Nevada Sunrise (TSX-V: NEV) CEO Warren Stanyer on Exploration Plans at the Coronado VMS Deposit in Mining-Friendly Nevada
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the President and CEO of Nevada Sunrise (TSX-V: NEV)(OTC: NVSGF), Mr. Warren Stanyer. Warren, how are you?
Warren Stanyer: I'm fine, Gerardo, and I hope you are as well.
Gerardo Del Real: I am excellent. It's good to have you back on. The Coronado Property is one that I have been excited about for quite some time, frankly since you introduced me to it. It's in Nevada. We are seeing more and more in the market the importance of having exciting exploration projects in very stable jurisdictions.
It seems like every week there's a news release about a government intervening and affecting the exploration plans of random junior resource exploration companies. It's good to have a project in mining-friendly Nevada. The phase one results, it was a limited, targeted program. You were encouraged. You didn't really get to drill it the way that you wanted to, and you just announced a phase two exploration program. Can we talk about the details, a bit?
Warren Stanyer: Sure we can. First thing I'd like to do is thank the current administration of the US government for making it a lot easier to make amendments to permits because, for example, we wanted to build a new access road because of the problems we had in December getting up to a certain point, which was our first priority area at Coronado South. Those guys in Winnemucca turned it around at the BLM very quickly and gave us the permission to construct the road.
As far as details go, that was a big one. It's a minor road, but in the winter we just simply couldn't get the trucks and materials up to the site because of the snow. I don't know if you saw the picture on our website, but it was a pretty brutal winter. Good for the southwest, for the snow cap, for water, all those things. It wasn't so good for drilling at that time of year.
We've waited. The ground is clear, the weather's warmer. We've got a ground gravity crew out there today laying out stations and, within a week or so, we expect to have some data back that we believe will confirm that there's some kind of a mineral below surface. We're looking for density. The density will tell us, do we have another Big Mike on our hands?
Gerardo Del Real: Excellent. You mentioned that you'll have that data back within a week. When can we expect results to be published, for us to get our hands on the data obviously, and take a peek?
Warren Stanyer: Well, I would hope by mid-month or so. It's not going to be a very long survey, because we already know from our airborne EM survey that there's something very conductive there. We don't believe it's some kind of graphite material that would fool you because it just simply doesn't occur in those kind of rocks, the quality of graphite that would give such a response. This gravity survey is to look for the densest parts of the anomaly, so we can aim the drill even better. That's the idea.
Gerardo Del Real: Now, I understand that you're targeting not just Coronado South, but also Coronado North. I am not a geologist. I'm fortunate enough to have a network available to me that does employ geologists that have been out and that has actually, frankly, taken a look at the targets there. They've said positive things.
Mind you, the gentleman that's been out there, without naming him, is not the most optimistic of geologists, and he had some positive things to say, which always leads me to smile. I know privately this gentleman has said that both the Coronado South and Coronado North targets are prospective. Will this gravity survey help define and prioritize those targets for you there, Warren?
Warren Stanyer: Well, it will. We like Coronado South as the first priority because it's shallower than Coronado North, or at least that's what the EM data's telling us. What we're hoping for here is a very rich, massive sulfide deposit. I guess depth doesn't matter as much if you've got grade. Coronado North certainly exhibits the character of that. Again, a couple of gravity lines there performed now this week and next week will tell us where the best places are to test there.
Gerardo Del Real: Let's assume that by mid-month we have data published, we look at it. Let's hope that it's positive. I believe it will be. When can we expect to see the truth machine on the ground ready to tell?
Warren Stanyer: The truth machine Do we have to get wired up to that?
Gerardo Del Real: Just the ground, Warren. Just the ground.
Warren Stanyer: I'm hoping to be drinking a margarita on May the 5th, Cinco de Mayo. That's the day that I'd like to be drilling, or that week. It's kind of a traditional start week for drilling in Nevada because ground conditions are usually all back to normal and drillers are raring to go. We do have a driller lined up and raring to go.
Gerardo Del Real: Well, I hope to be able to visit the property right after Cinco de Mayo. I believe Cinco de Mayo I will spend having a margarita with my lovely wife and my sister and the family here. However, the week after, I would absolutely love to visit the project if you feel it's warranted. We can definitely talk about that.
Initial drilling program – I know that we've talked about 2 to 3 holes, maybe up to 1,000 meters initially. Obviously, if you get a discovery of substance, it's meaningful because you have the option to earn into 100% of Coronado. I'm assuming if you hit, you're going to expand that 1,000 meters.
Warren Stanyer: Absolutely. We've got, I believe it's about 10 or 11 drill sites that are already permitted. If we get a strong result from the Coronado South drilling, we've got to start thinking about a plan of operations or other NOIs, that is a Notice of Intent to drill for other parts of the property, as well. This will be a process with the BLM that we'll undergo. It would be nice to have a tiger by the tail. It's a good problem to have.
Gerardo Del Real: It's a great problem to have. You have a market cap of approximately $3.6 million Canadian. A discovery at Coronado would increase that market cap by many, many, many multiples. Fingers crossed. We know that success is typically the exception, not the rule, but I have to tell you Warren, I'm excited because all signs point to something being down there. It's just a matter of finding it.
Warren Stanyer: Well, they do. VMS deposits, they're never a one-off. I've seen the development of certain districts. I think we've talked about this before Gerardo, but reading about Big Mike in 1970 and some of the people that visited it, they would remark, "Oh, that looks like something in Ecuador that I've seen." Well, then I look at that area today, 48 years, 49 years later, and there's a whole chain of deposits that have been found since that time. That's what we believe could exist at Coronado.
Gerardo Del Real: Exciting times, Warren. Let's chat again here in a couple of weeks when we get some of the data back.
Warren Stanyer: Looking forward to it. We'll be in touch.
Gerardo Del Real: Then we can talk Kinsley Mountain as well, and maybe we'll touch on the water rights, but for now let's leave it there. I get the feeling in a couple of weeks we'll be talking.
Warren Stanyer: That sounds great, Gerardo. Appreciate your interest and support.
Gerardo Del Real: Thank you, Warren.
Warren Stanyer: All right, have a good day. You're welcome. Bye.