June 30, 2021 – TheNewswire – Vancouver, British Columbia – Gold Basin Resources Corporation (the "Company" or "Gold Basin") (CNSX:GXX.CN) (OTC:GXXFF) is pleased to announce that it has completed a diamond drilling program at the Cyclopic and Stealth deposits located within its 100%-owned Gold Basin oxide gold project, located in north-western Arizona (the "Gold Basin Project" or the "Project"). The drill holes were planned and drilled to provide fresh core for a metallurgical testwork program to be undertaken by metallurgical consultants Kappes Cassiday & Associates ("KCA"), based in Reno, Nevada. KCA are a highly experienced company with particular expertise with the metallurgy of heap leach operations.
METALLURGICAL TESTWORK PROGRAM
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1.Diamond Drilling
In April and May 2021, a total of six (6) diamond core holes were drilled at the Gold Basin Project, and the primary purpose of these drill holes was to obtain fresh and representative core samples of the mineralised oxide ore.
Four (4) holes were drilled along a 900m strike length of the mineralised Cyclopic structure zone, with each PQ sized core hole sited approximate to a reverse circulation ("RC") hole that possessed consistent mineralised intercepts through the Cyclopic detachment and the underlying 40m detachment. This approach was targeted to provide representative samples of both the higher-grade oxide ore (typically encountered along both detachment faults) as well as the low-grade zones that occur around and between these fairly flat lying shears. The remaining two (2) diamond drill holes were drilled at the Stealth deposit approximately 900m west of the Cyclopic structure.
Logging of the diamond drill core and sample selection for the metallurgical testwork program is currently being undertaken by the Company in conjunction with KCA. It is expected that sample selection will be completed by July 5, 2021.
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2.Gold Recovery Testwork
The Company has agreed to a Scope of Work with KCA for a testwork program that is designed to determine the head and leach characteristics for gold recovery from the Gold Basin Project oxide ore. Fine gold is known to exist in the ore matrix and the PQ core samples will be split into two parallel streams:
The crushed material (consisting of 80% passing 6.3mm from both crushing methods) will then be separately subject to the gold recovery testwork. This methodology will provide data for a comparative analysis of both crushing methods on the gold recovery: KCA utilises the PILOTWAL unit (0.5m diameter x 0.3m wide) for its HPGR work and a copy of the operational data from the PILOTWAL is submitted to ThyssenKrupp Industrial Solutions for industrial design.
The crushed material will also undergo a series of tests that includes:
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– direct cyanidation – coarse bottle roll test;
– preliminary agglomeration;
– compacted permeability tests; and
– column leach tests.
The initial column leach period will be sixty (60) days with additional time if deemed necessary. It is expected that the total timeframe for the metallurgical testwork program from commencement to the final report will be approximately 4-6 months.
HISTORICAL METALLURGICAL STUDIES
Metallurgical testing on material from the Gold Basin Project is presently limited to two separate studies carried out by KCA in the 1990s on behalf of previous operators of the Project. During the period 1995-97 KCA received crushed sample material from both the Stealth and Cyclopic mine areas. The bottle roll and column test work data on these samples indicate that the Gold Basin Project gold mineralisation is amenable to direct cyanidation and consistently showed increasing extractions with decreasing particle size for the samples tested. The "as-received" samples tested in 1995 yielded a cumulative gold extraction of 96% for the minus 48 mesh particle size and 74.0% for the minus 1/4in (6.3mm) material.
Unfortunately, neither the type or style of the mineralisation nor the representativeness of the material submitted is reported and consequently limits the usefulness of this historical study data. Further details on these studies are contained in the Company’s National Instrument 43-101 Standards of Disclosure for Mineral Projects technical report dated February 25, 2021 and dated effective February 5, 2021, titled "National Instrument 43-101 Technical Report: Geology and Exploration at the Gold Basin Project Mohave County, Arizona USA", prepared by Hard Rock Consulting, LLC and available on the Company’s SEDAR profile at www.SEDAR.com.
PEAK INVESTOR MARKETING
In addition, the Company is pleased to announce that it has entered into an agreement with Peak Investor Marketing Corp. ("Peak") a full-service marketing and consulting services firm focused on the junior mining sector (the "Peak Agreement"). Peak is an independent arms-length entity and will assist Gold Basin with marketing strategy and planning, corporate communications and public relations, with the goal of increasing market awareness of the Company. Under the terms of the Peak Agreement, the Company will pay a cash fee to Peak of $12,000 per month for an initial 3-month term, and has granted Peak 300,000 stock options. The stock options will vest immediately and each be exercisable to purchase one common share in the capital of the Company for a period of 12 months from the date of grant at a price of $0.38 per share.
The stock options are non-transferable and any common shares issued upon the exercise thereof will be subject to a four-month hold period from the date of grant pursuant to the policies of the Canadian Securities Exchange.
QUALITY CONTROL AND QUALITY ASSURANCE
The Company initiated diamond drilling on the Gold Basin Project in April 2021 and drilled six (6) holes, with hole depths ranging from 51 to 91m. All holes drilled at the Cyclopic deposit were vertical and were PQ in diameter. Core has been transported to a secure facility in Nevada where it will be logged and split using a diamond core saw.
QUALIFIED PERSON
Charles Straw BSc., a qualified person as defined by NI 43-101, has reviewed the scientific and technical information that forms the basis for this news release and has approved the disclosure herein. Mr. Straw is not independent of the Company as he is the President and a director of the Company, and holds securities of the Company.
About Gold Basin Resources Corporation
Gold Basin Resources is engaged in the business of mineral exploration and the acquisition of mineral property assets in North America, including the Gold Basin Project located in the Gold Basin Mining District, Mohave County, Arizona, which comprises five mineral rights (2,389.34 acres) and 290 unpatented mining claims (5,280 acres), totalling 7,669.34 acres. Its objective is to locate and develop economic precious and base metal properties of merit.
On Behalf of the Board of Directors
Michael Povey
Chief Executive Officer and Director
For further information, please contact:
Andrew Mendelawitz, Investor Relations
Phone: 1-778-650-5457
FORWARD-LOOKING STATEMENTS:
This news release contains forward-looking statements and forward-looking information (collectively, "forward looking statements") within the meaning of applicable Canadian and U.S. securities legislation, including the United States Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included herein including, without limitation, future results from the metallurgical testwork program on the Project, future plans for the Project, the Company’s expectation that it will be successful in enacting its business plans, and the anticipated business plans and timing of future activities of the Company, are forward looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: "believes", "will", "expects", "anticipates", "intends", "estimates", "plans", "may", "should", "potential", "scheduled", or variations of such words and phrases and similar expressions, which, by their nature, refer to future events or results that may, could, would, might or will occur or be taken or achieved. In making the forward-looking statements in this news release, the Company has applied several material assumptions, including without limitation, that that there will be investor interest in future financings, market fundamentals will result in sustained precious metals demand and prices, the receipt of any necessary permits, licenses and regulatory approvals in connection with the future exploration and development of the Company’s projects in a timely manner, the availability of financing on suitable terms for the exploration and development of the Company’s projects and the Company’s ability to comply with environmental, health and safety laws.
The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward-looking statements as a result of various factors, including, operating and technical difficulties in connection with mineral exploration and development activities, actual results of exploration activities, the estimation or realization of mineral reserves and mineral resources, the inability of the Company to obtain the necessary financing required to conduct its business and affairs, as currently contemplated, the timing and amount of estimated future production, the costs of production, capital expenditures, the costs and timing of the development of new deposits, requirements for additional capital, future prices of precious metals, changes in general economic conditions, changes in the financial markets and in the demand and market price for commodities, lack of investor interest in future financings, accidents, labour disputes and other risks of the mining industry, delays in obtaining governmental approvals, permits or financing or in the completion of development or construction activities, risks relating to epidemics or pandemics such as COVID–19, including the impact of COVID–19 on the Company’s business, financial condition and results of operations, changes in laws, regulations and policies affecting mining operations, title disputes, the inability of the Company to obtain any necessary permits, consents, approvals or authorizations, including of the Canadian Securities Exchange, the timing and possible outcome of any pending litigation, environmental issues and liabilities, and risks related to joint venture operations, and other risks and uncertainties disclosed in the Company’s latest Management’s Discussion and Analysis and filed with certain securities commissions in Canada. All of the Company’s Canadian public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials.
Readers are cautioned not to place undue reliance on forward-looking statements. The Company undertakes no obligation to update any of the forward-looking statements in this news release or incorporated by reference herein, except as otherwise required by law.
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