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Hitting Nevada Gold with Confidence
by Mike Fagan
This morning, as anticipated, New Placer Dome Gold (TSX-V: NGLD)(OTC: NPDCF) announced assays for the initial 9 holes from its 2020 drill program at the flagship Kinsley Mountain Gold Project, Nevada — with 8 of 9 holes hitting significant gold mineralization.
Speculators looking for exposure to a high-grade gold play in one of the best jurisdictions in the world for precious metals mineral exploration should take note.
I won’t go through all the numbers here because my colleague, Gerardo Del Real of Junior Resource Monthly, jumped at the opportunity to interview New Placer Dome CEO, Max Sali, to get his first-hand take on these exciting results — and that exclusive interview is posted directly below.
Keep in mind also that while this is still early-stage, the Kinsley Mountain project has already produced an initial NI 43-101 compliant resource of:
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418,000 Indicated ounces at 2.63 grams per tonne (g/t) gold;
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including 302,000 Indicated ounces at 6.11 g/t gold at the Western Flank Zone
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Plus another 117,000 Inferred ounces at 1.51 g/t gold
New Placer Dome management believes the level of gold mineralization confirmed in this initial batch of assays has the potential to increase the known resource at Kinsley in multiple zones.
Importantly, for the company and shareholders alike, these assays represent just the first 9 of 49 holes completed during the 2020 program — which means there’s tons of additional newsflow on the way.
New Placer Dome Gold CEO, Max Sali, commented via press release:
“We are extremely encouraged by the results from the initial nine Kinsley drill holes, which reinforce the exceptional exploration potential of the Kinsley Mountain Project. With an existing resource including 302,000 high-grade indicated ounces of gold grading 6.11 g/t at the Western Flank Zone, and high-grade gold in our new holes on the margins of the deposit, we look forward to the potential of resource growth driven by the results of the remaining 40 drill holes which targeted proven and new areas at Kinsley. With the 2020 drilling program now complete and analysis of most samples now underway at the laboratory we look forward to continued news flow in the months ahead.”
In addition to news flow from Kinsley, shareholders can expect drill assays from the company’s 100%-owned Bolo Gold Project, also in Nevada, in the coming weeks.
So without further ado, here is Mr. Del Real’s late-breaking interview with New Placer Dome Gold CEO, Max Sali.
Click here for our most recent report on New Placer Dome Gold.
Yours in profits,
Mike Fagan
Editor, Resource Stock Digest
New Placer Dome Gold (TSX-V: NGLD)(OTC: NPDCF) CEO, Max Sali, on Initial Assay Results from the First 9 of 49 Holes Drilled at the Flagship Kinsley Mountain Gold Project — Nevada, USA
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’m the best I’ve been in over a year!
Gerardo Del Real: Listen, you and I joked during our last interview that you’ve been waiting all year for the initial results and assays from the drill program at Kinsley Mountain. I joked that I’ve been waiting five, six, seven years to see a proper test.
You drilled 49 holes for a total of nearly 18,000 meters. We got results from the first 9 holes this morning; 8 of the 9 holes had significant gold intercepts. Let me read some of the numbers off:
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6.1 meters of 10.22 grams per tonne (g/t) gold
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5.78 g/t gold over 6.1 meters
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5.15 g/t gold oxide over 10.67 meters
Just really, really solid results. Congratulations to you and the team, Max!
Max Sali: Thank you very much! As you said, it’s the first big drill program at Kinsley in seven years and we really came in there with a big budget, with 3 drill rigs, and we’re very excited. I know that the lab results took forever but we’re going into a new year, and hopefully we can really show the gold space what we have and who we are.
These initial results to us are great because what we did is we were able to show that the Western Flank Zone, where the current resource is, which is 302,000 ounces grading 6.1 grams — that section of the resource we’ve now expanded.
And the 10 grams over 6 meters is economic because it’s right near the pit shelf, and it will just go into the resource and the underground model.
Gerardo Del Real: Absolutely. No and again… congrats on the holes! It’s important to note what you just noted… that these results aren’t one-off somewhere in the middle of nowhere. They’re right next to the existing resource, and extensions of that, in a lot of cases. And in other cases, it’s infill drilling that also increases the confidence of that resource, right?
Max Sali: Thank you very much! As you said, it’s the first big drill program at Kinsley in seven years and we really came in there with a big budget, with 3 drill rigs, and we’re very excited. I know that the lab results took forever but we’re going into a new year, and hopefully we can really show the gold space what we have and who we are.
These initial results to us are great because what we did is we were able to show that the Western Flank Zone, where the current resource is, which is 302,000 ounces grading 6.1 grams — that section of the resource we’ve now expanded.
And the 10 grams over 6 meters is economic because it’s right near the pit shelf, and it will just go into the resource and the underground model.
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Gerardo Del Real: I think it’s important to note that this type of mineralization… both the sulfide portion of it and the oxide portion of it… the recovery rates for this mineralization are really, really good here.
This isn’t a situation where you drill some decent grades and then some very good grades… but then you go to recover it and you end up with a met problem, right? A lot of the metallurgical work has already been done for this type of mineralization.
Max Sali: Exactly. And so what people always ask me is well… if the sulfide is deeper, does it work; does it flow? Yes! It flows 89% to 95% concentrate. The met work was done by Liberty Gold, previously, so we know it works.
And the oxide works very well too because… some people may not know this but… Kinsley actually produced 140,000 ounces in a heap leach scenario between 1995 and 1999. It produced more ounces of gold than Long Canyon when it had its initial resource.
And so we’re very, very excited to see, really, the true size of Kinsley. One, because the grade is there. Two, it’s had past production so it’s brownfield so we know it works. And three, the blue sky potential for making these new discoveries, which is what we’re very excited about.
Gerardo Del Real: Max, there’s 40 holes still pending. Obviously, I’m excited for the results there. But like the market always does… you know what the next question is going to be… how aggressive do you plan on being this year, in 2021, with the upcoming drill program that I’ve got to believe you’re in the early stages of planning? But I have to believe you have an indication of how aggressive you want to pursue it.
Max Sali: So for 2021, it’s obviously going to be based around the success we have from 2020 where the good gold motivation was coming from. And so we’ll base the program after we get all the results back from all the locations.
Probably in March, we’ll put out news to the market saying, "Hey, this is where we were successful. We’re hitting in these zones."
But we would like to do well over 20,000 meters – probably 25,000 meters – and really give Kinsley the focus it deserves. And so we’re hoping to have some big new discoveries of some very high grade.
And we’re hoping then to, obviously, go to the market and really show them, "Hey listen, this asset could be a million, 2 million ounces. We want to aggressively drill this as quickly as we can with this many rigs."
And like I mentioned, we had 3 rigs last summer. So I would say we could match that or add more for this program. So we want to be very, very aggressive with Kinsley.
Gerardo Del Real: You have over half a million – over 500,000 gold ounces – already there that you’ve defined. I’ve got to believe that it’s exciting for you and the team to march towards a new discovery because that can very quickly turn into a million or multi-million ounce gold deposit in Nevada.
Jurisdiction is one of the best in the world. Infrastructure is excellent. In this gold market and the market I think we’re heading into — that’s worth a significant premium in this market.
How encouraged are you by the direction of the drilling that you’ll make new discoveries?
Max Sali: We had a report that I actually sent you, Gerardo, from Mac Jackson who’s highly regarded as one of the best Carlin experts in Nevada… former senior geologist at Newmont; former VP Exploration of Gold Standard Ventures.
He found multiple deposits for Gold Standard Ventures. He is our senior advisor. And in his opinion, in that report I sent you, he feels very confident that we will make new high-grade discoveries.
And one thing to note that the 300,000 ounces at 6 grams — there’s actually a higher grade section within that resource of 250,000 ounces of 9 grams. So just the sheer grade.
If we can find more of these pods along the property through new discovery… in Nevada… in a safe jurisdiction!
I think a lot of people… if you look at what’s happening with Biden taking everything now. And people worry about some States. What’s going to happen with things going green? Never have to worry about that in Nevada! We are good to go. It doesn’t matter who the President is.
Gerardo Del Real: Max, exciting times! Congrats on these initial results! Can’t wait to talk with you about the next batch.
Max Sali: Thank you very much, Gerardo.
Mike Fagan has mining in his blood. As a teenager he staked countless gold and silver properties in Nevada alongside his dad, Brian Fagan, who created the Prospect Generator model that’s still widely used today in the resource space. One of those staking projects was put into production by a major Canadian mining company — a truly rare and profitable experience. That background uniquely qualifies him as a mining stock speculator. One of the most well-known names in the business, Mike is now putting that experience to use for the benefit of Resource Stock Digest and Hard Asset Digest readers.
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