Vancouver, BC, September 9th, 2010 – Gold Standard Ventures Corp. (“Gold Standard”) (TSX: GV) is pleased to announce that it has signed a Mining Lease and Option to Purchase Agreement (“Agreement”) with Diversified Inholdings LLC to acquire, subject to a 4% net smelter return royalty, a 100% undivided interest in the Douglas Camp Project, consisting of 198 unpatented mineral claims comprising approximately 3,800 acres in the Walker Lane Trend in Mineral County, Nevada.
The Douglas Camp Project is located 15 miles southwest of the town of Mina, Nevada. In September 2009, a significant gold anomaly in rock samples was obtained by Diversified Inholdings LLC. Gold mineralization has been reported in a number of the 120 holes drilled previously on the project. The holes were drilled over the last 30 years by numerous companies. Intercepts within this previous drilling include:
- Hole # 47R – 16.8 meters of 17.4 g/t (55 feet of 0.51 opt from 30 to 85 feet)
- Hole # 35R – 21.3 meters of 2.12 g/t (70 feet of 0.062 opt from 0 to 70 feet)
- Hole # 7R – 18.8 meters of 1.91 g/t (65 ft of 0.059 opt from 0 to 65 feet), and 27.4 meters of 1.62 g/t (90 feet 0.047 opt from 120 to 210 feet)
The results from the exploration work predate National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) and are therefore provided for historical context only. Although the quality of the documentation suggests standards which approximate those dictated by NI 43-101, results must be validated by additional work that is fully compliant with prevailing standards. The Company has received field worksheets, assays, geological maps and sections and some detailed drilling logs. The Company believes that these historical drill results provide a conceptual indication of the potential of mineral occurrences within the project and are relevant to ongoing exploration.
Under the terms of the Mining Lease and Option Purchase Agreement, Gold Standard will pay annual escalating lease payments and incur minimum work expenditures as outlined below:
- Year 1, $45,000 Lease Payment, $25,000 Work Commitment
- Year 2, $50,000 Lease Payment, $75,000 Work Commitment
- Year 3, $55,000 Lease Payment, $100,000 Work Commitment
- Year 4, $60,000 Lease Payment, $100,000 Work Commitment
VP of Exploration Dave Mathewson says, “We are pleased to add Camp Douglas to our portfolio of projects. The project fits in very well as a district-scale opportunity with potential for discovery of both bulk-minable low grade and high grade gold mineralization. The project does not appear to have received significant, modern-day, model-driven exploration.” “Logistical positives include proximity to a major highway, the town of Mina, NV, and year around access.” “However, current exploration focus remains on Gold Standard Venture’s Carlin Trend Railroad project which is currently being drilled utilizing both RC and core drills.”
The Company also announces its intention to raise up to $2,535,000 through a non-brokered private placement of up to 3,900,000 Units priced at $0.65 per Unit. Each Unit will consist of one share plus one transferrable warrant. Each Warrant will be exercisable into one additional share at $1.00 per share for a period of 24 months.
The Warrants will also be subject to an acceleration clause. If after four months following the Closing Date the volume weighted average trading price of the common shares for 15 consecutive trading days is at least $1.50 per share, the Company will have the right to provide notice to warrantholders that the Warrants will expire following a notice period of at least 30 days, unless exercised during such notice period.
The proceeds from the private placement will be used for exploration on the Company’s Railroad Project in Nevada and working capital.
The Company may also pay finder’s fees in cash of up to 7% of the gross proceeds raised and agent’s warrants of up to 7% of the total number of Units sold.
The private placement and property acquisition are subject to the acceptance of the TSX Venture Exchange.
The Company’s Vice President of Exploration, David C. Mathewson, M.Sc., a non-independent Qualified Person, as defined by NI-43-101 for purpose of Disclosure for Mineral Properties has verified the information and evaluated interpretations contained in this news release.
ABOUT GOLD STANDARD VENTURES – Gold Standard Ventures is focused on the acquisition and exploration of gold projects in North Central Nevada. Gold Standard currently holds a portfolio of projects totaling approximately 20,000 acres of prospective ground within North Central Nevada of which 9,064 acres comprise the flagship Railroad Gold Project.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. On behalf of the Board of Directors of Gold Standard,
Jonathan Awde, President and Director
FOR FURTHER INFORMATION PLEASE CONTACT:
Email: [email protected]
This news release contains forward-looking statements, which relate to future events or future performance and reflect management’s current expectations and assumptions. Such forward-looking statements reflect management’s current beliefs and are based on assumptions made by and information currently available to the Company. Investors are cautioned that these forward looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected. These forward-looking statements are made as of the date hereof and, except as required under applicable securities legislation, the Company does not assume any obligation to update or revise them to reflect new events or circumstances.
THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.