GOLD STANDARD FILES UPDATED SOUTH RAILROAD PRE-FEASIBILITY STUDY
March 24 2020 - 8:51AM
Gold Standard Ventures Corp. (TSX: GSV; NYSE AMERICAN: GSV) (“Gold
Standard” or the “Company”) has filed its updated technical report
entitled “South Railroad Project NI 43-101 Technical Report,
Updated Preliminary Feasibility Study, Elko County, Nevada”
(“Updated PFS”) for its 100% owned/controlled Dark Star and Pinion
oxide gold heap leach project. The first South Railroad PFS
(see September 10, 2019 news release) recommended a series of
trade-off and optimization studies which have been completed and
incorporated into the Updated PFS (see February 18, 2020 news
release). The trade-off studies enhanced project economics
and reduced project risks by lowering initial capital costs from
$194M to $132.9M, increasing the after-tax IRR from 27.8% to 40%,
and increasing the after-tax NPV from $241.5M to $265.0M. The
Updated 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 Updated PFS include:
PFS Metric |
2019 Prefeasibility Study |
2020 Updated Prefeasibility Study |
Delta |
Initial Capital Expenditures |
$194.0M |
$132.9M |
-$61.1M |
Life of Mine Capital Expenditures |
$302.7M |
$285.6M |
-$17.1M |
Life of Mine Pre-Tax Cash Flow |
$409.7M |
$439.7M |
+$30.0M |
Life of Mine Pre-Tax Net Present Value (5%) |
$302.1M |
$331.4M |
+$29.3M |
Life of Mine Pre-Tax IRR (internal rate of return) |
32.4% |
46.1% |
13.7% |
Life of Mine Net Cash Flow After Tax |
$337.1M |
$357.6M |
+$20.5M |
Life of Mine After Tax Net Present Value (5%) |
$241.5M |
$265.0M |
+$23.5M |
Life of Mine After Tax IRR |
27.8% |
40.0% |
+12.2% |
Cash Costs after By-Product Credit* |
$582/oz |
$582/oz |
$0 |
AISC* |
$657/oz |
$707/oz |
+$50/oz |
Payback |
2.7 years |
3.3 years |
+0.6 years |
Notes:
- * See “Non-GAAP Financial Measures” at the end of this
press release for a discussion of these measures.
- The Updated 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 Updated PFS was conducted
at assumed metal prices of $1,250/oz gold and $15.30/oz
silver.
Non-GAAP Financial MeasuresThe
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 CostsCash 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
(“AISC”)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.
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.
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, a Principal Engineer
with MDA (a division of RESPEC), is the qualified person for the
reserve estimate and mine planning in this news release, as defined
by NI 43-101. Dr. Ibrado, Mr. Sletten, Mr. Dyer 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 (NV #08708) 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.
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
results of the Updated PFS 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
Gold Standard Ventures (TSX:GSV)
Historical Stock Chart
From Jun 2024 to Jul 2024
Gold Standard Ventures (TSX:GSV)
Historical Stock Chart
From Jul 2023 to Jul 2024