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June 17 2014
By Thom Calandra
Guten tag for a Nevada gold and silver prospector: a German report on Gold Standard Ventures' (TSX:V.GSV, Stock Forum) Pinon deposit helped to gap GSV shares higher in Canada and USA trading.
The gap higher Tuesday to 73 cents USD from about 67 cents is one feature of increased "retail" or individual investor, interest in the Nevada-centric gold prospector. The valuation blip took place on trading volume of about 150,000 shares in New York. The price gap occurred in Canada trading as well.
The stock moved after Germany analyst Stephan Bogner's report: http://www.rockstone-research.de/research/RockstoneGSVupdate1english.pdf. It appears to have been distributed by a press release publisher: ACCESSWIRE.
The report is detailed with comments about the mineralization quality of the first five drill-hole core from a 12-hole program. Good photos of the drill core occur throughout.
The shares continued higher throughout the day. At the close Tuesday, nearly 600,000 shares changed hands in the USA. The USA close was 78 cents, a 16 perent gain for the guten tag. In Canada, more than 800,00 shares changed hands -- well above average and also for a 16 percent gain.
Mr. Bogner says he is not paid to research the company but owns GSV shares. Gold Standard Ventures is one of our TCR 7, now 6. (See below.) Its principals in the past have used Germany-produced literature to good effect. That is the case with Mr. Bogner's Rockstone Research.
Mr. Bogner's thesis is much the same as ours, which we stated here 10 days ago. (See previous reports and CEO.ca distribution.) An area that holds non-compliant gold ounces of about 840,000 could double or more with the fresh drilling. The mineral is contained in a collapsed-style breccia that is seen in producing Nevada mines nearby.
Pinon is one of three targets across GSV's holdings near Elko, Nevada. Tuesday's activity in the shares -- in USA and Canada -- support a belief at TCR that the next sustained rally in resource equities will benefit at first prospectors in the world's top-rated mining jurisdictions, such as Nevada and Quebec. The company just filed for base shelf-registration of shares in the USA and Canada. This is a way to sell shares to individual investors via short-form prospectus.
Gold Standard Ventures was the buzz of a recent Los Angeles conference. At the show two weeks ago, individual and professional investors waited in line to talk privately with the company's CEO and co-founder, Jonathan Awde.
We await Gold Standard Ventures' exploratory drilling and resource report on the Pinon purchase in Nevada. (GSV in USA and Canada).
The 12-hole program at Pinon, which is similar to Newmont-owned Emigrant Gap's collapsed-style breccia about 20 miles away, likely will be completed in the next week or two. A resource could emerge as soon as July. The hole assays will be out much sooner and could be actionable for individual investors.
We spent time in Los Angeles with Gold Standard Resources and CEO Jonathan Awde. Jonathan says we will see compliant resources and a mineral inventory from GSV's three targets by year's end: Railroad's North Bullion Zone, recently purchased Pinon and nearby gold-copper Bald Mountain. Pinon, purchased from Scorpio Gold, could show some of Nevada's most readily oxidized gold -- perhaps 1 million inferred ounces at almost a gram per metric ton, according to reports I have collected.
Maybe much more.
Some of the material includes discussions and formulae that are not for publishing.
What is for public viewing is brokerage analyst Mike Gray's work of the past two years. Mr. Gray is in Canada and is a bank analyst. He is listed on GSV's web site with contact information for those who want his latest reports on GSV.
At Piñon, some 1 million oxidized ounces at depths of less than 125 meters would give Gold Standard Ventures a sell-able property, if it so wishes. Or one with a three-year timeline to heap-leach production at an operating cost of, dare I even estimate, $600 an ounce.
Once GSV's geology team completes an analysis of stratigraphic sections for Pinon, the company might be able to trace similar, if not identical, rock types (minerals, formations, thicknesses, texture) across each of its three targets. Such an occurrence on the geological layering of the deposits would go some way toward allowing technicians and other outside analysts to determine a "safe" and inferred resource estimate for all three targets, well before year's end. Maybe even by mid-July. Gold Standard by November, I believe, will have additional resource estimates or a mineral inventory published and filed in Canada and the USA for North Bullion Zone (Railroad) and Bald Mountain. Most of that will be inferred and allow for interpretation by company executives, if I understand the concept correctly.
"Getting our first resource published at Pinon is a de-risking event," said Mr. Awde, who has yet to reach age 40.
Two other Pinon heap-leach comparables -- aside from producing Emigrant) -- are Corvus's (TSX:KOR, Stock Forum) Bullfrog, which is a quarter of what Pinon's grade could show, and Midway's Pan.
Both are not yet producing and both are in Nevada.
I remember where I was when GSV published assays from breccia drilling at Railroad (North Bullion). That was in September 2013, and I was in Toronto, meeting with a graphite company.
Gold Standard at the time showed 98 meters of 3-plus gram/gold at Railroad near Elko. It already had something like 75 grams of 3.5-gram-plus gold in the tray, and that core was from close by. Most of it was breccia, which is a success in Nevada Carlin Trend set-ups if the grade shows a mere 1 gram per metric ton.
The GSV geology team benefited from David Mathewson's bold senior-citizen strikes across a vast holding there in the high desert. Now, more methodical structural geologists are at work on GSV properties, including the new Pinon. Mr. Mathewson is onto a fresh GSV assignment at another property, inside another corporate entity called Tanqueray Resources (TSX:V.TQY, Stock Forum). Its name will change to reflect the GSV connection.
Back to the reference to Michael Gray, who writes for Macquarie Equities Research. Once the 12 Piñon holes get published, we could see a bunch more back-of-the-envelope estimates not just for what Pinon holds, but across the three properties. (I am estimating 4 million ounces on the three targets alone. There is something like 115 square km total in GSV's land package, a nice portion of it owned outright and the rest claimed, staked, optioned and so on.) This is because, as stated, stratigraphic similarities, layering matches if you will, across that part of GSV's Nevada holdings, will make it so.
Piñon is considered a sister deposit to Emigrant. But little is known even with some drilling at the Pinon property in years past. What I do know after seeing Railroad twice is that any data confirming similar structure, grades, depths (less than 125 meters), trend direction -- more info about flat-lying breccia, for instance -- could be extrapolated and employed by outside analysts in their own deposit models.
Theoretically, again, gold and silver at Pinion outcrops at surface, then would get hauled downhill to private sections that already are secured, with water rights.
GSV has become one of my five largest natural resource positions and is a member of the TCR 6. New York writer and investor Peter Epstein also is active in researching the company and is a member of the TCR family.
We are eliminating Solvista Gold (TSX:V.SVV, Stock Forum) from our TCR 7 in the wake of its decision to focus on non Colombia assets. It is likely a good decision given the political climate and administrative morass surrounding all things resources in that nation. I am for now holding my Solvista Gold (SVV in Canada) shares, more than 200,000 of them. That makes it TCR 6: Atico Mining (TSX:V.ATY, Stock Forum) (also in Colombia and under review), Colt Resources (TSX:V.GTP, Stock Forum), Angkor Gold (TSX:V.ANK, Stock Forum), Gold Standard Ventures, NuLegacy Gold (TSX:V.NUG, Stock Forum) and Pilot Gold (TSX:PLG, Stock Forum).
GSV, NUG and PLG (Canada tickers) are each active in Nevada.
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