The Roulette Gold Project (formerly known as the Grulla Property) consists of 120 unpatented claims located approximately 30 miles (45 kilometres) north of Ely, Nevada in an active area of mineral exploration. Tied on to the north is McEwen Mining Inc.’s Limo project and to the west, Freeport-McMoran Inc. has located a large claim holding for porphyry copper/gold deposits.
In May 2015, Nevada Sunrise completed ground geophysical surveys at Roulette. The surveys by SJ Geophysics Ltd. of Delta, B.C. consisted of:
- A 17.0 line kilometre, Volterra 3-D Induced Polarization (“3DIP”) survey in the northern part of Roulette intended to map the geophysical properties, resistivity and chargeability of the subsurface rocks, and an additional 3.4 kilometres of reconnaissance 2-D lines in the southern half of the Project;
- A magnetic survey on the same survey lines to assist in the mapping of geological structures that may be present at Roulette.
The 2015 ground surveys were focussed in an approximate 1,500 metre-long area covering two jasperoid outcrops (“Parlay” and “Gambit”) known from historical prospecting and mapping, one of which is mineralized. The Parlay jasperoid was sampled in August 2014 by Nevada Sunrise and returned 4.44 grams/tonne gold over a sample length of 3.30 metres (10 feet), and 1.05 grams/tonne gold over a sample length of 2.64 metres (8 feet).
The Parlay Showing: 4.4 g/t gold over 3.3 m (2014)
The conceptual target at Roulette is Carlin-type gold deposits, which are observed to be sediment-hosted, with disseminated gold. Gold is commonly micron-sized, and is associated with hydrothermal alteration of carbonate host rocks. Nevada Sunrise believes that Roulette is under-explored – there are no known ground or airborne geophysical surveys in the public record, and any historical drilling is unconfirmed as to drill hole location, footage or results.
The results of the survey show three strong chargeability anomalies:
- The largest chargeability high is located near the south end of the survey grid, ENE of the Parlay jasperoid gold showing;
- A second chargeability high is located in the north central part of the grid, immediately east of the Gambit jasperoid;
- A third chargeability high is located on the northernmost line of the survey on strike with the Parlay and Gambit jasperoids and is open to the north.
Two of the three chargeability anomalies are observed to coincide with resistivity highs, which are commonly associated with jasperoid bodies. The high chargeability anomalies possibly reflect significant sulphide content within these bodies. Other resistivity anomalies located along strike of the two known jasperoid outcrops may reflect the presence of additional buried jasperoid bodies. The magnetic survey showed little contrast between the interpreted rock units, which is not unexpected due to the relatively homogenous sedimentary rocks present at Roulette. However, a strong magnetic anomaly was detected on the northern boundary of the survey grid. Other weaker magnetic anomalies within the grid may indicate a NNE trending fault and possible contact zones.
An animated 3-D view of the 2015 survey results can be viewed here:
A multi-element geochemical survey is planned over the geophysical survey grid to test for gold-in-soil anomalies and other pathfinder elements. Nevada Sunrise will integrate the geochemical and geophysical results, and select targets for a future drilling program, if warranted.
Option to Purchase Agreement
For an option to earn up to a 100% interest in the Roulette property, Nevada Sunrise has agreed to pay the following consideration to the vendors (the “Agreement”) as cash payments (the “Option Payments”) on the subsequent anniversaries of the Agreement (all dollar figures are in US dollars):
- On signing definitive agreement: $ 7,500
- 1st Anniversary: $ 12,500
- 2nd Anniversary $ 20,000
- 3rd Anniversary $ 25,000
- 4th Anniversary $ 30,000
- 5th Anniversary $ 35,000 (or a $200,000 buyout as below)
Nevada Sunrise can elect to pay 50% of any future Option Payment in common shares of Nevada Sunrise (plus a 20% surcharge in favour of the vendors if common shares of the Company are elected for 50% of the Option Payment), with the exception of the initial down payment. On the fifth anniversary, the Company would have the right to purchase a 100% interest (the “Ownership Interest”) in the Roulette property for a total of $200,000 (the “Option Purchase”), subject to a 2.5% net smelter returns royalty (“NSR”). At any time before a decision to commence production, Nevada Sunrise would have the right to purchase 1.0% of the NSR for $1,000,000, and the remaining 1.5% NSR for $2,000,000.
About the Roulette Gold Project
Historical exploration on the Roulette property discovered gold-bearing jasperoids in outcrop in the 1980s. Three to five drill holes are reported from this era, however, location and results are not available. From 2007 to 2009 the Roulette property was held by Columbus Gold Corporation who conducted extensive rock-chip sampling reporting gold and strong arsenic values associated with the jasperoids.
To the north of Roulette is McEwen Mining Inc.’s (“McEwen”) Limousine Butte project, which according to McEwen’s public disclosure in three deposits hosts a Measured resource of 168,350 ounces of gold, and an Indicated resource of 72,730 ounces of gold, for a Measured plus Indicated total resource of 241,080 ounces of gold, and an Inferred resource of 50,700 ounces of gold (Source: “NI 43-101 Technical Report for the Limousine Butte Project, White Pine County Nevada”, dated July 1, 2009, authored by Telesto Nevada Inc.). To the northwest, Freeport-McMoran Inc. (“Freeport”) holds a large claim block (approximately 30,000 acres, or 12,000 hectares) prospective for porphyry copper/gold deposits, which encompasses the Butte Valley copper prospect Freeport acquired in 2012 from Quaterra Resources Inc.
Roulette shows geological similarities to the Alligator Ridge gold deposits located about 24 miles (36 km) to the west, now part of Barrick Gold’s Bald Mountain gold mine. The Alligator Ridge mine was discovered in the mid-1970s in an area of no previous exploration or mining history after a mineralized outcrop was found by a prospector. The area was subsequently mapped, sampled and drilled. Production of approximately 700,000 ounces of gold from three deposits at Alligator Ridge was reported by various operators into the 1990s, until its assimilation into the Bald Mountain mine.
Roulette and Alligator Ridge share certain sedimentary rock formations known to host Carlin-style mineralization, namely a sequence of Devonian/Mississippian limestones and shales including the Guilmette Limestone, Pilot Shale, Joana Limestone and Chainman Shale. Nevada Sunrise believes that the potential exists for undiscovered gold mineralization at Roulette, with Alligator Ridge as a model for future exploration on the Project.
John R. Kerr, P. Eng., 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.