Gold Standard Ventures Corp. is pleased to report a new gold discovery at the company’s Railroad project located on the Carlin Trend, Nevada.
Assay results for hole RR10-8 have just been received from ALS Minerals. This hole was a vertical hole started with RC, drilled to 123.4m (405ft), cased, and completed with core to 475.3m (1559.5ft).
These drill hole assays are weighted averages. Gold assays were completed by ALS Minerals, ALS Canada Ltd using 30 gram charge, fire assay, with ICP final. Q&A includes inclusion of blanks, duplicates, and check standards into submitted sample batches and comparison with known results, with sample preparation in Elko, and assayed in Reno and/or Vancouver.
“RR10-8 represents the discovery of a new zone of potentially significant gold mineralization within the Bullion Fault Zone target area of the Railroad project. As this gold mineralization is essentially open in all directions, the possibilities for positive future developments and expansion of this mineralization are exciting. The style of gold mineralization contained in thick sections of collapse-style breccias within permissive host rock units is typical of much of the gold mineralization on the Carlin Trend. Our 2011 drilling program at Railroad will focus on locating the prospectively higher grade feeder zones to this mineralization,” quotes Vice President of Exploration Dave Mathewson.
Three mineralized intervals of greater than 0.01 oz/st were encountered in RR10-8. The uppermost mineralized zone in RR10-8 of 6.1 meters of 0.585 g/t is comprised of baritic jasperoid breccia within what looks to be Webb mudstone. The middle mineralized zone of 32 meters of 1.39 g/t gold occurs within a zone of baritic, alunitic, moderately silicified and brecciated probable Chainman sandstone. The lower mineralized zone of 43.6 meteres of 1.21 g/t gold occurs within zone of mudstone and dolomite collapse breccia developed at and near the Webb-Devils Gate contact.
RR10-8 is the northernmost hole drilled in the 2010 phase I drill test of the Bullion Fault Zone target. The closest hole to RR10-8 is hole RR10-11 located 800 feet (244 m) to the south. RR10-11 was a vertical RC hole previously reported to have intersected 10.7 meters of 1.01 g/t from 163.1 to 173.7 meters, and more significantly, 82.3 meters of 0.413 g/t from 309.4 to 391.7 meters. RR10 and RR10-11 comprise the only two holes that test the northern portion of the Bullion Fault Zone target area. The strength of the alteration and grade of gold mineralization appears to be getting stronger toward the north, and perhaps also the east.
The Phase I, 2010 Railroad drilling program has been completed with a total of 16 holes drilled for a total of 5,587 meters. Three of these holes, RR10-5, 15 and 16, will be completed by core in 2011. Most of the 2010 drilling focused on the Bullion Fault Zone target. Other target areas identified in our 2010 exploration program remain, at this time, completely untested.
The Company’s Vice President of Exploration, David C. Mathewson, M.Sc., a non-independent Qualified Person, as defined by NI 43-101, Standards of Disclosure for Mineral Properties, has verified the technical information and evaluated interpretations contained in this news release.
The Company will also be seeking regulatory approval for the issuance of 346,153 common shares in the capital Gold Standard in full satisfaction of certain debts, including applicable interest, totalling $225,000 held by certain creditors. The common shares to be issued as consideration for cancelling the debt will be issued at a deemed value per common share of $0.65 cents, being the discounted market price as determined by the closing price of the common shares on the TSX Venture Exchange on Jan. 19, 2011, the day before this announcement.
Final approval of the issuance of common shares is subject to regulatory approval, including the approval of the TSX-V.
The Company also announces that it has granted 850,000 stock options to certain employees, officers, consultants and directors at today’s closing price.
The stock options are subject to the terms of the Company’s stock option plan and regulatory approval.