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Gold Standard Ventures Corp
Symbol GSV
Shares Issued 142,771,878
Close 2015-03-02 C$ 0.56
Market Cap C$ 79,952,252
Recent Sedar Documents

Gold Standard releases Dark Star NI 43-101 estimate

2015-03-03 06:05 ET - News Release

Mr. Jonathan Awde reports

GOLD STANDARD COMPLETES INITIAL RESOURCE ESTIMATE FOR THE DARK STAR GOLD DEPOSIT, CARLIN TREND NEVADA

Gold Standard Ventures Corp. has released a maiden National Instrument 43-101-compliant resource estimate for its newly acquired Dark Star gold deposit at its 100-per-cent-owned/controlled Railroad-Pinion project in Nevada's Carlin trend. The estimate was prepared by APEX Geoscience Ltd. of Edmonton, and is dated as at March 3, 2015. A National Instrument 43-101-compliant technical report will be filed with SEDAR within 45 days of the date of this news release.

In its summary report, APEX estimates an inferred mineral resource of 23.11 million tonnes grading 0.51 gram per tonne gold, totalling 375,000 ounces of gold, using a cut-off grade of 0.14 gram per tonne gold. A sensitivity analysis of the grade and tonnage relationships at a variety of cut-off grades is shown in the accompanying table.

Key highlights:

  • The Dark Star gold deposit is located 2.1 kilometres east of the Pinion gold deposit. A section of relatively flat fee ground controlled by the company is located between the two deposits which could accommodate the facilities required for co-ordinated exploitation of the two deposits.
  • If the cut-off is raised to 0.3 gram per tonne gold, there is little change in the overall grade and total ounces of the inferred resource.
  • The resource estimate is based on 105 historical reverse circulation holes. Relogging of the chips supports a conclusion that much of the mineralization is well oxidized.
  • The Dark Star mineralization occurs at a higher stratigraphic level than Pinion mineralization, within Pennsylvanian siliciclastic and carbonate rocks.
  • Gold mineralization is related to a north-to-north-northeast-striking zone of silicification focused along west-dipping contacts, within a coarse conglomerate and bioclastic limestone-bearing unit, and between overlying and underlying relatively impervious siltstone-bearing units. These sedimentary rocks are cut by thin rhyolite dikes, part of a north-striking zone of faults, dikes and silicification that runs along the east side of the Pinon range that is referred to as the Dark Star structural trend.
  • Mineralization remains open in multiple directions. Due to observable continuity of mineralization, there is good potential for expansion of the resource along mineralization controls identified by the geologic modelling. The phase 3 Railroad-Pinion-Dark Star drilling program starting this spring will be designed to test these areas for resource expansion.
  • Due to the good lateral continuity of the mineralization, the potential to convert inferred resources to indicated resources with future drilling is considered high.
  • The deposit outcrops and is generally at shallow depths, indicating that strip ratios are likely to be favourable.

Commenting on the estimate, Gold Standard president and chief executive officer Jonathan Awde noted: "Our aim is to bulk up the Pinion open-pit oxide resource before completing a preliminary economic assessment later this year. We see Dark Star potentially making an important contribution to this objective. The all-in acquisition costs for this new resource were less than $1 per resource ounce. The next step is an expanded drill program which should begin early in the second quarter. In our view, we have just begun to scratch the surface of what appears to be a very sizable near-surface gold system in the Pinion area which has now been consolidated under one company for the first time."

 DARK STAR NI 43-101 MINERAL RESOURCE ESTIMATE AT A CUT-OFF OF 0.14 G/T AU 
    WITH A SENSITIVITY ANALYSIS AT VARIOUS ALTERNATIVE LOWER CUT-OFFS

                    Au cut-off         Tonnage       Au grade      Contained
Classification            (g/t)      (millions)          (g/t)        Au (oz)

Inferred                   0.1           23.11           0.51        375,000
                          0.14           23.11           0.51        375,000
                           0.2           23.05           0.51        375,000
                           0.3           21.43           0.52        361,000
                           0.4           16.83           0.57        309,000
                           0.5            9.95           0.65        209,000
                           0.6            4.66           0.78        117,000
Notes:
1. Inferred 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 resource as an 
indicated or measured mineral resource, and it is uncertain if further 
exploration will result in upgrading the resource to an indicated or measured 
resource category.
2. Reported resources have been constrained within a $1,250-per-ounce-gold 
pit shell.
3. Contained ounces may not add due to rounding.

Mineral resource estimate

The maiden NI 43-101 mineral resource estimate for the Dark Star deposit was prepared under the direction of Michael Dufresne, MSc, PGeol, and Steven Nicholls, BASc, MAIG, of APEX, both qualified persons under National Instrument 43-101, who have reviewed and approved this news release. The current inferred resource estimate is based on the results of 105 RC drill holes from multiple earlier drill campaigns from 1991 to 1999. Over a period of 12 months, APEX employees, along with GSV employees, were intimately involved in the verification and validation of the Dark Star drill hole database. During 2014 and 2015, GSV geologists have been involved in a large-scale drill hole geology relogging program designed to refine the geological model of the area. This resulted in an increased level of confidence in the geological controlled mineralization model for Dark Star. In the opinion of APEX, the Dark Star database is suitable for resource estimation.

The resource block model was generated using a total of 105 RC drill holes. Drilling has been completed on roughly east-west cross-sections that range in spacing from 15 to 50 metres. The Dark Star assay file comprised 9,364 analyses of variable lengths, of which 9,103 samples have been assayed for gold. There has been only sporadic silver analysis completed. Of the 9,364 samples in the Dark Star database, roughly one-fifth (2,113 assays) are situated within the gold mineralized lodes. The Dark Star sample analyses exhibit a single population of data. Mineralized wireframes/solids have been constructed to separate the different mineralized horizons. The Dark Star resource estimate employed capping to 3.2 grams per tonne gold however only 10 samples were affected. The capping has little effect on the overall resource estimation. Both capped and uncapped grade was calculated during the estimation.

The mineral resource was estimated by inverse distance squared within a three-dimensional mineralization envelope that was tailored to the geological model, which was confirmed with detailed chip relogging, reinterpretation and geological modelling by GSV and APEX employees. Grade was estimated into parent blocks measuring 15 metres (X) by 15 metres (Y) by three metres (Z), which were subblocked down to five metres (X) by five metres (Y) by one metre (Z) to provide a better representation of the lode volume. Silver was not estimated. An incremental search ellipsoid ranging from 30 metres by 30 metres by 45 metres to 180 metres by 180 metres by 270 metres orientated along 12 degrees was used for the gold grade interpolation. A nominal density of 2.58 tonnes per cubic metre was applied to all mineralized blocks, which is based upon the density measurements utilized at Pinion and confirmed with outcrop samples at Dark Star. The gold resource has been classified as entirely inferred.

Historic metallurgical testwork has been completed to date, which includes analysis of the suitability of the gold mineralization to direct cyanide soluble leaching methods. Bottle roll leach testwork was completed by Crown Resources Corp. in 1991. This testwork obtained recoveries of gold ranging from 75.0 to 91.3 per cent, in direct cyanidation of RC chips in 96 hours of leaching. Gold recovery rates were fairly rapid and extraction was substantially complete after 24 hours. Cyanide consumptions were low with lime consumptions moderate to high. Further metallurgical testwork is planned but these initial results are encouraging and warrant further investigation.

In order to demonstrate that the Dark Star deposit has potential for economic extraction, the unconstrained resource block model was subjected to various preliminary pit optimization scenarios. The criteria used in the whittle pit optimizer were standard for Nevada heap leach deposits and were run at gold prices of $1,250 per ounce, $1,400 per ounce and $1,550 per ounce. All mineral resources have been reported within the optimized pit shell using the $1,250 per ounce and are shown in the table. The volume and tonnage for the reported resources within the $1,250-per-ounce optimized pit shell represent approximately 90 per cent of the total tonnage in the unconstrained block model.

Potential for resource expansion

As a direct follow-on effect of completing a detailed geological model for the Dark Star deposit, target zones have been developed along strike of the deposit in areas previously thought tested and of limited potential or in areas of limited drill hole testing. A number of shallow and deeper targets have been identified immediately adjacent to the existing resource and have good potential to cost-effectively and easily expand the current inferred resource. Along with targets to potentially expand the resource, areas within the existing inferred mineral resource that are defined by widely spaced drilling but with reasonable grades provide the company with potential to convert to and grow the indicated portion of the oxide mineral resource. APEX recommends further drilling to test these targets in order to expand the existing resource and convert inferred resources to indicated resources. Further modelling, in conjunction with pit optimization studies, is recommended once further drilling is completed.

The scientific and technical content and interpretations contained in this news release have been reviewed, verified and approved by Steven R. Koehler, BSc, geology, CPG-10216, Gold Standard's manager of projects, a qualified person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects.

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