Feb 2, 2011
About six months ago, I
wrote about a new company drilling deep in the Carlin Trend
for the next gold whale. I made an interesting prediction at
the end of the piece that appears to have just come true. "GV
is a crapshoot but the potential payoff is a hell of a lot higher
than the odds.?"
Dave Mathewson, VP Exploration, just proved his theory on a broken
hole that only came within 600 feet of the desired depth target.
It's like drilling a condemnation hole and coming up with 500
meters of two-ounce gold. Luck beats skill anytime in my book.
Let me bring you up to speed. Drilling deep is always a problem
but in the Carlin Trend, deep drilling has broken more than one
heart and many a pocket book. Gold Standard is drilling 1500-foot
holes. They cost a bomb. The rock conditions are difficult and
many holes fail to get to their target but the drillers insist
on getting paid anyway.
Gold Standard announced
the results from hole 8 on January 20th. They include 435
feet of continuous mineralization with 105 feet of 1.39-g/t material
and 140 feet of 1.21-g/t material. In context, the hole would
be in the top 1% of holes drill in the 2 million ounce Emigrant
deposit. But you can't mine 1.39-g/t material at depth, you have
to have higher grade.
The company announced
the results from hole 10 today and it shows gold up to 2.1
g/t from 760 feet to the bottom of the failed hole at 880 feet.
The pathfinder minerals such as arsenic, mercury and antimony
all seem to be increasing as they drill to the north.
Carlin type systems tend to have a thick low-grade halo around
the core of higher-grade underground minable material. Dave Mathewson
believes the system is stronger to the north and east. The drill
results are showing higher grades and better pathfinder materials.
Dave also believes this hole is still in the Upper Webb Formation
which is almost never mineralized. If this is the Upper Webb,
assays should be higher in the better-mineralized Lower Webb
and brecciated Devil's Gate formations below. Naturally, the
company is eager to complete the hole by switching to a core
We own Gold Standard shares and participated in a private placement
months ago. We are biased. They pay us for banner advertising
and we like them. Do your own due diligence.
The company has a tiny $20 million or so market cap and one big
hole would result in a giant pop in the stock. The news flow
will be meager for months so any investor should have a good
opportunity to pick up shares. Don't chase the stock.
GV-V $.75 (Feb 1, 2011)
GDVXF-PK 34.4 million shares
Gold Standard website