South Railroad project is part of the Railroad-Pinion property.

The Railroad-Pinion property has two adjacent parts, the North Railroad portion (“North Railroad”), which includes POD, Sweet Hollow, and North Bullion (collectively called the North Bullion deposits, or the North Bullion area), and the South Railroad portion (“South Railroad”), which includes Dark Star, Pinion, and Jasperoid Wash.

The Railroad-Pinion area geology is summarized in two parts that correspond to the North Railroad portion of the property, and the South Railroad portion of the property.

The Railroad-Pinion property includes demonstrated Carlin-type gold mineralization in at least four deposit areas: North Bullion, Pinion, Dark Star, and Jasperoid Wash. These deposits are similar in setting and style to that of other deposits in the region, including Rain and Emigrant (Koehler et al., 2014; Norby et al., 2015; Turner et al., 2015; Dufresne and Koehler, 2016). Mineralization occurs mainly as finely disseminated, submicroscopic gold in largely stratiform bodies in Devonian, Mississippian, and Pennsylvanian- Permian rocks. The following subsections describe the mineralization in the North Bullion, Pinion, Dark Star, and Jasperoid Wash deposits and are modified from Dufresne and Nicholls (2016; 2017a; 2017b; and 2018).

North Bullion Deposits
The North Bullion deposits, which includes North Bullion, POD, and Sweet Hollow zones, contains Carlin-type disseminated-gold mineralization that is largely not exposed at the surface. The bulk of the geological understanding and interpretation of the North Bullion deposits has come from core drilling that was guided by interpretations of gravity and CSAMT data. Gold mineralization is focused in the footwall of the NBFZ, a north- south-striking zone of normal faults with an overall down-to-the-east displacement. North- south-, northwest-, west-northwest-, and northeast-striking faults appear to be important controls on mineralization. In general, gold- silver mineralization is localized in gently to moderately dipping, strongly sheared Webb and Tripon Pass formation rocks, and dissolution- collapse breccia developed above and within silty micrite of the Tripon Pass Formation and calcarenite of the Devils Gate Limestone (Jackson and Koehler, 2014; Jackson et al., 2015).

The upper limit of gold mineralization at the North Bullion deposit varies from 105 m to 400 m in depth. The dip of the mineralized material steepens from 10° to 45° to the east as the eastern strand of the NBFZ is approached. Gold is associated with sooty-looking, very fine-grained sulfide minerals, silica, carbon, clay, barite, realgar, and orpiment in addition to elevated arsenic, mercury, antimony, and thallium. Gold grades >6 g Au/t have been intercepted.

The North Bullion deposit, as currently defined, is approximately 750 m in length, 600 m in width and as much as 500 m in vertical extent.

Mineralization at the nearby POD zone is restricted to a steeply dipping shear zone which trends west-northwest and is situated in rocks stratigraphically higher than the lower mineralization at North Bullion (Hunsaker, 2012b; Masters, 2003). Mineralization at POD is hosted by the upper siltstones of the Webb Formation. The core of the mineralized body contains carbon and fine-grained, disseminated pyrite, and accounts for approximately 15% of the mineralization. This is surrounded by strongly oxidized mineralization. Gold grains are in the range of 5 to 20 microns, and are associated with oxidized pyrite, stibnite, and arsenopyrite (Masters, 2003).

As currently defined, the POD zone is approximately 650 m in length, 150 m in width, and as much as 200 m in vertical extent.

The Sweet Hollow zone is situated about 200 m southeast of the POD zone and about 600 m south of the North Bullion deposit. As currently defined, the Sweet Hollow zone is approximately 1,050 m in length, 250 m in width, and as much as 100 m in vertical extent.

Pinion Deposit
The Pinion gold deposit is located along the west- northwest-trending Pinion anticline and proximal to the Bullion fault. The Main zone trends approximately N50°W to N60°W, is approximately 1,000 m long by 1,000 m wide, and varies in thickness between ~15 to 150 m vertically. Mineralization at the Main zone has been intersected to a depth of 200 m below surface. Mineralization is hosted primarily along the crest of the Pinion anticline, but also along the east and west limbs. The multi-lithic dissolution- collapse breccia at the Devils Gate-Tripon Pass contact hosts the majority of mineralization, with minor amounts associated with decalcified limestone and dolostone above and below the breccia.

The North zone is approximately 1,100 m long, along a roughly north-northwest trend, varies from 45 m to 100 m in width, and ranges from 35 m to 135 m in vertical thickness. Mineralization at the North zone is hosted primarily in multilithic breccia and appears to be an offset of the east limb of the anticline. Low-grade mineralization has also been noted in the Sentinel Mountain Dolomite.

Dark Star Deposit
The Dark Star deposit is hosted primarily within Pennsylvanian-Permian undifferentiated units possibly equivalent to the Tomera Formation, with minor amounts of gold mineralization found in the Chainman Formation. The deposit is centered along the north-south-striking Dark Star fault corridor and is elongate in the N5°E direction. As presently defined by drilling, the deposit consists of the Dark Star Main and Dark Star North zones, and has dimensions of approximately 1,400 m in length, up to 700 m in width, and to a depth of 450 m below surface.

Gold mineralization at Dark Star is submicroscopic and disseminated within a north- to north- northeast-striking zone of silicification within the middle coarse conglomeratic and bioclastic limestone-bearing unit. This unit is between the upper and lower silty limestone and calcisiltite units. At Dark Star Main the mineralization dips steeply to the west near the surface to sub- horizontal at depth; at Dark Star North the mineralization dips steeply to the west.

Jasperoid Wash Deposit
The Jasperoid Wash deposit has approximate extents of 1,400 m in a north direction and a width of about 1,100 m. Drilling shows the deposit dips west gently to steeply at least 400 m. Gold is disseminated within altered feldspar porphyry dikes and adjacent conglomeratic rocks, possibly the same units that host mineralization at Dark Star. The gold is inferred to be submicroscopic, though no petrographic studies have been done. Higher-gold grades are associated with drusy quartz in fractures, which have a varnish of limonite and/or hematite and with zones of very finegrained disseminated sulfide minerals that have a sooty appearance in the argillized feldspar porphyry.

The PFS includes mining at both the Dark Star and Pinion deposits; both are planned as open-pit, truck and shovel operations. The truck and shovel method provides reasonable costs and selectivity for these deposits.

Gold Standard proposes to mine approximately 47.3 million tonnes of heap-leach mineralized material and 147.3 million tonnes of waste rock (total of 194.6 million tonnes). The mineralized material and waste would be extracted from the open pits using conventional surface mining methods of drilling, blasting, loading, and hauling. Gold Standard would use hydraulic shovels or front-end loaders to load the blasted mineralized material and waste into the haul trucks. The haul trucks would transport the waste rock to the rock disposal area near the open pit and transport the mineralized material either directly to the heap leach pad as ROM ore, or to the crushing system where the mineralized material would be crushed to a nominal size between ¼ and ¾ inch.

High grade ore from the Pinion and Dark Star pits (approximately 60% of the total mineral reserves) will be crushed beginning in Year 2 of operations in a three-stage crushing circuit.
The crushing plant will process an average of 10,000 tonnes of ore per day.

Ore will be fed from the ROM dump hopper to a vibrating grizzly feeder via an apron feeder. The vibrating grizzly feeder will have parallel bars spaced 100 mm apart with grizzly oversize being fed to the primary jaw crusher and the grizzly undersize being recombined with the jaw crusher product on the primary crusher discharge conveyor. The primary jaw crusher will operate with a 102 mm discharge setting. The primary crusher discharge conveyor transfers primary crushed ore to the primary crushed ore stockpile feed conveyor. The primary crushed ore stockpile has a total capacity of 16,000 tonnes with a live capacity of 4,100 tonnes (approximately 9 hours of operation).

Ore from the primary crushed ore stockpile will be reclaimed by two each vibrating pan feeders onto a secondary screen feed conveyor. A tramp metal electromagnet and metal detector will be installed on the secondary screen feed conveyor to protect the secondary crushers. The secondary screening circuit includes a single double-deck vibrating screen with 76 mm and 50 mm top and bottom deck openings, respectively. Oversize material (+50 mm) will be transferred to the secondary feed conveyor by the screen oversize conveyor and undersize (-50 mm) will be transferred to the secondary product stockpile feed conveyor by the secondary screen undersize conveyor. Oversize material will be crushed by a secondary standard cone crusher which will operate with a 50 mm closed side setting and will discharge onto the secondary crusher product conveyor. The secondary crushing circuit will be operated in closed circuit with the secondary crusher product conveyor feeding the secondary screen feed conveyor; a splitter chute with a flop gate is positioned at the discharge of the secondary crusher product conveyor to bypass secondary cone product from the secondary screen and tertiary crusher circuit by feeding material directly to the tertiary crusher product stacking conveyor. Due to the high abrasiveness of the ore, a second standby cone crusher is included in the design to meet plant availability requirements.

The secondary screen undersize (secondary product) will be stockpiled by the secondary stockpile feed conveyor. The secondary product stockpile will have a total capacity of 16,000 tonnes with a live capacity of 4,100 tonnes. Ore from the secondary product stockpile will be reclaimed by two vibrating pan feeders each onto the HPGR feed conveyor. A tramp metal electromagnet and metal detector will be installed on the HPGR feed conveyor to protect the HPGR (high pressure grinding roll) crusher.

The tertiary crushing circuit will consist of an HPGR crusher with partial recycle. Ore will be fed to the HPGR feed bin which choke feeds the HPGR unit. Approximately 20% of the HPGR product is recycled back to the HPGR feed conveyor. Crushed product from the HPGR, 100% passing 14 mm, is stockpiled by the tertiary crusher product stacking conveyor.

The process selected for recovery of gold and silver from the Pinion and Dark Star ore is a conventional heap-leach recovery circuit. The ore will be mined by standard open pit mining methods from two separate pits. Lower-grade Pinion and Dark Star ore will be truck-stacked on the heap as ROM ore directly, without crushing. Higher grade Pinion and Dark Star (low clay) material will be processed in a three-stage crushing circuit with a high-pressure grinding roll (HPGR), treated with cement and agglomerated, then conveyor-stacked onto heap leach pads.

Oxide and transition material types will be leached with a dilute cyanide solution, and the leached gold and silver will be recovered from solution using a carbon adsorption circuit. The gold and silver will be stripped from carbon using a desorption process, followed by electrowinning to produce a precipitate sludge. The precipitate sludge will be processed using a retort oven for drying and mercury recovery, and then refin ........