Below is an excerpt of the 16-page interview. The complete interview is available in English and as a German translation via the following links:
BACKGROUND – From hunting to catching invisible elephants in Nevada
In early 2011, we did our first interview with senior geologist David C. Mathewson, Vice President of Exploration with Gold Standard Ventures Corp (NYSEMKT:GSV) (CVE:GSV). Almost 3 years later, we couldn’t wait to ask some of the many questions that rush into the mind when reading through the news that this second-to-none exploration company has released since then. Dave’s answers are fascinating to say the least and uncover the kind of once-in-a-lifetime opportunity that investors are looking for so desperately, especially in the last few years.
Gold Standard Ventures company detail
Gold Standard Ventures Corp (NYSEMKT:GSV) (CVE:GSV) is a company that was founded and is managed by two outstandingly smart entrepreneurs: Jonathan Awde and Luke Norman, both of whom deserve endless credit for their brave vision and hard work to perfectly coalesce a public company with the prospects of the railroad property. This was uniquely achieved thanks to both their one-of-a-kind vision and conceptualized mission, their experience and expertise, and their delicate and fair negotiation skills – those skills having resulted in successfully consolidating and acquiring the Railroad District, as well as delivering the results to the market in such a prudent and wise fashion that other exploration companies should take a leaf out of their book. The shareholder structure of the company that both are responsible for speaks for itself and is a prime example of how a public exploration company should be run.
The whole corporate and exploration team behind this company is a seemingly inimitable textbook-like example of how a junior exploration company should be shaped, yet we are sanguine that they are merely paving the way to becoming the “gold standard” for the mining industry of tomorrow on how to venture a prospective guess.
Live Chart: http://scharts.co/19TrOx6
The company’s stock has just started to thrive despite precious metal prices correcting once again. We expect this outperformance to the general mining market to remain open-ended and don’t dare to imagine how the share price may bloom during booming metal prices.
Since our last interview, Dave and his team not only discovered the North Bullion deposit – which is likely to be larger than Newmont’s Rain Mine (+6 million gold ounces) in operation only a stone’s throw away – but they have recently unleashed the vast potential of quickly discovering several other gold deposits just like North Bullion on their 10 km-long Bullion Fault Corridor:
On October 2, the company reported highly important drill results from the center of its large Railroad property, also known as the Central Bullion target area or more specifically the Bald Mountain dome, where gold and copper were encountered in two separate zones of mineralization indicating the presence of a mineralized porphyry intrusion that is outcropping at the surface.
This central area may not only represent a separate mineable deposit in completely oxidized rock (faster and cheaper to mine as well as easier to permit) with potentially several polymetallic deposits surrounding it, but this large porphyry intrusion seems to have supplied the necessary heat and fluids to be the engine behind mineralizing distal gold deposits so richly.
“We consider Railroad to be one of the few quality Tier 1 (+20moz potential) drill hole plays in the market.” (Macquarie Capital Markets Canada Ltd. on October 3, 2013)
David Mathewson’s introduction
David Mathewson is one of the most renowned and respected geologists when it comes to Nevada. He was the Head of Exploration for Newmont Mining Corp (NYSE:NEM) (TSE:NMC) in Nevada and now has 35 years of experience focusing on this single U.S. state. Numerous discoveries (+25 million gold ounces) on the Carlin Trend are credited directly to his hands-on work and knowledge. He also developed the famous and now commonly-used “Rain Model” on the prerequisites for the existence of Carlin-type gold deposits.
“I helped found and committed to Gold Standard Ventures when it was evident that we were going to be able to acquire the Railroad district property. The Railroad district is located immediately south and adjacent to the Rain district on the Carlin Trend. I have many times referred to them both as “sister” districts because of their proximity to each other and their almost identical geological characteristics. In the past, Railroad has been very underexplored with none of the tools or ideas that worked so exceptionally well in the Rain District ever having been applied to Railroad. From 1992 through 1994, I worked the Rain district for Newmont and was responsible for discovering several new gold deposits, comprising 4 to 5 million ounces. During this time and later while with Newmont, I tried several times to acquire Railroad on behalf of Newmont for the purpose of exploring what I recognized many years ago as a very high-potential district. At that time, the economic encumbrances of excessive gross royalties, in places exceeding 10%, could not be overcome. Gold Standard Ventures acquired the property in 2009 with very reasonable underlying royalties.” (David C. Mathewson in an interview on February 19, 2011)
Interestingly, the Railroad district – which today is almost completely controlled by Gold Standard Ventures Corp (NYSEMKT:GSV) (CVE:GSV) – represents the last vastly underexplored district on the “Carlin Trend” that was once even called the “Railroad-Pinion Trend”. This is due to the fact that Railroad was not available to companies as strong hands held it until GSV successfully acquired and consolidated this district for their shareholder’s sole benefit.
The rich and large Carlin-style gold deposits of Nevada were once overlooked by the 49ers in the late 1800’s when rushing along Nevada’s Emigrant Trail to the gold fields of California. It was not until 1961 when commercial production started from Carlin-type gold mines. This was due to the fact that Carlin-style gold occurs microscopically – the gold is only a few microns in size and thus invisible to the naked eye. While the gold grades at many Carlin-type deposits are extraordinarily high, no metal detector can notice micron-sized gold particles. Not even a gold pan can capture these. Only a fire assay of sampled or drilled rock can reveal the gold without any difficulty. The obscure gold particles on the Carlin Trend were deposited so quickly near the surface that they had no time to grow larger. While the gold is not visible, the deposits are typically located along several trends that constitute the world’s second-largest concentration of gold after the Witwatersrand Gold-Uranium Reef in South-Africa.
Carlin-type deposits dominate U.S. gold production and have been responsible for the position of the United States as a leading gold producer. With around 6%