General Precious Metals
New Placer Dome Gold (TSX-V: NGLD)(OTC: NPDCF) CEO Max Sali on Being Cashed-Up for Next Phase of Exploration and Drilling 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 and founder of New Placer Dome Gold — Mr. Max Sali. Max, it's great to have you back on. How are you?
Max Sali: I'm in a really good mood, Gerardo! I know the last time, or the last few times we talked, we talked about… we are going to try and finance… or we're hoping to finance… and now, we're fully financed!
Liberty Gold is an insider; they own 15.3%. Dr. Mark O'Dea and Cal Everett both participated so they're insiders as well. And we're moving the project forward, which is something that, I guess, was sitting in the dark for a bit.
But now the market can know that we're ready to go forward. We've made our big payment to Kinsley. Liberty is an insider. And the geophysics that we're shooting — the first seven lines — are generating targets. And that was the point of doing the geophysics.
The IP was to generate new targets and find another Western Flank Zone or Secret Canyon Shale in another part of the property. And that's really what we're excited about right now.
Gerardo Del Real: Before we get into the geophysics, you should be commended because you've been putting your money where your mouth is and buying in the open market and writing checks as well. I like to see CEOs that use pullbacks in the stock to bolster their position. So kudos to you and the team on that front.
Let's talk geophysics because depending on the results from the second half of the IP geophysics surveys that you're conducting, there could be the potential for not just one but several significant new discoveries.
I've always been really keen to see what's up north. It's a part of the property that's never properly been tested or explored. I'd love to get your thoughts on what you're seeing, so far, with the geophysics and when you expect the second half of those results to start coming in.
Max Sali: So the way they started on the property, they started on the other side. So essentially, what's going to happen is we've done 31 kilometers of line now. We have two lines we're shooting over the Main Pit North. And then, we'll get into the actual north part of the property, which is what we really want to see because, like you said, it's never really been tested. There's never been a drill hole there. They've done some soil samples… had some grab sample anomalies… but they really haven't done any work because they were so focused on the Western Flank discovery.
And so what we're doing is, in December, they’re going to get over to the north part of the property and do about 40 kilometers of line. And if we can generate a few targets and find another Western Flank — that's where you're going to see the explosive growth.
That's what took Kinsley from a C$0.25 stock to C$2.50 back in 2013 when it was discovered by Pilot Gold. That's what took it to a C$250 million market cap. And I think that's what will do it again. I think the market really wants us to find another one of those. And in terms of getting it done, I think the IP is the best way to, at least, give us the best chance to get it done.
And so what would happen is, following all of the data — probably sometime in January — is we'll get a site visit; we'll get a bunch of geos and analysts up there and say, Okay, here are the targets that will give us the best chance of success… what does everyone think? Do a consensus and just really try and find a couple of home runs that are going to move the stock.
Gerardo Del Real: You're cashed up. You have quite a bit of data to process here in the next several months. I'm encouraged to hear that you are planning a drilling program for, are we thinking, Q1 of 2022?
Max Sali: Yeah, I'd say it's reasonable. One thing I told everyone was, when we were doing the financing is… you're going to have to give us a bit of time. So most of the people — or almost all of the people in the financing — understand our timeframe.
Doing 81 kilometers of line isn't a quick process. It's probably going to take us until mid-January before we get all of the data processed. And then, what we'll do is we'll generate the targets. And then, we'll choose the targets. So I think it's reasonable that we get a drill rig or two at Kinsley sometime in February and then do what we do best, right? But it's not a quick process but it'll be done properly.
And I think we really have to think methodically this time and go in there with a take our time mindset. Last summer, the market was ripping. We had the money to go. Everyone said… drill, drill, drill now! I think we really need to take a step back… see what the IP does… and then get together as a group and really think where is the best chance of success.
Gerardo Del Real: I like the methodical approach. I know shareholders appreciate the stewardship there with the managing of capital. I like that you've made that first payment to Liberty and that Liberty is an insider. They, obviously, have a vested interest in seeing this succeed.
And I'm really excited to get the rest of the geophysics work done and the results come in there. You mentioned at one point Kinsley commanding a market cap of C$250 million. What's the market cap now?
Max Sali: About C$17 [million].
Gerardo Del Real: It's a heck of a disconnect, Max!
Max Sali: Better than it was before. But like I said, now we're cashed up. We went through a financing at a C$7.2 million finance market cap. We were financing at C$0.08. About 94 million shares out. And we raised almost C$5 million, which is 75% of our market cap.
So you've really got to think of how many juniors can go out and do that in this market. We got it done. I was telling everyone it probably took about five years off of my life! But we have a really clean shareholder base… really smart shareholder base… and investors that are willing to let us take the time to do what we need to do to find another Western Flank.
Gerardo Del Real: I'm looking forward to 2022. I'm looking forward to the remaining results, as I mentioned. Thank you so much for the update, Max.
Max Sali: Thank you, Gerardo.
Gerardo Del Real: Chat soon.
Max Sali: You too.