Gold Summit GSM market cap $5m have new Comstock

Gold Summit Resumes Drilling at Monte Cristo...

http://www.usetdas.com/TDAS/NewsArticle.aspx?NewsID=10930

My review of the Gold Summit drilling program and a conversation with Tony Taylor

No news is not bad news. This is the exploration business, it is a long process and it takes time. Furthermore, the investment climate for resource sector stocks has been very negative recently, and negative generally ever since the subprime crisis-driven stock market meltdown of August, 2007. Further negative since the meltdown in the price of Novagold. Negative - meaning "lower stock prices". Only a small percentage of resource stocks have been moving up in this environment. That said, GSM is not sitting on its hands and doing nothing.

Ongoing drilling at Monte Cristo

GSM is finishing the last of its drilling work, the final drillhole. When it gets the assay data from the last two holes it will analyze all drill results and put out news on what it all means. No, I don't know how successful is the current program. GSM president Tony Taylor was completely tight-lipped about it, and I am sure the market will not know anything until there is a news release.

New 43-101 compliant resource estimate to follow the drill program

Taylor said that a 43-101 compliant updated resource estimate will likely be produced after a near term follow-up drill program (if there is one) is completed, or after both programs if possible. I reviewed a 3D representation of the area of mineralized anomolies below the Maclean pit where a 43-101 resource calculation was previously produced and where more drilling is being done now. Clearly there are further mineralized areas extremely prospective for gold intercepts. Furthermore, the areas between previously drilled intercepts of ore grade material are even more likely to include ore grade intercepts as well, as probable as one can get in this business.

Here, the so-called infill drilling will improve the confidence level in past and current drill results and it's obvious to me that the originally reported and very conservative 43-101 compliant resource estimate of about 70,000 ounces of gold in the inferred category will be substantially upgraded in number of ounces and where possible to a higher confidence category. This is a given. GSM will find more gold where it has already found gold, and secondarily in other untested areas in close proximity which are known to have mineralization with a similar geological signature. More gold intercepts, plus higher confidence level drilling (holes spaced closer together than before), plus perhaps a lower cutoff grade, could easily lift the reported resource to perhaps 125,000 ounces or more should such a 43-101 report be announced. An expanded near-term followup drilling program could lift this to 200,000 or even 250,000 ounces depending on the number of holes done. These are my "guesstimates", and any future surprise "bonanza" grade drill holes would of course build up all these gold ounce numbers further and faster. With nice metal grades and a rising resource base, one can start to envision a small, profitable mine in the making here. All from merely one area among many within the Monte Cristo area. If GSM were to focus only on the area below the Maclean pit it would reduce the risks of exploration in the short term and provide momentum for the company which could later be capitalized on for exploring the other highly prospective targets of Monte Cristo. Meanwhile, the substantially higher numbers in an updated resource calculation should be positive for the stock price.

Silver ounces to get some respect at Monte Cristo

We will get some millions of ounces of silver out of any analysis of current and future drilling. Historical data for silver underneath and near the Maclean pit was poor or non-existent, so there is some past handicap here in determining what we have had, but this will become clearer in the near future. There have been some very high silver grades and intercepts over mineable widths in prior drilling work by the company.The silver is important because it can increase the rock value by up to 50% of the gold value. This can considerably improve the economics of a future mine.

Putting the current drill program in perspective

I reviewed the area of mineralized anomolies below the Maclean pit where a 43-101 resource calculation was previously produced. Clearly there are further mineralized areas extremely prospective for gold intercepts. The current program will be expanded and followed up more aggressively as decided by the JV partners based on the drilling results obtained. The drilling work done here is only in one area among many (a dozen or two) within the Monte Cristo land area. Drilling results from below the Maclean pit will by no means tell us how successful will be the drill programs in each of the other most prospective areas of the Monte Cristo land package. The other areas have a similar or essentially identical geological signature. Based on that it is my opinion that if and when there is substantial (extensive) drilling of the other areas and if those areas obtain results similar to those obtained below the Maclean pit, it is likely to ramp up the gold and silver numbers into the millions of ounces eventually. Of course, whether the JV partners will drill the other areas depends on how successful are the earlier drilling programs such as the current one, and financial constraints. GSM needs substantial results to build up the necessary momentum to justify the drilling of the other areas. I am patiently waiting for GSM to announce its drilling results in a few weeks or so, and for clarification about the scope of the drill program to follow. I am also looking forward to the resource calculation updates. Realistically that is what is likely to drive up the stock price as an increasingly large metal resource leads to a higher probability of a positive production decision.

tooclassy

http://www.cdnx.com//data/lcdb/DOCP/JUN2008/18K%40S01%21.DOC

Gold Summit Reports 3.5 Metres of 12.1 G/T Gold in New Shallow Zone at Monte Cristo


Reno, NV June 18, 2008

FSC / Press Release


Gold Summit Reports 3.5 Metres of 12.1 G/T Gold in New Shallow Zone at Monte Cristo

Reno, Nevada US, June 18, 2008 /FSC/ - Gold Summit Corporation (TSX - VX: GSM), ("GSM") announces receipt of complete assay data from the last three of a seven hole core drilling program on the Monte Cristo Property in west central Nevada, located approximately 50 km west north west of Tonopah.

International Bethlehem Mining Corp. ("International Bethlehem") (TSX-V: IBC) has an option to acquire up to a 50% interest in GSM's Monte Cristo Property by incurring exploration expenditures of $3 million over four years. Minimum expenditure of $600,000 for 2008 has been met.

The following table shows significant intersections assaying greater than one gram per tonne gold in the three drill holes:



The core drill holes were planned to fill in large gaps within the existing drill pattern and all three intersected the target McLean Lode. Future plans include more systematic core drilling of the McLean Lode in an effort to increase and upgrade the present 43-101 compliant inferred resource of 331,000 tonnes averaging 6.5 g/t gold to indicated and measured status. Significantly, drill hole MCC-63 intersected the Lode 50 metres to the north of the resource area, thereby demonstrating a potential increase in its size. Drill hole MCC-64 did not intersect significant mineralization and is outside the resource area.

The shallow high grade intersection in drill hole MCC-65 is evidence of an upper mineralized horizon in the system with epithermal characteristics similar to the Main Lode. Sampling of GSM's previous core drill holes within this upper zone has not been completed to date. However, assay records from historical reverse circulation holes drilled by Cyprus Copper in 1989 show a similar higher grade interval. Cyprus Hole GP-72, drilled 50 metre east of hole MCC-65, intersected an interval of 7.6 metres assaying 16.9 g/t gold, including a 1.5 metre interval assaying 39.4 g/t gold. GSM is presently examining 22 core previous drill holes in the area to document and sample the upper horizon. It has potential to provide another continuous high grade zone and could significantly increase the size of the McLean Lode.

The new assays are from half cut HQ core at the Sparks Laboratories of American Assay using standard Fire/AA or gravimetric methods with checks provided by insertion of blank and standard samples. Quoted assays for Cyprus Hole GP-72 were from standard 1.3 metre RC splits assayed in Chemex Laboratories in Sparks using the Fire/gravimetric method with inserted standards.

From stockhouse:


"The news announced today dramatically should change the way investors perceive GSM. Here's the bottom line: GSM now offers the upside of an explorer, without the commensurate risk.

We now have two areas of mineralized, economic ore: 70,000 ozs of gold resource at 6.5g/t gold, around which we had a hole hit an area fifty metres away with 5.7g/t, AND a high-grade, shallow vein with nice intersections of gold grades and intervals, hit in TWO places. Within each of those two intersections, are high segments of 40g/t gold!

My goodness, what more do investors need to buy this stock? Both the 70,000 43-101 resource area will likely grow now, as well as the shallower high-grade vein. Even fully diluted (81.2M shs), the market cap of GSM is a silly US$6.8M. Unreal...

I say again: the bottom line is that this stock now has more certain upside at these levels, absent the usual risk.

I will be buying more again tomorrow if the stock is anywhere near these prices.

GLTA GSM longs!"

http://www.goldsummitcorp.com/_resources/nr_2008_06_25.pdf

G O L D S U M M I T C O R P O R A T I O N
PRESS RELEASE
FOR IMMEDIATE RELEASE TSX-V Symbol “GSM”
June 25, 2008 Shares Outstanding 56,526,241
Reno, Nevada
GOLD SUMMIT VENDS LITHIUM BRINE PROJECT TO BLACK PEARL
FOR CASH AND EQUITY
Gold Summit Corporation (TSX-V GSM) has agreed to sell a 100% interest in a lithium
brine prospect to Black Pearl Minerals Consolidated Inc (TSX-V BLK) for a total
consideration of $300,000 in cash and 3 million BLK common shares as well as certain
acquisition costs. The prospect, located in Esmeralda County, Nevada, covers an area of
about 31 square kilometres and was recently staked by GSM. The agreement is subject to
approval by the TSX Venture Exchange.
As part of the same agreement, GSM and BLK have entered into a regional alliance in
the Great Basin Province of the western United States to explore for other lithium brine
deposits which can also contain significant quantities of potassium. For every additional
project acquired BLK will pay GSM $100,000 in cash and issue 1 million common
shares as well as exploration costs.
Commenting on the sale of the prospect and the involvement in lithium exploration, Dr
A. P. Taylor, President and CEO of Gold Summit said: ''originated as a geological idea
that we were unwilling to pursue ourselves, we turned it to account for cash and a
significant equity stake in a dedicated lithium company"
Gold Summit explores principally in the United States for high grade gold and gold/silver
deposits that would support underground, low cash cost operations. GSM’s primary
properties, totalling 42 km2, cover four Tertiary epithermal vein districts in Nevada. All
these have drill ready targets defined by surface work, most with bonanza grades in
outcrops or discovery drill holes.

http://www.goldsummitcorp.com/_resources/pressreleases/2008_09_29.pdf

GSM still trying their best to create shareholder value:

*”Gold Summit Corporation (TSX-V GSM) has staked a block of 136 lode mineral claims covering an exposed precious metal bearing, quartz breccia in Esmeralda County, Nevada. Surface samples of stockwork quartz veining assayed between and 0.02 and 12 g/t silver”

*”GSM is also conducting a lithium exploration programme in Esmeralda County on behalf of Black pearl Minerals” (Although Black Pearl gets to keep any Lithium found by GSM, GSM do get paid for looking and finding. And GSM gets to keep share in everything else. There may be Potash in them hills)

*”In western Ontario, Gold Summit is also exploring a nickel-copper prospect in mafic rocks near Dryden where diamond drilling is planned in mid October”

(Understand that the geology is similar to the Noront Discovery which became the Ring of Fire in the James Bay Lowlands. Of course on that back of that NOT was the best performer on the TSX-V, last year – rising from around 50 cents to over $6 in a few months.)




G O L D S U M M I T C O R P O R A T I O N
PRESS RELEASE

FOR IMMEDIATE RELEASE TSX-V Symbol “GSM”
September 29, 2008 Reno, Nevada

GOLD SUMMIT STAKES SILVER BRECCIA-PORPHYRY TARGET IN
NEVADA

Gold Summit Corporation (TSX-V GSM) has staked a block of 136 lode mineral claims covering an exposed precious metal bearing, quartz breccia in Esmeralda County, Nevada. Surface samples of stockwork quartz veining assayed between and 0.02 and 12 g/t silver.

The area is underlain by a regionally prominent, circular, coincident gravity and magneticanomaly, a distinctive pattern that underlies the subsurface signature of many of the large gold and copper metal producing districts in northern Nevada. The circular magnetic feature is interpreted as a buried intrusive with which a number of copper prospects that occur to the north may be related.

The breccia corresponds to a strong resistivity anomaly discovered by Great Basin
Exploration and Mining Company in 1990 who drilled a number of shallow reverse
circulation holes to test for large open-pit gold mineralization. The open spaced nature of the quartz at surface indicates that deeper drilling is warranted for higher grade
mineralization that may include gold and copper as well as silver.

Gold Summit explores mostly in the United States for high grade gold and gold/silver
deposits that would support underground, low cash cost operations. GSM’s primary
properties, totalling 42 km2, cover four Tertiary epithermal vein districts in Nevada. All these have drill ready targets defined by surface work, most with bonanza grades inoutcrops or discovery drill holes.

GSM is also conducting a lithium exploration programme in Esmeralda County on behalf of Black pearl Minerals.

In western Ontario, Gold Summit is also exploring a nickel-copper prospect in mafic
rocks near Dryden where diamond drilling is planned in mid October.

It all boils down to management

The main thing with this company Gold Summit is the geological expertise of the man running it. Gold Summit president Anthony Taylor is credited with the exploration and development of the deposit which became the Ridgeway Mine in South Carolina (now closed).

http://www.kennecottminerals.com/mines/ridgeway.html

In addition to his duties running Gold Summit, Taylor is a director of Hecla Mining Company. In talking with people in the resource sector I have concluded that as a geologist Taylor ranks in the creme de la creme of his industry. (Your mileage may vary).

I need to study further on Gold Summit's new projects. I am most familiar with its Monte Cristo project in Nevada. I have studied it at length and concluded that it was and is one of the best gold exploration properties out there and deserved its reputation as a Comstock Lode lookalike situation. Not at all known as a promoter-type, I didn't need to heavily discount every word from Taylor but received from him the straight scoop about Monte Cristo (what Taylor knows, what he thinks he knows, what he is trying to know, and what he doesn't know).

Funding Monte Cristo exploration is entirely another matter. The good news is that Gold Summit is using OPM (other people's money) and has a JV partner putting up all the money for exploration to gain a percentage. The bad news is that the JV partner is not going to spend more money until next spring or summer so there is little chance of instant gratification here. Furthermore, there is no getting around it that exploration companies are not the flavor of the month right now with the credit market convulsions out there limiting the funding of such companies. Nevertheless, Taylor has continued forth, assembling new projects and funding for them. The lithium property is a situation providing revenue so that the company doesn't have to dilute itself to keep operating. They say you make money buying stock when nobody wants 'em....I look forward to the exploration companies like Gold Summit coming back in vogue. At that point, stocks like this will reveal the tremendous leverage that they have, especially from these insanely oversold levels.