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PILOT GOLD PURCHASES OPTION AGREEMENT FOR
NEVADA SUNRISE'S KINSLEY MOUNTAIN PROPERTY
September 21, 2011, Vancouver, British Columbia - Nevada Sunrise Gold Corporation ("Nevada Sunrise" or the "Company") (TSX-V: NEV) is pleased to welcome Pilot Gold Inc. ("Pilot Gold") (TSX: PLG) as the Company's new earn-in joint venture partner at the Kinsley Mountain property ("Kinsley Mountain", or the "Property"), upon Pilot Gold's purchase of the Option Agreement from Animas Resources Ltd.(TSX-V: ANI).
Kinsley Mountain is a large, sediment-hosted gold system and includes a past-producing gold mine with significant exploration potential on a large land position. The Property consists of 141 claims and 2,807 acres (1,136 hectares) on Bureau of Land Management land in the Kinsley Mountains in southeast Elko County, Nevada. The Property lies roughly 75 kilometers (45 miles) southeast of the Long Canyon property where Pilot Gold's geologic team, as part of Fronteer Gold Inc., defined a significant gold resource in what is now recognized as an emerging gold district.
Pilot Gold intends to maximize its success at Long Canyon by deploying the same exploration team and strategy at Kinsley Mountain, that of detailed geologic analysis, aggressive drilling and deposit modeling.
Under the Option Agreement, Pilot Gold will obtain access to a substantial technical archive on the property, consisting of over 1,100 drill holes averaging 218 feet in length, and extensive geophysical and geochemical surveys. No drilling has been completed on Kinsley Mountain in over 13 years. Pilot Gold's exploration activities will initially focus on geologic mapping and deposit model development, with confirmation and step-out drilling adjacent to the existing pits.
William Henderson, President & CEO, said: "We are very pleased to have a partner such as Pilot Gold earning in on Kinsley Mountain. Pilot Gold's team has recognized Kinsley Mountain's great potential and we look forward to their exploration efforts on the Property."
Pursuant to the terms of the Option Agreement, Pilot Gold will have the exclusive right to earn:
(i) a 51% undivided interest, right and title in and to the Property through a 51% equity interest in a Joint Venture company to be formed at the time of such acquisition, by incurring US $1.18 million in exploration expenditures by March 30, 2013 (of which US $180,000 must be spent by May 31, 2012); and
(ii) an additional undivided 14% interest in and to the Property and in the Joint Venture by incurring an additional US $3.0 million in exploration expenditures within five years of meeting the initial earn-in.
About Kinsley Mountain
Gold mineralization was discovered on Kinsley Mountain in 1984. Subsequent exploration defined sediment-hosted gold mineralization concentrated in the Kinsley Trend, and includes at least five distinct deposits hosted in strata ranging from Middle-to-Late Cambrian in age. The stratigraphic intervals hosting mineralization at Kinsley are generally interpreted to be the same horizons that host mineralization at Long Canyon.
Between 1994 and 1999, Alta Gold Co. ("Alta Gold") produced approximately 138,000 ounces of gold at 1.4 g/t gold from oxide ore in a heap leach operation at Kinsley Mountain**. Alta Gold abandoned the mine and left an undetermined amount of ore in the ground at Kinsley Mountain during a period of low gold prices. At that time, gold discoveries were still being made and existing historical resources had not been exhausted.
** Data sourced from www.metalseconomics.com
About Pilot Gold
Pilot Gold is a gold exploration company focused on advancing the Halilaga and TV Tower gold projects in Turkey and its pipeline of gold projects in Nevada. Pilot Gold's team, while with Fronteer Gold, has a successful track record in the discovery and advancement of gold deposits, including the Long Canyon, Northumberland and Sandman gold deposits in Nevada.
About Nevada Sunrise
For the latest details on the Company, its properties, management team and philosophy, please
visit our website at www.nevadasunrise.com.
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