Gold Standard Files South Railroad Pre-Feasibility Study
October 24 2019 - 9:20AM
Gold Standard Ventures Corp. (TSX: GSV; NYSE AMERICAN: GSV) (“Gold
Standard” or the “Company”) has filed its technical report entitled
“South Railroad Project NI 43-101 Technical Report, Preliminary
Feasibility Study, Carlin Trend, Nevada, USA” (“PFS”) for its 100%
owned/controlled Dark Star and Pinion oxide gold heap leach
project. The Company previously released the results of the
prefeasibility study (September 10, 2019), which demonstrate robust
economics with rapid payback and high rate of returns. The
PFS was prepared in accordance with National Instrument NI 43-101
Standards of Disclosure for Mineral Projects (“NI 43-101”) by M3
Engineering & Technology Corporation and has been filed on
SEDAR and the Company’s website. Highlights for the PFS
include:
|
|
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 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 |
Life of Mine Pre-Tax Cash Flow |
$409.7M |
Life of Mine Pre-Tax Net Present Value (5%) |
$302.1M |
Life of Mine Pre-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 $1,275/oz gold and $15.58/oz
silver. Through inadvertence, the references to the base gold price
of “$1,250/oz” for the mineral reserve estimates at Pinion and Dark
Star in the PFS news release (September 10, 2019) should have
instead been a gold price of “$1,275/oz”. However, this did
not affect any of the other figures in that news release.
The Company is finalizing work and reports
required for submission of permit applications for proceeding with
the project. Submission of the documents to the BLM is
expected during the first quarter of 2020.
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 $659/oz increases to $688/oz if end of mine life
reclamation costs are included in accordance with the World Gold
Council guidance on AISC.
ABOUT GOLD STANDARD VENTURES –
Gold Standard is an advanced-stage gold exploration and development
company. GSV is developing South Railroad, an advanced gold
and silver open pit oxide heap leach project and continues to focus
on district scale discoveries on the greater Railroad-Pinion
Project land position.
The PFS was completed by M3 Engineering &
Technology Corporation (“M3”) and authored by Dr. Art Ibrado, PE,
Project Manager, and Matthew Sletten, PE, each of whom is an
independent qualified person under NI 43-101.
Don Harris, Registered Member SME (#04146776)
and General Manager for Gold Standard is a qualified person, as
defined by NI 43-101, Standards of Disclosure for Mineral Projects
and has reviewed and verified the information contained within this
news release.
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, included herein including, without limitation,
statements about our potential near term development option, and
the mineral reserve estimates for the Railroad-Pinion Project are
forward looking statements. By their nature, forward-looking
statements involve known and unknown risks, uncertainties and other
factors which may cause our actual results, performance or
achievements, or other future events, to be materially different
from any future results, performance or achievements expressed or
implied by such forward-looking statements. Risk factors
affecting the Company include, among others: the results from our
exploration programs, global financial conditions and volatility of
capital markets, uncertainty regarding the availability of
additional capital, fluctuations in commodity prices; title
matters; 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). 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
All resource estimates reported by the Company
were calculated in accordance with the Canadian National Instrument
43-101 and the Canadian Institute of Mining and Metallurgy
Classification system. These standards differ significantly from
the requirements of the U.S. Securities and Exchange Commission for
descriptions of mineral properties in SEC Industry Guide 7 under
Regulation S-K of the U. S. Securities Act of 1933. In particular,
under U. S. standards, mineral resources may not be classified as a
“reserve” unless the determination has been made that
mineralization could be economically and legally produced or
extracted at the time the reserve determination is
made. Accordingly, information in this press release
containing descriptions of the Company’s mineral properties may not
be comparable to similar information made public by US public
reporting companies.
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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