Three New Gold Discoveries at Carlin-Style Nevada Project

Resource Stock Digest: Joining us today is the CEO of New Placer Dome Gold (TSX-V: NGLD)(OTC: NPDCF), Mr. Max Sali. Max, how the heck are you?

Max Sali: I am fantastic. It's good to be able to start buying my own stock again after the long blackout period. Looking forward to another successful drill program this summer at Kinsley; much more targeted than last year in following up on some of the fantastic results.

Resource Stock Digest: It's good to hear you're buying your own stock. I want to talk about why it will be more targeted and why you're excited for a second program. But first, walk me through the last results that came out in May. That headline was:

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

Those were the final assays from 2020 drilling. 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: 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.

Resource Stock Digest: Fantastic. We want to hear more about the plan, but first let’s dig into the history of Kinsley, because it’s both fascinating and valuable.

Max Sali: In November 2019, I started chatting with a gentleman by the name of Cal Everett who runs Liberty Gold Corp. Liberty Gold now has a $500 million market cap. They are actually our largest shareholder. As part of the transaction that we just did with them for Kinsley, we issued them 9.9% of our outstanding float. They have a 12-month lock-up on that stock. They have the right to maintain their position in any future financings. And Mr. Cal Everett, CEO of Liberty, is now on our advisory board as a senior financial advisor.

So we acquired the Kinsley asset from Liberty Gold. If people don't remember Kinsley – and a lot of people like yourself do and myself – the market cap of Kinsley when Pilot Gold drilled some of those phenomenal intercepts in 2013, 2014 I think was about $250 million. I think a lot of people, once they realize how powerful those old gold results were and what we could do in this market, I think that's where we get a lot of excitement.



The Kinsley sulfide zones that we are targeting are deeper. However, the average grade on that sulfide is 6.11 grams per tonne. To put that in perspective, Long Canyon, which produces 90 kilometers away – and it's on trend, you can see them producing at Long Canyon when you're standing on the top of Kinsley – the average grade they're producing is 2.09. But because that grade is still very high, Long Canyon is the most profitable mine in the Barrick-Newmont JV at $571 all-in sustaining costs. We're on the same trend. We have similar characteristics to them, but our grade is much higher.

Resource Stock Digest: You also have the expertise of not just your team, but the Liberty Gold team who, for those that aren't familiar with Long Canyon, it was an asset that eventually was monetized for just over $2 billion and was discovered by Moira Smith back when it was Pilot Gold, correct?

Max Sali: Yes. So Fronteer gold, which was Moira Smith and Mark O'Dea was sold to Newmont in 2011 for $2.3 billion. There was a spinout after that takeout was announced, and that was Pilot Gold. In Pilot Gold was Kinsley. So Moira then went from Long Canyon to Kinsley, did an unbelievable job drilling some of the highest grade holes that Nevada has seen in, frankly, years, such as 18.3 grams per tonne over 23 meters. That's an unbelievable intercept. The stock had a great run.

Unfortunately, the markets were changing, we went into a very long bear market, as you know. What happened then with that asset is it got put on the back burner. Pilot switched its focus to copper porphyries in Turkey. And then in 2016, Cal Everett came in to step in as CEO to kind of clean the company up. If you look at the market cap, when he stepped in until now, it's been tremendous. How we got Kinsley was Liberty has an amazing asset called Black Pine. This could be one of the biggest new discoveries in the Great Basin in years.

And he has a number of majors, I would say all majors are looking at him. But for it to move the needle for any of these big producers, you need a 200,000 ounce a year producer to add to their portfolio. Black Pine could be that, which means everything else in this portfolio that won't do 200 is getting zero value. So what Cal did with me is by moving it into New Placer, Liberty becoming our largest shareholder, now he's marked us to market. Which means that when we issued him the stock, it was a $0.20 financing.

It allows us as a company to be focused on this asset while he's focused on something else and really put the time in. We have the money to drill Kinsley again and again, and again, just like they were doing in 2013, 2014. Yes, I am blessed that Moira Smith has chosen these targets.

Resource Stock Digest: A run like Pilot Gold had when it drilled Kinsley would put New Placer Dome Gold shares some 10X higher.

Tell us about the upcoming drilling that could be the catalyst for that.

Max Sali: 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 we’ll want to get the program started as soon as it’s funded.

Resource Stock Digest: 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 $1,900 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.



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 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!

Resource Stock Digest: Max, thank you so much for the update. Appreciate your time.

Max Sali: Thank you.

Location, Timing, History

New Placer Dome Gold has two assets in the Great Basin. Two Carlin-style assets. And we know there’s gold at both.

Drill results are due out any day from the flagship Kinsley Mountain.

The work requirement on the earn-in to Kinsley last year was half a million dollars. New Placer Dome is spending $4 million on drilling.

That’s how confident they are in the project.

And given the address in Nevada, and the past drill results at Kinsley, we share in that confidence.

Shares of New Placer Dome Gold (TSX-V: NGLD)(OTC: NPDCF) trade below C$0.25 and the company has a market cap around C$20 million.

The last time Kinsley was drilled… it gave its owner a C$250 million market cap.

That’s a ten-bagger from current levels, which makes the company worth a look today!

Click here to learn more about New Placer Dome Gold now.

— Resource Stock Digest Research