Gold Springs Resource adds over 100,000 ounces to project

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Gold Springs Resource Corp. [GRC-TSX; GRCAF-OTCQB] has completed a NI 43-101 resource estimate update and a preliminary economic assessment update for the Gold Springs project located along the Nevada-Utah border. All dollar amounts are in US$.

The updated resource estimate has an effective date of May 1, 2020. It constrained Measured and Indicated Resources at a 0.25 g/t gold cut-off stand a 35,657,000 tonnes grading 0.53 g/t gold, for 6120,000 ounces gold and 9.4 g/t silver for 10,782,000 ounces silver. AuEq ounces total 729,000 ounces. Inferred Resources are pegged at 104,000 AuEq.

Matias Herrero, President and CEO, stated: “With the new addition to the resource, Gold Springs is closer to the one-million-ounce mark, which is an important milestone for any gold deposit, particularly for those in mining-friendly and politically stable jurisdictions like Nevada and Utah. Also, more ounces were added to the measured and indicated categories (M&I) than to the inferred category, which enhances further the level of confidence in the Gold Springs’ resource estimate. The gold and silver grades at Gold Springs compare very well with other known gold deposits in the prolific great basin of Western USA. The four deposits included in the 2020 resource remain open to expansion in multiple directions, and they represent just four of the 28 outcropping gold targets identified on the property to date, highlighting the significant growth potential of the resource.”

The new mineral resource estimate (2020 resource) is an update from the 2017 mineral resource estimate (the 2017 resource) to mainly incorporate the drilling information of the 2017 drill program conducted at the South Jumbo deposit (also referred to as Etna).

As in the previous estimate, the 2020 resource includes the North Jumbo (also referred to as Jumbo) and South Jumbo deposits, located on the Utah side of the Gold Springs project, and the Thor and Grey Eagle deposits located on the Nevada side.

Matias Herrero stated: “The 2020 PEA confirms once again Gold Springs’ robust economics and its strong leverage to higher precious metal prices. The 2020 PEA shows a low Capex, technically simple, heap-leach operation, that is scalable within the context of an expanded resource which we believe is very likely with further drilling.”

Utilizing the new 2020 figures, the 2015 PEA has been improved. Economic assumptions include gold priced between $1,300 and $1,450/oz, silver between $16 and $21/oz and a cash cost of $699 to $715/oz (net of silver by-product). After tax revenue is expected to be $106,000 to $323,000. After tax IRR increased from 35.8% to 38.9%.

The technical report containing the 2020 resource and 2020 PEA is near completion and will be available under the company’s profile on SEDAR and on the company’s website in a few days.

The 2020 resource builds on the 2017 resource for the South Jumbo, North Jumbo, Thor and Grey Eagle deposits. The main objective of the 2020 resource was to publish a revised resource estimate for the South Jumbo (Etna) deposit of the Gold Springs project by integrating 2,596 metres of new drilling completed in the South Jumbo resource area. The 2020 resource also restates the 2017 resource for the North Jumbo and Thor deposits, and the 2015 mineral resource estimate for the Grey Eagle deposit, for higher gold price and operating costs. These three deposits have not been drilled since the last published resources.

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