Drilling Program At Kinsley Mountain Gold Project
VANCOUVER - Nevada Sunrise Gold Corporation reported that a four-hole drill program has commenced targeting high-grade gold mineralization at the Kinsley Mountain Gold Project in northeastern Nevada. Kinsley Mountain is a joint venture between Pilot Gold Inc. and Nevada Sunrise, with Pilot Gold holding a 79.1 percent interest, and Nevada Sunrise, through a wholly-owned U.S. subsidiary, holding a 20.9 percent interest.
New drill targets were developed using 3-D modeling software, including the integration of recent and historical geological, geochemical and geophysical data. As a result, a new high-priority target area, immediately southwest of the historic Main Pit and at a lower stratigraphic level, was identified and will be tested in four reverse circulation holes of approximately 425 meters each for a total of 1,700 meters. The drill program commenced April 21, 2016 .
The 2016 Kinsley Mountain program and budget was increased by US$315,000 from US$460,000 for an amended total of US$765,000 . If the 2016 drill program successfully intercepts high-grade sulphide mineralization, additional induced polarization ("IP") surveys and drilling along the Kinsley Trend may be undertaken.
In late 2013, Pilot Gold, as operator, discovered the Western Flank gold deposit within the Secret Canyon Shale Formation, previously unrecognized as a potential host to gold mineralization. Mineralization at the Western Flank is open for extension to the north and east. The Western Flank sulphide resource is currently estimated at 284,000 Indicated ounces of gold grading 6.04 grams/tonne, and 39,000 Inferred ounces grading 2.41 grams/tonne gold.
Metallurgical testing of sulphide material from the Western Flank Zone returned excellent recoveries and concentrate grades, suggesting that the gold may be amenable to extraction using low capital cost, conventional flotation methods.
Given the exceptional grades and metallurgical characteristics exhibited by mineralization at the Western Flank Zone, Pilot Gold began an intensive 3-D modeling exercise in the fall of 2015 focused solely on identification of other targets similar in nature to the Western Flank Zone. The drill targeting exercise involved characterization of the major controls on mineralization in the Western Flank Zone, as well as exploration vectors. These include: The intersection of swarms of closely-spaced, high-angle, NNE-striking faults with the NW-striking Kinsley Trend fault zone, along which the historic pits are aligned. Both sets of faults are believed to be feeders to mineralization in the Dunderberg Shale and Secret Canyon Shale; Gold associated with disseminated arsenical pyrite, localized within the Secret Canyon Shale stratigraphic horizon; Association of gold-bearing, disseminated sulphide mineralization with deep IP chargeability highs; and Association of mineralization with a halo of pathfinder elements, including arsenic, antimony, thallium and mercury.
From this exercise, a high-priority target was identified immediately southwest of the Main Pit in the east-central Kinsley Trend. A large (400 meter-long), coincident, untested, historical IP-chargeability anomaly, as well as surface structures and geochemical anomalies are consistent with the model.
Kinsley Mountain is located in eastern Nevada , approximately 50 miles (80 kilometers) south of Wendover . The Project consists of 513 unpatented lode claims on U.S. Bureau of Land Management land plus 6 leased patents totaling 4,213 hectares (10,410 acres). Kinsley Mountain hosts near-surface mineralization similar to other Carlin-style, sediment-hosted gold systems, and hosts a past-producing mine with an extensive exploration database and numerous untested gold targets.