Gold Standard Ventures Corp. (
TSX: GSV;
NYSE AMERICAN: GSV) (“Gold Standard” or the “Company”)
today announced an initial mineral resource estimate (“MRE”) for
the Virgin gold and silver deposit (the “Virgin Deposit”) on its
100%-owned/controlled Lewis Project in Nevada’s Battle Mountain
Trend (the “Lewis Project”). The mineral resource estimate
was prepared in accordance with National Instrument 43-101 –
Standards of Disclosure for Mineral Projects (“
NI
43-101”) by APEX Geoscience Ltd. of Edmonton, Canada
(“
APEX”) and has an effective date of May 1, 2020.
The Company has decided to prepare and file a technical
report in accordance with NI 43-101 on SEDAR within 45 days.
In its summary report, APEX estimates an
Inferred Mineral Resource of 7.74 million tonnes grading 0.83 grams
gold per tonne (g Au/t), totaling 205,800 ounces of gold and 14.22
grams silver per tonne (g Ag/t) totaling 3,537,300 ounces of silver
(at a lower cutoff of 0.20 g Au/t) (Table 1). A sensitivity
analysis of the grade and tonnage relationships at a variety of cut
off grades is shown in the accompanying Table 2 below.
The Lewis Project is a separate and unique
exploration project located approximately 100 km west of GSV’s
flagship South Railroad development project. The Lewis Project
shares a common land boundary with Nevada Gold Mines’ Phoenix mine,
one of the most prolific and active gold-silver-copper producers on
the Battle Mountain-Eureka trend. The Company believes
that the Lewis Project inferred mineral resource estimate at the
Virgin Deposit is a continuation of the Phoenix-Fortitude
mineralization currently being mined by Nevada Gold Mines in the
Phoenix mine. Open pit laybacks for the Phoenix mine’s
approved environmental impact statement actually cross onto
GSV-controlled ground and may include mining all or portions of the
Inferred Mineral Resource. The Lewis Project has several
known mineralized zones and has the potential for new gold and
silver discoveries on the 5,340-acre (2,161 hectare) project. The
Lewis Project was acquired by Gold Standard as part of its purchase
of Battle Mountain Gold Inc. completed on June 14, 2017 (see news
release).
A sensitivity analysis of the grade and tonnage
relationships at a variety of cut-off grades is shown in the
accompanying Tables 2 below.
Jonathan Awde, CEO and Director of Gold Standard
commented: “In our view, the Lewis Project is important to
the ongoing success of Nevada Gold Mine’s Phoenix mine immediately
to the south, for three reasons…the value of the layback provides
room for Phoenix to mine to the limits of the currently permitted
pit, the added value of the mineral resource estimate which is
continuous with the Phoenix mineralization, including the mineral
resource estimate helps offset stripping costs for the expansion of
the Phoenix operations, and the Lewis Project has its own resource
expansion potential to the north along the Virgin Fault, the main
feeder for the Phoenix deposit.”
Key Highlights
- Inferred Mineral Resource of
205,827 troy ounces of gold and 3,537,268 troy ounces of silver
contained in 7.74 million tonnes at a grade of 0.83 g Au/t and at a
grade of 14.22 g Ag/t (at a lower cutoff of 0.20 g Au/t), yielding
a combined total of 248,300 troy ounces of gold equivalent (“AuEq”)
at a combined grade of 1.0 g/t AuEq (using a ratio of 80 to 1
silver to gold).
- The MRE is based on 193 reverse
circulation holes, 33 diamond core holes, and 4 unknown
holes.
- Additional shallow gold and silver
resource potential exists to the east and west in related
sub-parallel or separate structural zones, with extensions to the
Virgin Deposit open to the north and at depth. Mineralization
at the south end of the mineral resource area continues into the
Phoenix open pit mine.
- The Virgin Deposit consists of
higher-grade structures surrounded by lower-grade disseminated
mineralization within a zone measuring about 725 meters in length
at an azimuth of 350 degrees, up to 325 meters wide which includes
multiple sub-parallel, sub-vertical zones, with up to 300 meters in
vertical depth. The Virgin fault, which controls
mineralization in the Phoenix mine to the south, strikes northward
out of the mine and onto the Lewis Project where it also controls
gold and silver mineralization in the Virgin Deposit. Gold
and silver mineralization is associated with northwest trending and
steep westerly dipping structures in Paleozoic sedimentary
rocks.
- Near surface oxide potential (<
40 m deep) remains open to the east (MAD-45, 22.9m grading 1.53 g
Au/t and 22.9 g Ag/t and MAD-74, 24.4m grading 1.22 g Au/t and 55.0
g Ag/t) and to the west (MAD-64, 13.7m grading 3.16 g Au/t and
163.6 g Ag/t and BVD-9A, 27.4m grading 2.17 g Au/t and 39.4 g
Ag/t).
- In addition to the initial mineral
resource estimate at the Virgin Deposit, high-value exploration
targets on the Lewis Project include: 1) the Southwest skarn target
where Barrick Gold Corporation drill hole FWL-30 intersected 17 m
of 5.7 g Au/t – an intercept that remains open in multiple
directions; and 2) the Buena-Vista Meagher corridor immediately
north of Nevada Gold Mines’ Phoenix mine. The strong
gravity gradient and historic shallow intercepts in upper plate
Havallah Sequence rocks (including 27.4m of 2.20 g Au/t in drill
hole BVD-9A) indicate that structure and system should be present
in the favorable Antler host rocks at depth. The potential
grades noted above are conceptual in nature; there has been
insufficient exploration to define further mineral resources and it
is uncertain if further exploration will result in these targets
being delineated as a mineral resource.
Table 1. Virgin Deposit MRE at a lower
cutoff of 0.20 g Au/t is summarized below*:
Classification |
Tonnage – Au(millionmetric tonnes) |
Au Grade(gramsper tonne) |
ContainedAu**(troyounces) |
Ag Grade(grams pertonne) |
ContainedAg**(troyounces) |
AuEqGrade(grams pertonne) |
ContainedAuEq****(troyounces) |
Inferred |
7.74 |
0.83 |
205,800 |
14.22 |
3,537,300 |
1.00 |
248,300 |
*Mineral Resources that are not Mineral Reserves do not have
demonstrated economic viability. There has been insufficient
exploration to allow for the classification of the inferred
resources tabulated as a indicated or measured mineral resource,
however, it is reasonably expected that the majority of the
inferred mineral resources could be upgraded to indicated or
measured mineral resources with continued exploration. There is no
guarantee that any part of the mineral resources discussed herein
will be converted into a mineral reserve in the future.**Reported
resources have been constrained within a US$1500/ounce of gold pit
shell. ****Contained ounces may not add due to rounding. AuEq is
based upon a ration of 80:1 Ag to Au.
Table 2. Sensitivity analysis of the
Virgin Deposit mineral resource estimate at various
cut-offs:
Cutoff |
Tonnage – (millionmetrictonnes) |
Au Grade(grams pertonne) |
ContainedAu**(troyounces) |
Ag Grade(grams pertonne) |
ContainedAg**(troyounces) |
AuEqGrade(grams pertonne) |
ContainedAuEq***(troyounces) |
0 |
9.01 |
0.73 |
211,200 |
13.49 |
3,909,700 |
0.89 |
258,100 |
0.1 |
8.67 |
0.76 |
210,600 |
13.82 |
3,850,500 |
0.92 |
256,800 |
0.14 |
8.43 |
0.77 |
209,600 |
13.92 |
3,773,100 |
0.94 |
254,900 |
0.2 |
7.74 |
0.83 |
205,800 |
14.22 |
3,537,300 |
1.00 |
248,300 |
0.3 |
6.43 |
0.95 |
195,300 |
14.85 |
3,068,900 |
1.12 |
232,100 |
0.4 |
5.14 |
1.09 |
180,800 |
15.58 |
2,574,100 |
1.28 |
211,700 |
0.5 |
4.14 |
1.25 |
166,400 |
16.29 |
2,171,300 |
1.44 |
192,500 |
Mineral Resource Estimate
The initial mineral resource estimate for
the Virgin Deposit was prepared under the supervision of Michael
Dufresne, M.Sc., P.Geol., P.Geo., by Steven Nicholls, B.A.Sc., MAIG
and Warren Black, M.Sc., P.Geo. of APEX, all “qualified persons”
under NI 43-101, who have reviewed and approved this news release.
Modeling was conducted in Universal Transverse
Mercator (UTM) coordinate space relative to the North American
Datum (NAD) 1927 and UTM Zone 11. A parent block size of 3 m (X) x
3 m (Y) x 3 m (Z) was utilized in order to honour the
mineralization wireframes. The Lewis Project MRE modeling utilized
230 drill holes that were completed from 1980 to 2018. Mr.
Dufresne, P.Geol., P.Geo., visited the property in August, 2019, in
order to verify and validate the historic drill hole dataset and to
verify the drilling of the recently completed 2017 to 2018 diamond
and RC drilling campaigns completed by Gold Standard.
APEX personnel were involved in the verification
and validation of the Lewis Project drill hole collar and assay
database and quality assurance/quality control analysis of the
database. The current drill hole database is deemed to be in good
condition and suitable to use in ongoing mineral resource
estimation studies. A total of 34,239 assay intervals make up the
assay database, with a total of 6,300 samples assayed for gold and
6,132 assayed for silver within the mineralization domains. The
sample database was composited to 10 ft (3.05 m) and capping limits
of 30 g/t Au and 180 g/t Ag were applied to the composites. Gold
and silver estimation was completed separately using ordinary
kriging. The percentage of the volume of each block below the bare
earth surface and within each mineralization domain was calculated
using the 3D geological model and a 3D surface model. The search
ellipsoid size used to estimate each metal was defined by the
modelled variograms. Block grade estimation employed varying
anisotropy, which uses different rotation angles to define the
principal directions of the variogram model and search ellipsoid on
a per-block basis. Blocks within estimation domains are assigned
rotation angles using a modelled 3D mineralization trend surface
wireframe, which allows structural complexities to be reproduced in
the estimated block model.
A total of 464 bulk density samples were
available, of which 49 were situated with the resource
mineralization domains. The average density for the lodes ranges
from 1.49 g/cm3 to 4.98 g/cm3 with overall average bulk density of
2.68 g/cm3 which was applied to all blocks for the Lewis Project
mineral resource estimate.
The resource is classified according to the CIM
“Estimation of Mineral Resources and Mineral Reserves Best Practice
Guidelines” dated November 29th, 2019 and CIM “Definition Standards
for Mineral Resources and Mineral Reserves” dated May 10th, 2014. A
NI 43-101 technical report disclosing the Lewis Project MRE will be
filed on SEDAR within 45 days.
Factors that may affect the estimate include:
metal prices, changes in interpretations of mineralization
geometry, continuity of mineralization zones, changes to kriging
assumptions, metallurgical recovery assumptions, operating cost
assumptions, confidence in the modifying factors, including
assumptions that surface rights to allow mining infrastructure to
be constructed will be forthcoming, delays or other issues in
reaching agreements with regulatory authorities and stakeholders,
and changes in land tenure requirements or in permitting
requirements.
Sampling Methodology, Chain of Custody,
Quality Control and Quality Assurance:
All Gold Standard sampling was conducted under
the supervision of the Company’s project geologists, and the chain
of custody from the project to the sample preparation facility was
continuously monitored. Core was cut at the company’s facility in
Elko and one half was sent to the lab for analysis and the other
half retained in the original core box. A blank or certified
reference material was inserted approximately every tenth
sample. The core and RC samples were delivered to either ALS
Minerals or Bureau Veritas Mineral Laboratories preparation
facility in Elko, NV where they were crushed and pulverized.
Resulting sample pulps were shipped to either ALS Minerals or
Bureau Veritas Mineral Laboratories certified laboratory in Sparks,
NV or Vancouver, BC. Pulps were digested and analyzed for
gold using fire assay fusion and an atomic absorption spectroscopy
(AAS) finish on a 30-gram split. Over limit gold assays were
determined using a fire assay fusion with a gravimetric finish on a
30-gram split. All other elements were determined by ICP
analysis. Data verification of the analytical results
included a statistical analysis of the standards and blanks that
must pass certain parameters for acceptance to insure accurate and
verifiable results. Drill hole deviation was measured by gyroscopic
down hole surveys that were completed on all holes by International
Directional Services of Elko, NV. Both ALS Minerals and Bureau
Veritas Minerals Laboratories are independent of the Company.
The scientific and technical content and
interpretations contained in this news release have been reviewed,
verified and approved by Steven R. Koehler, Gold Standard’s Manager
of Projects, BSc. Geology and CPG-10216, a “qualified person” as
defined by NI 43-101.
ABOUT GOLD STANDARD VENTURES –
Gold Standard is an advanced-stage gold exploration company focused
on building value in a responsible, sustainable and ethical manner
by leveraging its strategic, cornerstone land package in Nevada’s
Carlin Trend. Gold Standard intends to advance its South
Railroad Project through permitting and a feasibility study towards
a potential production decision. Gold Standard intends to augment
this goal by advancing exploration that contributes value to the
South Railroad Project.
The Pinion deposit has a mineral 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 Mineral
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 mineral resource
estimate prepared in accordance with NI 43-101 consisting of a
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 Mineral 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 ounce LG Cone.
The North Bullion deposit has a mineral 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 Mineral 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.
The Jasperoid Wash deposit has a mineral
resource estimate prepared in accordance with NI 43-101 consisting
of an Inferred Mineral 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 LLC 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 r resources;
the opportunities for exploration, development and expansion of the
Lewis Project; the intention to file a technical report for the
initial mineral resource estimate at the Lewis Project; creating
further value by leveraging its land package; advancing its South
Railroad Project through permitting and a feasibility study
towards a potential production decision and augmenting this by
advancing exploration that contributes value to the South Railroad
Project; and the 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 “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. 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
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