Gold Springs Resource Sells its World Copper Ltd. investment for CAD$4,364,315 and Increases its 2021 drilling program to 27,300 meters
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Gold Springs Resource
Sells its World Copper Ltd. investment for CAD$4,364,315
and Increases its 2021 drilling program to 27,300 meters
Vancouver, August 10, 2021
Gold Springs Resource Corp. (TSX: GRC, OTCQB: GRCAF) (the “Company”)
is pleased to announce:
1. The unconditional sale for CAD$4,364,315 of all its 13,225,198 common
shares of World Copper Ltd. ( WCU) held by its subsidiary Escalones
Resource Corp. to Wealth Minerals Ltd. (WML), with payment in full on or
before October 22, 2021.
2. The increase of its 2021 drilling program to 27,300 meters with the firm
intention to accelerate the development of its large Gold Springs project
located in Nevada and Utah (USA), one of the best mining jurisdictions in
the world from a political, environmental and tax point of view.
Antonio Canton, President and CEO, stated “We are very pleased to have
sold our World Copper Ltd. investment for CAD$4,364,315, as we want to be
100% focused on the rapid development of our large gold project towards a
Feasibility Study”.
Randall Moore, Executive Vice President of Exploration, stated: “We are
excited to increase our 2021 drilling program to 27,300 meters with 3 clear
objectives:
1. To test the possibility to expand the North Jumbo resource and to offset
some of the gold intercepts from past drilling at Central Jumbo.
2. To add drilling at Charlie Ross and White Point as we believe these 2
targets have significant potential given the high grades identified in some
veins and the dimensions of the exposed system.
3. To complete first pass drilling at North Jennie with its strong CSAMT
geophysical high-resistivity anomaly and at Midnight with its wide zones
of veins and the high-grade gold identified in some of them”.
Charlie Ross Target
The historical Charlie Ross shaft is located 500 meters southwest of the
historical Pope mine.
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Historical reports describe the Charlie Ross mine as a 53-meter shaft with a
12-meter talc zone containing streaks of gold tellurides and sylvanite with
bonanza gold grades. Old reports indicated the presence of high-grade gold
from the Charlie Ross mine in the range of 100 ounces/ton. The Company has
found visible gold from the dump of the open shaft.
The Company collected o ne surface sample from a massive quartz vei n
boulder that returned gold values of 17.2 g/t Au in an area of mixed tuff float
cover.
The geologic setting is similar to the Round Mountain Gold Mine owned by
Kinross Gold in central Nevada.
These systems are characterized by an impermeable cap rock overlying a
highly permeable rock formation. Gold bearing fluids move up along structures
until they hit the cap rock and then spread laterally through the permeable
rocks. In this permeable horizon is where disseminated gold mineralization is
then found. Within the cap rocks cracks are formed along which th in gold
bearing seams are found in narrow fracture zones.
For more information about surface sampling work, see the Company’s news release of July
8, 2020 and for more information on Charlie Ross target, please visit:
https://goldspringsresource.com/projects/target-with-drilling/charlie-ross-pope-red-light-
tin-can/
White Point Target
White Point is located just 400 meters west of the Grey Eagle resource and is
characterized by a +200 meters wide zone of sheeted gold-bearing veins.
Historic mines with high-grade veins were exploited in the early 1900s.
Historic workings revealed high-grade gold with values over 18 g/t Au.
This initial drilling program will be a first pass test and start in August 2021.
The Company plans to follow this program with a second pass drill program to
further identify the extent of mineralization as well as to conduct infill drilling
to provide critical information on the continuity of the system.
For more information on White Point target, please visit:
https://goldspringsresource.com/projects/target-with-drilling/the-white-point-target/
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North Jennie Target
North Jennie has a strong CSAMT geophysical resistivity anomaly similar to
the one associated with the gold resources at North and South Jumbo, with
an overall width of nearly one kilometer and a strike-length over 2 kilometers.
The southern end of this target hosts the Thor resource and the historic
underground Jennie Mine which was one of the district’s largest producers with
a production gold grade averaging 12 g/t Au. At the north portion of the target,
one hole was drilled by Astral Mining Corporation in 2006 with 9.2 meters at
the bottom of the hole averaging 1.04 g/t gold and 5.83 g/t silver.
The 2021 drill program will be designed to follow up this hole and test the
large geophysical anomaly.
For more information about th e historic work, please refer to the technical report entitled
“Updated Preliminary Economic Assessment NI 43 -101 Technical Report – Gold Springs
Project, Utah -Nevada, USA” dated June 22, 2020. For more information on North Jennie
target, please visit:
https://goldspringsresource.com/projects/target-with-drilling/the-north-jennie-target/.
Midnight Target
The Midnight target is located 2,700 meters west of the South Jumbo resource
and displays multiple parallel sheeted calcite -quartz veins, breccia and
stockwork zones over widths of up to 200 meters and that can be traced for
650 meters along strike before being obscured by post mineral gravels in all
directions.
Historic mines were exploited at Midnight in the early 1900s with the deepest
shaft in the Gold Springs Project displaying very high -grade veins. The
Company has conducted exten sive sampling in the past, and has collected
samples in these high-grade veins that returned with gold values of up to 57.3
g/t Au gold with 59.4 g/t silver.
The first drilling at Midnight is expected to start in September 2021 and will
target areas of historic mining and areas producing high-grade gold samples.
For more information about the sampling work, please refer to the technical report entitled
“Updated Preliminary Economic Assessment NI 43 -101 Technical Report – Gold Springs
Project, Utah-Nevada, USA” dated June 22, 2020 . For more information on Midnight target,
please visit:
https://goldspringsresource.com/projects/target-with-drilling/the-midnight-target/.
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Qualified Person
Randall Moore, Executive Vice-President Exploration, Gold Springs Resource
Corp., is the Company's designated Qualified Person within the meaning of
National Instrument 43-101 Standards of Disclosure for Mineral Projects and
he has reviewed and approved the scientific and technical information
contained in this news release.
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
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. Forward-
looking statements in this news release include, without limitation, statements
related to the Company’s intention to increase the size of its drill program and
the potential of the aforementioned targets at which the Company plans to
conduct its expanded drill program. These forward-looking statements 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 ar e 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,
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metal prices, capital and operating costs, and the applicat ion 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 do cuments, which are
available on SEDAR at www.sedar.com. The assumptions made in developing
the forward-looking statements include: that Wealth Minerals Ltd. will have
the requisite funds to complete the purchase of the World Copper Ltd. common
shares; 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 p ersonnel 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.