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DRILLING AND EXPANDED GEOPHYSICAL SURVEYS PLANNED FOR KINSLEY MOUNTAIN GOLD PROJECT, NEVADA
RECEIPT FOR FINAL BASE SHELF PROSPECTUS
VANCOUVER, BC, July 20, 2021 /CNW/ - New Placer Dome Gold Corp. ("New Placer Dome" or the "Company") (TSX-V: NGLD) (OTCQB: NPDCF) (FSE: BM5) is pleased to announce plans for the 2021 resource expansion and new discovery program at its flagship Kinsley Mountain Gold Project ("Kinsley Mountain") 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 include2:
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.
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| 1Technical 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. |
| 2True widths of the mineralized intervals are interpreted to be between 60-90% of the reported lengths. |
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 <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.
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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 Disclosurefor 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.
On behalf of the Board of Directors,
/s/ "Max Sali"
Max Sali, Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
This news release does not constitute an offer to sell or the solicitation of an offer to buy securities in the United States or in any jurisdiction where the offer, sale or solicitation would be unlawful. The Securities referred to in this press release may not be offered or sold in the United States absent registration or an applicable exemption from registration.
Forward Looking Information
This news release includes certain statements that constitute "forward-looking information or statements" within the meaning of applicable securities law, including without limitation, the filing of any prospectus supplement filed in connection with the Base Shelf Prospectus, the potential issuance of Securities of the Company, the use of proceeds from such offering of securities of the Company, additional drilling and geophysical surveys planned in 2021, potential for resource growth/expansion, other statements relating to the technical, financial and business prospects of the Company and its properties, and other matters.
Forward-looking statements address future events and conditions and are necessarily based upon a number of estimates and assumptions. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved), and variations of such words, and similar expressions are not statements of historical fact and may be forward-looking statements. Forward-looking statement are necessarily based upon a number of factors that, if untrue, could cause the actual results, performances or achievements of the Company to be materially different from future results, performances or achievements express or implied by such statements. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which the Company will operate in the future, including the price of metals, anticipated costs and the ability to achieve goals, that general business and economic conditions will not change in a material adverse manner, that financing will be available if and when needed and on reasonable terms, and that third party contractors, equipment and supplies and governmental and other approvals required to conduct the Company's planned exploration activities will be available on reasonable terms and in a timely manner. While such estimates and assumptions are considered reasonable by the management of the Company, they are inherently subject to significant business, economic, competitive and regulatory uncertainties and risks.
Forward-looking statements are subject to a variety of risks and uncertainties, which could cause actual events, level of activity, performance or results to differ materially from those reflected in the forward-looking statements, including, without limitation: (i) risks related to gold and other commodity price fluctuations; (ii) risks and uncertainties relating to the interpretation of exploration results; (iii) risks related to the inherent uncertainty of exploration and cost estimates and the potential for unexpected costs and expenses; (iv) that resource exploration and development is a speculative business; (v) that the Company may lose or abandon its property interests or may fail to receive necessary licences and permits; (vi) that environmental laws and regulations may become more onerous; (vii) that the Company may not be able to raise additional funds when necessary; (viii) the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; (ix) exploration and development risks, including risks related to accidents, equipment breakdowns, labour disputes or other unanticipated difficulties with or interruptions in exploration and development; * competition; (xi) the potential for delays in exploration or development activities or the completion of geologic reports or studies; (xii) the uncertainty of profitability based upon the Company's history of losses; (xiii) risks related to environmental regulation and liability; (xiv) risks associated with failure to maintain community acceptance, agreements and permissions (generally referred to as "social licence"); (xv) risks relating to obtaining and maintaining all necessary government permits, approvals and authorizations relating to the continued exploration and development of the Company's projects; (xvi) risks related to the outcome of legal actions; (xvii) political and regulatory risks associated with mining and exploration; (xix) risks related to current global financial conditions; and (xx) other risks and uncertainties related to the Company's prospects, properties and business strategy. These risks, as well as others, could cause actual results and events to vary significantly. Such forward-looking information reflects the Company's views with respect to future events and is subject to risks, uncertainties and assumptions, including those filed under the Company's profile on SEDAR at www.sedar.com.
Factors that could cause actual results to differ materially from those in forward looking statements include, but are not limited to, continued availability of capital and financing and general economic, market or business conditions, the loss of key directors, employees, advisors or consultants, adverse weather conditions, increase in costs, equipment failures, government regulations and policies, litigation, exchange rate fluctuations, the impact of Covid-19 or other viruses and diseases on the Company's ability to operate, decrease in the price of gold and other metals, failure of counterparties to perform their contractual obligations and fees charged by service providers. Investors are cautioned that forward-looking statements are not guarantees of future performance or events and, accordingly are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty of such statements. The forward-looking statements included in this news release are made as of the date hereof and the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.
SOURCE New Placer Dome Gold Corp.
