Resource World Magazine

40 www.resourceworld.com D E C E M B E R / J A N U A R Y 2 0 1 9 W inston Gold Corp. [WGC- CSE; WGMCF-OTCQB] holds a high-grade, past producing, gold mine just 37 km southeast of Helena, Montana. What caught our attention about this company was the fact that it has the potential to restart mining operations quickly and with minimal upfront capital. The Winston Project hosts the past pro- ducing Custer and Edna gold veins which were mined sporadically from 1930 until 1955. The property is accessible year- round via paved highway. Electrical power and a railroad siding are also located close to the property. The district has a rich history of min- ing dating back to 1867. Historic reports estimate that total district production rang in at 100,000 ounces of gold from 150,000 tons of ore (an average grade of 0.67 oz/ton or 22.8 g/t gold). The Custer Vein was mined continu- ously for over 2,400 feet (732 metres) on five primary levels and reports estimate that very little mining was per- formed below the water table which is situated at the 400-foot level (4,180-foot elevation). The Winston property deposits are classified as steeply dipping syn-tectonic fissure quartz-sulfide vein systems that have the potential to extend to consider- able depths. Winston Gold believes there is still significant depth potential along the Custer Vein system. Over the past two years Winston Gold has completed a number of drill programs that not only confirmed and expanded known mineralized zones but also identi- fied previously unknown vein systems. This work has led to the partial delinea- tion of two, near-surface, high-grade veins that are situated in the footwall of the main Custer Vein system; the Parallel Vein and the Block 93 Vein. This is significant since it has allowed the company to develop a simple and very cost effective mine plan. This mine plan envisages accessing the Block 93 and Parallel veins via a short 274 metre-long adit to bulk sample and test-mine these vein systems. This will ultimately provide access to the deeper un-mined sections of the main Custer Vein. Winston Gold believes that for US $1.5 mil- lion it can advance an adit and create the necessary underground development, such as muck bays, cross cuts and a decline to access deeper levels. Another US $300,000 would be put towards underground and surface drilling. Winston holds an active Exploration License that allows for exploration drilling, mine dewatering and development as well as a 10,000-ton bulk sample for metallur- gical testing. This can be easily upgraded to a Small Miners Permit which allows for mining provided no more than five acres of surface area is disturbed. Recently the company has identified a potential near surface western extension of the Custer Vein system and plans to drill test that once additional funding has been secured. In addition, Winston geologists have found historic records that sug- gest the Parallel Vein may extend at least another 152 metres further to the north- east. Drilling is also planned to test that target area. Currently the Parallel Vein has been drilled along a strike length of 178 metres and has a down dip extent of 86 metres with an average width of 1.2 metres. The Block 93 Vein has a strike length of 127 metres and a down dip extent of 73 metres with an average with of 1.2 metres. Both veins remain open to depth and along strike. Assay results from drilling Parallel Vein have been as high as 60.21 g/t over 0.30 metres. The Block 93 vein has returned results up to 17.83 g/t gold over 0.3 metres. Winston Gold currently has 104 million shares outstanding and a market capitaliza- tion of $3.64 million. n Stew Vorberg and Doug Wood are Investment Advisors with Mackie Research Capital Corporation (MRCC). This article was pre- pared, in part, under contract by Thomas Schuster. The opinions, estimates and pro- jections herein are those of the authors and may not reflect that of MRCC. The informa- tion and opinions contained herein have been compiled and derived from sources believed to be reliable, but no representation or war- ranty, expressed or implied, is made as to their accuracy or completeness. The issuer(s) men- tioned in this article may not be suitable for all investors. Please consult an investment pro- fessional for advice regarding your particular circumstance. Neither the author nor MRCC accepts liability whatsoever for any loss aris- ing from any use of this article or its contents. Information may be available to MRCC which is not reflected herein. This article is not to be construed as an offer to sell or a solicitation for an offer to buy any securities. The informa- tion contained in this article is not intended to constitute a research report. Stew Vorberg and Doug Wood are beneficial owners of the com- pany highlighted in this article. Broker's Picks by Stew Vorberg and Doug Wood Winston Gold plans path to production www.resourceworld.com

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