Nevada Sunrise Gold Corp.

VANCOUVER — Nevada Sunrise Gold Corp. announced Nov. 21 that it has signed a letter agreement to acquire a 100 percent interest in the Lovelock Cobalt Mine in Churchill County.

“The acquisition of the Lovelock Mine is yet another facet of our exploration operations in Nevada,” said Warren Stanyer, president and CEO of Nevada Sunrise. “The mineral endowment of Nevada is vast and the Lovelock Mine is a hidden gem within that legacy, considering the renewed interest in cobalt during the past year. Nevada Sunrise looks forward to applying modern exploration methods to the Lovelock Mine, which in today’s terms could be judged as artisanal workings.”

The Lovelock Mine property area consists of 35 unpatented claims in the Cottonwood Canyon area of Stillwater range totaling approximately 700 acres. It was discovered by George Lovelock and Charles Bell about 1880.

According to U.S. government annual reports, the Lovelock Mine saw limited production of nickel, copper and cobalt beginning in 1883. The primary cobalt mineral was identified as “cobaltite,” a compound of cobalt, nickel and arsenic. Records of a geochemical analysis from that era indicate that the average composition of the cobaltite contained 17.30 percent cobalt and 13.62 percent nickel.

The mine operated from 1883 to 1890 to the 100-foot level, reporting 500 tons of cobalt and nickel mineralized material shipped to England for processing. After intermittent production, an English company attempted smelting on site in 1898 but little or no production was made, according to “Mineral Resources of the United States for 1885.” No further production from the Lovelock Mine is known for well over a century.

The agreement will provide for the company to earn a 100 property interest in the property in consideration for cash payments and common shares payments to an underlying vendor payable over three years from the signing of a definitive agreement, subject to a 2 percent net smelter returns royalty

The rocks of the Lovelock Mine area include highly altered sedimentary and volcanic rocks cut by a larger mass of diorite and by aplitic dikes, all of which are now highly altered. The altered volcanic rocks lie in a syncline bordered on the west, north and east by the altered sedimentary rocks. Probable faults, inferred from the nature of the contacts, form the boundaries between the sedimentary and volcanic rocks northwest of the Lovelock Mine.

The cobalt and nickel minerals of the Lovelock Mine and the nearby Nickel Mine occur in stringers that cut the rock immediately surrounding the diorite. In the case of the Lovelock Mine, the stringers cut a highly-altered greenstone. The minerals recognized are tetrahedrite, erythrite (cobalt bloom), azurite, and green crusts that contain copper and nickel arsenates and sulphates. Other sources reported the principal mineral present is cobaltite.

It was postulated by historical observers that there has been post-mineral faulting with down-throw on the west, and that the extension of the productive zone is west of the Lovelock Mine shaft and at greater depth than the historical workings could reach, according to “Nickel Deposits in Cottonwood Canyon, Churchill County, Nevada” by H.G. Ferguson, 1939.

Nevada Sunrise is a junior mineral exploration company with a technical team based in Canada that holds interests in nine gold and lithium mineral exploration projects in Nevada.

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