GoldSpring Inc. (OTCBB: GSPG) today announced results from the updated resource estimate it received from independent geology firm Telesto Nevada Inc. in regards to its GoldSpring Hartford Complex in the Comptock Lode District. The report gives estimates of the contained resource gold ounces at the Hartford Complex, representing less than 2% of the company’s overall holdings.
The estimate report takes into consideration 19 additional drill holes that were not mentioned in the June 10, 2008, Preliminary Resource Report. Based on the previous report and current gold prices, the preliminary estimated valuation would have been $305 million.
However, the updated report marks a total of 57 drill holes from prior campaigns, indicating a resource of about 7.17 million tons grading 0.072 ounces per ton of gold containing 510,000 ounces of gold at a cutoff grade of 0.030 ounces per ton. Based on current gold prices, the company has the potential of approximately $418 million of identifiable resources.
The company’s missions are to increase reserves through exploration, expand its footprint in the Comstock, resume mining, optimize its production and maximize shareholder value. And with the recent updated estimate reports, the company may be well on its way to achieving these goals.
“We will continue to develop the drill indicated resource while exploring our expanded property position. We anticipate that the development activities will result in gold and silver production during 2009. Additionally, we will continue to explore for new deposits within the boundary of our consolidated land position.” Jim Golden, GoldSpring’s COO stated in the press release.
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