Nevada Sunrise (TSX-V: NEV) CEO Warren Stanyer on the Permitted Drill Program at Coronado VMS Property Set to Kick Off in December

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 this afternoon?

Warren Stanyer: I couldn't be better, Gerardo. Nice to be here on the phone with you.

Gerardo Del Real: Thank you. I appreciate you taking the time on a Friday. We spoke recently about the excitement surrounding the Coronado VMS property in Nevada. You just announced a drilling program that will commence in early December.

Can you provide us the details? And can you talk a bit about why you're excited about this particular property? Which hasn't seen modern exploration, by the way.

Warren Stanyer: Here you stole my line. Because the fact that nobody did anything for so long. Big Mike was mined out in one year, 1970. They took 25 million pounds of copper out of it, shipped high-grade ore straight to smelters, didn't process it in the United States even. Then the low grade, which was 3%, they heap leached that for several years, right up to about 1978 is what I've read. People didn't have the tools to go looking in an overburdened covered area over the next 20 years. We used VTEM, a helicopter borne, airborne survey that is famous, well known for locating deposits that are conductive. And these deposits are conductive.

Therefore, this survey that we did that shows this anomaly here and anomaly there that would project from the Big Mike mine, the known mine that was high grade, over 10% copper in the high-grade part of the massive sulfides. There's a very good chance there's other deposits like it. Maybe smaller, maybe larger but we hope larger because the anomalies we're pursuing first are quite large.

Gerardo Del Real: You mentioned that the lower grade was around 3%. What were some of the higher grades that were mined out? Because 3% today certainly isn't lower grade.

Warren Stanyer: No, but I guess in 1970 – I've looked back at the prices, they were about $0.50 a pound so you do the consumer price index on that, you probably get up to $2 or something like that in modern dollars, somewhere north of $2. The high grades in the massive sulfide lens at Big Mike ran in excess of 10% copper. What was not known at the time is that cobalt, which has been sampled more recently from the mine waste that's been left behind, it was at least 0.2% in many of the samples taken. 0.2% cobalt. In pounds of cobalt, that's one fifth of a percent. 1% is 22 pounds. That's about 4 pounds of cobalt per tonne which has got some value.

Gerardo Del Real: Absolutely, absolutely. The BLM has approved 9 drill hole locations at Coronado. Each location can host multiple holes. I understand that the preliminary test will consist of 3 diamond drill holes totaling about 2,500 feet. Is that accurate?

Warren Stanyer: That is. We have to be modest in our first approach here. Yes, we're excited and we're confident. But this is mining exploration, you have to be prudent about how you spend your money. We're going for what we believe to be the best target. There could be other targets on the property that we haven't had the time or the budget to really go out and research. We know they're there and we plan to do that in the future. Again, because of this curtain of dirt sitting on top of everything, in most of the areas where these anomalies are it's very difficult to see anything. If it was easy they already would've been found.

The three-hole test, these holes range from 300 to maybe 800 feet. Somewhere around 2,500 feet in the end. Could be 2,200, could be 2,500. This way we'll know what we're dealing with. We're doing a diamond drilling program. It's not cheap, reverse circulation drilling. It's more expensive and it's large diameter core, HQ. That core diameter is about 2.5 inches in diameter. You have a bigger sample which is good for a first pass.

Gerardo Del Real: And the drill starts turning the first week of December?

Warren Stanyer: That's right.

Gerardo Del Real: Got it. Got it.

Warren Stanyer: We know the driller has committed to the first few days of December to get there. These are always kind of, I wouldn't say nebulous, but they could be a day after that you expect or whenever they can get the rig in there. It's easy to move, it's a track or some kind of buggy rig and the terrain is gentle. We're not drilling on the side of a mountain. We're not perched somewhere so we expect things to go smoothly 24 hours a day and within a week or so we're going to know if we've hit massive sulfides or not.

Gerardo Del Real: Well you have a market cap Canadian of sub-$5 million. A discovery of significance, I don't need to say it, it can go unsaid but I'm going to say it anyway, would do a lot to rerate shares of Nevada Sunrise.

Can you talk a bit about the people who have worked on Big Mike and some of the consultants that you've brought in? Because they have pretty impressive track records and they've made some pretty optimistic statements. Again, we all know that drilling and exploration is high risk, high reward. The market has done a pretty efficient job of mitigating the risk here. As I mentioned, you're sitting at about $0.10 a share, $5 million market cap. Can you talk a bit about the quality of work that went into outlining these targets?

Warren Stanyer: Well, first of all we have a fellow named Ted DeMatties is how it's pronounced by him. But it looks like I-E-S like DeMatties but it's DeMatties. Ted was instrumental in the discovery of VMS deposits in Wisconsin, again, in covered terrain. Hard to find except with airborne surveys outlining conductive anomalies. He worked with E.K. Lehmann and Associates, which was a first call geological consulting firm that lots of big companies would use them to work worldwide. His level of experience is huge.

I found Ted because of a paper that he had written on the Stillwater Range, which is where our Lovelock Cobalt mine is in the Treasure Box copper properties further to the south. Those same vendors from that area were the ones that introduced us to Big Mike. And as soon as I mentioned Big Mike to Ted, well he got excited because he has already looked at it a couple of years ago for someone else and they declined to go forward, which is our opportunity. That's where we're blessed that the ground was open. The possibility was there. We flew it. Ted looked at the anomalies and he just said right away, "This has a good chance of success."

Gerardo Del Real: Warren, exciting times. I can't wait for the drill to start turning and we'll see what type of Christmas Nevada Sunrise delivers for shareholders. We should definitely know by then, right?

Warren Stanyer: Well, we could throw money out of an office window on a windy day just for the people out there, if we're successful. But no, there will be rewards and the people that take the risk and that's our company, the people in the company. Shareholders like yourself. People that support us, they will earn the reward if we're successful.

Gerardo Del Real: And a little bit of context, a few years back you were drilling Kinsley Mountain. At the time it wasn't Liberty Gold, it was a different name. The company was drilling it out. They were the operator. The company went from something like $0.10 to a $1.50. It was a round-trip ticket with the bear market we've had since then. The operator then was Pilot Gold. It was called Pilot Gold. We're now sitting at $0.10 again and just to be absolutely clear with everybody, I am biased. I bought it at $0.20, I wrote a check at $0.15. I recently wrote a check at $0.05. And again, it's high risk, high reward but you can't have one without the other sometimes.

Warren Stanyer: My first check was at $4 because I bought shares at $0.40. We did the 10 for 1 rollback in 2013 when things were bad. Then the discovery at Kinsley Mountain propelled us to $1.50 in June, July of 2014. Yeah, these things they turn in a circle that's for sure.

Gerardo Del Real: Again, credit to you and your team Warren. You've done a great job of restructuring the share structure. You have just over 45 million shares outstanding if I'm not mistaken. A lot of those shares are in long-term strong hands and you've done an excellent job of bringing in projects, optioning them out. This one you have the rights to 100% of and a discovery here could mean big, big, big, big news for shareholders. We'll see. We're going to find out. Thank you for your time Warren.

Warren Stanyer: Okay, let's hope we can all get some sleep when the drill's turning.

Gerardo Del Real: Fingers crossed. Thanks again.

Warren Stanyer: Thank you, Gerardo.