Overview

Name:Gold Springs project
Ownership:100% Gold Springs Resource Corp.
Location:Straddles eastern Lincoln County, Nevada, and western Iron County, Utah. (the Great Basin of western USA)
Status:Advanced exploration stage gold project - Completed PEA - Focusing on a rapid development towards a Feasibility Study.
Targets:6 targets with Existing Resources of 1 million oz in M&I wide open for expansion and 27 other high potential gold targets, all covering only 40% of the property.
Potential Development:Shallow open pit, low sulphidation, heap leach potential
Outlook:District-scale property of nearly 8000 ha with drilling at the Jumbo Trend for resource expansion and on 4 new targets with significant potential given the high grades identified in some veins, the dimensions of the exposed system and the strong CSAMT geophysical high-resistivity anomaly (Homestake, Snow, Horseshoe Extension, Midnight).
Exploration Information as of today: 

Since 2010, the Company has spent in excess of $24 million on Gold Springs and has completed or collected:

  • 443 drill holes at Gold Springs for a total of 79,733 meters. The Company has also the technical information of 20 drill holes completed pre-GRC totalling 2,647 meters.
  •  77.4 line kilometres of CSAMT geophysical survey data.
  •  470 line kilometers of ZTEM geophysical survey data.
  •  3,420 rock samples, 2,182 soil samples and 912 sediment samples.
  •  Detailed mapping on 33 different targets.
  •  Cultural clearance on 27 targets.
  •  Environmental Assessment in both Nevada and Utah.

2022 Ongoing Drilling Program 

20’100 Meters RC (2 RC Drills) and 2’000 Meters Core (1 Core Drill) with the Objectives:

  1. The RC Drill No 1 to expand our 6 existing resources especially at North Jumbo, Tremor, South Jumbo, Charlie Ross, White Point

  2. The RC Drill No 2 to drill on 4 new targets at Homestake, Snow, Horseshoe Extension, Midnight.

  3. The Core drill will be used to collect material for further metallurgical testing of all our resource areas, while testing the depth extension of some significant resistivity anomalies beneath them.

Our 2022 exploration program also includes the expansion of CSAMT geophysical surveys on various targets and the completion of baseline studies to advance the mine permitting process. 

The Company has now completed 69 holes totaling 14,942 meters of the planned 21,000-meter program. Drilling has targeted the North and South Jumbo resources, the Charlie Ross resource, as well as the Red Light, Snow, and the Horseshoe Extension targets.

2022 Drilling results :

  • South Jumbo 2022 results: Expansion of the resources (see link).
  • North Jumbo 2022 results: Discovery of a new area for expansion (see link).
  • Snow 2022 results: Discovery of a new gold mineralization (see link).
  • Charlie Ross 2022 results: Expansion of the resource (see link).

Several points clearly set Gold Springs apart from most other exploration companies:

  • A Significant Potential for Growth: In addition to our 6 resources wide open for expansion, we have already identified 27 other high-potential gold targets, all covering only 40% of the property.

  • De-Risking the Project in Parallel to Resource Expansion as major mining companies do by advancing the permitting process, which is rare for an exploration company.

  • A Unique Financial Instrument to rapidly advance the project by giving investors the opportunity to invest In Gold Springs with a guarantee (link for more information).

  • A Low per Ounce Discovery Cost: In 2021, $11 in total, $9 if some fixed expenses are deducted.

  • No Royalties on the Property (except a 3% NSR on a small private land in Grey Eagle which represents less than 3% of our total resource).

Updated Resource Estimate*

The updated resource estimate, with an effective date of June 13, 2022, is summarized in the table below:

 

Category

 

$1,800 Pit Constrained - 0.25 g/t gold cutoff

Tonnes

(1000s)

Au

Ag

AuEq

Grade
(g/t)

Troy oz
(1000s)

Grade
(g/t)

Troy oz
(1000s)

Grade
(g/t)

Troy oz
(1000s)

Measured

26,493 

0.51

439

9.05

7,826

0.64

548

Indicated

24,061 

0.50

392

5.94

4,658

0.59

457

Measured & Indicated

50,555 

0.51

832

7.68

12,484

0.62

1,005

Inferred

8,635  

0.45

125

5.03

1,397

0.52

144

* With an effective date of 13 June 2022 and based on the drilling results as of 31.12.2021

The inferred resource is in addition to the measured and indicated resource. Numbers have been rounded, which may lead to some numbers not adding up exactly. Gold Equivalent calculation uses a gold/silver price ratio of 72 ($1,800/$25). Mineral resources that are not mineral reserves do not have demonstrated economic viability. The resource estimate reflects gross metal content that is not adjusted for metallurgical recoveries.

The new mineral resource estimate is an update from the 2020 mineral resource estimate to mainly incorporate the drilling information of the 2021 drill program conducted at the South and North Jumbo, Tremor, Charlie Ross and White Point deposits.

The updated resource estimate broken down by deposit (pit) is as follows:

Category

Deposit

Pit Constrained - 0.25 g/t gold cutoff

Tonnes

(1000s)

Gold

Silver

g/t

Troy oz 

g/t

Troy oz 

Measured

North Jumbo & Tremor

15,752 

0.47

240,037

10.88

5,509,666

South Jumbo

6,457 

0.55

114,558

5.99

1,243,721

Grey Eagle

2,852 

0.65

59,388

7.23

663,363

Charlie Ross 

0

0

0

0

0

White Point 

0

0

0

0

0

Thor*

1,432 

0.55

25,395

8.89

409,193

Total

26,493 

0.51

439,378

9.05

7,825,943

Indicated

North Jumbo 

5,509 

0.39

69,433

6.82

1,208,618

South Jumbo

5,657 

0.55

100,007

4.67

848,739

Grey Eagle

4,433 

0.59

84,292

7.03

1,002,347

Charlie Ross 

4,943 

0.56

88,292

6.23

990,498

White Point 

1,274 

0.39

16,120

3.81

155,799

Thor*

2,245 

0.47

34,113

6.26

451,998

Total

24,061 

0.50

392,238

5.94

4,657,999

Measured + Indicated

North Jumbo 

21,261 

0.45

309,470

9.83

6,718,283

South Jumbo

12,115 

0.55

214,565

5.37

2,092,461

Grey Eagle

7,285 

0.61

143,662

7.11

1,665,711

Charlie Ross

4,943 

0.56

88,292

6.23

990,498

White Point 

1,274 

0.39

16,120

3.81

155,799

Thor*

3,677 

0.50

59,507

7.29

861,191

Total

50,555 

0.51

831,616

7.68

12,483,943

Inferred

North Jumbo

1,725 

0.38

20,864

4.51

250,229

South Jumbo

2,929

0.38

35,474

2.99

281,905

Grey Eagle

783

0.39

9,816

5.90

148,327

Charlie Ross

1,122 

0.60

21,706

8.68

143

White Point 

113 

0.31

1,145

2.69

9,798

Thor*

1,963 

0.57

36,030

6.24

394,002

Total

8,635 

0.45

125,034

5.03

1,397,404

* Thor gold cutoff uses a grade of 0.20 g/t due to higher overall grades

The inferred resource is in addition to the measured and indicated resource. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Numbers have been rounded, which may lead to some numbers not adding up exactly. The resource estimate reflects gross metal content that is not adjusted for metallurgical recoveries.

Property Information

The Gold Springs Project covers approximately 7,847 hectares, comprised of federal lode claims, Utah State leases, and patented mining claims held through leases and purchases
(see map).

The district-scale property is a target-rich environment with six resource zones defined thus far – North Jumbo, South Jumbo, Grey Eagle, Charlie Ross, White Poingt and Thor. While all are open to expansion, the priority targets are to extend the North Jumbo and South Jumbo in their own surrounding areas and towards each other along a 5.5-kilometer Jumbo Trend.

The Company has identified 33 drill-targets based on +1 g/t gold (Au) outcropping samples, geologic and structural modeling, and geophysical results. Gold Springs is somewhat unique in that all of the known resources and targets are exposed on surface. With further exploration work, it is expected that additional targets will be developed under post-mineral cover.

The project encompasses several historical mining districts including the Deer Lodge, Fay, and the Eagle Valley districts, all within Nevada, and the Gold Springs District in Utah. The project area contains hundreds of historical workings, which began around 1897 with several mines that produced gold intermittently until the early 1940s. The Company has been involved with the Gold Springs Project since 2010. Summaries of past exploration, drilling, and resource estimates are detailed in the 2017 NI 43-101 report and previous reports filed on SEDAR.

The Company has completed resource estimates in accordance with NI 43-101, based on the assay results from drill holes completed through 2017, for the Jumbo (now referred to as North Jumbo) and South Jumbo resources located in Utah and the Grey Eagle and Thor resources located in Nevada.

The North Jumbo and South Jumbo are priority targets, located approximately 1.5 km apart at the northern and southern ends of the 6-km Jumbo Trend. Grey Eagle is hosted within a collapsed caldera margin while Thor is representative of a deeper exposure of the higher-grade veins typical of epithermal systems. 

In November 2019, the Company drilled 14 holes at Homestake, 700 meters east of the Grey Eagle resource, on the Nevada side of the Gold Springs project. Homestake includes the historic Homestake mine and mill, which was in operation during the late 1800s and early 1900s. Homestake is highlighted by two main parallel 3-4-meter-thick gold-bearing high-grade veins separated by 20-30 meters of brecciated and silicified rocks with intermediate gold grades. The package of veins and breccia is surrounded by a wide low-grade stockwork zone. 

Since 2019, 5 new discoveries have been made at Gold Springs: at Homestake (2019), Tremor (2021 and part of North Jumbo resource), Charlie Ross (2021), White Point (2021) and Snow (2022).

Geology

Gold mineralization at Gold Springs is characterized by structurally controlled vein and stockwork systems that are laterally extensive, forming wide corridors of mineralization that are traceable over strike lengths of several kilometers. The structural zones are a combination of extensional and lateral faults, as well as ring fracture systems and radial faults associated with caldera margins.

Within these structurally prepared zones, mineralization takes the form of discreet veins, breccias, sheeted vein zones, stockwork veins, and zones of dissemination. The veins exhibit quartz, adularia, and low sulfide contents that are typical of low-sulfidation epithermal deposits. Examples of this deposit type include Round Mountain, Nevada; Midas, Nevada; the Republic District, Washington; and Hishikari, Japan.

These systems have been correlated with fossil hot springs, and the hydrothermal systems that underlie them are commonly found in a caldera setting. Some of the characteristics that help classify the Gold Springs systems as a low-sulfidation epithermal deposit are the observed textures of quartz, adularia, and calcite in the vein deposits. These veins of varying dimensions are typically surrounded by broad areas of stockwork and breccia-hosted mineralization, and/or areas of altered and fractured wallrock where increased permeability hosts disseminated gold mineralization.

Metallurgy

Metallurgical test work, involving bottle roll tests at various size fractions and column tests, produced positive results indicating that the material from the North Jumbo and Grey Eagle resources is amenable to heap leaching with positive recoveries for gold.

During 2015, Kappes Cassiday Associates (KCA), Reno, Nevada, completed a set of column leach tests on three samples each from the North Jumbo and Grey Eagle. The material was crushed to 100% passing 9.5 millimeters and was leached in columns 75 millimeters in diameter and 0.6 meters in height. The material leached quickly, and the majority of the gold leaching occurred within the first 20 days (84% to 97% of total leached) and was substantially completed in 60 days.

Silver leaching was typically much slower. The cyanide concentration was increased at approximately day 85, which did result in an increase in silver recovery, from little change to a 10% increase. This change in reagent concentration significantly increased the cyanide consumption.

Using a simple average, gold recovery for the Grey Eagle and North Jumbo area were 77% and 68%, respectively. This does not take into account the weighting of the recovery by the proportion of ore type as unique ore types were not separately weighed prior to combining for testing. Globally between the two resource areas, the recovery averaged 73% for gold. Silver recovery averaged 16% and 47% for Grey Eagle and Jumbo, respectively. The cause for the lower silver recovery experienced for Grey Eagle is unknown at this time.

2015 KCA Column Tests for Grey Eagle and North Jumbo

Sample Description

Crush Size (mm)

Days of Leach

Calculated Head (Gold g/t)

Calculated Head (Silver g/t)

Extracted Gold

Extracted Silver

Consumption NaCN 

(Kg/t)

Cement Addition (Kg/t)

GE Trench 1

9.5

141

2.548

12.01

82 %

23 %

14.31

2.01

GE Trench 2

9.5

141

2.446

12.00

87 %

15 %

13.60

2.05

GE Trench 3

9.5

141

0.899

11.01

63 %

9 %

11.61

1.95

Jumbo Met Samples 1-4

9.5

141

0.679

12.52

92 %

37 %

14.61

2.02

Jumbo Met Samples 5-7

9.5

141

0.843

17.28

56 %

45 %

12.04

2.03

Jumbo Met Samples 8-11

9.5

141

0.370

20.33

57 %

58 %

12.69

2.01

NaCN - sodium cyanide

Additional column testing was completed on the Jumbo resource material in 2016 using Resource Development Inc. (RDI), Denver, Colorado. The metallurgical tests were conducted over 282 days to look at extraction rates over the short term and long term after a “rest period” in which no additional cyanide solution was applied. The extraction values are shown below.

2016 RDI Column Tests - Estimated Gold Extractions for North Jumbo

ColumnFinal Extraction*Calculated Head Grade
Gold (%)Silver (%)Gold (g/t)Silver (g/t)
#194.334.31.0924.3
#266.953.40.5420.6
#381.959.80.2311.9

* extractions after 157 days of leaching and 125 days of rest

The three columns covered a wide range of grades varying from 1.09 g/t to 0.23 g/t gold, with good recoveries even from the lower grade material. Approximately 22 kg of each type of mineralized material, crushed to a P80 of ¾ inches, were loaded into 4-inch diameter columns approximately 6 feet high. The final extractions over time are shown below.

2016 RDI Column Tests - Large Column Extraction Detail Data with Rest Periods for North Jumbo

Column43-day Extraction84-day Extraction282-day Extraction after rest period*Calculated Head Grade
Gold %Silver %Gold %Silver %Gold %Silver %Gold g/tSilver g/t
190.125.390.628.494.334.31.0924.3
262.535.462.543.366.953.40.5420.6
376.839.976.848.081.959.80.2311.9

*Leach sequence included 84 days of leaching followed by 35-day rest, followed by 44 days of leaching, followed by a second rest period of 90 days, followed by a further 29 days of leaching.

The material was leached and sampled over a long time frame to evaluate how much more gold and silver could be extracted over time and after rest periods during which the cyanide solution is not circulated. As can be seen in the two tables, gold recoveries increased several percent after the rest period, and silver recoveries increased significantly with increases in the double-digit percentages. Approximately 90% of the gold recovery was achieved in the first 12 to 18 days.

Exploration

There is high potential to expand the current resource base and to identify additional resources at the other targets.

The Company’s goal is to continue drill programs focused on the Jumbo Trend, expanding the resources both north and south. The Jumbo Trend is characterized by extensional and translational structures generally trending north-south. Movement on these structures created favorable zones for gold deposition.

In general, the North Jumbo and South Jumbo resources consist of discreet veins, breccias, sheeted vein zones, stockwork veins, and zones of disseminations over widths of 30-150 meters. The current resources are open along strike and have not been tested at depth. All mineralization starts at surface with the deepest holes reaching a depth of just 200 meters (m) below surface.

In addition to the Jumbo Trend, another high priority target is the newly acquired Homestake claims located in Nevada, 1,000 m east of the Grey Eagle resource. The Homestake mineralization is largely hosted in two stacked, 2-4 m wide, westward dipping, banded quartz veins that are controlled by major north-south structures that run the length of the 1.8-km claims.

The Homestake veins are well exposed for 650 m in historic slot cuts and as outcrops before they are concealed by post mineral cover to the north and south. Host rock to the veins are oxidized andesites that have been hydrothermally brecciated and contain stockwork quartz veining. Together, breccia and stockwork zones extend up to 400 m widths around the vein systems before they are concealed by post mineral cover.

High-grade Au occurs in the quartz veins with strong gold and silver mineralization occurring in the host rock as well. These breccias and stockwork zones extend to the west where they host the Iris vein that roughly parallels the Homestake veins and is easterly dipping. Both the Homestake veins and the Iris vein are known to contain high-grade Au values (up to 15 g/t Au at Homestake and 38 g/t Au at Iris), with parallel trends and opposing dips between the two vein sets that there is high potential for significant gold grades at their intersection. In the north, breccias contain up to 68 g/t Au in outcrop, though typical assay results are 0.29 to 2.4 g/t Au from the breccia and stockwork zones.

For exploration progress updates, please subscribe to the Company’s Email Alert and review the recent news releases.

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