A PI Financial analyst reported on "robust
metallurgical test work" from a miner's Nevada flagship project.
In a Sept. 25 corporate update, PI Financial analyst Brian Szeto reviewed Gold Standard
Ventures Corp.'s (GSV:TSX.V; GSV:NYSE) "metallurgical results from
its Dark Star deposit, which is part of its flagship 100%-owned/controlled
Railroad-Pinion project," in Nevada.
Szeto discussed the two different-size fractions tested using bottle rolls
on "a total of 62 samples representative of the gold deposit" at
Dark Star. "Gold recoveries for oxide and transitional in the coarse -10
mesh, bottle rolls of material ranged from 60-98%, with an average gold
recovery of 88%. In the finer -200 mesh, bottle rolls gold recovery
ranged from 75-98%, with an average gold recovery of 91%."
Szeto noted that "overall, we view the results positively as it
continues to support our thesis that the project will be mined via a low
capex open-pit heap-leach scenario. . .and that these results are better than
the previously announced results at the Pinion deposit (located two kilometres
to the west) which had average recoveries of 69% for -10 mesh and 80% for
-200 mesh." He highlighted that the "results are coming in
significantly better than the 70% gold recoveries that we have modelled in
our valuation."
"The Company is continuing to advance its highly anticipated PEA
which is expected in late Q417," Szeto added.
Szeto explained that the "NAV estimate remains at CA$3.40/sh. We
continue to apply a multiple of 1.2x (unchanged) to the operating portion of
our NAV, which represents a takeout premium, to arrive at our target price of
CA$4.00/sh (unchanged). We are maintaining our Buy recommendation and
Speculative risk rating."
Gold Standard Ventures is currently trading at around CA$1.96 per share.
