HC Wainwright: Time To Buy Gold Standard Ventures, It Has 'The Right Geology, The Right Location'

In a report published Tuesday, HC Wainwright analyst Heiko F. Ihle initiated coverage of

with a Buy rating and a price target of $1.10. The company is currently focused on advancing its Railroad-Pinion project. "The project is located at the southern extension of the prolific Carlin Trend, approximately 47 kilometers south of Elko, Nevada. Moreover, the project is located in close proximity to various producing and development stage mines, which we believe positions Gold Standard as a strong candidate for an eventual takeover," Ihle reported. Initial test results indicate that the simple cyanide heap leach process to be used to process the deposit at Railroad-Pinion. In addition, given the type of deposit and the subsequent infrastructure required to mine it, the analyst expects the company to be able to start production with only modest capital expenditure of about $50 million, which makes the project more attractive. "Further, given the presence of mining operations in the immediate vicinity, we expect permitting risk to be moderately low. We expect resources to continue to increase at Railroad-Pinion. Gold Standard Ventures has identified an already significant resource base at the Pinion deposit," the HC Wainwright report said. Also, the Dark Star deposit has been estimated to have a meaningful resource base. Given that drilling activities continue at both previously identified and new exploration zones, Gold Standard Ventures is expected to add to the combined resource base at Railroad-Pinion, going forward. "We expect to receive greater visibility with respect to potential costs and operating parameters at Railroad-Pinion following the release of a Preliminary Economic Assessment (PEA) later this year," Ihle added.