Thursday, September 3, 2015

Looking for gold in Nevada with Gold Standard Ventures ($GSV)

Here's the video of my latest trip to gold country in Nevada. I shot this a few weeks ago, while on a trip to the Railroad Project, which is owned by Gold Standard Ventures (NYSEMkt: GSV).

Gold Standard Ventures has a market cap of $62 million and 167.7 million shares outstanding. You can see its latest web presentation here:

You can read more about my adventures on this tour here: "I Survived a Mining Tour and Didn't Even Get a Lousy T-Shirt".

The Railroad Pinion project is exciting (to me) because of its rich gold grades and the potential for resource upside. Luke Norman and the management team at Gold Standard have done a remarkable job of sewing together an excellent large and prospective property from a patchwork quilt of claims.

In the video, Luke and I have differing opinions on whether this is early stage. I consider it early stage because the company is still defining the resource and doesn't have a feasibility study yet. It will have to raise more money between now and when the gold is mined UNLESS the company finds a buyer for the project. 

And a buyer is certainly possible. GSV's main project has rich ore grades and blue-sky potential in one of North America's richest gold geologic trends. It has 423,000 ounces of gold indicated and 1.38 million ounces inferred just on the two targets it is drilling currently. And it has multiple targets to boot. But be aware that you can't force a big company to buy a mine.

Here is a chart of the stock recently ...

It has average volume of 117,860 shares per day. It trades under a dollar share, though above 10 cents per share. The company recently began phase 2 drilling at its Pinion and Dark Star deposits. So, it should have drill hole results coming out in due course, if the market is receptive to being moved by such things.

I think investors will have an interesting opportunity when Gold Standard Ventures raises money, as they may be able to get warrants with shares in a financing (if that's how the company raises cash -- they could also sell a gold stream, or do any number of things). The point is, I think there is extraordinary potential here. But for now, it's just potential, it is very speculative, and investors should be aware of that going in.

Do your own due diligence before investing in anything.

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