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.
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1) Melissa Farley compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She owns, or members of her immediate household or family own, securities of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Gold Standard Ventures Corp. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
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Disclosures from PI Financial, Gold Standard Ventures, Corporate Update, Sept. 25, 2017
I, Brian Szeto, hereby certify that all of the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly related to the specific recommendations or views expressed in this report. I am the research analyst primarily responsible for preparing this report.
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9) Company has partially funded previous analyst visits to its projects. Yes
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