Mr.
Jonathan Awde reports
GOLD STANDARD REPORTS A MAIDEN RESOURCE ESTIMATE FOR ITS NORTH BULLION DEPOSIT AT ITS RAILROAD-PINION PROJECT
Gold Standard Ventures Corp. has released a maiden mineral resource estimate for its North Bullion gold deposit on its 100-per-cent-owned/controlled Railroad-Pinion project in Nevada's Carlin trend, prepared in accordance with National Instrument 43-101, Standards of Disclosure for Mineral Projects. The maiden mineral resource estimate also includes resources at Sweet Hollow and POD in the nearby historic Railroad district for the first time. These resource estimates were prepared by Apex Geoscience Ltd. of Edmonton, Canada, and are dated Sept. 8, 2017. A technical report prepared in accordance with NI 43-101 will be filed with SEDAR within 45 days of the date of this news release.
The majority of the mineralization at the Sweet Hollow and POD deposits is oxidized. The Sweet Hollow and POD oxide mineralization is about seven kilometres (4.2 miles) north of the Pinion and Dark Star gold deposits. The North Bullion deposit hosts sulphide mineralization typical of the large deposits found in the north portion of the Carlin trend.
Highlights:
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At Sweet Hollow and POD, Apex has estimated a new near-surface oxide indicated mineral resource of 90,100 ounces of gold contained in 2.92 million tonnes at an average grade of 0.96 gram per tonne gold (at a cut-off of 0.14 gram per tonne gold). No mineral resources have previously been reported for these deposits.
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Also at Sweet Hollow and POD, Apex has estimated a near-surface oxide inferred mineral resource of 46,600 ounces of gold contained in 3.36 million tonnes at an average grade of 0.43 gram per tonne gold (at a cut-off of 0.14 gram per tonne gold).
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At North Bullion (and including a minor contribution from Sweet Hollow and POD), Apex has estimated a near-surface/pit-constrained sulphide inferred mineral resource of 171,400 ounces of gold contained in 2.05 million tonnes at an average grade of 2.6 grams per tonne gold (at a cut-off of 1.25 grams per tonne gold). No mineral resources have previously been reported for the North Bullion deposit.
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Also at North Bullion, Apex has estimated a deeper (underground) sulphide inferred mineral resource of 587,700 ounces of gold contained in 5.55 million tonnes at an average grade of 3.29 grams per tonne gold (at a cut-off of 2.25 grams per tonne gold).
A sensitivity analysis of the grade and tonnage relationships at a variety of cut-off grades is shown in attached tables in this press release.
Jonathan Awde, chief executive officer and a director of Gold Standard, commented: "Our Carlin resource base continues to grow. The structure and mineralogy of the North Bullion deposit strongly resembles the large gold deposits at the north end of the Carlin trend. We continue to have success drilling this deposit and it remains open in multiple directions. However, our priority remains expanding the shallow oxide deposits, which are faster and less costly to develop," he said.
Based upon detailed modelling of the drill information (from 503 drill holes) in conjunction with reasonable prospects of future economic extraction, Apex estimates within the mineralized zones a mineral resource that comprises the following: a pit-constrained, near-surface oxide indicated mineral resource of 2.92 million tonnes grading 0.96 gram per tonne gold, totalling 90,100 ounces of gold; a pit-constrained oxide and sulphide inferred mineral resource of 5.42 million tonnes grading 1.25 grams per tonne gold, totalling 218,000 ounces of gold; and a deeper underground constrained sulphide inferred mineral resource of 5.55 million tonnes at an average grade of 3.29 grams per tonne gold, totalling 587,700 ounces of gold (see attached table). A sensitivity analysis of the grade and tonnage relationships at a variety of cut-off grades is shown in two separate tables.
The North Bullion, Sweet Hollow and POD mineral resource
estimate with cut-off grades is summarized as follows.
NORTH BULLION, SWEET HOLLOW AND POD MINERAL RESOURCE ESTIMATE (1)
Classification Constraint Au cut-off Au tonnage
(g/t) (million tonnes)
Indicated total Oxide -- pit constrained 0.14 2.92
Inferred Oxide -- pit constrained 0.14 3.36
Inferred Sulphide -- pit constrained 1.25 2.05
Inferred subtotal Pit-constrained inferred subtotal 0.14, 1.25 5.42
Inferred Sulphide underground 2.25 5.55
Inferred total Pit-constrained and
underground inferred total 0.14, 1.25, 2.25 10.97
Classification Au grade Contained Au (2)
(g/t) (ounces) (3)
Indicated total 0.96 90,100
Inferred 0.43 46,600
Inferred 2.60 171,400
Inferred subtotal 1.25 218,000
Inferred 3.29 587,700
Inferred total
2.28 805,800
(1) 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 mineral resources tabulated
herein as an indicated or measured mineral resource. There is no guarantee
that any part of the mineral resources discussed herein will be converted
into a mineral reserve in the future.
(2) The recommended reported resources (indicated total and inferred total) have
been constrained within an optimized pit shell of $1,350 (U.S.) per ounce of gold
and/or an underground mining scenario utilizing a 2.25-gram-per-tonne-gold
lower cut-off.
(3) Contained ounces may not add due to rounding.
SENSITIVITY ANALYSIS OF THE SWEET HOLLOW AND POD OXIDE
MINERAL RESOURCE ESTIMATE FOR GOLD AT VARIOUS CUT-OFF GRADES (1)
Classification Au cut-off Au tonnage Au grade Contained Au (3)
(g/t) (million tonnes) (g/t) (ounces)
Indicated (oxide) 0.0 3.04 0.93 90,600
0.14 (2) 2.92 0.96 90,100
0.2 2.51 1.09 87,800
0.3 1.64 1.53 80,800
0.4 1.41 1.73 78,400
0.5 1.40 1.74 78,200
Inferred (oxide) 0.0 3.63 0.41 47,500
0.14 (3) 3.36 0.43 46,600
0.2 2.71 0.49 43,000
0.3 1.47 0.70 33,200
0.4 1.14 0.81 29,700
0.5 1.09 0.82 28,800
(1) 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 mineral resources tabulated
herein as an indicated or measured mineral resource. There is no guarantee
that any part of the mineral resources discussed herein will be converted
into a mineral reserve in the future.
(2) The recommended reported resources (0.14-gram-per-tonne-gold cut-off) have
been constrained within an optimized pit shell of $1,350 (U.S.) per ounce of gold.
(3) Contained ounces may not add due to rounding.
SENSITIVITY ANALYSIS OF THE NORTH BULLION, SWEET HOLLOW AND
POD SULPHIDE MINERAL RESOURCE ESTIMATE FOR GOLD AT VARIOUS CUT-OFF GRADES (1)
Classification Au cut-off Au tonnage Au grade Contained Au (4)
(g/t) (million tonnes) (g/t) (ounces)
Inferred
(near-surface sulphide) 1.0 2.20 2.50 176,700
1.25 (2) 2.05 2.60 171,400
1.5 1.85 2.73 162,200
1.75 1.66 2.86 152,400
2.0 1.35 3.09 133,800
Inferred
(underground sulphide) 2.0 6.87 3.07 678,000
2.25 (3) 5.55 3.29 587,700
2.5 4.31 3.55 492,800
2.75 3.15 3.90 394,900
3.0 2.52 4.16 336,300
(1) 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 mineral resources tabulated herein
as an indicated or measured mineral resource. There is no guarantee that any part
of the mineral resources discussed herein will be converted into a mineral reserve
in the future.
(2) The recommended reported resources (1.25-gram-per-tonne-gold cut-off) have been
constrained within an optimized pit shell of $1,350 (U.S.) per ounce of gold.
(3) The recommended reported resources (2.25-gram-per-tonne-gold cut-off) have been
constrained within a underground mining scenario of $1,350 (U.S.) per ounce of gold.
(4) Contained ounces may not add due to rounding.
Exploration target and potential for resource expansion
As a direct effect of the Railroad project's drilling programs from 2010 to 2016 and completing an updated geologic model, additional targets for immediate potential resource expansion have been identified in areas of limited drill hole testing. Shallow and deeper oxide and sulphide targets have been identified adjacent to existing resources that have good potential to expand the current inferred and indicated mineral resources. A near-surface oxide exploration target of three million to six million tonnes at a grade of 0.3 gram per tonne gold to 0.5 gram per tonne gold yielding an oxide exploration target of 30,000 ounces up to 100,000 ounces of gold has been identified outside of the Sweet Hollow to POD portion of the property based upon prior drilling. The potential quantity and size are conceptual in nature. There has been insufficient exploration to define a mineral resource. It is uncertain if further exploration will result in the target being delineated as a mineral resource.
In addition, outside of this resource estimate, an exploration target of sulphide material ranging from eight million to 27 million tonnes with a potential grade of 1.1 grams per tonne gold up to 1.7 grams per tonne gold yielding a target of 300,000 ounces up to 1,475,000 ounces has been identified for potential resource expansion. The potential quantity and size are conceptual in nature. There has been insufficient exploration to define a mineral resource. It is uncertain if further exploration will result in the target being delineated as a mineral resource. Along with targets to potentially expand the resource, areas within the existing inferred mineral resources 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 and/or sulphide mineral resource. Apex recommends further drilling to test these drill targets in order to expand the existing resources and convert inferred mineral resources to indicated mineral resources.
Geology
The North Bullion, Sweet Hollow and POD deposits are hosted by a number of lodes oriented north-northeast-northwest over an area of 2.75 kilometres by 950 metres. The mineral resource estimate is based on 171 reverse circulation holes and 61 diamond core holes. Careful review has determined that results from the two forms of drilling are comparable. The geology of the mineralized zones is described as follows:
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The oxide gold zone at Sweet Hollow and POD is hosted in a mixed sequence of siliciclastic and carbonate rocks interpreted as belonging to the Mississippian Webb and Tripon Pass formations. Decalcification and silicification are the predominant alteration types, and dissolution collapse breccia occurs in the carbonate rocks. The mineralization lies stratigraphically higher than the Devils Gate/Tripon Pass host to the main Pinion zone gold mineralization.
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The sulphide gold zone at North Bullion is hosted in two tectono-stratigraphic horizons: an upper zone within a mixed sequence of siliciclastic and carbonate rocks interpreted as belonging to the Mississippian Tripon Pass formation and a lower zone in multilithic dissolution collapse breccia developed along the top of the Devils Gate limestone. The lower zone at North Bullion is hosted in the same stratigraphic horizon as Gold Standard's Pinion deposit and much of Newmont Mining's gold mineralization within the Rain mining district, immediately to the north. Decarbonatization, dolomitization and silicification are the predominant alteration types at North Bullion.
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Mineralization remains open in multiple directions. Significant potential exists for expansion of the mineral resources along geologic controls identified during the modelling of the deposits at North Bullion, Sweet Hollow and POD. Approximately 6,700 metres of drilling will be completed in 2017 to further expand the mineral resources (see Gold Standard's news release dated May 9, 2017).
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Due to the good vertical and lateral continuity of the dissolution, collapse-breccia-hosted gold mineralization, and the identification of additional targets, the potential to expand the mineral resources and convert inferred mineral resources to indicated mineral resources with future drilling is considered high.
Mineral resource estimate
The statistical analysis, geological modelling and resource estimation were prepared by Steven Nicholls, MAIG, with Apex under the direct supervision of Michael Dufresne, PGeol, PGeo, also with Apex. Both are qualified persons as defined by National Instrument 43-101 and have reviewed and approved this news release. Mineral resource modelling and estimation were carried out using a three-dimensional block model based on geostatistical applications using commercial mine planning software Micromine (16.0).
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 10 metres (x) by 10 metres (y) by three metres (z) with subblocking down to five metres (x) by five metres (y) by 1.5 metres (z) was applied. The North Bullion, Sweet Hollow and POD resource modelling utilized 232 drill holes that were completed from 1980 to 2017. Mr. Dufresne visited the property in April and October, 2014; June, 2015; August to September, 2015; and June, 2017, in order to verify and validate the historical drill hole data set and to verify the drilling of the recently completed 2016 diamond and reverse circulation drilling campaigns completed by Gold Standard. Over the period of the last four years, Apex staff were intimately involved in the verification, validation, drill hole collar surveying and quality assurance/quality control analysis of the Railroad project 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 503 drill holes guided the geological interpretation and 232 were used in the estimation of the North Bullion, Sweet Hollow and POD mineral resource. This total comprises 61 diamond core holes and 171 reverse circulation drill holes that were completed from 1980 to 2016. Spacing between drill holes varies from two metres to 120 metres 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 988 bulk-density samples were collected from a variety of sources, including bulk sampling, surface rock-chip samples and drill core. A total of 272 bulk-density samples were situated within the mineralized wire frames. The 272 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 2.33 grams per cubic centimetre to 2.71 grams per cubic centimetre with overall average bulk density of 2.68 grams per cubic centimetre for the North Bullion, Sweet Hollow and POD mineral resource.
The Railroad project assay file comprised 75,890 analyses of variable length from a variety of sampled lithologies. Of the 75,890 samples in the Railroad project database, roughly 9 per cent (6,941 assays) are situated within the gold mineralized lodes. A parent block size of 10 metres (x) by 10 metres (y) by three metres (z) was chosen for the North Bullion, Sweet Hollow and POD block model. This is deemed appropriate based on the current level of drill-hole spacing in the resource area, which ranges from two metres to 120 metres with rough sections that range from 20-metre to 100-metre spacing. The block model extents were extended beyond the mineralized wire frame to encompass the entire domain. Subblocking down to five metres (x) by five metres (y) by 1.5 metres (z) was used to more effectively honour the volumes and shapes created during the geological interpretation of the mineralized wire frames 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 North Bullion, Sweet Hollow and POD resource estimation of gold was calculated using inverse distance (ID2) for each of the 17 lodes. Silver was not estimated. The North Bullion, Sweet Hollow and POD resource estimation was conducted using inverse distance squared and ordinary kriging, all of which were reviewed for resource estimation quality and validation. Based upon the resultant validation of the block models, it was decided to use the inverse distance squared estimation technique as it best honoured the input composite grades. As such, only the inverse-distance-squared 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 metres (x) by three metres (y) by three metres (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.
Some metallurgical test work has been completed to date, which includes analysis of the suitability of the oxide gold mineralization to cyanide soluble leaching methods and for sulphide-material, bench-scale roaster treatment. Bottle-roll and column-leach tests indicate the potential to achieve greater-than-80-per-cent recovery for oxide material and greater-than-85-per-cent recovery for sulphide material with existing roaster processing technology methods (Dufresne et al., 2017).
The 2017 Sweet Hollow and POD oxide mineral resources were constrained by a pit optimization conducted using $1,350 per ounce gold, along with assumed costs for open-pit mining and processing of oxide resources in Nevada. Sulphide mineral resources at North Bullion, Sweet Hollow and POD were constrained by a pit optimization conducted using $1,350 per ounce gold, along with assumed costs for open-pit mining and processing of sulphide resources in Nevada. Underground mineral resources at North Bullion have been reported using $1,350 per ounce gold, along with assumed costs for underground mining and processing of sulphide mineral resources in Nevada.
The North Bullion, Sweet Hollow and POD mineral resource estimate is reported in accordance with NI 43-101 and has been estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) 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.
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 10th sample. The North Bullion core samples were delivered to ALS Minerals' preparation facility in Elko, Nev., where they were crushed and pulverized. Resulting sample pulps were shipped to ALS Minerals' certified laboratory in Sparks, Nev., or Vancouver, B.C. Pulps were digested and analyzed for gold using fire assay fusion and an atomic absorption spectroscopy (AAS) finish on a 30-gram split. Overlimit 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 ensure accurate and verifiable results. Drill-hole deviation was measured by gyroscopic downhole surveys that were completed on all holes by International Directional Services of Elko, Nev.
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 and 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 2014 Pinion and Dark Star gold deposit acquisitions offer Gold Standard a potential near-term development option and further consolidate the company's premier land package on the Carlin trend.
We seek Safe Harbor.
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