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Gold Whale

Bob Moriarty
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 rig.

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.

Gold Standard Ventures
GV-V $.75 (Feb 1, 2011)
GDVXF-PK 34.4 million shares
Gold Standard website


Bob Moriarty
President: 321gold

321gold Ltd