The Lewis Project shares a common land boundary with Newmont’s Phoenix mine, one of the most prolific gold-silver-copper producers on the Battle Mountain-Eureka trend. The northern portion of the Phoenix open-pit abuts the Lewis property and known mineralizing control structures and stratigraphy project north onto the Lewis ground. The Companies large mineral property (2,161 hectares or 5,340 acres) has never been systematically explored and has several known mineralized zones and potential for new discoveries of economic gold, silver and, possibly, copper deposits. The project was acquired by Gold Standard Ventures as part of its purchase of Battle Mountain Gold completed on June 14, 2017.
Gold production at the adjoining Phoenix area complex began as a by-product of copper production in 1977 under Battle Mountain Gold. By 1982, stand alone gold production began, starting with the Tomboy-Minnie, Fortitude and Surprise deposits and progressed northward into Copper Basin with the Labrador, Surprise and Reona Heap leaching operations (~1990). Between 1995 thru 2000, smaller scale production and exploration continued, and ultimately, Battle Mountain Gold completed a positive feasibility study with estimated 415,000 oz/yr. gold production, 2.2 million oz Ag and 28.8 million lbs of Cu. In June 2000, Newmont merged with Battle Mountain Gold ($542 Million). In 2005, Newmont reported 8.95 million oz of Au in the Phoenix deposit and in 2006 began production. However, metallurgical and operational issues hampered the project and Newmont conducted modifications to recovery and crushing facilities. By 2008, Newmont projected output at 200,000 to 250,000 oz for the next 5 years.
In their 2017 Annual Report, Newmont announced reserves of 4.03 million oz at 0.016 opt Au (74% recovery). In their 2018 10K report, Newmont states reserves of 2.82 million oz Au at 0.019 opt Au (70% recovery). Newmont also reports mineralized material containing an additional 1.59 million oz Au at 0.014 opt Au with significant Cu and Ag.
Newmont reports that Phoenix is a skarn-hosted polymetallic massive sulfide replacement deposit. The Phoenix mill produces a gravity gold concentrate and a copper/gold floatation concentrate and recovers additional gold from cyanide leaching of the floatation tails. Newmont also extracts copper form tailings using a copper heap leach and SX/EW plant producing high-grade copper cathode. Newmont reports ongoing exploration and development of new reserves is ongoing.
There are no known resources or reserves on the Lewis Gold Project and the Company’s future exploration programs will be exploratory searches for ore. In addition, the close proximity of the Lewis Gold Project to Newmont’s Phoenix mine is not necessarily indicative of the gold and other mineralization present on the Lewis Gold Project.