Gold Summit Corporation ("GSM") or the "Company")(TSX VENTURE: GSM)
has completed a 43-101 compliant study of the gold resource at the
old Tip Top mine, within the Sugarloaf Peak Prospect in Esmeralda
County, Nevada, acquired by the company in July this year (release
July 10, 2009).
The study is based on 138 exploration holes, totalling 7,351
metres, drilled from 1980 to 2004 by five exploration or mining
companies, including Gold Summit. The estimate of the gold
resource, the bulk of which lies within 200 feet of surface, at a 1
g/t cut-off grade, is:
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INDICATED GOLD
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Metric Units Imperial Units
----------------------------------------------------------------------------
Cut-off Total Gold Cut-off Total Gold
Grade Tonnes GPT (grams) Grade Tons Oz/t (oz)
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1.0 gpt 352,922 3.274 1,155,467 0.03 oz/t 388,920 0.096 37,181
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INFERRED GOLD
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Metric Units Imperial Units
----------------------------------------------------------------------------
Cut-off Total Gold Cut-off Total Gold
Grade Tonnes GPT (grams) Grade Tons Oz/t (oz)
----------------------------------------------------------------------------
1.0 gpt 293,312 2.473 725,361 0.03 oz/t 323,230 0.072 23,341
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The Tip Top Mine mineralized vein has an identified
strike-length of 370 m. The vein system in the study incorporates a
footwall vein with an average true width of 2 m, hosted in
andesite, with a narrower, hanging wall vein 1 m average true width
at an andesite-rhyolite contact. These veins merge in part creating
a zone up to 5 m in true width.
The report concludes that more drilling of both distal and
down-dip portions of the deposit is clearly warranted to enlarge
the resource and recommends a Phase 1 programme of $685,000 for
that purpose. The programme includes initial base line studies
required for any proposed mining operation.
Commenting on the report, Dr Anthony P. Taylor, Chief Executive
Officer, said "we are very pleased with these results that come in
midway in the range of the non-compliant resource numbers announced
in July and, particularly, that two-thirds of the ounces are in the
indicated category. The recommendation for a vigorous drilling
programme follows from the 3D model which shows distinct target
areas untouched by earlier drilling. The intent of the proposed
drilling campaign is to significantly increase the resource base
guided by the 3D Surpac model. This doubles our total resources
base at potentially economic grades in Nevada to over 120,000
ounces"
Surpac is a 3D geologic modeling and mine planning software tool
which was utilized in the preparation of the NI 43-101 report.
GSM explores in Nevada primarily for high-grade gold and
gold/silver deposits that would support underground, low cost
mining operations. GSM's primary properties cover four Tertiary
epithermal vein districts. All have drill ready targets defined by
surface work, most with bonanza grades in outcrops or discovery
drill holes.
The Company's flagship property, Monte Cristo, contains a NI
43-101 compliant inferred resource estimate of 331,000 tonnes
averaging 6.5 g/t gold. An updated resource evaluation and NI
43-101 report, to include drilling results obtained since the
completion of the first report in 2006, is underway. The report
will include a newly recognised shallow resource to the north -west
of the main McLean Lode as well as an estimate for old drill
results and channel sampling from the Black Mammoth mine that sits
to the east and, probably, in the footwall of the main structure
that hosts the McLean Lode.
High-grade shoots that form the heart of the McLean Lode
resource are open down plunge and the Company plans drilling to
extend these. This will be guided by a new Surpac 3D model, the
basis for the new resource report. Surpac is a computer modelling,
estimation, mine planning system in common use in the mining
industry.
The Sugarloaf Peak Prospect
In the late 1800s gold-silver mineralization at Sugarloaf Peak
was discovered in an intensely silicified outcrop north of the Tip
Top adit and shortly after, in the Brownie Mine. Both of these
mines have splayed veins in the footwall and hanging wall, on or
near an andesite-rhyolite contact.
The geochemical signature from rock chip and drill sampling
indicates a low-sulfidation environment similar to Midas in
northern Nevada. Vein textures are typically crustiform to
colloform banded quartz, adularia, and massive to bladed calcite
veins. Very little sulphide is present, and wall rock alteration
varies in width and type depending upon host lithology. The average
silver-to-gold ratio is 9.8. Host rocks for the veins, that have a
cumulative strike length of over 2,700 m, are rhyolite, andesite
and rhyodacite.
The Tip Top vein structure likely extends for another 370 m
northeast toward the Buckskin Mine. To the southwest, the 600 metre
strike length towards the Brownie Mine is covered by slumped
material (talus) and is untested. There, a mineralized zone 3 to 5
m wide and 150 m long averaged about 4.5 g/t gold.
Several other mineralized veins in the Project area show
potential for discovery of gold-silver mineralization. Named
Sagehen Flats, Riddle, Buena Vista and northwest Tip Top, they
occur as sporadic outcrops of fine-grained or opaline silica
carrying anomalous gold and silver values assaying up to 4.32 ppm
gold and 16 ppm silver.
The 43-101 report is authored by Nicole Preuss, M.Sc.,LG, M.Aus
IMM, a Qualified Person, defined in National Instrument 43-101
Standards of Disclosure of Mineral Projects, licensed in the State
of Washington.
Larry Kornze, a GSM director and a registered Professional
Geologist, designated as the Qualified Person under National
Instrument 43-101 has reviewed and approved the contents of this
news release.
This news release contains forward-looking statements. These
statements are based on information currently available to GSM and
GSM provides no assurance that actual results will meet
management's expectations. Forward-looking statements include
estimates and statements that describe GSM's future plans,
objectives or goals, including words to the effect that GSM or
management expects a stated condition or result to occur.
Forward-looking statements may be identified by such terms as
"anticipates", "believes", "could", "estimates", "expects", "may",
"shall", "will", or "would". Since forward-looking statements are
based on assumptions and address future events and conditions, by
their very nature they involve inherent risks and uncertainties.
Actual results relating to, among other things, results of
exploration, project development, reclamation and capital costs of
GSM's mineral properties, and GSM's financial condition and
prospects, could differ materially from those currently anticipated
in such statements for many reasons such as: changes in general
economic conditions and conditions in the financial markets;
changes in demand and prices for minerals; litigation, legislative,
environmental and other judicial, regulatory, political and
competitive developments; technological and operational
difficulties encountered in connection with the activities of the
Company; and other matters discussed in this news release. This
list is not exhaustive of the factors that may affect any of GSM's
forward-looking statements. These and other factors should be
considered carefully and readers should not place undue reliance on
GSM's forward-looking statements. GSM does not undertake to update
any forward-looking statement that may be made from time to time by
GSM or on its behalf, except in accordance with applicable
securities laws.
This news release includes certain "forward looking statements"
within the meaning of the United States Private Securities
Litigation Reform Act of 1995. Without limitation, statements
regarding potential mineralization and resources and reserves,
exploration results, and future plans and objectives of the Company
are forward looking statements that involve various degrees of
risk. The following are important factors that could cause the
Company's actual results to differ materially from those expressed
or implied by such forward looking statements: changes in the world
wide price of mineral commodities, general market conditions, risks
inherent in mineral exploration, risks associated with development,
construction and mining operations, the uncertainty of future
profitability and the uncertainty of access to additional
capital.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Gold Summit Corporation Andrea Rascati (775) 284-7200
www.goldsummitcorp.com
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