NEWS: GSV acquires additional Pinon groundGOLD STANDARD ACQUIRES ADDITIONAL INTERESTS IN THE PINON GOLD DEPOSIT SOUTH OF ITS RAILROAD PROJECT IN NEVADA'S CARLIN TREND
November 13, 2012 – Vancouver, B.C. –Gold Standard Ventures Corp. (TSXV: GSV; NYSE MKT:GSV) (“Gold Standard” or the “Company”) www.goldstandardv.com reported today that it has entered into a new lease agreement within the Pinon district encompassing approximately 18,676 net mineral acres, of which 2,620 net mineral acres of land is both within and contiguous to the south of the Company's flagship Railroad gold project in Elko County, Nevada.
The new lease agreement grants Gold Standard the exclusive right to explore, mine and develop varying percentage holdings in portions of what the Company calls the South Railroad project, which includes the Pinon District immediately south of the Railroad District. This lease, when combined with the leases previously secured encompassing 4,128 net mineral acres - announced on August 30, 2012 (see news release of August 30, 2012) - grant Gold Standard control of approximately 6,748 net mineral acres within strategic sections located throughout the Railroad and Pinon Districts. The Company’s research estimates that this new acquisition gives it control of approximately 51 per cent of Pinon section 27 which contains the bulk of the historic South Bullion and Trout Creek gold deposits (to see map go to https://www.goldstandardv.com/images/railroad-pinon-land-positions). Together, these occurrences are known as the Pinon Deposit and considerable geologic and exploration data exist for them in recognized peer-reviewed publications. The remaining interests in these lands are held by others including Manhattan Mining Company (MMC) on behalf of Royal Standard Minerals Inc.
In addition to securing the lease on 2,620 contiguous net mineral acres, Gold Standard has also secured the surface and water rights on 4,467 net surface acres, through a third party, within the Railroad and Pinon Districts. The surface agreement grants Gold Standard the sole general right of ingress and egress over, upon and across these surface tracts and therefore the sole right to use the surface tracts to explore, mine and develop these sections.
Acquisition Highlights:
- Further consolidation of South Railroad, particularly sections 3 and 15, potentially the southern extensions of the high-grade NBFZ gold discovery. Recently completed CSAMT surveys suggest the NBFZ target extends well to the south potentially onto and through Section 3. Key sections acquired in South Railroad are all of section 13 and portions of sections 1, 3, 9, and 15. (to see map go to https://www.goldstandardv.com/images/railroad-pinon-land-positions)
- These acquisitions increase Gold Standard’s holdings from ~32% to ~51% of Pinon section 27 which contains the bulk of the South Bullion and Trout Creek deposits, collectively known as the Pinon deposit. Strategic leases acquired within the Pinon district are varying acreage and percentage holdings in sections 23, 25, 27 and 35.
- Secured 100% surface and water rights on 4,467 acres for key sections within the South Railroad and Pinon districts which are critical to the future exploration and development of the district.
Gold Standard President and Chief Executive Officer Jonathan Awde states; "Securing the surface, mineral and water rights to key portions of the South Railroad and Pinon district further consolidates our interests in south Railroad and provides us with effective majority control of the Pinon district – a district that we feel represents an excellent opportunity to explore and develop additional gold discoveries."
Dave Mathewson, Gold Standard's vice-president of exploration, noted; "The new acquisitions represent a very important step in enabling Gold Standard Ventures to apply its rapidly growing knowledge of the south Carlin area to explore a rich set of target opportunities. The acquisitions within Sections 3 and 15, T30NR53E, were critical in order to pursue targets further southward within the important Bullion Fault Corridor. With the acquisition of these mineral and surface leases in Sections 3 and 15, we effectively control 10 contiguous kilometers (6 miles) of this north-south trending Corridor along the east flank of our Railroad project, including discovery of the North Bullion deposit within Railroad section 27 in T31NR53E”, Mathewson said (to see map go to https://www.goldstandardv.com/images/railroad-pinon-land-positions).
“Target opportunities along the Bullion Fault Corridor have been identified and synthesized from detailed gravity data and CSAMT geophysical data collected through 2011 and 2012. The targets, existing mostly beneath on-lapping post-mineral Tertiary volcanic rocks, extend southward from the North Bullion discovery. To this time, we have been effectively limited to exploring only one mile of this promising Corridor. Now, with the recently approved Plan of Operations in place (see news release of October 31, 2012), combined with these acquisitions, we are able to move aggressively forward with ongoing exploration drilling. In addition, these new acquisitions, along with the earlier Pinon acquisitions, provide us with dominant mineral and surface rights in the very southernmost portions of the Railroad district and in particular most of the Pinon gold deposit”, continued Mathewson.
GSV now controls approximately 16,724 net mineral acres associated with its Railroad Project within the Railroad District as shown on Map 3 (to see map go to https://www.goldstandardv.com/images/railroad-pinon-land-positions), as well as 16,056 net mineral acres to the east of Railroad and Pinon, which are not included within the attached maps.
Details of the acquisition are listed below:
- $1,000,000 cash payment (70% creditable against the future purchase of the minerals rights should the Company elect to do so);
- Work commitment of $500,000 in year 1, $750,000 in year 2 and $1,000,000 in year 3 and each year thereafter;
- Annual Lease Payments of $175,000 (with annual adjustments) for the first 12 years, equating to $9.37 per net minerals acre. Total new mineral rights now leased by GSV total 18,676 net mineral acres.;
- 5% Net Smelter Royalty with Gold Standard having the opportunity to buy down 3% for $3.5m in years 1 through 6. If GSV does not buy-down the NSR within the first 6 years, from years 7 through 12, the 3% NSR can be bought down for $7m.
- Option to purchase the mineral rights and remaining 2% NSR for $25m;
- GSV must purchase the mineral rights prior to commencement of mining.
In a separate transaction GSV also leased the surface and water rights of 4,467 acres in all of sections 13, 15, 23, 25 and in portions of sections 1, 3, 9, 27 and 35 T30N R53E for $4.50/acre on a 10 year term with right to renew.
A finders fee is payable on this acquisition, to an arm’s length party in accordance with the policies, and subject to the acceptance, of the TSX Venture Exchange.
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, Standards of Disclosure for Mineral Projects.