May 12, 2011
Vancouver, B.C., – Gold Standard Ventures Corp. (“Gold Standard”) (TSXV: GV; OTCQX: GDVXF) www.goldstandardv.com announced today it has entered into a “Minerals Lease and Agreement” to lease four sections totaling 2,560 acres (the “Lease”) from Newmont USA Limited, a subsidiary of Newmont Mining Corporation[cc1] . Two of the four sections are staked public lands which carry no underlying royalty. The other two sections are private surface and minerals lands subject to an underlying 5 % net smelter royalty (NSR). With this acquisition, Gold Standard owns or controls 22 square miles, or more than 14,000 acres, of prospective target area on the prolific Carlin Gold Trend.
The Lease lies between the Rain mining district to the north and the Railroad district controlled by Gold Standard Ventures. Gold Standard’s North Bullion fault target is immediately south and east of the east flank of the Lease. Holes drilled in 2010 by Gold Standard on the North Bullion fault target encountered thick intercepts of 1+ gm/t gold. This acquisition allows Gold Standard to expand its assessment of this target to the west and potentially develop new targets.
“We don’t know exactly where our exploration will lead us but it seems very logical that the area between two adjacent mining camps covering two of the four windows on the Carlin Gold Trend constitutes a real opportunity. The Rain and Railroad windows consist of intrusive-centered, geologic domes with locally gold-bearing, permissive rock units exposed at the surface. Deposits of note in the Rain district include Rain, Northwest Rain, Tess, Saddle and Emigrant. Very little exploration has been conducted to date between these two centers of mineralization,” states Dave Mathewson, Gold Standard Venture’s Vice President of Exploration. “We look forward to applying the most advanced exploration methods available to evaluate the potential of this area in the process of developing our current discoveries.”
Under the terms of the agreement, the Company will be subject to escalating yearly work commitments in the aggregate amount of US$2.5 million over a period of six years. The first year is free of spending commitments and Gold Standard will incorporate this area in a planned detailed structural mapping program of the district.
Newmont has a first back-in right on or before delivery of a positive feasibility study, enabling Newmont to earn a 51% interest in the Lease by incurring expenditures totaling 150 per cent of the expenditures made by Gold Standard. Should Newmont not back in, Newmont will deed the claims and assign the leases on the fee lands to GSV in exchange for GSV executing a royalty deed conveying a 3% Net Smelter Return Royalty on the claims and a 1% Net Smelter Return royalty on the fee lands to Newmont.. The royalty paid to Newmont would be less any underlying royalties, subject to a 1-per-cent minimum. Should Newmont exercise it first back-in, it has a second back-in right to earn an additional 19% interest in the Lease by expending an additional 100 per cent of the expenditures made by Gold Standard. The project would then revert to a Newmont/Gold Standard (70-per-cent/30-per-cent) joint venture.
Gold Standard President and CEO John Awde noted that Gold Standard has not agreed to back-in rights on any of its other properties “but this opportunity is exceptional because the land is contiguous with one of our best targets and gives us plenty of room to pursue that target. If we are successful at North Bullion, we have already tied up the neighboring ground.”
The lease agreement is subject to regulatory approval.
ABOUT GOLD STANDARD VENTURES – Gold Standard Ventures is focused on the acquisition and exploration of gold projects in North Central Nevada.
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
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.