Gold Basin Resources eyeing maiden resource at its namesake Arizona gold project: CEO Colin Smith
(Kitco News) - Colin Smith, CEO of Gold Basin Resources (TSXV:GXX), said the company is looking to advance its Gold Basin project in Arizona to a maiden resource estimate and put it into development shortly thereafter.
In early November Smith was interviewed by Kitco Mining at the New Orleans Investment Conference (NOIC).
"Everybody thinks about Nevada as being the place for major oxide gold deposits, but certainly that's the case in Arizona as well, as we're seeing at Gold Basin," he said.
In explaining the project's background, Smith said it was historically drilled and permitted in the mid-1990s to go into production as an open-pit heap leach mine. However, low gold prices stalled its progress, and two decades passed before Gold Basin got involved.
Gold Basin is located within a major geological trend in northwestern Arizona, the transition zone between the highly prospective geology of Walker Lane, in neighboring Nevada, and the southern copper belt.
The 42-square-kilometre property is largely under-explored and contains multiple near-surface oxide gold deposits. The two most significant historical deposits are Cyclopic and Stealth. A third is called Red Cloud, and Smith said Gold Basin is looking to expand the resource potential at all three zones.
Gold mineralization at Cyclopic is open in all directions, particularly at depth, with most drilling to date reaching only 90m. The Stealth deposit is ~900m west of Cyclopic, with historical drilling showing significant gold mineralization that remains open in all directions.
Gold Basin completed a property-wide LiDAR and aerial photography survey and, to date, has identified over 230 sites of historical, small-scale mining sites, including shafts, adits and pits. Most of these sites have no records of drilling or modern-day exploration.
Gold Basin has also done two rounds of metallurgical testing at a facility in Reno, with the results showing favorable for a heap-leach environment.
The Discovery Group company has about 126 million shares outstanding, fully diluted, with no warrants. Two financings have been completed this year, both at $0.15 per share. An upsized private placement that closed in September raised $963,350.