Gold Standard Ventures Corp. (
TSX: GSV;
NYSE AMERICAN: GSV) (“Gold Standard” or the “Company”)
today announced positive results from the completion of the South
Railroad Pre-Feasibility Study (the “PFS” or the “South Railroad
PFS”) on its 100%-owned/controlled Railroad-Pinion project in
Nevada’s Carlin Trend (the “Railroad-Pinion Project”). The South
Railroad project (the “South Railroad Project”) subset of the
Railroad-Pinion Project, consisting of the Dark Star deposit (“Dark
Star”) and Pinion deposit (“Pinion”), hosts one of the largest,
undeveloped oxide gold reserves on the Carlin Trend. All references
to the term “ore” contained in this press release refers to mineral
reserves not mineral resources.
Key Highlights of the Base Case South
Railroad PFS include (all currencies are shown in US
dollars):
- Pre-tax net present value (“NPV”) of $302.1M at a 5% discount
rate and after tax NPV of $241.5M at a $1,400 gold price and a
$17.11 silver price, with a mineral reserve pit designs based on a
gold price of $1,250 per ounce and a silver price of $15.30 per
ounce.
- After tax IRR 27.8%.
- Average annual gold placement of 156,000 ounces gold per year
over an initial 8-year mine life.
- Average life of mine cash cost of $582 per ounce after
by-product credit, and all in sustaining costs (“AISC”)1 of $657
per ounce.
- Proven and probable mineral reserves of 1.248 million ounces of
gold and 2.705 million ounces of silver.
- Life of mine strip ratio of 3.1:1.
- Initial capital expenditures of $194.0M.
- Project economics include 15% contingency
Jonathan Awde, CEO and Director of Gold Standard
commented: “We are very pleased with this first iteration of this
PFS which is needed now so that we can start the permitting
process. We have many opportunities to improve on the base case
which includes the goal to add mine life by potentially upgrading
more of the existing resources within the PFS area and exploiting
the other nearby deposits we have discovered. We also have some
great opportunities to improve economics via trade-off studies
which could reduce capital costs or improve recoveries. We
will be looking to quantify these opportunities through further
economic studies in the first half of 2020. Meanwhile,
drilling is proceeding on some of our project’s best exploration
targets.”
Next StepsCompletion of the
positive PFS allows for the finalization of permit applications to
the Bureau of Land Management (lead permitting agency on the South
Railroad Project) for an environmental impact statement
(EIS). Continued drilling is planned for the potential
conversion of inferred resources to measured and indicated for
addition to the mine plan at Dark Star, Pinion and the Jasperoid
Wash deposit (“Jasperoid Wash”). Trade-off studies will be
initiated to optimize economics.
1 See “Non-GAAP Financial Measures” at the end
of this press release for a discussion of these measures.
Key Features
- South Railroad Project located in Nevada – a low-risk, mining
supportive jurisdiction.
- South Railroad Project delivers excellent free cash flow as a
result of the very low cash and AISC costs, even in low gold price
environments.
- The substantial free cash flow and significant opportunities
for expansion of resources and reserves provide the opportunity for
South Railroad Project expansion with minimal shareholder
dilution.
- PFS has addressed the South Railroad Project’s environmental
impacts and has included the cost of mitigations in the economics
of the PFS.
- The mining and processing technology proposed in this study is
proven technology that has been utilized in many North America
mining operations to treat high-silica ore types.
South Railroad Project
Opportunities Additional South Railroad Project
opportunities / considerations include:
- Potential expansion of profitable mine life given current
resources and exploration upside at the South Railroad
Project.
- The PFS will recommend additional trade-off studies that have
the opportunity to lower capital and operating costs, increase
recoveries, enhance project economics and further reduce project
risk. These studies will require modest expenditures and time
to complete and are not expected to impact the opportunity to make
a construction decision immediately following receipt of all
necessary permits.
Additional studies required to further de-risk
the South Railroad Project include:
- Additional geotechnical studies need to be completed to further
define the scope and cost of major civil works and
foundations.
- Additional hydrological studies are required to provide a more
fulsome design of water disposal systems currently assumed to be
rapid infiltration basins, and to determine optimized locations and
treatment requirements and options.
Resource Expansion and Exploration
OpportunitiesThe 208 square kilometer Railroad-Pinion land
package offers a district-scale opportunity for potential resource
expansion, testing a pipeline of exploration opportunities, and
providing sufficient room for additional infrastructure
growth. These opportunities include (see August 6, 2019 news
release):
- Resource expansion potential at Dark Star to the south, east
and north.
- Resource expansion potential at Pinion to the south and
east.
- Resource expansion potential at Jasperoid Wash remains open in
all directions outboard from the initial resource estimate.
Jasperoid Wash is located approximately 6 km south of Pinion and
7.5 km southwest of Dark Star. The oxide deposit has the
potential to extend the mine life at the South Railroad
Project.
- 2019 exploration drilling of high-value targets at Hidden Star,
Dixie, LT, Ski Track and North Bullion deposit (“North
Bullion”).
- Also at Dark Star, current drilling is testing a newly
recognized potential feeder / breccia-style opportunity beneath the
current oxide resource.
PFS HighlightsThe technical
report for the PFS (the “PFS Technical Report”) prepared in
accordance with National Instrument 43-101 Standards of Disclosure
for Mineral Projects (“NI 43-101”) includes oxide reserves at Dark
Star and Pinion, minor sulfide reserves at Dark Star. The
technical report also includes resource estimates for Dark Star,
Pinion Jasperoid Wash and North Bullion. The South Railroad Project
subset consisting of Dark Star and Pinion, hosts one of the
largest, undeveloped oxide gold reserves on the Carlin Trend.
The PFS considers near surface open pit mining
of 47.3 million tonnes of oxide and transitional ore at a
processing rate of 5.9 million tonnes per year, over an initial
8-year open pit mine life. Ore from the pit will be processed
either run of mine or through a high-pressure grind roll crusher
(“HPGR”) and stacked on a heap leach pad and leached using a sodium
cyanide solution. Pregnant solution will be processed through
a dual train carbon-in-column plant, with gold and silver captured
in an ADR plant.
Gold Standard is pleased to provide the results
of the positive PFS along with the first mineral reserve estimate
on its 100% owned/controlled Railroad Pinion Project in Nevada’s
Carlin Trend. The PFS supports a technically straightforward open
pit mine and heap leach operation, with rapid payback and strong
financial return. The financial study was conducted using
$1,400/oz gold and $17.11/oz silver. Reserves that provide
the basis for the financial study were conducted at $1,250/oz gold
and $15.30/oz silver.
Initial capital expenditures for the South
Railroad Project are estimated at $194.0 million. Total capital for
the life of the South Railroad Project, including initial,
expansion, and sustaining are estimated at $302.7 million.
Operating costs are generally low and in line
with local Nevada operations. Current life of mine
projections are $1.93/tonne for mining of both waste and ore,
$1.83/tonne for run of mine processing, and $4.87/tonne for HPGR
processing. Operating costs for processing was determined by
Kappes, Cassiday and Associates, while mining costs were determined
by Mine Development Associates (“MDA”), both of Reno, Nevada.
The average life of mine operating costs for the South Railroad
Project is $11.49 per ore tonne.
PFS Highlights |
Total Reserve Ore Tons |
47.344 M Tonnes |
Average Grade |
0.82 g Au/t Au; 4.70 g Ag/t Ag (Pinion) |
Contained Gold / Silver Ounces |
1.248 M oz Au; 2.705 M oz Ag |
Average Recovery |
69% ROM Au; 77% HPGR Au; 22% ROM Ag; 43% HPGR Ag |
Average Annual Metal Placement |
156,000 Ounces Au (Year 1-8); 541,000 Ounces Ag (Year 4-8) |
Average Annual Metal Production |
116,000 Ounces Au (Year 1-8), 205,000 Ounces Ag (Year 4-8) |
Annual Tonnes Moved |
24.3 Million Tonnes |
Annual Reserve Ore Tonnes |
5.9 Million Tonnes |
Strip Ratio |
3.1:1 |
Initial Capital Expenditures |
$194.0M |
Expansion Capital Expenditures |
$88.3M |
LOM Sustaining Capital Expenditures |
$20.4M |
Average Life of Mine Mining Costs |
$1.93/Tonne |
Average Life of Mine Processing Costs |
$1.83/Tonne ROM$4.87/Tonne HPGR |
G & A |
$0.71 /ore Tonne |
Contingency |
15% |
Life of Mine Pre-Tax Cash Flow |
$409.7M |
Life of Mine Pre-Tax Net Present Value (5%) |
$302.1M |
Life of MinePre-Tax IRR (Internal Rate of Return) |
32.4% |
Life of Mine Net Cash Flow After Tax |
$337.1M |
Life of Mine After Tax Net Present Value (5%) |
$241.5M |
Life of Mine After-Tax IRR |
27.8% |
Cash Costs After By-Product Credit1 |
$582/oz |
AISC1 |
$657/oz |
Payback |
2.7 Years |
Note:
- See “Non-GAAP Financial Measures” at the end of this press
release for a discussion of these measures.
- The PFS was conducted using assumed metal prices of $1,400/oz
gold and $17.11/oz silver. The mineral reserve estimate that
provides the basis for the PFS was conducted at assumed metal
prices of $1,250/oz gold and $15.30/oz silver.
Production Data |
Life of Mine |
Initial 8 Years + prestrip (8 months) |
Annual Total Mine Throughput |
24.3 Million Tonnes/year |
Annual Ore Throughput |
5.9 Million Tonnes/year |
Total Ore Tonnes |
47.344 Million Tonnes |
Run of Mine Ore Tonnes |
18.435 Million Tonnes |
HPGR Crusher Ore Tonnes |
28.536 Million Tonnes |
Sulfide Toll Mill |
0.373 Million Tonnes |
Average Grade |
0.82 g Au/t4.70 g Ag/t (Pinion only) |
Contained Ounces |
1,248,000 oz Au2,705,000 oz Ag (Pinion only) |
Payable Metals |
931,000 oz Au1,040,000 oz Ag (Pinion only) |
Note:
- The PFS was conducted using assumed metal prices of $1,400/oz
gold and $17.11/oz silver. The mineral reserve estimate that
provides the basis for the PFS was conducted at assumed metal
prices of $1,250/oz gold and $15.30/oz silver.
Don Harris, Gold Standard’s General Manager
commented, “The completion of the PFS is a big milestone for both
the project and GSV. The positive financial results speak to
an economic oxide heap leach mining project located in mining
centric Nevada. The Company is looking forward to submitting
permit applications on this project to various agencies
shortly. Moving the project from PFS through permitting and
towards production remains one of the top goals for GSV. In
addition, ongoing exploration, engineering and optimization
studies, and pipeline development will continue to work toward
improving the PFS economics and expanding mine life.”
Sensitivity to Gold PriceThe
PFS base case was run on $1,400/oz Au and $17.11/oz Ag and
evaluated on $50 increments above and below the base case to
identify potential upside/downside effects on the South Railroad
Project (refer to financial sensitivity table below) based on metal
price. For every $50 increase or decrease in the price of
gold and corresponding silver price (using 81.83 ratio), the after
tax NPV changes by approximately +10 percent.
|
Base +150 |
Base +100 |
Base +50 |
Base |
Base -50 |
Base -100 |
Base -150 |
Gold Price |
$ |
1,550 |
$ |
1,500 |
$ |
1,450 |
$ |
1,400 |
$ |
1,350 |
$ |
1,300 |
$ |
1,250 |
Silver Price |
$ |
18.94 |
$ |
18.33 |
$ |
17.72 |
$ |
17.11 |
$ |
16.50 |
$ |
15.89 |
$ |
15.28 |
Pre Tax Cash Flow ($M) |
$ |
549.499 |
$ |
502.887 |
$ |
456.276 |
$ |
409.665 |
$ |
363.054 |
$ |
316.442 |
$ |
269.831 |
Pre Tax Cash Flow Net Present Value (5%) ($M) |
$ |
417.643 |
$ |
379.122 |
$ |
340.602 |
$ |
302.081 |
$ |
263.560 |
$ |
225.040 |
$ |
186.519 |
IRR (%) |
40.5% |
37.9% |
35.2% |
32.4% |
29.5% |
26.5% |
23.4% |
Payback (Years) |
2.4 |
2.5 |
2.5 |
2.6 |
2.6 |
2.7 |
2.8 |
After Tax Cash Flow ($M) |
$ |
448.117 |
$ |
411.150 |
$ |
374.181 |
$ |
337.113 |
$ |
299.765 |
$ |
261.495 |
$ |
222.851 |
After Tax Cash Flow Net Present Value (5%) ($M) |
$ |
333.234 |
$ |
302.671 |
$ |
272.105 |
$ |
241.474 |
$ |
210.609 |
$ |
178.974 |
$ |
147.045 |
After Tax IRR (%) |
34.7% |
32.5% |
30.1% |
27.8% |
25.3% |
22.7% |
19.9% |
After Tax Payback (Years) |
2.5 |
2.6 |
2.6 |
2.7 |
2.7 |
2.8 |
2.9 |
Mineral Reserves and
Resources
Mineral Reserves
Dark Star is comprised of Carlin-style,
sediment-hosted gold mineralization, while Pinion comprises
Carlin-style, sediment-hosted gold and silver mineralization.
Mineralization is almost completely oxidized to depths of
approximately 330 meters. Dark Star contains small zones of
unoxidized and transitional material above this level. The
mineral reserve is divided into oxide/transitional heap leach and
sulfide toll milling material.
The mineral reserve estimate for Dark Star and
Pinion (South Railroad Project) is based on an open pit mine plan
and production schedule developed by MDA. All mineral
reserves are located on Gold Standard controlled land and support
an initial 8-year mine life. The table below presents the
mineral reserve estimation for the South Railroad Project.
Proven and Probable reserves amount to 47.3 million tonnes at a
0.82 g Au/t and 4.70 g Ag/t (Pinion only) average grade for 1.248
million contained gold ounces and 2.705 million contained silver
ounces (Pinion). The mineral reserve is based on a gold price
of $1,250 per ounce and a silver price of $15.30 per ounce.
The mineral reserves have an effective date of September 10,
2019.
Dark Star |
K Tonnes |
g Au/t |
K Ozs Au |
ProvenProbable |
5,43424,023 |
1.390.83 |
243641 |
P & P |
29,456 |
0.93 |
884 |
Pinion |
K Tonnes |
g Au/t |
K Ozs Au |
g Ag/t |
K Ozs Ag |
ProvenProbable |
1,08116,806 |
0.660.63 |
23341 |
5.484.64 |
1912,514 |
P & P |
17,887 |
0.63 |
364 |
4.69 |
2,705 |
Consolidated Gold Reserves
Total |
K Tonnes |
g Au/t |
K Ozs Au |
ProvenProbable |
6,51540,829 |
1.270.75 |
266982 |
P & P |
47,344 |
0.82 |
1,248 |
Notes
- Pinion contains silver, Dark Star does not have silver
reserves. Ore tonnes for gold reflect both deposits, while
ore tonnes for silver reflect Pinion.
- Measured mineral resource in the mine production schedule were
converted to proven mineral reserve and indicated mineral resource
in the mine production schedule was converted to probable mineral
reserve.
- Columns may not sum exactly due to rounding.
- Mineral reserves were developed using prices of $1,250 gold and
$15.30 silver.
- Operating costs of $1.93/t mined, $1.83/t ROM processed,
$4.87/t HPGR processed, $0.71/ore tonne G&A, and 1.24% royalty
were used to design reserve pits.
- Gold and silver are 99% and 98% payable respectively, refining
costs are $0.10/ ore tonne.
- Variable cutoff grades were used based on oxidation,
silicification, and barite content. Cutoff grades used are as
follows:
- 0.17 g Au/t for all Dark Star ore (oxide and transition);
- 0.17 g Au/t for all Pinion oxide ore;
- 0.21 g Au/t for low-silica Pinion transition ore;
- 0.29 g Au/t for high-silica and high-barite Pinion transition
ore;
- 0.18 g Au/t for Mississippian Tripon hosted Pinion transition
ore;
- 0.19 g Au/t for remaining Pinion transition ore;
- 1.17 g Au/t for Dark Star sulfide ore considered for toll
processing.
Mineral Resources
As part of the PFS gold and silver resource
estimates for Dark Star, Pinion, North Bullion, and Jasperoid Wash
were prepared in accordance with NI 43-101. The estimates were
completed by MDA of Reno, Nevada (Dark Star, Pinion, and Jasperoid
Wash) and Apex Engineering of Edmonton, Canada (North
Bullion). The mineral resource estimate is based on a gold
price of $1,500 per ounce for Dark Star, Pinion and Jasperoid
Wash. The mineral resource estimate for North Bullion has not
changed since the mineral resource estimate disclosed on February
19, 2018 because there has been no new drilling and is based on a
gold price of $1,350 per ounce. The reported resources are dated
September 10, 2019. Resources are inclusive of reserves
reported in this document.
$1,500 Resource Table
Deposit |
Category |
Cut-offg Au/t |
Tonnes |
g Au/t |
Contained Oz Au |
g Ag/t |
ContainedOz Ag |
Dark Star |
Measured |
Variable |
5,857,000 |
1.31 |
246,000 |
|
|
|
Indicated |
Variable |
26,860,000 |
0.78 |
675,000 |
|
|
|
Measured and Indicated |
Variable |
32,717,000 |
0.88 |
921,000 |
|
|
|
Inferred |
Variable |
2,479,000 |
0.70 |
56,000 |
|
|
|
|
|
|
|
|
|
|
Pinion |
Measured |
0.14 |
1,304,000 |
0.64 |
27,000 |
5.15 |
216,000 |
|
Indicated |
0.14 |
27,621,000 |
0.58 |
517,000 |
4.18 |
3,713,000 |
|
Measured and Indicated |
0.14 |
28,925,000 |
0.58 |
544,000 |
4.22 |
3,929,000 |
|
Inferred |
0.14 |
10,810,000 |
0.64 |
224,000 |
3.80 |
1,322,000 |
|
|
|
|
|
|
|
|
Jasperoid Wash |
Inferred |
0.14 |
10,569,000 |
0.33 |
111,000 |
|
|
|
|
|
|
|
|
|
|
North. Bullion |
Indicated Oxide |
0.14 |
2,920,000 |
0.96 |
90,100 |
|
|
|
Inferred Oxide |
0.14 |
3,360,000 |
0.43 |
46,600 |
|
|
|
Inferred Near Surface Sulfide |
1.25 |
2,050,000 |
2.60 |
171,400 |
|
|
|
Inferred Underground Sulfide |
2.25 |
5,550,000 |
3.29 |
587,700 |
|
|
|
Total Inferred |
Variable |
10,970,000 |
2.28 |
805,800 |
|
|
|
|
|
|
|
|
|
|
South Railroad Project Total |
Measured and Indicated |
|
64,562,000 |
0.78 |
1,555,100 |
4.22 |
3,929,000 |
|
Inferred |
|
34,828,000 |
1.72 |
1,196,800 |
3.80 |
1,322,000 |
Notes
- Mineral resources are not Mineral reserves. Mineral
resources which are not mineral reserves do not have demonstrated
economic viability. There has been insufficient exploration
to define the Inferred Mineral Resources tabulated above as an
Indicated or Measure Mineral Resource. There is no guarantee
that any part of the mineral resources discussed herein will be
converted into a mineral reserve in the future.
- North Bullion reported resources have been constrained within a
$1,350/ounce of gold optimized pit shell and/or an underground
mining scenario utilizing a 2.25 g/t Au lower cutoff. North
Bullion includes Sweet Hollow and Pod Oxide resources. No
measured resource at North Bullion. The assumptions and inputs used
for this mineral resource estimate are the same as those used in
the amended and restated technical report entitled “Technical
Report Maiden Resource Estimate North Bullion and Railroad Project,
Elko County, Nevada, USA” dated February 16, 2018.
- Dark Star, Pinion, and Jasperoid Wash reported resources have
been constrained within a $1,500/ounce of gold optimized pit
shell. Dark Star cut-off grade, 0.14 g Au/t for Heap Leach
material (oxide and transitional, <0.5% sulfide). 1.0 g
Au/t for sulfide material. Sulfide material accounts for
<1% of total at Dark Star. Operating costs of $1.93/t
mined, $1.83/t ROM processed, $4.87/t HPGR processed, $0.71/ore
tonne G&A, and 1.24% royalty.
- The mineral resources are inclusive of mineral reserves.
- Gold Standard controls 100% of the ground occupied by the
resources.
- An inferred mineral resource has a lower confidence then that
applying to an indicated mineral resource and must not be converted
to a mineral reserve. It is reasonably expected that the
inferred mineral resources could be upgraded to indicated mineral
resource with continued exploration.
- Columns may not sum exactly due to rounding.
Technical ReportThe PFS
Technical Report will be prepared by M3 Engineering &
Technology Corporation (“M3”) and filed on SEDAR within 45 days
following the date of this news release. Dr. Art Ibrado, PE,
Project Manager, and Matthew Sletten, PE, with M3 are the qualified
persons responsible for the scientific and technical information in
this news release as defined by NI43-101. Thomas L. Dyer, PE,
and Principal Engineer with MDA, is the qualified person for the
reserve estimate and mine planning in this news release, as defined
by NI 43-101. Steve Ristorcelli, CPG #10257, Principal
Geologist with MDA is the qualified person responsible for the
Pinion and Jasperoid Wash resource estimates in this news release,
as defined by NI 43-101. Michael Lindholm, CPG #11477, Senior
Geologist with MDA is the qualified person responsible for the Dark
Star resource estimates in this news release, as defined by NI
43-101. Carl Defilippi, Registered Member SME (#775870) and
Project Manager with Kappes, Cassiday and Associates is the
qualified person responsible for process capital and process
operating expenditures. Gary Simmons, BSc Metallurgical
Engineering (MMSA-01013QP) is the qualified person responsible for
metallurgy recovery projections. Michael Dufresne, P. Geol.
(Alberta License #48439) and P. Geo. (British Columbia License
#370074), Principal Geologist and President with APEX Geoscience
Ltd.; and Steven Nicholls, MAIG (#3555), Principal Geologist and
Managing Director with APEX Geoscience Ltd. (Australia), are the
qualified persons responsible for the North Bullion resource
estimate in this news release. Dr. Ibrado, Mr. Sletten, Mr. Dyer,
Mr. Ristorcelli, Mr. Defilippi, Mr. Simmons, Mr. Dufresne and Mr.
Nicholls are independent of Gold Standard.
Don Harris, Registered Member SME (#04146776)
and General Manager for Gold Standard; Steven Koehler, AIPG
(CPG-10216) and Manager of Projects for Gold Standard; and Mark
Laffoon, PE and Project Director are the qualified persons, as
defined by NI 43-101, Standards of Disclosure for Mineral Projects,
who supervised the preparation of certain technical information in
this release.
The PFS Technical Report will include
contributions from the following independent mining industry
consultants including:
M3 |
PFS lead; general site arrangement and infrastructure design;
financial modeling; overall report preparation |
MDA |
Mineral resource and reserve estimation; mine plan schedule, mining
operating and capital costs |
Stantec Consulting Services Inc., In-Situ Inc. |
Material characterization; hydrology and groundwater model |
Kappes, Cassiday & Associates; GL Simmons LLC |
Column, bottle roll and HPGR test work; metallurgical
interpretation, process operation and capital costs |
The Mines Group Incorporated |
Leach pad and pond design and layout |
EM Strategies |
Lead for permitting activities |
Golder Associates Inc. |
Pit slope stability investigations and design |
Barr Engineering |
Blast fragmentation studies |
NV Energy |
Electrical power supply analysis and costing |
Non-GAAP Financial Measures
The Company has included certain non-GAAP
financial measures in this press release, including cash costs and
all-in sustaining costs (AISC) per ounce of gold sold. These
non-GAAP financial measures do not have any standardised meaning.
Accordingly, these financial measures are intended to provide
additional information and should not be considered in isolation or
as a substitute for measures of performance prepared in accordance
with International Financial Reporting Standards (“IFRS”).
Cash Costs
Cash costs are reflective of the cost of
production. The Company reports cash costs on an ounces of gold
sold basis. Other companies may calculate these measures
differently and should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with
IFRS. Cash costs reported by Gold Standard includes mining,
processing, transport, refining, general administration costs of
the mine operations and royalties, but are exclusive of
amortization, reclamation, capital and exploration costs and net of
any value of the by-products.
All-in Sustaining Costs
This news release refers to expected AISC per
ounce which is a non-GAAP measure however is a measure the Company
believes more fully-defines the total costs associated with
producing gold. This measurement has no standardized meaning under
IFRS, accordingly there may be some variation in method of
computation of “all-in sustaining costs” as determined by the
Company compared with other mining companies. AISC reported by Gold
Standard includes mine cash costs, land access payments, royalties,
and sustaining capital expenditures, but excludes non-sustaining
capitalized stripping and end of life reclamation costs. The life
of mine AISC of $657/oz increases to $686/oz if end of mine life
reclamation costs are included in accordance with the World Gold
Council guidance on AISC.
Data Verification
The “qualified persons”, as such term is defined
in NI 43-101, responsible for the preparation of the PFS have
verified the data disclosed in this news release, including
sampling, analytical, and test data underlying the information
contained in this news release. Geological, mine engineering and
metallurgical reviews included, among other things, reviewing
mapping, core logs, and re-logging existing drill holes, review of
geotechnical and hydrological studies, environmental and community
factors, the development of the life of mine plan, capital and
operating costs, transportation, taxation and royalties, and review
of existing metallurgical test work. In the opinion of the
qualified persons responsible for the preparation of the PFS, the
data, assumptions, and parameters used to estimate mineral
resources and mineral reserves, the metallurgical model, the
economic analysis, and the preliminary feasibility study are
sufficiently reliable for those purposes. The PFS, when filed, will
contain more detailed information concerning individual
responsibilities, associated quality assurance and quality control,
and other data verification matters, and the key assumptions,
parameters and methods used by the Company.
ABOUT GOLD STANDARD VENTURES –
Gold Standard is an advanced-stage gold exploration company focused
on district scale discoveries on its Railroad-Pinion Project,
located within the prolific Carlin Trend. Gold Standard’s
successful exploration of Pinion and Dark Star has created
potential near-term development option and further consolidates the
Company’s premier land package on the Carlin Trend.
Pinion has a resource estimate prepared in
accordance with NI 43-101 consisting of an Measured and Indicated
Mineral Resource of 28.93 million tonnes grading 0.58 g/t Au and
4.22 g/t Ag, totaling 544,000 ounces of gold and 3,929,000 ounces
of silver, and an Inferred Resource of 10.81 million tonnes grading
0.64 g/t Au and 3.80 g/t Ag, totaling 224,000 ounces of gold and
1,322,000 ounces of silver, using a cut-off grade of 0.14 g/t Au
and constrained by a $1,500/Au ounce LG Cone.
The Dark Star deposit has a resource estimate
prepared in accordance with NI 43-101 consisting of an Measured and
Indicated Mineral Resource of 32.72 million tonnes grading 0.88 g/t
Au, totaling 921,000 ounces of gold and an Inferred Resource of
2.48 million tonnes grading 0.70 g/t Au, totaling 56,000 ounces of
gold, using a cut-off grade of 0.14 g Au/t and constrained by a
$1,500/Au ounces LG Cone.
North Bullion has a resource estimate prepared
in accordance with NI 43-101 consisting of an Indicated Mineral
Resource of 2.92 million tonnes grading 0.96 g/t Au, totaling
90,100 ounces of gold and an Inferred Resource of 10.97 million
tonnes grading 2.28 g/t Au, totaling 805,800 ounces of gold, using
a cut-off grade of 0.14 g Au/t for near surface oxide and 1.25 to
2.25 g Au/t for near surface sulfide and underground sulfide
respectively.
Jasperoid Wash has a resource estimate prepared
in accordance with NI 43-101 consisting of an Inferred Resource of
10.57 million tonnes grading 0.33 g/t Au, totaling 111,000 ounces
of gold, using a cut-off grade of 0.14 g Au/t and constrained by a
$1,500/Au ounces LG Cone.
Neither the Toronto Stock Exchange nor its
regulation services provider nor the NYSE AMERICAN Exchange accepts
responsibility for the adequacy or accuracy of this news
release.
CAUTIONARY NOTE REGARDING
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking
statements, which relate to future events or future performance and
reflect management’s current expectations and assumptions. Such
forward-looking statements reflect management’s current beliefs and
are based on assumptions made by and information currently
available to the Company. All statements, other than statements of
historical fact, are forward-looking statements or information.
Forward-looking statements or information in this news release
relate to, among other things: estimates of mineral reserves and
resources; the opportunities for exploration, development and
expansion of the Railroad-Pinion Project; estimates of capital
expenditures and operating costs related to the South Railroad
Project; future financial or operational performance, including the
amount of future production at the South Railroad Project; the
ability of the Company to successfully complete development of the
South Railroad Project on schedule or on budget, or at all, and the
impacts of such projects on the Company, including with respect to
production; the Company’s intention to improve on the base case,
including the potential to add mine life by upgrading more of the
existing inferred resource within the PFS area and exploiting other
discovered nearby deposits; the estimates of NPV and IRR for the
South Railroad Project; the Company’s belief that HPGR processing
technology unlocks new and previously unrecognized value at Dark
Star and Pinion; life of mine projections for the South Railroad
Project; the intention to improve economics via trade-off studies
which could reduce capital costs or improve recoveries; the
estimated timeframe of submitting permit applications to the Bureau
of Land Management in respect of an environmental impact statement
on the South Railroad Project, and the intention to initiate
construction and feasibility level engineering upon the receipt of
federal permits; the intention to prepare and file the PFS
Technical Report; and the expenditures and success related to any
future exploration or development programs.
These forward-looking statements and information
reflect the Company’s current views with respect to future events
and are necessarily based upon a number of assumptions that, while
considered reasonable by the Company, are inherently subject to
significant operational, business, economic and regulatory
uncertainties and contingencies. These assumptions include: our
mineral reserve and resource estimates and the assumptions upon
which they are based, including geotechnical and metallurgical
characteristics of rock confirming to sampled results and
metallurgical performance; tonnage of ore to be mined and
processed; ore grades and recoveries; assumptions and discount
rates being appropriately applied to the PFS; success of the
Company's projects, including the South Railroad Project; prices
for silver and gold remaining as estimated; currency exchange rates
remaining as estimated; availability of funds for the Company's
projects; capital, decommissioning and reclamation estimates;
mineral reserve and resource estimates and the assumptions upon
which they are based; prices for energy inputs, labour, materials,
supplies and services (including transportation); no labour-
related disruptions; no unplanned delays or interruptions in
scheduled construction and production; all necessary permits,
licenses and regulatory approvals are received in a timely manner;
and the ability to comply with environmental, health and safety
laws. The foregoing list of assumptions is not exhaustive.
The Company cautions the reader that
forward-looking statements and information involve known and
unknown risks, uncertainties and other factors that may cause
actual results and developments to differ materially from those
expressed or implied by such forward-looking statements or
information contained in this news release and the Company has made
assumptions and estimates based on or related to many of these
factors. Such factors include, without limitation: fluctuations in
silver and gold prices; fluctuations in prices for energy inputs,
labour, materials, supplies and services (including
transportation); fluctuations in currency markets (such as the
Canadian dollar versus the U.S. dollar); operational risks and
hazards inherent with the business of mining (including
environmental accidents and hazards, industrial accidents,
equipment breakdown, unusual or unexpected geological or structural
formations, cave-ins, flooding and severe weather); inadequate
insurance, or inability to obtain insurance, to cover these risks
and hazards; our ability to obtain all necessary permits, licenses
and regulatory approvals in a timely manner; changes in laws,
regulations and government practices in the United States,
including environmental, export and import laws and regulations;
legal restrictions relating to mining; risks relating to
expropriation; increased competition in the mining industry for
equipment and qualified personnel; the availability of additional
capital; title matters and and the additional risks identified in
our filings with Canadian securities regulators on SEDAR in Canada
(available at www.sedar.com) and with the SEC on EDGAR (available
at www.sec.gov/edgar.shtml). Although the Company has attempted to
identify important factors that could cause actual results to
differ materially, there may be other factors that cause results
not to be as anticipated, estimated, described or intended.
Investors are cautioned against undue reliance on forward-looking
statements or information. These forward-looking statements are
made as of the date hereof and, except as required under applicable
securities legislation, the Company does not assume any obligation
to update or revise them to reflect new events or
circumstances.
CAUTIONARY NOTE FOR U.S. INVESTORS
REGARDING RESERVE AND RESOURCE ESTIMATES
Canadian public disclosure standards, including
NI 43-101, differ significantly from the requirements of the SEC
set forth in Industry Guide 7 (“Industry Guide
7”), and information concerning mineralization, deposits,
mineral reserve and resource information contained or referred to
herein may not be comparable to similar information disclosed by
U.S. companies in accordance with Industry Guide 7. In particular,
and without limiting the generality of the foregoing, this news
release uses the terms “proven mineral reserves,” “probable mineral
reserves,” “measured mineral resources,” ‘‘indicated mineral
resources’’ and ‘‘inferred mineral resources’’. U.S. investors are
advised that, while such terms are recognized and required by
Canadian securities laws, Industry Guide 7 does not recognize them.
The requirements of NI 43-101 for identification of ‘‘reserves’’
are not the same as those of Industry Guide 7, and reserves
reported by the Company in compliance with NI 43-101 may not
qualify as ‘‘reserves’’ under Industry Guide 7. Under Industry
Guide 7, mineralization may not be classified as a ‘‘reserve’’
unless the determination has been made that the mineralization
could be economically and legally produced or extracted at the time
the reserve determination is made. U.S. investors are cautioned not
to assume that any part of a “measured mineral resource” or
“indicated mineral resource” will ever be converted into a
“reserve”. U.S. investors should also understand that “inferred
mineral resources” have a great amount of uncertainty as to their
existence and great uncertainty as to their economic and legal
feasibility. It cannot be assumed that all or any part of “inferred
mineral resources” exist, are economically or legally mineable or
will ever be upgraded to a higher category. Under Canadian
securities laws, estimated “inferred mineral resources” may not
form the basis of feasibility or pre-feasibility studies except in
rare cases. Disclosure of “contained ounces” in a mineral resource
is permitted disclosure under Canadian securities laws. However,
Industry Guide 7 normally only permits issuers to report
mineralization that does not constitute “reserves” by Industry
Guide 7 standards as in place tonnage and grade, without reference
to unit measures. Accordingly, information concerning mineral
deposits set forth herein may not be comparable with information
made public by companies that report in accordance with Industry
Guide 7.
On behalf of the Board of Directors of Gold Standard,
“Jonathan Awde”
Jonathan Awde, President and Director
FOR FURTHER INFORMATION PLEASE CONTACT: Jonathan Awde President
Tel: 604-669-5702 Email: info@goldstandardv.com Website:
www.goldstandardv.com
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