Suitors for this gold junior include Goldcorp and Barrick Gold
SmallCapPower | August 12, 2016: We first wrote about Gold Standard Ventures Corp. (CVE:GSV) back in late February of this year when its stock price was $1.17. At the time, we believed there could be a potential takeover battle brewing for GSV between Goldcorp and OceanaGold, both of which owned a significant stake in the Company. Since then, Gold Standard Ventures has released drill results that could possibly be a ‘game changer’, potentially bringing in an entirely new suitor as the top contender for this promising Nevada gold play.
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Gold Standard Ventures has three defined gold deposits as well as the second-largest land package on Nevada’s Carlin Trend, a geological area that has 20 million + ounce gold deposits within it as well as contained in surrounding trends.
In an interview with SmallCapPower earlier this year, newsletter writer Thom Calandra said, “Nearly every single geophysicist, geologist, engineer, property syndicator and gold miner I know in the state of Nevada considers it the premier project in their state. Much of the academic and commercial work seems to bear them out. The GSV complex outside Elko has everything necessary for a project at $1,200 gold: location, shallow oxide gold and hard rock gold (and silver), breadth of discovery with multiple ‘frontiers’ to feed the (mill) engines. The metallurgy looks good and mine life for the GSV District could stretch into two-plus decades.”
On August 9, 2016, this story got even better when Gold Standard Ventures reported assay results from the first three step out core holes at the North Dark Star oxide gold deposit on its 100%-owned/controlled Railroad-Pinion Project, which included a 126.2 meter section grading 3.95 grams per tonne gold. The mineralization over this length appeared to have consistency and with further drilling the target may have 3 million to 5 million ounce potential.
Being located in Nevada and having second-largest land package on the Carlin Trend, you can be certain that GSV’s latest drill results have grabbed the attention of the big boys with operations in the state. OceanaGold already owns a nearly 20% stake in Gold Standard Ventures, with 10% ownership position belonging to Goldcorp.
Despite this, Newmont Mining would be the ideal acquirer as its Emigrant operations are adjacent to Pinion. But don’t count Barrick Gold out either, as it has three mines in Nevada including Goldstrike on the Carlin Trend. There’s a sense of optimism that the gold price rally will continue for some time and with many believing that ‘peak gold’ is upon us, there will surely be a scramble for multi-million ounce gold assets in safe political jurisdictions. Gold Standard Ventures’ stock price, meanwhile, closed at a 52-week high of $3.76 a share on Thursday.
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