In review We are where we were at the $2.00 pp. although a bit better, so I bought more at $1.21.
First, 12-05 was a compromise, as the original target of 12-03 had been the footwall, important for structural
outline as well as a blind chance for a fault plane conduit. It's real disappointment was 0.2 grs. for 450',
not 0.4 which makes real money digging for the highgrade.
(11-03 had allready hinted at loosing grade (to the immediate) east.)
Loosing 12-06 was sad as it might more directly have reflected 12-1. It's being re-drilled presently
12-04 and 12-07 image one another as they are offsets. 100' of 2.0 grs. works just fine
Lastly, any one of the 3 wells in the lab could touch more hi grade, however odds are improved in
the next 6 wells which have support of new geophysics.
There are more feeders. Period. or there would not be the numerous mineralizations thruout this triangular
structural block!
GSV will get their act together plotting wellbores as well as new locations so any of us can map these
intersections. They paid a price (we paid it !) with this recent careless news release. Brent Cook responded
accordingly today calling his understanding (as well as the GSV effort 'conceptual in nature' Hey Zeus!
Also:
FROM: and (thank you Ausum) :
from adam graf, analyst for dahlman rose
The absence of high-grade gold assays from newly-released exploration results at Railroad disappointed the Market. Carlin systems can be very complex, and it is not unusual to have highly variable results. We deem the sell-off as unwarranted and would view this as a buying opportunity. |
| Results from Three New Holes Drilled to the East of Previous Drill Holes |
Assay results from new holes at the North Bullion Fault Zone (NBFZ) were released. The three holes were drilled in an attempt to define the limits of the zone and are located to the east of where previous holes have been drilled (see Exhibit 2, Page 3). These eastern holes appear to be on the fringe of gold mineralization and are lower-grade than gold encountered to the west. We believe the negative reaction Tuesday is unwarranted and see this weakness as a buying opportunity. Two additional holes did not make target depth due to difficult rock conditions, and results for three completed holes have yet to be received. |
| New Holes in Progress to Test the Extension of the Higher-Grade Intercepts |
To date, gold mineralization has been encountered over a length of 3,000 feet, a width of about 1000 feet, and ~1,500 feet vertically, and the zone remains open in several directions. Drill spacing continues to be 300-400 feet. Two RC drills are being mobilized to Railroad to add to the existing core rigs currently at work. The company is currently employing two drills to test the extension of the higher-grade intercepts that were announced in April. Results are anticipated by the end of September. |
| Impact on NAV |
GSV is an early-stage exploration story with the only major on-trend discovery by a junior in the last two decades. Grade variance from exploration drilling should be expected, as these systems tend to be 1) structurally complex; 2) contain a high degree of grade variability; 3) experience challenging drilling conditions, but can yield company making gold systems. We remain confident in the project's open-pit potential and excellent location on the Carlin trend, adjacent to Newmont's Rain/Emigrant mines. |