Treasure Box Copper Project

 

 

 

On March 5, 2018, Nevada Sunrise announced it had acquired options to purchase the historic Treasure Box and Boyer Mine copper properties, each located in the Stillwater Range of Churchill County, approximately 100 miles (150 kilometers) east of Reno. Under its area of interest agreement with the vendor of the Lovelock Cobalt Mine, Nevada Sunrise has the right to purchase a 100% interest in the Treasure Box property, and has also executed an option agreement with a separate vendor to purchase a 100% interest in the Boyer Mine property.

“This is the first consolidation of the Treasure Box and Boyer Mine properties in decades,” said Warren Stanyer, President and CEO of Nevada Sunrise. “Our exploration in this mineral-rich area began with the Lovelock Cobalt Mine and we now recognize the hallmarks of a supergene-enriched deposit model that includes the potential for discovery of high-grade copper mineralization.”


Treasure Box sampling

Geochemical Sampling at the Treasure Box and SW of Lovelock Cobalt Mine

While conducting due diligence in late 2017, Nevada Sunrise collected grab rock samples southwest of the Lovelock Cobalt Mine and on the Treasure Box property further to the southwest. Further samples were taken at the Treasure Box and Boyer Mine area in February 2018. The analytical results of several of the rock samples taken from historical mine waste and other bedrock occurrences show strong enrichment in copper and anomalous values of gold and silver in certain samples, as shown in the analytical highlights below:

Sample No. Location

Copper
(%)

Gold
(g/t)

Silver
(g/t)

Primary Mineralization

TR-667a Treasure Box W. Shaft mine waste

41.56

trace

4.69

Sulfide

TR-658 Boyer Mine historical adit

19.86

trace

4.51

Sulfide

TR-668 Treasure Box historical trench

13.20

0.38

124.0

Oxide

TR-667c Treasure Box West Shaft mine waste

10.98

trace

1.83

Oxide

TR-669a Main Treasure Box mine adit

4.27

trace

0.56

Oxide

TR-664 Treasure Box East float

4.19

trace

47.57

Oxide

Tr-667b Treasure Box West Shaft mine waste

2.02

trace

1.02

Mixed

 

Sample No. Location

Copper
(%)

Gold
(g/t)

Silver
(g/t)

LCoR-10 SW Lovelock Mine area

16.57

2.22

21.10

ENR-2 Treasure Box historical trench

11.86

trace

0.24

AZ Grab SW Lovelock Mine area

8.29

ND

11.57

LCoR-12 Treasure Box mine waste

4.54

trace

0.42

ENR1 Treasure Box float

4.09

trace

8.33

Treasure Box and Boyer Mine grab samples were collected at locations along a mineralized trend that extends at least 1.6 miles (2.6 kilometres) across the central part of the claims block. These results confirm the existence of widespread enriched copper-silver mineralization as previously reported by DeMatties (2017).

Note: Samples shown in the above tables are hand-selected, high-grade samples that are not indicative of the nature and grade of mineralization over a wide area.


Treasure Box boulder

About the Treasure Box Mine and the Boyer Mine Properties

The combined area of the Treasure Box unpatented claims and the Boyer Mine patented claims total approximately 1,300 acres (526 hectares). The two properties are contiguous and some of the claim boundaries dating back to 1901 are still intact.  The Treasure Box and Boyer Mine properties each host mine workings from limited copper production, which occurred until early into the 20th century. A historical diamond drill hole (circa 1910) drilled at the Treasure Box by the Boyer-Nevada Copper Company reportedly intersected 1.52% copper over 85 feet (25.9 metres) with mineralization beginning at surface.  A reverse circulation hole drilled on the Treasure Box by Utah International in 1976 returned 1.55% copper over 40 feet (12.2 metres) from a depth of 85 to 125 feet (25.9 to 38.1 metres), and the hole was stopped in chalcopyrite mineralization. The core Treasure Box claims were held continuously for over 20 years by a private company but were relinquished in September 2017, leading to their acquisition by Nevada Sunrise.


Treasure Box adit entrance

The Boyer Mine was discovered by Alva Boyer who made the original discovery of high-grade oxide copper mineralization in the early 1860s. Some hand-sorted material was shipped to Swansea, Wales by wagon train through Sacramento (“Reconnaisance of Mining Districts in Churchill County, Nevada”, Vandenburg, 1940). In the modern exploration era, Boxxer Gold Corp. carried out trenching in 2007, successfully outlining a mineralized zone at the Boyer Mine property but did not execute a long-term option agreement with the vendor. In 2014 and 2015, Discovery Harbour Resources Corp. carried out geophysical surveys, geochemical sampling and drilled 12 holes on the Boyer Mine claims and adjacent areas. The best intersections were in hole 2B14-06, which intersected a true thickness of 21 feet (6.4 metres) of mineralization grading 0.84% copper, including 4 feet (1.22 metres) of 3.22% copper, and hole 2B14-07, which intersected a true thickness of 60 feet (18.29 metres) of mineralization grading 0.37% copper, including 2 feet (0.61 meters) grading 1.09% copper and 5 feet (1.52 metres) grading 1.02% copper.


Treasure Box Sample – 41.56% Copper


Boyer Mine Sample – 19.86% Copper


Boyer Copper Deposits- Mining and Scientific Press, December 1911


US Bureau of Mines – Information Circular 7093 – Vanderburg, 1940

Boyer Mine Property Letter Agreement

The Boyer Mine property (the “Property”) consists of seven patented claims (Azurite, Gardner, Nevada Queen, Colorado King, Mammoth, Lulla B and Snipe) covering an area of approximately 140 acres (56.7 hectares). Included in the option agreement arethree non-contiguous patented claims (Lida G, Copper Glance and Maggie W) west of the Boyer Mine designated as the Copper Glance claim group covering an area of approximately 64.7 acres (26.2 hectares), and one isolated patented claim (Flora May) covering approximately 20.7 acres (8.4 hectares), all located in Churchill County, Nevada.

Nevada Sunrise may acquire a 100% interest in the Property subject to a 1.0% net smelter returns royalty (“NSR”) in consideration for cash payments totaling US$2,500,000, as described below (all cash amounts listed are in US dollars):

  • A non-refundable $5,000 payment paid by Nevada Sunrise as a pre-option payment for an exclusive 45-day period during which Nevada Sunrise will conduct due diligence on the Property and shall receive and review a technical report for the Property dated March 1, 2016;
  • Within 5 business days following the receipt by Nevada Sunrise of a fully-executed definitive agreement: $20,000;
  • On or before January 1, 2019: $30,000;
  • On or before January 1, 2020: $40,000;
  • On or before January 1, 2021: $50,000;
  • On or before January 1, 2022: $2,355,000.

Nevada Sunrise will have the right to accelerate the timing of cash payments to the vendor at its discretion. The vendor shall retain a 1.0% NSR applicable to the Property, half of which can be purchased by Nevada Sunrise (i.e., 0.5%) at any time for $750,000.

During the option period Nevada Sunrise shall be responsible for (i) payment of the annual property taxes for the Property totaling approximately $660 per year, and (ii) payment of sample storage fees of approximately $1,600 per year.

The purchase of the Property by Nevada Sunrise is subject to (i) completion of a due diligence review for up to 45 days, which may including a site visit by its geological consultants, to its sole satisfaction, and (ii) formal approval by the Board of Directors of Nevada Sunrise.

Upon the execution of a definitive agreement and receipt of the $20,000 cash payment described above, Nevada Sunrise will receive access to a data archive and samples related to the Property collected by previous explorers at a historical cost of approximately $700,000.

Robert M. Allender, Jr., CPG, RG, SME is the Company’s designated Qualified Person for the Treasure Box and Boyer Mine projects 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.