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 Limousine Butte project and to the west, Freeport-McMoran Inc. has located a large claim holding for porphyry copper/gold deposits.
On December 7, 2016 Nevada Sunrise announced the completion of ground geophysical and geochemical surveys at Roulette. The 2016 geochemical and geophysical results were integrated into a 3D model, which has provided high-priority targets that Nevada Sunrise plans to drill in the spring of 2017.
2016 Exploration Program
The 2016 exploration consisted of multi-element geochemical sampling along 11.2 line kilometres (6.7 line miles) of grid. In addition, 4 kilometers (2.4 line miles) of Volterra 3D-IP ground geophysical surveying was completed as a follow up to a 2015 survey carried out by Nevada Sunrise. Exploration at Roulette is focussed on determining the extent of 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).
A total of 400 soil samples were taken at 25 metre intervals on lines spaced 200 metres apart to complement historical work by U.S. Gold (now McEwen Mining Inc.), and Cordex Exploration Co., prior to the Company’s acquisition of the Project. The 2016 survey lines were extended to the north and east over interpreted faults. Anomalous values ranging up to 15.5 ppb gold, 205 ppm arsenic and 5.1 ppm antimony were found in the soils. The geochemical signature appears to be spatially associated with both jasperoid locations and along interpreted brittle structural faults. This may suggest an association of brittle structure and silicification, a characteristic also consistent with Carlin-type mineralization.
The 2016 ground induced polarization/resistivity survey was designed as an extension of the work Nevada Sunrise performed in 2015 over a 1,500 metre-long area, where strong chargeability anomalies were detected in the southern part of the grid, and another chargeability anomaly was partially-surveyed within the northern end of the grid, short of the property boundary. In order to provide a suitable overlap with the latest survey results, data was gathered on the three northernmost lines of the Roulette grid, and then merged and blended with the 2015 results to produce a single, coherent model.
The 2015 survey had delineated three high chargeability anomalies along a NNE trending band of elevated chargeability values that closely follows the interpreted Joana-Pilot Shale contact. The two southern anomalies, A1 and A2, appear to be related to the Parlay and Gambit jasperoid showings. A third anomaly, A3, was mapped on the northernmost survey line along strike from the jasperoid showings. The 2016 survey shows that A3 continues to the north, becoming larger and higher amplitude. It is traced for some 300 plus metres strike length, where it terminates sharply forming an ENE striking lineation along its northern edge. This anomaly appears to form a pod shaped body, narrow and elongated to the northeast. Modelling suggests it has a depth extent on the order of 200 metres and appears to lie on top of the westerly dipping Guilmette formation limestone. Nevada Sunrise considers each of A1, A2 and A3 as prime drill targets.
Combined geological mapping, geochemistry and geophysics (3D-IP survey) have provided three distinct targets for drilling and four proposed drill holes. Nevada Sunrise is in the process of permitting these four drill sites in preparation for drilling in early 2017.
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.
An animated 3-D view of the 2015 survey results can be viewed here:
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.