N/RGold Summit Options Nevada Property With Open-Pit Gold Resource
July 10, 2009
Gold Summit Corporation (“GSM” or the “Company”)announces that it signed an option agreement with Parker Mining Companycovering 22 unpatented mining claims at Sugarloaf Peak, EsmeraldaCounty, in western Nevada. Option payments, starting at $5,000 foryear one, escalate by $5,000 on successive anniversaries for a fouryear period. Work expenditure requirements are $25,000 for year one,$100,000 for year two and $200,000 for years three and four. The leasemay be extended beyond four years. At the start of production GSM willown a 100% interest subject to a 4% NSR production royalty. GSM hasthe option to reduce the royalty to a 1% NSR by making a single cashpayment of $2 million.
The Sugarloaf Peak area contains a number of shallow undergroundworkings one of which, the Tip Top Mine, has recorded productionbetween 1915 and 1918 of approximately 6,500 ounces at a grade of 22.2g/t gold. The prospect was explored by a number of exploration groups,including GSM, between 1980 and 2006 and a number of targets developedfrom GSM’s previous work remain, either undrilled or poorly tested.Underlying the district is a thick pile of volcanics and volcanicsediments filling a pronounced fault bounded trough. It is a classicgeological setting for prolific epithermal systems, notably the Midasdeposit in Northern Nevada. Additional exploration and drilling iswarranted to evaluate the higher grade underground extent of theexisting Tip Top resource and to test several other high qualitysurface epithermal vein expressions.
Much of the past drilling was concentrated at Tip Top where DosAmigos, a junior company drilled 60 shallow percussion holes, 50 ofwhich intersected greater than 1 g/t gold over drilled widths between25 and 3 metres, including one interval of 16 m of 21.2 g/t gold. DosAmigos made substantial progress towards permitting an open pit minebefore abandoning their interest in 2001 in the face of weak goldprices. Parker Mining Company has calculated a potential open pitresource (not NI 43-101 compliant) ranging from 33,000 to 102,000ounces at grades of 3.8 g/t and 3.6 g/t gold, respectively. Theestimated potential resource range depends on the distance filter(between 6 m and 12 m, respectively) applied in the computer generatedmodel. The potential quantity and grade is conceptual in nature withinsufficient work to define a mineral resource and it is uncertain iffurther work will result in definition of a mineral resource. GSM plansto complete a NI 43-101 compliant study on the project as well asevaluating nearby areas for offsite ore processing. Metallurgical testwork by past explorers indicates good leach characteristics.
GSM explores primarily in Nevada for high grade gold and gold/silverdeposits that would support underground, low cash cost operations.GSM’s primary properties, totaling 42 km2, cover fourTertiary epithermal vein districts. All these have drill ready targetsdefined by surface work, most with bonanza grades in outcrops ordiscovery drill holes. The company’s flagship property, Monte Cristo,contains a NI 43-101 compliant inferred resource estimate of 331,000tonnes averaging 6.5 g/t gold. High grade shoots that form the heart ofthe resource are open down plunge and the company plans work to extendthese.
In the opinion of the Company, much of the work on the Propertycompleted prior to 2001 appears to be reliable and to have beenconducted by competent organizations. The pre-2001 data are consideredhistorical according to NI 43-101 and these historical estimates arenot NI 43-101 compliant. A qualified person has not done sufficientwork to classify the historical estimates as current mineral resourcesor mineral reserves and GSM is not treating the historicalestimates as current mineral resources or mineral reserves as definedin NI 43-101. Accordingly, the historical estimates should not berelied upon by investors.
Larry Kornze, a GSM director and a registered ProfessionalGeologist, is designated as the Qualified Person under NI 43-101 andhas reviewed and approved the contents of this news release.
For further information, contact Andrea Rascati at (775) 284-7200 or visit our web site at www.goldsummitcorp.com.
Neither TSX Venture Exchange nor its Regulation Services Provider(as that term is defined in the policies of the TSX Venture Exchange)accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking statements. Thesestatements are based on information currently available to GSM and GSMprovides no assurance that actual results will meet management’sexpectations. Forward-looking statements include estimates andstatements that describe GSM’s future plans, objectives or goals,including words to the effect that GSM or management expects a statedcondition or result to occur. Forward-looking statements may beidentified by such terms as “anticipates”, “believes”, “could”,“estimates”, “expects”, “may”, “shall”, “will”, or “would”. Sinceforward-looking statements are based on assumptions and address futureevents and conditions, by their very nature they involve inherent risksand uncertainties. Actual results relating to, among other things,results of exploration, project development, reclamation and capitalcosts of GSM’s mineral properties, and GSM’s financial condition andprospects, could differ materially from those currently anticipated insuch statements for many reasons such as: changes in general economicconditions and conditions in the financial markets; changes in demandand prices for minerals; litigation, legislative, environmental andother judicial, regulatory, political and competitive developments;technological and operational difficulties encountered in connectionwith the activities of the Company; and other matters discussed in thisnews release. This list is not exhaustive of the factors that mayaffect any of GSM’s forward-looking statements. These and otherfactors should be considered carefully and readers should not placeundue reliance on GSM’s forward-looking statements. GSM does notundertake to update any forward-looking statement that may be made fromtime to time by GSM or on its behalf, except in accordance withapplicable securities laws.
This news release includes certain “forward looking statements”within the meaning of the United States Private Securities LitigationReform Act of 1995. Without limitation, statements regarding potentialmineralization and resources and reserves, exploration results, andfuture plans and objectives of the Company are forward lookingstatements that involve various degrees of risk. The following areimportant factors that could cause the Company’s actual results todiffer materially from those expressed or implied by such forwardlooking statements: changes in the world wide price of mineralcommodities, general market conditions, risks inherent in mineralexploration, risks associated with development, construction and miningoperations, the uncertainty of future profitability and the uncertaintyof access to additional capital.