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.
In July 2018, Nevada Sunrise pioneered the use of a Versatile Time Domain Electromagnetic (VTEM™) helicopter-borne survey at Coronado, which is a leading-edge airborne survey method developed by Geotech Ltd. of Aurora, Ontario, Canada. Interpretation of the survey results has outlined the presence of several strong electromagnetic (“EM”) anomalies that display the geophysical hallmarks of volcanogenic massive sulphide (“VMS”) deposits located along trend to the historic, past-producing Big Mike copper mine. Primary drill targets at the Coronado North and South anomalies were developed from the integration of the VTEM™ results with geological observations and geochemical data obtained from a site visit carried out in September 2018.
2018 Drilling Program
On December 6, 2018, Nevada Sunrise announced the commencement of a diamond drilling program at the Coronado VMS Project.
The 2018 drilling program is designed to test a large EM anomaly detected in the 2018 airborne survey. Two anomalous responses, Coronado North and Coronado South, were observed from the airborne survey in the southern part of the Project.The Coronado South target has a 1400 metres x 700 metres (4,600 feet x 2,300 feet) footprint and is interpreted as a northwest-southeast striking cuboid body with estimated dimensions of approximately 900 metres x 300 metres x 150 metres (2,950 feet x 980 feet x 490 feet). The width, thickness and depth vary along strike, suggesting that the zone is broken into sections by cross-faulting.
The initial drill test at Coronado South consists three diamond drill holes totaling approximately 2,500 feet (762 metres). The U.S. Bureau of Land Management has approved nine drill hole locations at Coronado, where each location can host multiple holes. The current drilling plan for the Coronado South anomaly calls for up to six holes totaling 5,225 feet (1,608 metres), and at the Coronado North anomaly an additional six holes are planned, totaling 4,750 feet (1,462 metres). Additional drilling at the Project will be dependent upon results from the 2018 drilling program.
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 has been categorized as 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. This historical estimate, which is dated February 21, 1969, uses categories that are not consistent with National Instrument 43-101 (“NI 43-101”) and cannot be readily compared to NI 43-101 categories. A qualified person has not done sufficient work to classify the estimate as a current resource and Nevada Sunrise is not treating the estimate as a current resource estimate. A portion of the ground on which this estimate was based was subsequently mined, and thus this estimate cannot be relied upon. The estimate is relevant to guiding the Company’s exploration plans and provides geological information regarding the type of mineralization that could be present in the Coronado area.
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.
Theodore DeMatties, CPG, PG, is the Company’s designated Qualified Person for this disclosure within the meaning of NI 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.