New Placer Dome Gold (TSX-V: NGLD)(OTC: NPDCF) CEO Max Sali on New Discovery at Secret Spot Target at Flagship Kinsley Mountain Gold Project, Nevada
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the CEO & founder of New Placer Dome Gold — Mr. Max Sali. Max, how are you this morning?
Max Sali: I am fantastic, Gerardo. It's good to be able to start buying my own stock again after the long blackout period.
Gerardo Del Real: It's good to have you back on. It's good to hear you're buying your own stock. Obviously, the market isn't giving you much credit at all right now… whether it's good results, bad results, gold up, gold down.
I think, speaking frankly, the market is front-running a financing. And I think once that is done and out of the way, then I think the ceiling will be lifted. Do you agree with that? And then we can get into the excellent results in the drill program over at Kinsley.
Max Sali: Yeah, 100%. You know, that's been the reason for a bit. Obviously, gold is not helping. But that's pretty much the main issue. And once we get over that, then I think we're good to go and look forward to another successful drill program this summer at Kinsley; much more targeted than last year in following up on some of these fantastic results.
Gerardo Del Real: Well, let's talk about why it will be more targeted and why you're excited for a second program. I'm excited as well. As you know, I'll be at the property here in a couple of days so I'm looking forward to reporting back. But let me read the most recent headline. It's…
New Placer Dome Gold confirms Secret Spot discovery, intercepting 1.77 g/t oxide gold over 25.3 meters and 3.81 g/t sulfide gold over 11.6 meters, including 11.3 g/t gold over 2.9 meters, at Kinsley
You announced the final assay results for 13 drill holes. Walk me through what you learned during this campaign and why you're excited to get back out there in the coming months and get the drills turning again.
Max Sali: So the nice thing about this particular press release is these holes were drilled at the Transverse Fault, which is the lower section of Kinsley. We drilled an area called Secret Spot, which had some oxide intercepts and some really, really low-grade sulfide intercepts years ago.
But we set the rig up in an area that, really, was missed previously by Pilot Gold. And we actually set the rig up right on top of the Dunderberg Shale. And we started hitting on all three holes; these are all core holes, oxide from surface.
And so this is essentially a section that was completely missed. And this will be added to the resources. So why this is exciting too, based on these numbers, is we can follow up with this particular area also based on some geophysics. And it seems like there's a lot more here that we can do because it was really never tested before.
So this is a brand-new discovery. This is not a step-out. And this is low-hanging fruit. It's high-grade oxide from surface. And so this would be an easy program to follow up with in the summer because, again, oxide from surface — you don't need to go very deep and it's right there and it's resource-building. So that's the exciting part about this release.
Based on the previous releases, why this year's drill program, I'd say, is more targeted is because, as you know, we drilled blind all summer and so there were a lot of misses. Now that we know where we're hitting, we can target around those areas — step out of those previous results.
And that's going to, first of all, save us money, save us time, save us on misses, and hopefully provide a lot more successful results to the market on top of what we already have, which, again, is all resource-building.
Gerardo Del Real: It sounds like, Max — and I know there's a plan that's being put together now and we'll hear about that plan here soon — but it sounds like you have a pretty good idea of where you plan on getting the drill rig or drill rigs here for the follow-up program. Is that accurate?
Obviously, you want to target the Secret Spot. I'm assuming that you want to target the Main Pit North targets as well, correct?
Max Sali: Yeah. So the Main Pit North is probably where we're heading first because, again, it's shallow, near-surface oxide. It's easily accessible. Essentially, we can get a rig on there immediately following the financing. It's an RC rig. We'll probably continue to use a core [rig] at Secret Spot.
However, because there is the oxide from surface, it doesn't mean we have to. It means we can still use an RC rig. And so we could actually get a core and an RC rig as well there. And so again, last summer, we had three rigs on site. This summer, we'll probably have two because we're more targeted.
We'll probably have one core and one RC. But it's very easy for us to get this going again because everything has already been prepped. And so getting the program started is almost immediately following the financing.
Gerardo Del Real: You have a market cap that's laughable; it's C$15 million. And I should remind everyone that you not only have Kinsley but you have Bolo as well, right?
And so the market cap, C$15 million for Nevada — for having a resource base already established and exploration upside the way that you do within the context of gold being almost $1,800 an ounce — is just laughable to me.
Any updates on Bolo… can we expect to hear anything on that front? I know Kinsley is the flagship and I know that shareholders such as myself are really in this to see Kinsley Mountain get developed and drilled out properly. But Bolo is a significant property in its own right… and so any thoughts there?
Max Sali: Well, Bolo was our initial property when we listed. That was our flagship asset before Kinsley. And so this summer, we're going to spend about US$1.1 million at Bolo. It's going to be all core this summer. I think we've done all of the RC that we really can do. And I think to really understand the scale of Bolo, we're going to have to use a core rig.
And so again, once the financing is done, we're going to do a little bit more road work because the core rig is bigger than a standard small RC rig. But we're permanent. We have our targets pretty much chosen, and we'll put out a press release in the next couple of weeks with the game plan for Bolo.
But it's a fantastic asset; it's oxide from surface, and we're really looking forward to this summer's drill program. And the reason for that is because we're planning on putting out a maiden resource on Bolo probably fall to summer 2022 depending on, again, how busy the labs are this year.
There were delays last year and hopefully it won’t take as long this year to get results. But I think they're going to be a lot quicker. And the reason I say that is because a lot of companies that raised money last year for drilling simply don't have the assets that are worth following up — which we do!
Gerardo Del Real: Excellent! Max, thank you for the update. Look forward to having you back on in the next week or two to get drill targets at Kinsley; to get the update on Bolo. Anything else to add?
Max Sali: I look very forward to you attending the Kinsley Mountain Project. I wish I could join you. Unfortunately, this quarantine is not allowing me to do so. But I would love nothing more than heading down to Kinsley with you and taking a look at the property.
Gerardo Del Real: Well, I'll have to go back out there again. I know I was inclined to bring a geologist with me; it was a bit short notice for the gentleman so we'll definitely be back. But I'm looking forward to seeing the property in person this week.
Thanks for setting that up, Max. Appreciate it!
Max Sali: Thank you, Gerardo!