Gold Standard strikes again at North Dark Star in Nevada

VANCOUVER — Shares of explorer Gold Standard Ventures (TSXV: GSV; NSYE-MKT: GSV) surged after results from a drill program at its emerging North Dark Star oxide gold discovery along Nevada’s prolific Carlin trend. The company gained nearly 76% — or $1.42 per share — following the news en route to a $3.29-per-share close at press time.

The buying frenzy was triggered by hole 15-8, which cut 126.2 metres grading 3.95 grams gold per tonne from 165 metres down hole. The intersect includes intervals of 44 metres at 4.70 grams gold, 17.9 metres of 5.6 grams gold and 7.9 metres of 10.7 grams gold.

Drilling at the Dark Star target on the Pinion-Railroad property in Nevada. Credit: Gold Standard Ventures.

“This is a rare oxide intercept in terms of true thickness and grade,” CEO Jonathan Awde said during a conference call. “When you look at the average grade of material being mined at open-pit oxide operations in Nevada, it is roughly 1 gram gold per tonne, and those grades appear to be dropping. We’re still figuring out some of the structural controls at North Dark Star, but this intercept really opens up possibilities for us along the entire corridor.”

North Dark Star emerged last year as a priority for the company after discovery hole 15-13 intersected 97 metres grading 1.85 grams gold.

The target lies 500 metres north of the main Dark Star resource, which totals 32 million tonnes at 0.51 gram gold for 375,000 contained oz. at a 0.14 gram gold cut-off.

Gold mineralization along the Dark Star corridor occurs within an uplifted block, or horst, of  Pennsylvanian-Permian carbonate host rocks in the footwall of a large-displacement normal fault.

Roads leading to a drill pad at the Pinion-Railroad project in Nevada. Credit: Gold Standard Ventures.

“The grade and thickness obviously speaks for itself, but I’d also point to what we’re seeing in the core from a geologic perspective. There is an extensive, thick zone of alteration that extends from the top to the bottom of the hole,” vice-president of exploration Mac Jackson said.

“These are carbonate-bearing rocks, and the carbonate is gone. That kind of vertical extent, as well as grade, indicates what we’re dealing with in terms of size and strength. In the intersections we’ve seen to date there are fractures and collapsed crackle breccia superimposed on lithological contacts. We don’t think we’re in a structural feeder here,” he added.

The Dark Star targets sit within Gold Standard’s flagship Railroad-Pinion project, which totals 115 sq. km, 57 km southwest of Elko.

The company is spending US$13.4 million on drilling this year, which should fund 100 holes over 43,000 metres.

Oxide gold deposits at South Railroad-Pinion/Dark Star property. Credit: Gold Standard Ventures.

Gold Standard has earmarked 22 holes for exploring North Dark Star, including 10,300 metres aimed at expanding “shallow oxide gold mineralization” to the north and south. Another 10,100 metres will be drilled at the “largely untested” Dark Star structural corridor, which is a north-trending horst defined by gravity surveying, geologic mapping and soil sampling.

“It’s pretty plain from our interpretation that the mineralization we’re seeing in 15-8 remains open to the southeast and southwest,” Jackson said. “I have to be honest and say that we’re drilling in a newly discovered deposit here, and we’re still learning the geological controls. But the results we’ve had to date, especially this most recent drill hole, don’t come along very often.”

Gold Standard has traded within a 52-week window of 42¢ to $3.37 per share, and has 208 million shares outstanding for an $893-million press-time market capitalization.

The company has drawn recent investment from some larger names in the precious metal space, including $16 million from Goldcorp (TSX: G; NYSE: GG) and another $16 million from Australia’s OceanaGold (TSX: OGC).

“This intercept lends to the strength of this mineral system, and we now have the second-largest land package in the Carlin trend,” Awde said. “We’ve spent a great deal of time over the past five years consolidating our position, and that’s what makes discoveries like this one possible.”