Gold Standard Inc. will intensify its exploration in 1988.
That's the word from Scott L. Smith, GS president, who released the company's annual report and said that as a result of the company's financing arrangements, the company's liquidity and working capital position are better than ever before.He said the firm intends to remain as a pure gold company with a strategy directed to developing gold deposits that have a long life, such as Mercur, a gold mine which is Gold Standard's major asset. The Mercur Mine, 35 miles southwest of Salt Lake City, is operated by American Barrick Resources Corp.
Smith said that in the early 1970s, Gold Standard acquired the core claims of the 20 square miles that make up the Mercur property, and development of the mine began after Gold Standard entered into an operating agreement with Getty Mining Co. in 1973.
Production commenced in 1983 and has continued uninterrupted, even though Getty was acquired by Texaco, which then sold the mine to American Barrick. Gold Standard has filed a lawsuit to protect its interest in the mine, the annual report said.
The annual report also talked about Gold Standard's Long Ridge property, 2,500 acres located seven miles northeast of the Mercur Mine. In 1987 the company conducted extensive mapping and sampling and will continue systematic exploration "to bring the property to the point where it will be developed by Gold Standard alone or with a partner."
Also in 1987, Gold Standard entered into an agreement that provided control of a majority of the patented mining claims in the Dugway Mining District in Tooele County, consisting of 5,000 acres 35 miles west of Mercur. "Previous production from this old district indicates the presence of significant gold mineralization," the report said.