Gold Standard set to explore Uruguay with Big Pony Gold

The funds were raised through a private placement to institutional investors of 850,000 common shares at $3 each.

Gold Standard and its 50% owned affiliate Big Pony Gold control over 800 square miles of mineral rights in southern Uruguay where a previously unknown tract of Archaen greenstone has been reported.

The companies have been encouraged by recent assay results on 67 rock samples taken within a 2.5-mile long and 300-yard wide area which averaged 0.15 oz gold per ton. Values ranged as high as one ounce.

While Gold Standard President Scott Smith was unavailable for comment, a company spokesman said proceeds of the placement will fund aeromagnetic surveys, drilling and trenching on a number of properties, including the Escudero, San Juan and Big Pony’s Paso de Lugo. Several occurrences of visible gold and in outcrops and quartz veins have been reported on the Paso de Lugo property.

As reported (N.M., Oct 2/89), Gold Standard and Big Pony are conducting exploration programs in Uruguay out of their joint offices in Atlantida, about 25 miles east of Montevideo.

Big Pony plans to sell off direct interests ranging from 10% to 50% in its properties in return for exploration funding.

The trial involving Gold Standard and Barrick is scheduled to begin in Tooele Cty., Utah, next April.

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