The Lewis Project is a separate and unique exploration project located approximately 100 km west of GSV’s flagship South Railroad development project. The project shares a common land boundary with Nevada Gold Mines’ Phoenix mine, one of the most prolific and active gold-silver-copper producers on the Battle Mountain-Eureka trend. The Company believes that the Lewis Project inferred mineral resource estimate at the Virgin Deposit is a continuation of the Phoenix-Fortitude mineralization currently being mined by Nevada Gold Mines in the Phoenix mine. Open pit laybacks for the Phoenix mine’s approved environmental impact statement actually cross onto GSV-controlled ground and may include mining all or portions of the Inferred Mineral Resource. The Lewis Project has several known mineralized zones and has the potential for new gold and silver discoveries on the 5,340-acre (2,161 hectare) project. The project was acquired by Gold Standard as part of its purchase of Battle Mountain Gold Inc. completed on June 14, 2017. Lewis is not a mineral property material to the Company for the purposes of NI 43-101.
APEX Geoscience Ltd. released a mineral resource estimate for the Virgin Deposit, located on the 100% owned Lewis Project, on May 5, 2020, in accordance with NI 43-101 Standards of Disclosure. Highlights of the mineral resource estimate follow:
Inferred Mineral Resource of 205,827 troy ounces of gold and 3,537,268 troy ounces of silver contained in 7.74 million tonnes at a grade of 0.83 g Au/t and at a grade of 14.22 g Ag/t (at a lower cutoff of 0.20 g Au/t), yielding a combined total of 248,300 troy ounces of gold equivalent (“AuEq”) at a combined grade of 1.0 g/t AuEq (using a ratio of 80 to 1 silver to gold).
The MRE is based on 193 reverse circulation holes, 33 diamond core holes, and 4 unknown holes.
Additional shallow gold and silver resource potential exists to the east and west in related sub-parallel or separate structural zones, with extensions to the Virgin Deposit open to the north and at depth. Mineralization at the south end of the mineral resource area continues into the Phoenix open pit mine.
The Virgin Deposit consists of higher-grade structures surrounded by lower-grade disseminated mineralization within a zone measuring about 725 meters in length at an azimuth of 350 degrees, up to 325 meters wide which includes multiple sub-parallel, sub-vertical zones, with up to 300 meters in vertical depth. The Virgin fault, which controls mineralization in the Phoenix mine to the south, strikes northward out of the mine and onto the Lewis Project where it also controls gold and silver mineralization in the Virgin Deposit. Gold and silver mineralization is associated with northwest trending and steep westerly dipping structures in Paleozoic sedimentary rocks.
Near surface oxide potential (< 40 m deep) remains open to the east (MAD-45, 22.9m grading 1.53 g Au/t and 22.9 g Ag/t and MAD-74, 24.4m grading 1.22 g Au/t and 55.0 g Ag/t) and to the west (MAD-64, 13.7m grading 3.16 g Au/t and 163.6 g Ag/t and BVD-9A, 27.4m grading 2.17 g Au/t and 39.4 g Ag/t).
In addition to the initial mineral resource estimate at the Virgin Deposit, high-value exploration targets on the Lewis Project include: 1) the Southwest skarn target where Barrick Gold Corporation drill hole FWL-30 intersected 17 m of 5.7 g Au/t – an intercept that remains open in multiple directions; and 2) the Buena-Vista Meagher corridor immediately north of Nevada Gold Mines’ Phoenix mine. The strong gravity gradient and historic shallow intercepts in upper plate Havallah Sequence rocks (including 27.4m of 2.20 g Au/t in drill hole BVD-9A) indicate that structure and system should be present in the favorable Antler host rocks at depth. The potential grades noted above are conceptual in nature; there has been insufficient exploration to define further mineral resources and it is uncertain if further exploration will result in these targets being delineated as a mineral resource.