 Drilling Program

• All three holes have intersected mineralized brine: 1^st and 2^nd holes have encountered lithium-rich brines and 3^rd hole (still in progress) has encountered brines with analyses to follow.
• 3.43 kilometre (2.13 miles) mineralized brine trend: Holes CNE-16-01 and CNE-16-02, both with significant intervals of mineralized lithium brines, are located 3.43 kilometres apart.
• Intervals up to 202.8 ppm lithium over 109.7 metres: Lithium brines intercepted by 2nd drill hole at Clayton NE, CNE-16-02, have returned intervals up to 202.8 ppm lithium over 109.7 metres (286.5 to 396.2 metres), including peak values up to 227 ppm lithium over a 6.1 metre section (304.8 to 310.9 metres). These values are comparable to Albemarle's brine samples from their Silver Peak mining operation immediately adjacent to Clayton NE, and are in line with results from the first hole drilled at Clayton NE, CNE-16-01.
• More results to come: Hole CNE-16-03 has encountered brine measuring up to 138,000 ppm TDS and is still in progress. Analyses from holes CNE-16-01 and CNE-16-02 have shown that a relationship of TDS to lithium grade indicates a direct correlation between higher lithium values and higher strength brine.
• Strong brine flows: Brine flows of up to 120 gallons per minute issued from borehole CNE-16-02 between 304.8 to 396.2 metres (1,000 and 1,300 feet). Geochemical analysis shows this zone carries significant lithium concentrations. High brine flows are important for economic production.
• Clayton NE land package increased: Five new claims totaling 80 acres were staked in November 2016, increasing the overall land package to 1,080 acres (437 hectares).

Drill Hole Technical Details

CNE-16-01
CNE16-01 was completed to a depth of 518.2 metres (1,700 feet), intersecting the base of the Clayton Valley salar sedimentary basin at 506 metres.  Drilling has intersected typical Clayton Valley strata consisting of alternating layers of gravel, volcanic ash and clay.  A total of 27 grab groundwater samples were collected as brine-bearing formations were encountered.  Table 1 presents a compiled summary of the depths of the aquifer systems with brine interval thickness and associated average lithium grades and TDS concentrations.  Anomalous lithium results were obtained from brine formations intermittently intersected over a 331.3 metre section (from 168.6 to 499.9 metres) within the Main Ash, Lower Aquifer System, and Lower Gravel Aquifer systems.  The highest grade results were obtained in the Lower Aquifer System with peaks up to 218 ppm lithium (224.0 to 227.1 metres), while the widest intervals were reported in the deeper Lower Gravel Aquifer System, including a 103.7 metre wide interval (from 396.2 to 499.9 metres) averaging 134.8 ppm lithium.  In addition, drill cuttings were collected for each 1.5 metre interval and have been submitted for analysis.  Analytical results for the drill cuttings are pending. 

Table 1:  Results of Brine Samples for CNE-16-01

CNE-16-02
CNE-16-02 was collared approximately 3.43 kilometres (2.13 miles) northeast of CNE-16-01.  The hole was terminated within a massive clay formation within the Clayton Valley salar sedimentary basin at a depth of 426.7 metres (1,400 feet).  As was observed in hole CNE-16-01, drilling intersected typical Clayton Valley strata consisting of alternating layers of gravel, volcanic ash and clay.  A total of 32 grab groundwater samples were collected as brine-bearing formations were encountered.  Table 2 presents a compiled summary of the depths of the aquifer systems with brine interval thickness and associated average lithium grades and TDS concentrations.  Anomalous lithium results were obtained from a 188.9 metre-wide brine-bearing formation intersected from 207.2 to 396.2 metres within the Lower Aquifer System.  This 188.9 metre interval averaged 164.2 ppm lithium, including a higher grade interval averaging 202.8 ppm lithium over 109.7 metres (286.5 metres to 396.2 metres) and was associated with strong brine flows of up to 120 gallons per minute between 304.8 to 396.2 metres. In addition, drill cuttings were collected for each 6.1 metre interval and have been submitted for analysis.  Analytical results for the drill cuttings are pending.

Table 2:  Results of Brine Samples for CNE-16-02

CNE-16-03
Hole CNE-16-03, collared approximately 670.6 metres northeast from hole CNE-16-01, is currently in progress at a depth of approximately 274.3 metres (900 feet).  This borehole has also encountered strong brines ranging up to 138,000 ppm TDS, as measured by a field instrument.

Regarding Sample Analysis
Groundwater samples were sent to Western Environmental Testing Laboratory in Reno, Nevada for analysis. General chemistry testing included analysis for specific gravity, total hardness and alkalinity, bicarbonate, carbonate, hydroxide, TDS and electrical conductivity. Anions (chloride, sulfate) were analyzed by ion chromatography. Trace metals (lithium, magnesium, boron, calcium, potassium and sodium) were analyzed by ICP-OES. TDS values obtained in the field are measured with a handheld YSI Model 556 Multiparameter Meter, which meets Good Laboratory Practice (as proscribed by the Organization for Economic Cooperation and Development) for calibration and measurement. All depth measurements reported, including sample and interval widths are down-hole.  As holes are oriented vertical and geologic stratigraphy is primarily horizontal to sub-horizontal, downhole measurements are assumed to be close to true thickness.

About the Program
The 2016 exploration drilling program includes three vertical oriented conventional dual-tube reverse circulation drill holes totaling approximately 1,500 metres (approximately 4,920 feet), focussed on lithium brine targets close to the Silver Peak mine border and several of Albemarle's production wells. Analyses from Clayton NE drill holes have shown a relationship of TDS to lithium grade indicating a correlation between higher lithium values and higher strength brine.  The lithium results from the first two boreholes of the 2016 drilling program are generally comparable to Albemarle's brine samples from Silver Peak mine production wells as reported to the State of Nevada for the period 2011-2015, which range from 98 ppm to 340 ppm lithium.

Robert M. Allender, Jr., CPG, RG, SME is the Company's designated Qualified Person for this news release within the meaning of National Instrument 43-101 and has reviewed and approved the technical information contained herein.

About Clayton NE

• Consists of 55 unpatented claims totaling approximately 1,080 acres (437 hectares);
• Clayton NE is subject to an option earn-in agreement where Advantage Lithium can earn up to a 70% interest in the Project after fulfilling CDN$3.0 million in exploration expenditures on a package of five lithium properties optioned from Nevada Sunrise (for further details, see Nevada Sunrise news release dated June 20, 2016);
• Nevada Sunrise is the project manager at Clayton NE on behalf of Advantage Lithium, the operator.

Water Rights Update
On November 30, 2016, Nevada Sunrise learned that the State Engineer's office of the Nevada Division of Water Resources ("NDWR") has issued a ruling of forfeiture against the Company's water rights in the Clayton Valley citing a lack of beneficial use for a period of five years. Nevada Sunrise has recently received evidence of water use that the NDWR requires, which will be presented during the appeal process. The Company intends to file the appeal before December 29, 2016.

For further information about the Company's exploration properties and its Clayton Valley water rights, please access the Nevada Sunrise website at: http://www.nevadasunrise.ca/projects/nevadalithium/

About Nevada Sunrise
Nevada Sunrise is a junior mineral exploration company with a strong technical team based in Vancouver, BC, Canada, that holds interests in nine mineral exploration projects in the State of Nevada, USA. Nevada Sunrise began acquisitions of Nevada lithium properties in September 2015, which include options to earn a 75% interest in the Neptune project (Resolve Ventures Inc. (TSXV: RSV) owns a 25% interest), a 100% interest in the Clayton Northeast project, and a 100% interest in the Aquarius Project, all located in the Clayton Valley area. The Company also holds options to earn 100% interests in the Jackson Wash and Atlantis projects, and has a 50% participating interest in the Gemini project, each located in playas proximal to the Clayton Valley. The Company has recently optioned five of the Nevada lithium projects to Advantage Lithium Corp. (TSXV: AAL), and the Atlantis project is currently under option to American Lithium Corp. (TSXV: LI).

The Company's three key gold assets include a 21% interest in a joint venture with Pilot Gold Inc. (TSX: PLG) at Kinsley Mountain near Wendover, a 100% interest in the Golden Arrow project near Tonopah, and an option to earn a 100% interest in the Roulette gold property in the southeastern Carlin trend near Ely, with each of the properties subject to certain production royalties.

FORWARD LOOKING STATEMENTS
All statements in this release, other than statements of historical fact, are "forward-looking information" with respect to Nevada Sunrise Gold Corporation ("Nevada Sunrise") within the meaning of applicable Canadian securities laws, including statements that address the properties transaction with Advantage Lithium Corp., the successful transfer of Place of Use and Point of Diversion of water rights, proposed exploration and development of our exploration properties and the estimation of mineral resources. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Nevada Sunrise to differ materially from those anticipated in such forward-looking information.

Such factors include, among others, risks related to the interpretation of historical exploration and actual results of current exploration by Nevada Sunrise at its lithium properties; reliance on technical information provided by third parties on any of our exploration properties, including access to historical information on its lithium properties; current exploration and development activities; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; labor disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration, as well as those factors discussed in the section entitled "Risk Factors" in the Company's Management Discussion and Analysis for the Nine Months ended June 30, 2016, which is available under Company's SEDAR profile at www.sedar.com.

Although Nevada Sunrise has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Nevada Sunrise disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. Accordingly, readers should not place undue reliance on forward-looking information.

Forward-looking statements are made as of the date hereof and accordingly are subject to change after such date. Except as otherwise indicated by Nevada Sunrise, these statements do not reflect the potential impact of any non-recurring or other special items or of any dispositions, monetizations, mergers, acquisitions, other business combinations or other transactions that may be announced or that may occur after the date hereof. Forward-looking statements are provided for the purpose of providing information about management's current expectations and plans and allowing investors and others to get a better understanding of our operating environment. Nevada Sunrise does not undertake to update any forward-looking statements that are included in this document, except in accordance with applicable securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of TSX Venture Exchange) accepts responsibility for the adequacy of accuracy of this release. The Securities of Nevada Sunrise Gold Corporation have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to the account or benefit of any U.S. person.

SOURCE Nevada Sunrise Gold Corporation