Reaches 1 Million Oz Gold Equivalent in a New Mineral Resource Estimate
Gold Springs Resource Corp.
Reaches 1 Million Oz Gold Equivalent in a New Mineral Resource Estimate
June 13, 2022, Vancouver, BC - Gold Springs Resource Corp. (TSX: GRC, OTCQB: GRCAF) (the “Company” or “GRC”) releases a significant updated mineral resource estimate for its Gold Springs Project, taking into consideration all the 2021 drilling results at North and South Jumbo, Tremor, Charlie Ross, and White Point.
Highlights include:
| Measured Resource | 548,071 | oz gold equivalent |
| Indicated Resource | 456,932 | oz gold equivalent |
| Total M&I Resource | 1,005,003 | oz gold equivalent |
| Inferred Resource | 144,379 | oz gold equivalent |
Gold equivalent based on US$1,800/oz gold and US$25/oz silver.
Antonio Canton, President and CEO, stated:
“Today with a resource estimate of 1 million oz gold equivalent, we have reached the 1st important milestone of our Company’s objective to rapidly expand our gold resource. Our team is now focused on the 2022 drilling program to reach the 2nd milestone, as we have planned a new resource update and PEA for the end of the year. Our goal is to reach within the next 2 years the 3rd milestone and complete the mine permitting process”.
Randall Moore, Executive Vice President of Exploration, stated:
“This resource update confirms that Gold Springs has significant potential to expand its resources, as in 2021 we added two new ones (Charlie Ross and White Point) and substantially increased the total number of ounces.
Only by visiting the area, one can realize the magnitude of our project, which covers approximately 8,000 ha and includes not 1 or 2 targets, but 33 high-potential gold targets, 6 of which already host a resource estimate of 1,005,003 M&I oz and 144,379 inferred oz of gold equivalent open to expansion and covering only 15% of the property. As the resources are near the surface, they could be mined by shallow open pit and a technically simple heap-leach operation.
The size of the Gold Springs Project, the important number of gold targets, the technical data available so far, the water rights, and its location in one of the best mining jurisdictions in the world, are strong indicators that GRC has a large gold project with a significant growth potential. I believe Gold Springs will get more and more attention from major mining companies as the resource continues to grow.”
Mineral Resource Estimate in oz gold equivalent *
| Target | Measured | Indicated | Total M&I | Inferred |
|---|---|---|---|---|
| North Jumbo & Tremor | 316,560 | 86,219 | 402,779 | 24,339 |
| South Jumbo | 131,832 | 111,795 | 243,627 | 39,389 |
| Grey Eagle | 68,601 | 98,194 | 166,795 | 11,876 |
| Thor | 31,078 | 40,391 | 71,469 | 41,502 |
| Charlie Ross | None | 102,049 | 102,049 | 26,055 |
| White Point | None | 18,284 | 18,283 | 1,218 |
| TOTAL | 548,071 | 456,932 | 1,005,003 | 144,379 |
- With an effective date of 13 June 2022 and based on the drilling results as of 31.12.2021
and with gold equivalent based on US$1,800/oz gold and US$25/oz silver.
Updated Resource Estimate summarized in the table below *
| Category | $1,800 Pit Constrained - 0.25 g/t gold cutoff | ||||||
|---|---|---|---|---|---|---|---|
| Tonnes | Au | Ag | AuEq | ||||
| Grade | Troy oz | Grade | Troy oz | Grade | Troy oz | ||
| (1000s) | |||||||
| (g/t) | (1000s) | (g/t) | (1000s) | (g/t) | (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:
| $1,800 Pit Constrained - 0.25 g/t gold cutoff | ||||||
|---|---|---|---|---|---|---|
| Category | Deposit | Tonnes | Gold | Silver | ||
| (1000s) | 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 | |||
| White Point | 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 | 84,273 | 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 | 313,143 | |
| 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.
Qualified Person
The Qualified Person on the Gold Springs Project is Randall Moore, Executive Vice President of Exploration for Gold Springs Resource Corp., and he has reviewed and approved the content of this press release. The updated mineral resource estimate has been prepared by Ms. Terre Lane, Principal Mining Engineer for Global Resource Engineering and a Qualified Person who is independent of the Company.
About Gold Springs Resource Corp.
Gold Springs Resource Corp. (TSX: GRC and OTCQB: GRCAF) is focused on the exploration and expansion of the gold and silver resources of its Gold Springs project located on the border of Nevada and Utah, USA. The project is situated in the prolific Great Basin of Western USA, one of the best mining jurisdictions in the world.
Gold Springs Resource Corp. Contact:
Antonio Canton, President and CEO mailto:[email protected]
Forward-Looking Statements
Certain statements contained herein constitute “forward-looking information” under applicable Canadian securities laws (“forward-looking statements”). Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward- looking statements may include words such as “creating”, “believe”, “would”, “continue”, “will”, “promising”, “should”, and similar expressions. These forward-looking statements include, but are not limited to, the statements relating to the release of another resource estimate and PEA by the end of 2022, the goal of completing the mine permitting process within two years, the significant potential to expand resources at the Gold Springs Project, and the potential to mine the resources by shallow open pit and a technically simple heap-leach operation, and are based on current expectations and entail various risks and uncertainties. Actual results may materially differ from expectations if known and unknown risks or uncertainties affect our business or if our estimates or assumptions prove inaccurate. Factors that could cause results or events to differ materially from current expectations expressed or implied by the forward-looking statements, include, but are not limited to, risks of the mineral exploration industry which may affect the advancement of the Gold Springs project, including possible variations in mineral resources, grade, recovery rates, metal prices, capital and operating costs, and the application of taxes; availability of sufficient financing to fund planned or further required work in a timely manner and on acceptable terms; availability of equipment and qualified personnel, failure of equipment or processes to operate as anticipated, changes in project parameters, including water requirements for operations, as plans continue to be refined; regulatory, environmental and other risks of the mining industry more fully described in the Company’s Annual Information Form and continuous disclosure documents, which are available on SEDAR at www.sedar.com. The assumptions made in developing the forward-looking statements include: the accuracy of current resource estimates and the interpretation of drill, metallurgical testing and other exploration results; the continuing support for mining by local governments in Nevada and Utah; the availability of equipment and qualified personnel to advance the Gold Springs project; execution of the Company’s existing plans and further exploration and development programs for Gold Springs, which may change due to changes in the views of the Company or if new information arises which makes it prudent to change such plans or programs. Readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. Except as required by law, the Company assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason. Unless otherwise indicated, forward-looking statements in this press release describe the Company’s expectations as of the date hereof.