Categories: Precious Metals
Topics: General Precious Metals

New Placer Dome (TSX-V: NGLD)(OTC: NPDCF) CEO Max Sali on New Targets & Drilling at Bolo & Kinsley Gold Projects in 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 been a bit. It's great to have you back on. How are you?

Max Sali: It's great to speak to you again. Happy new year. Everything is really good on our end especially on the Bolo front. I'm glad we were able to get that deal done and some good news on Monday on the asset.

Gerardo Del Real: Well, I think, using your word, you hit it right on the nose, right? Really good news from Bolo. You just defined some new drill targets at the separate zone at the Bolo Gold-Silver Project in Nevada. Bolo is one of these projects that I think if it was a standalone project and it wasn't in the shadow of Kinsley, it actually would probably have a higher valuation assigned to it by the market. As it stands though, the last couple of releases from New Placer Dome have been pretty, I think, consequential for 2022 and Bolo setting itself apart. Can you speak to these new targets here that you've been able to define?

Max Sali: Yeah. So just to remind everyone, Bolo was actually our flagship asset when we listed in April of 2019, then we acquired Kinsley. So you're right, kinsley's been the big guy and it still is. And so Bolo's living in its shadow and we almost lost Bolo. In 2021, the markets were tough. We raised $5 million, but that was for Kinsley. We would've had to make the tough decision to drop Bolo. Luckily, we got this transaction done, kept Bolo, and got boots on the ground in December and hit the ground hard and shot some geophysics on a separate zone. So separate meaning, not the South Mine Fault, not Uncle Sam, but on the other side of the South Mine Fault, so to the north. And when we first acquired Bolo, the first thing we did was we shot geophysics on the South Mine Fault.

We then drilled the South Mine Fault and every single hole we hit in 2019 and that summer hit substantial grade oxide. And so this new geophysics on the whole separate zone is showing similar to what the South Mine Fault did before we drilled that. And so that's a lot of potential for us because if we can get the same numbers out of this separate area like we did at the South Mine Fault, that's huge potential for Bolo. I know that Red Cloud has an analyst report coverage on us right now. And in their analyst opinion, Bolo currently has a mineral reserve of about 427,000 ounces just at the South Mine Fault. So if you can show the same thing on a new zone, that's where you can potentially get to a million.

Gerardo Del Real: Well, I think it's important to note, and you mentioned the oxide nature of the mineralization that you've hit in the known zones that have been drilled. It's important to highlight those are near surface or at surface oxide material, right?

Max Sali: Those are near surface and they are at surface. So far everything we've hit at Bolo is oxide. Eventually, as you go deeper, you get into this transitional shale, but right now Bolo is 100 percent oxide.

Gerardo Del Real: What comes next for Bolo and Kinsley? And then I'm going to ask you a quick follow up question after that, which is of course, how is the deal with Copaur coming along?

Max Sali: So, what happens next to Bolo is we have an obligation this year. We have to spend about 1.25 USD at Bolo, so that will happen. We'll put out our plans probably following the transaction. Kinsley has the geophysics team on there right now, they're starting at far north and working their way back towards the current resource. And that's what we're trying to get some new targets up there. So, that's getting done. We should put out some news on Kinsley in the next couple weeks. We're hoping to do a site visit to Kinsley sometime in mid-February and pick some drill targets based on the results of the geophysics. And then on the transaction, the lawyers are doing the due diligence. We're doing our due diligence, getting everything in order. And what I've heard from our lawyers is we're hoping to sign the definitive agreement by February 9th or around that date. And then we can proceed with the financing.

Gerardo Del Real: Well, that'll come very quickly and I suspect we'll get a lot more transparency on follow up drill plans for both Bolo and Kinsley as well as those geophysics news on Kinsley. Sounds like 2022 is going to be a heck of a year for New Placer Dome.

Max Sali: Yeah. And just one more thing to note is that Liberty Gold, I do have their votes in favor of this transaction along with a number of the other funds that have come into the private placement previously. And so we do have the votes to move this forward which is exactly what we want.

Gerardo Del Real: And correct me if I'm wrong, but my understanding is you also have the full support as far as generating these new targets at both Kinsley and Bolo and following those up, correct?

Max Sali: Correct.

Gerardo Del Real: Excellent, Max. A lot to look forward to in 2022. I think we're entering a much better environment in the gold space. We've had roughly a year and a half long consolidation. It looks like that's looking to bottom if it hasn't already. And that bodes really well for both New Placer Dome and Copaur. Anything to add to that?

Max Sali: Yeah. I was watching Bloomberg yesterday and something that was interesting that I listened to was that the average gold price in 2021 was $1,799 an ounce. That is the highest average gold price in the history of gold. And so even though there was a consolidation, that the sentiment changed, people forget that. And so, this could be a really big year for everyone in the sector. It was a big year for producers. They had record revenues and we're hoping that it trickles down to the juniors.

Gerardo Del Real: Well, let's hope that it trickles down and that you get a couple of discoveries of both Kinsley and Bolo.

Max Sali: Yes, sir.

Gerardo Del Real: All right, Max. Looking forward to having you back on. Thanks again for that thorough update. Appreciate it.

Max Sali: Thanks, Gerardo.