Gold
RENO, NV - Gold Summit Corporation reported that it has now filed the new NI 43-101 compliant resource report on its flagship Monte Cristo property, located in Esmerald County, Nevada.
At a 0.5 g/t gold cut-off, the inferred resource known as the McLean Lode amounts to 313,335 ounces of gold contained in 3,481,500 tonnes at a grade of 3.14 g/t gold. At a 2.0 g/t gold cut-off, the inferred resource amounts to 237,000 ounces of gold contained in 1,025,700 tonnes at a grade of 7.2 g/t gold. In addition, the study shows a separate inferred resource of 1,507,000 ounces of silver contained in 1,124,000 tonnes at a grade of 42 g/t silver using a 9 g/t silver cut-off. At a 35 g/t silver cut-off the separate inferred resource is 1,025,000 ounces of silver contained in 396,000 tonnes at a grade of 80 g/t silver.
The report recommends a $3 million Phase One budget for infill and step out drilling to enlarge and upgrade the resource from "inferred" status to "measured" or "indicated" and to complete a scoping study. The recommended program includes 10,000 meters of core drilling that will provide more accurate width and grade estimates of both gold and silver and material for metallurgical test work. Dependent on positive results from Phase One, a Phase Two budget of $7.9 million for construction of a decline and underground drilling to further enlarge the resource is also recommended.
Commenting on the report Dr. Anthony P. Taylor, Chief Executive Officer of GSM said: "these resources are now sufficient to support an underground mining operation and there is every indication that they can be expanded by further drilling while we collect the necessary additional data for a scoping study to provide a more accurate estimate of mineable widths, gold and silver grades and mine, metallurgical engineering and permitting studies. We also believe that there are more similar high grade epithermal gold-silver deposits to be found along the 7.5 km of the major structure that runs through the claims controlled by us."
The company recently signed confidentiality agreements with six groups of potential joint venture partners and have held discussions with an additional three to consider further development of Monte Cristo. Some of these groups are also reviewing the resource at
The Sugarloaf Peak Prospect in Esmeralda County, Nevada, includes the old Tip Top Mine, the subject of a NI 43-101 compliant report, filed November 10, 2009. The Tip Top Mine has indicated and inferred resources of 646,234 tonnes grading 2.9 g/t gold at a 1 g/t gold cut off. Results from column leach metallurgical tests of 6 samples, approximately 40 kg each, collected in and around the old Tip Top adit will soon be available. The resource outcrops and exploitation by open pit-heap leach operation is under evaluation with potential partners.
The company’s address is 970 Caughlin Crossing, Suite 100, Reno, NV 89519, 775-284-7200, fax: 775-2840-7202, fax: [email protected].