Shares of Grand Central Silver Mines (GSLM-PK) have doubled, tripled and quadrupled in recent months, following news that the company had found a “Carlin-type” gold deposit adjacent to the Bingham Canyon copper mine in Utah.
In the largely unregulated “pink-sheets” market, jumping to a quarter from less than a nickel is not uncommon for a penny-stock exploration company in a hot metals market. But given the weak regulations regarding technical disclosure for this market, Grand Central’s “discovery” is being viewed with a jaundiced eye, particularly after an American mining web site questioned the company’s unwillingness to release the names of its geological team.
The company (formerly Centurion Mines) announced that chip and channel sampling in a large underground tunnel, along with geological mapping on surface outcrops, had delineated “seven large gold zones, four on the surface and three underground (1,700-1,800 ft. in depth).”
The company initially declined to release the name of its consulting geologist to the mining web site reporter, citing “confidentiality.” This stance has since been reversed, and Grand Central Vice-President Barry Katona tells The Northern Miner that the lead geologist is one Rick Russell, a former senior geologist with Gold Fields.
Katona says the company’s geological team has prepared an extensive report compiling results from three years of exploration work.
The company is seeking a joint-venture partner to continue advanced programs, including drilling.