Exploration company Gold Standard Ventures has shown that its discovery-hole of early April was not a one-off result. In yesterday’s press release, Gold Standard published excellent gold values in holes 3 and 4, indicating the existence of a significant Carlin-type gold discovery.
Carlin-type gold deposits were originally defined in Nevada, in the US. They are a very important target for exploration companies because they usually contain large amounts of gold. The search for them is frequently obstructed because they are commonly situated at rather large depths. More importantly, these deposits are associated with very complex fault structures that have enabled gold to rise through the earth to the (near) surface. This complexity makes Carlin-type gold exploration comparable to looking for a needle in a haystack.
The geologists of Gold Standard are very experienced in Carlin-type exploration. They have previously discovered two significant gold deposits, and therefore know exactly what to look for. Nevertheless, even for them the challenge remains huge, and we may expect lesser results from future drilling. There is a danger that the market may be expecting a speedy succession of similar good results now that the company has set the standard. We consider this a significant discovery.
Disclosure: The CDFund owns shares of Gold Standard Ventures