Nevada Sunrise Gold Corporation (TSXV:NEV) announced that it has signed a letter agreement for an option to purchase water rights in the Clayton Valley of Nevada. The pre-existing water rights allow for 1,770 acre/feet of water use for mining and milling per year.

As quoted in the press release:

In December 2015, Nevada Sunrise received a written appraisal from an independent appraiser certified in the State of Nevada, which valued the Permit at US$1.42 million. According to the appraisal report, the Clayton Valley basin is currently “over-appropriated”, with Albemarle Corp.’s Silver Peak lithium mine being the largest consumer of water in the area. The report further states that any new application for water use in an over-appropriated basin would be carefully reviewed by the Nevada Division of Water Resources, and it is uncertain if any new applications would be granted. Nevada Sunrise believes that its acquisition of the existing Permit will be a key factor in future lithium exploration and development by the Company for brines in the Clayton Valley.

Nevada Sunrise Gold President and CEO, Warren Stanyer, stated:

The acquisition of water rights by Nevada Sunrise is an important step toward the potential development of any lithium brine discoveries on our Clayton Valley exploration properties. We believe that any consumption of water in the Clayton Valley requires valid water rights to meet State regulations, especially in Nevada, the most highly-regulated state for water use in the U.S.

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