The Coronado VMS Project (“Coronado”) currently consists of 225 located unpatented claims totaling approximately 4,500 acres (1,821 hectares) located in the Tobin and Sonoma Range of Pershing County, Nevada, accessible by highways and roads 30 miles (48 kilometres) southeast of Winnemucca.
The centre of Coronado is approximately 2.9 miles (4.5 kilometres) to the northwest of the past-producing Big Mike copper mine (“Big Mike”), which was developed in the 1960s and mined out in 1970.
Coronado is located over an interpreted trend adjacent to Big Mike that lies within the Middle Pennsylvanian to Late Permian-age Havallah volcanic-sedimentary sequence. Big Mike was discovered in the 1930s when a shallow, oxidized portion (gold-bearing gossan) of the deposit was located by prospectors.
The area was explored further in the late 1960s by Cerro Corp. and a deeper (greater than 300 feet, or 91 meters) high-grade, massive sulphide lens was discovered by diamond drilling. The deposit was considered a supergene-enriched, Cyprus-type VMS occurrence. In 1969, Cerro Corp. published a historical resource estimate of 634,000 tons grading 3.41% copper, which included 74,000 tons of massive sulphide ore grading 11.78% copper, and 380,000 tons of oxide and mixed ore grading 3.16% copper.
In 1970, Ranchers Exploration and Development Company (“Ranchers”) developed the high-grade portion of the deposit with an open pit mine that produced approximately 25 million pounds of copper in 100,000 tons of ore grading 10.5% copper, which was shipped directly to smelters in West Germany and Japan. Heap leaching of lower-grade disseminated copper ore was also carried out by Ranchers; approximately 300,000 tons of mineralized rock was treated. Historical sampling also shows the presence of cobalt at Big Mike, with values in the deposit ranging up to 2,500 parts per million (0.25%) cobalt (Rye et al, Economic Geology, Vol. 79, 1984). Big Mike was mined out in 1970.
Following its recent exploration and due diligence program at Coronado, Nevada Sunrise has exercised its right to proceed to a definitive agreement with the vendor (for further details regarding the acquisition of Coronado, see Nevada Sunrise news release dated June 7, 2018). The definitive agreement for Coronado will be subject to acceptance by the TSX Venture Exchange.
Theodore DeMatties, CPG, PG, is the Company’s designated Qualified Person for this disclosure within the meaning of National Instrument 43-101 and has reviewed and approved the technical information contained herein. Readers are cautioned that some of the technical information described is historical in nature; however, the information is deemed credible and was produced by professional geologists of the eras discussed. Mineralization located on adjacent properties by historical exploration may not be present on Coronado.