Mr. Jonathan Awde reports
GOLD STANDARD REPORTS INCREASED OXIDE GOLD RESOURCE AND APPROVAL OF AN EXPLORATION EA AT THE DARK STAR DEPOSIT, CARLIN TREND, NEVADA
Gold Standard Ventures Corp.
has released an updated National Instrument 43-101-compliant resource estimate for its Dark Star gold deposit on its 100-per-cent-owned/controlled Railroad-Pinion project in Nevada's Carlin trend. The estimate was prepared by APEX Geoscience Ltd. of Edmonton, Canada, and is dated June 9, 2017. An NI 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 indicated mineral resource of 15.38 million tonnes grading 0.54 gram per tonne gold, totalling 265,100 ounces of gold, and an inferred resource of 17.05 million tonnes grading 1.31 g/t Au, totalling 715,800 ounces of gold, using a cut-off grade of 0.20 g/t Au. A sensitivity analysis of the grade and tonnage relationships at a variety of cut-off grades is shown in the table.
DARK STAR NI 43-101 MINERAL RESOURCE ESTIMATE AT A CUT-OFF GRADE OF 0.20 G/T AU*
Classification Tonnage Au (Mt) Au grade capped (g/t) Contained Au** (troy ounces)***
Indicated 15.38 0.54 265,100
Inferred 17.05 1.31 715,800
* Indicated and 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 resources
tabulated as an indicated or measured mineral resource, however, it is reasonably
expected that the majority of the inferred mineral resources could be upgraded to
indicated 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.
** The recommended reported resources have been constrained within a
$1,250-(U.S.)-per-ounce-gold optimized pit shell.
*** Contained ounces may not add due to rounding.
Jonathan Awde, chief executive officer and director of Gold Standard, commented: "Our discovery of North Dark Star in 2015 has made an important tonnage contribution to this resource estimate at a very desirable grade. We are very confident that this estimate will grow with this year's aggressive drill program."
Key highlights
- Indicated mineral resource of 265,100 troy ounces of gold contained in 15.38 million tonnes at an average grade of 0.54 g/t Au (at a lower cut-off of 0.20 g/t Au). This is the first indicated mineral resource at the Dark Star deposit. A portion of the indicated mineral resource crops out at surface.
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Inferred mineral resource of 715,800 troy ounces of gold contained in 17.05 million tonnes at a capped grade of 1.31 g/t Au (at a lower cut-off of 0.20 g/t Au), up 93 per cent over the 2015 maiden inferred mineral resource (see news release dated March 3, 2015).
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The North Dark Star discovery and the Dark Star Main maiden resource (see March 3, 2015, news release) are connected and form a continuous gold zone with a strike length of approximately 1,300 metres (see Jan. 19, 2017, news release). Both North Dark Star and Dark Star Main are included in this resource estimate and are referred to as a single deposit, Dark Star. The indicated resource is from the former Main Dark Star deposit which has a greater density of drilling while the inferred resource estimate is largely from the former North Dark Star deposit discovered more recently.
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Gold mineralization remains open in multiple directions. Excellent potential exists for expansion of the resource along geologic controls identified during the modeling of the deposit. Approximately 12,600 m of drilling will be completed in 2017 to further expand the oxide resource (see news release dated Feb. 2, 2017).
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The Dark Star resource estimate noted in the table includes only material amenable to cyanide leaching. Drilling has encountered small zones of sulphide mineralization that are not included in the resource estimate.
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The reported resources have been constrained within an optimized pit shell at $1,250 (U.S.)/ounce of gold, consistent with resource disclosure by major companies.
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The resource estimate is based on 135 reverse circulation (RC) holes and 23 core holes.
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Due to the good lateral continuity of the gold zone and geologic controls modelled from oriented core, the potential to convert inferred resources to indicated resources with future drilling is considered high.
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The gold resource is hosted in Pennsylvanian-Permian collapse brecciated debris flow conglomerate and bioclastic limestone that is oxidized, decalcified, variably silicified. These sedimentary rocks are cut by thin rhyolite dikes and sills, part of a north-striking zone of faults, igneous rocks and silicification that runs along the east side of the Pinon range that is referred to as the Dark Star corridor.
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The company recently received a finding of no significant impact and decision record from the U.S. Bureau of Land Management for the South Railroad exploration EA. The EA covers approximately 12 square miles and provides the company with up to 250 acres of new disturbance. Gold Standard will bond for phase 1 now which is 100 acres of disturbance. The EA will allow the company to continue to explore high-priority targets at Dark Star, the Dark Star corridor and Pinion.
SENSITIVITY ANALYSIS OF THE DARK STAR NI 43-101 MINERAL RESOURCE ESTIMATE FOR GOLD AT VARIOUS CUT-OFFS*
Classification Au cut-off (g/t) Tonnage (Mt) Au grade capped (g/t) Contained Au (troy ounces)***
Indicated 0.0 15.38 0.54 265,100
0.2** 15.38 0.54 265,100
0.3 14.91 0.54 261,000
0.4 12.16 0.59 229,300
0.5 7.95 0.66 168,200
0.6 4.01 0.77 98,900
0.7 2.02 0.89 57,800
0.8 1.19 0.99 37,800
0.9 0.71 1.08 24,800
1.0 0.40 1.19 15,500
Inferred 0.0 17.06 1.31 715,900
0.2** 17.05 1.31 715,800
0.3 16.38 1.35 710,300
0.4 15.17 1.43 696,400
0.5 14.06 1.51 680,500
0.6 12.82 1.60 658,500
0.7 11.34 1.72 627,600
0.8 10.04 1.85 596,300
0.9 8.92 1.97 565,900
1.0 8.07 2.08 539,700
* Indicated and 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 resources tabulated as an indicated or measured mineral resource, however, it is
reasonably expected that the majority of the inferred mineral resources could be upgraded to indicated
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.
** The recommended reported resources have been constrained within a $1,250-(U.S.)-per-ounce-gold optimized
pit shell.
*** Contained ounces may not add due to rounding.
Mineral resource estimate
The statistical analysis, geological modelling and resource estimation were prepared by Steven Nicholls, MAIG, with APEX Geoscience Ltd., under the direct supervision of Mr. Dufresne, PGeol, PGeo, also with APEX. Both are qualified persons as defined by National Instrument 43-101. Mineral resource modelling and estimation were carried out using a 3-D block model based on geostatistical applications using commercial mine planning software MICROMINE (version 14.0.6).
Modelling was conducted in Universal Transverse Mercator (UTM) co-ordinate space relative to the North American Datum (NAD) 1927 and UTM zone 11. A parent block size of six m (X) by six m (Y) by six m (Z) with subblocking down to three m by three m by three m was applied. The combined Dark Star and North Dark Star resource modelling utilized 158 drill holes that were completed from 1984 to 2016. Mr. Dufresne visited the property in May, 2013, April and October, 2014, June, 2015, August to September, 2015, and June, 2017, in order to verify and validate the historic drill hole data set and to verify the drilling of the recently completed 2016 diamond and RC drilling campaigns completed by Gold Standard. Over the period of the last four years, APEX personnel were intimately involved in the verification, validation, drill hole collar surveying and quality assurance/quality control analysis of the Dark Star and North Dark Star drill hole database. The current drill hole database is deemed to be in good condition and suitable to use in continuing resource estimation studies.
A total of 158 drill holes guided the geological interpretation and estimation of the combined Dark Star and North Dark Star resource. This total comprises 23 diamond core holes and 135 RC drill holes that were completed from 1984 to 2016. Spacing between drill holes varies from two m to 160 m in the resource area. All of the drill holes were used to guide the geological and mineralization model that was ultimately used in the resource estimation calculation. A total of 683 bulk density samples were collected from the 2015 and 2016 GSV core holes. A total of 260 bulk density samples were situated within the mineralized wireframes. The 260 bulk density samples situated within the mineralized zones were examined on a lode by lode basis. The average bulk density determined from the analytical work for each lode was assigned to all the blocks within that lode. The average density for the lodes ranges from 2.46 grams/cubic centimetre to 2.62 g/cubic cm with overall average bulk density of 2.54 g/cubic cm for the combined Dark Star and North Dark Star mineral resource.
The combined Dark Star and North Dark Star assay file comprised 25,376 analyses of variable length from a variety of sampled lithologies. Of the 25,376 samples in the combined Dark Star and North Dark Star database, roughly 14 per cent (3,507 assays) are situated within the gold mineralized lodes. A parent block size of six m (X) by six m (Y) by six m (Z) was chosen for the combined Dark Star-North Dark Star block model. This is deemed appropriate based on the current level of drill hole spacing in the resource area which ranges from two m to 160 m with rough sections that range from 15 m to 100 m spacing. The block model extents were extended beyond the mineralized wireframe to encompass the entire domain. Subblocking down to three m (X) by three m (Y) by three m (Z) was used to more effectively honor the volumes and shapes created during the geological interpretation of the mineralized wireframes or lodes. Grade was interpolated for the parent blocks and assigned to the subblocks. A comparison of wireframe volume versus block model volume was performed for each of the estimations to ensure there was no underestimation or overestimation of tonnages. Each block was coded with the lode number so that grade could be estimated as hard boundaries.
The indicated and inferred Dark Star and North Dark Star resource estimation of gold was calculated using inverse distance (ID1) for each of the six lodes. Silver was not estimated. The combined Dark Star and North Dark Star resource estimation was conducted using inverse distance, inverse distance squared and ordinary kriging, all of which were reviewed for resources estimation. Based upon the resultant validation of the block models it was decided to use the inverse distance estimation technique as it best honoured the input composite grades. As such only inverse distance estimation technique was used for this estimation. Estimation was only calculated on parent blocks. All subblocks within the parent block were assigned the parent block grade. A block discretization of three m (X) by three m (Y) by three m (Z) was applied to all blocks during estimation. Each lode was estimated with hard boundaries, which means that only composite assays located within each lode were used to estimate the grade of the blocks within that lode.
Considerable metallurgical test work has been completed to date, which includes analysis of the suitability of the gold mineralization to cyanide soluble leaching methods. Bottle roll leach test work was completed by Crown Resources Corp. in 1991. This test work 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. In addition to these tests, Gold Standard reported cyanide soluble gold recoveries from oxidized conglomerate sample pulps that averaged 88.9 per cent for Dark Star and 89.9 per cent for North Dark Star (see news release dated April 10, 2017). Further metallurgical test work is in progress including bottle roll and column leach tests. More than 82 per cent of the block-modelled material is considered oxide mineralization.
The 2017 combined Dark Star and North Dark Star oxide mineral resources were constrained by a pit optimization conducted using $1,250 (U.S.) per ounce Au along with assumed costs for open-pit mining and processing of oxide resources in Nevada. The in-pit optimized resources account for a total of approximately 84 per cent of the volume of the drilled and mineralized wireframe area at the combined Dark Star and North Dark Star deposits.
The combined Dark Star and North Dark Star mineral resource estimate is reported in accordance with the Canadian Securities Administrators National Instrument 43-101 and has been estimated using the Canadian Institute of Mining, Metallurgy and Petroleum estimation of mineral resources and mineral reserves best practice guidelines dated Nov. 23, 2003, and CIM definition standards for mineral resources and mineral reserves dated May 10, 2014.
Potential for resource expansion
As a direct effect of the 2016 Dark Star and North Dark Star drilling program and completing an updated geologic model, additional target zones for resource expansion have been identified in undrilled areas or areas of limited drill hole testing. Shallow and deeper oxide targets have been identified adjacent to existing resources that have good potential to expand the current inferred resources. 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 and grow the indicated portion of the oxide mineral resource. APEX recommends further drilling to test these drill targets in order to expand the existing resources and convert inferred resources to indicated resources.
Sampling methodology, chain of custody, quality control and quality assurance
All original sampling was conducted under the supervision of the company's project geologists and the chain of custody from the drill to the sample preparation facility was continuously monitored. Core was cut at the company's facility in Elko and one-quarter was sent to the lab for analysis and the remaining core retained in the original core box. A pulp-blank or certified reference material was inserted approximately every 10th sample. The Dark Star core samples were delivered to Bureau Veritas Mineral Laboratories preparation facility in Elko, Nev. The samples are crushed, pulverized and sample pulps are shipped to Bureau Veritas certified laboratory in Sparks, Nev., or Vancouver, B.C. Pulps are digested and analyzed for gold using fire assay fusion and an atomic absorption spectroscopy (AAS) finish on a 30-gram split. Original pulps for the check assay program were delivered to the ALS certified lab in Sparks, Nev., where the pulps were digested and analyzed for gold using fire assay fusion and an atomic absorption spectroscopy (AAS) finish on a 30-gram split (Au-AA23 method, or if over 10 g/t Au, were reassayed using the Au-GRA21 method with a gravimetric finish). Data verification of the analytical results includes a statistical analysis of the standards and blanks that must pass certain parameters for acceptance to ensure accurate and verifiable results.
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 Corp.
Gold Standard is an advanced-stage gold exploration company focused on district-scale discoveries on its Railroad-Pinion gold project, located within the prolific Carlin trend. The Dark Star deposit, 2.1 kilometres to the east of Pinion, now has an NI 43-101-compliant resource estimate consisting of an indicated mineral resource of 15.38 million tonnes grading 0.54 gram per tonne gold, totalling 265,100 ounces of gold, and an inferred resource of 17.05 million tonnes grading 1.31 g/t Au, totalling 715,800 ounces of gold, using a cut-off grade of 0.20 g/t Au. The Pinion deposit has an NI 43-101-compliant resource estimate consisting of an indicated mineral resource of 31.61 million tonnes grading 0.62 g/t Au, totalling 630,300 ounces of gold, and an inferred resource of 61.08 million tonnes grading 0.55 g/t Au, totalling 1,081,300 ounces of gold, using a cut-off grade of 0.14 g/t Au (announced March 15, 2016).
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