New Placer Dome plans discovery program at Kinsley
2021-07-20 11:54 ET - News Release
Mr. Max Sali reports
NEW PLACER DOME GOLD CORP. OUTLINES 2021 GOLD RESOURCE EXPANSION AND NEW DISCOVERY PROGRAM
New Placer Dome Gold Corp. is planning 2021 resource expansion and a new discovery program at its flagship Kinsley Mountain gold project in Nevada. Building on its successful 2020 campaign, the 2021 Kinsley Mountain exploration program will, subject to the Company raising sufficient funds, comprise resource expansion and new target drilling on three new discoveries, and a significantly expanded program of IP/resistivity geophysical surveys.
Kinsley Mountain is located 90 km south of the Long Canyon Mine1, operated by Nevada Gold Mines. It hosts Carlin-style gold mineralization under and adjacent to a historical open-pit, run-of-mine heap leach operation, and hosts an Indicated Resource at the Western Flank Zone (WFZ) of 302,000 ounces of gold grading 6.11 g/t Au (1.54 million tonnes)1.
The 2020 Kinsley Mountain reverse circulation (RC) and diamond drill campaign comprised 49 drill holes totaling 17,970 metres and tested five targets within the greater Resource area (Figure 1). To date, only 20% of Kinsley Mountain has been drill tested. Exploration drilling during 2021 is expected to build on new discoveries and expand the current indicated and inferred resource at the Western Flank Zone, Main Pit North Oxide and Secret Spot targets (Figure 2).
Highlights of the 2020 Kinsley Drilling include 2 :
Western Flank - West side resource expansion drilling yields
10.22 g/t gold over 6.1 metres within a broader zone grading
2.63 g/t Au (sulphide) over 38.10 metres in KMR20-017
Western Flank - Central yields second highest-grade Dunderberg shale intercept
15.1 g/t Au (sulphide) over 7.6 metres, including 24.1 g/t Au (sulphide) over 4.6 metres lower zone,
9.08 g/t Au (sulphide) over 6.1 metres upper zone in KMR20-026
Main Pit North Oxide Target yields high-grade intercepts 75 m outside current pit shell
9.83 g/t gold over 7.6 metres high grade shallow oxide
Secret Spot Target surface oxide New Discovery multiple intercepts including
1.77 g/t gold over 25.3 metres in new surface oxide discovery in KMD20-007B
3.81 g/t gold over 11.6 metres; including 11.3 g/t gold over 2.9 metres in KMD20-006
IP/resistivity geophysical surveys competed during 2020 at the WFZ and Shale Saddle target areas show a correlation between chargeability and drill confirmed high grade gold sulphide mineralization. Expanded infill IP/resistivity geophysical surveys for 2021 will extend south to the Secret Spot target and north to frontier areas of the under-explored Kinsley North. At Kinsley North detailed soil geochemical surveys reveal broad arsenic in soil anomalies coincident with north-trending normal and low angle detachment faults coincident with the prospective Pogonip-Notch Peak contact (the same host horizon as Long Canyon1) and Dunderberg shale rocks at depth cut by late northwest trending structures that are important gold mineralization hosts within the Kinsley resource area.
Key Points for 2021 Kinsley Mountain Program:
Continued resource definition and exploration drilling on 3 priority targets;
Western Flank Zone - Resource expansion drilling that is open to the west and east, and testing new near-resource targets generated by recent IP/resistivity survey results;
Secret Spot - Mapping and drilling to define the new surface oxide gold discovery;
Secret Spot - Deep drilling targeting Transverse fault / Secret Canyon shale intersection following up on highest assay results to date at Secret Spot >10 g/t Au returned during 2020 campaign;
Main Pit North high-grade oxide discovery continued shallow RC drilling to further delineate near pit mineralization at span class="xn-money">150m vertical depths; and
Expanded IP/resistivity geophysical surveys to cover the Secret Spot target and under-explored Kinsley North targets, in addition to drill testing of Shale Saddle IP anomaly.
Max Sali, CEO and founder of New Placer Dome commented, "Building off the outstanding success of our 2020 exploration campaign we plan to expand the use of IP/resistivity geophysical surveys as a proven gold vectoring tool that has potential to contribute to new discoveries within the Kinsley Mountain Gold Project. Subject to raising sufficient funds, during 2021, we also expect to sharpen our focus on our three main new discovery areas at the WFZ, Main Pit North Oxide, and Secret Spot targets to drive resource expansion and discovery."
Methodology and QA/QC
Assaying was performed by ALS Global (ALS), Vancouver Canada. ALS is an ISO-IEC 17025:2017 and ISO 9001:2015 accredited analytical laboratory that is independent of New Placer Dome and the QP. RC drill samples were subject to crushing to a minimum of 70% passing 2 mm, followed by pulverizing of a 250-gram split to 85% passing 75 microns. Gold determination was via standard 30-gram fire-assay (FA) analysis with atomic absorption spectroscopy (AAS) finish, in addition to 51 element ICP-MS. Samples returning greater than 10 g/t Au are subject to gravimetric finish. Gold values returning greater than 0.1 g/t Au are also subject leach analysis where the sample is treated with a 0.25% NaCN solution and rolled for an hour. An aliquot of the final leach solution is then centrifuged and analyzed by AAS.
New Placer Dome follows industry standard procedures for the work carried out on the Kinsley Mountain Gold Project, with a quality assurance/quality control (QA/QC) program. Blank, duplicate, and standard samples were inserted into the sample sequence sent to the laboratory for analysis. New Placer Dome detected no significant QA/QC issues during review of the data. New Placer Dome is not aware of any drilling, sampling, recovery, or other factors that could materially affect the accuracy or reliability of the data referred to herein.
Final Base Shelf Prospectus
The Company has filed, and received receipt for, a final short form base shelf prospectus (the "Base Shelf Prospectus") with securities regulatory authorities in each of the provinces of Canada, other than Quebec.
The Base Shelf Prospectus allows the Company to qualify the distribution by way of prospectus of up to $20 million of common shares, debt securities, subscription receipts, warrants and units (all of the foregoing, collectively, the "Securities") or any combination thereof, during the 25-month period that the Base Shelf Prospectus remains effective. The specific terms of any offering of Securities will be set forth in a prospectus supplement to the Base Shelf Prospectus, which will be filed with the applicable Canadian securities regulatory authorities in connection with any such offering.
The Base Shelf Prospectus was filed to provide the Company with financial flexibility and efficient access to capital markets to pursue its growth initiatives, which include an exploration program at Kinsley Mountain. The net proceeds from any offerings under the Base Shelf Prospectus will be used as specified in the corresponding prospectus supplement, which could include for general corporate purposes, to complete an exploration program on Kinsley Mountain, and any required payments to Liberty Gold Corp. (" Liberty Gold ") pursuant to a purchase option agreement dated November 29, 2019, between the Company and Liberty Gold, as amended (the "Kinsley Option Agreement"). In connection with its first prospectus supplement to be filed under the Base Shelf Prospectus, the Company has undertaken with the applicable securities regulatory authorities to: (i) raise aggregate gross proceeds in the minimum amount of Cdn$7,250,000 (the "Minimum Proceeds"), provided, however, that in the event the Company executes an amendment of the Kinsley Option Agreement with Liberty Gold prior to the filing of the first prospectus supplement which reduces the amount due under the first anniversary payment as of the date of Base Shelf Prospectus, the amount of Minimum Proceeds raised by the Company in connection with the first prospectus supplement may be reduced by a dollar amount equal to such reduction; (ii) ensure such proceeds, determined at the time of filing of the first prospectus supplement, will be sufficient to satisfy its short term liquidity requirements and to achieve its short term business objectives and liquidity requirements (as more particular described under the section entitled "Use of Proceeds" in the Base Shelf Prospectus); and (iii) withdraw the Base Shelf Prospectus if the Company is unable to raise the Minimum Proceeds by way of prospectus financing under the Base Shelf Prospectus within 45 days of the date on which the final receipt is issued.
The terms of such future offerings, if any, will be established at the time of such offerings. At the time any of the Securities covered by the Base Shelf Prospectus are offered for sale, a prospectus supplement containing specific information about the terms of any such offering will be filed with applicable Canadian securities regulatory authorities.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these Securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.
A copy of the Base Shelf Prospectus can be found on SEDAR at www.sedar.com.
About New Placer Dome Gold Corp.
New Placer Dome Gold Corp. is a gold exploration company focused on acquiring and advancing gold projects in Nevada. New Placer Dome's flagship Kinsley Mountain Gold Project located 90 km south of the Long Canyon Mine (currently in production under the Newmont/Barrick Joint Venture, Nevada Gold Mines), hosts Carlin-style gold mineralization, previous run of mine heap leach production, and NI 43-101 indicated resources containing 418,000 ounces of gold grading 2.63 g/t Au (4.95 million tonnes) and inferred resources containing 117,000 ounces of gold averaging 1.51 g/t Au (2.44 million tonnes)3. The Bolo Project, located 90 km northeast of Tonopah, Nevada, is another core asset, similarly hosting Carlin-style gold mineralization. New Placer Dome also owns 100% of the Troy Canyon Project, located 120 km south of Ely, Nevada. New Placer Dome is run by a strong management and technical team consisting of capital markets and mining professionals with the goal of maximizing value for shareholders through new mineral discoveries, committed long-term partnerships, and the advancement of exploration projects in geopolitically favourable jurisdictions. ___________________________________ 3 Technical Report on the Kinsley Project, Elko County, Nevada, U.S.A., dated June 21, 2021 with an effective date of May 5, 2021 and prepared by Michael M. Gustin, Ph.D., and Gary L. Simmons, MMSA and filed under New Placer Dome Gold Corp.'s Issuer Profile on SEDAR (www.sedar.com). Long Canyon Mine is not necessarily indicative of mineralization within New Placer Dome Properties.
Qualified Person
The scientific and technical information contained in this news release has been reviewed and approved by Kristopher J. Raffle, P.Geo. (BC), Principal and Consultant of APEX Geoscience Ltd. of Edmonton, AB, a Director of New Placer Dome and a "Qualified Person" as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects. Mr. Raffle has verified the data disclosed which includes a review of the sampling, analytical and test data underlying the information and opinions contained herein.
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