As many of you know, I am very bullish on mining companies operating in Nevada.
For one, Nevada is one of the best places in the world to do business in mining from a development and production prospective. There have been numerous world-class deposits come out of Nevada and represents the heart of gold mining in the United States.
In 2018 Nevada produced 5,581,160 troy ounces (173.6 tonnes), representing 78% of US gold and 5.0% of the world’s production. Total gold production recorded from Nevada from 1835 to 2017 totals 205,931,000 troy ounces (6,405.2 t), worth US$322.6 billion at 2020 values.
The majority of Nevada’s gold production comes from large open pit mining using heap leaching recovery.
This is what excites me about New Placer Dome. It has all the earmarks to be Nevada’s next exciting major mining company with 2 advanced stage gold assets and it currently sits at a very compelling valuation given these assets with plenty of news in the pipeline on recent drilling, specifically at its flagship asset, Kinsley Mountain.
Flagship Asset: Kinsley Mountain:
The company’s flagship asset, Kinsley Mountain is a former gold producing asset with an updated NI 43-101 resource of 535k ounces I+I.
Historical production at the asset totals 138,000 ounces between 1995-1999. New Placer Dome acquired this project from Liberty Gold which closed in June of 2020.
This asset is not a traditional Nevada gold development as the deposit and drilling has indicated bonanza type grades in prior drilling programs. To give you a taste of what I am talking about, here are some historical drill holes:
- 42.7m @ 10.5 g/t
- 22.9m @ 18.3 g/t
- 36.6m @ 8.5 g/t
- 8.50m @ 16.3 g/t
- 22.9m @ 14.9 g/t
- 29.0m @ 21.3 g/t
- 11.4m @ 32.7 g/t
- 4.90m @ 46.4 g/t
- 38.7m @ 15.6 g/t
- 30.0m @ 10.6 g/t
These are world class type intercepts. When this asset was being worked on by Liberty Gold the company’s valuation reached $250 million dollars in a $1300-dollar gold environment. New Placer Dome today has a valuation of CAD $19 million dollars.
Another significant item to mention is the land package consists of 10,410 acres with only 20% explored through drilling and is on trend with Long Canyon mine which is an asset in production with Newmont/Barrick as the operators.
These next few months will consist of lots of news flow around Kinsley as the company completed 13,588 metres in drilling in 2020 on the project with 40 holes to report.
Initial results were released January 11th which further validated the high bearing nature of the system: New Placer Dome Gold Corp. Drills 6.1 Metres of 10.22 g/t Gold, Expanding Gold Mineralization at its Kinsley Project in Nevada
Advanced Stage Asset: The Bolo Project
I am just as excited on the companies Bolo asset as I am on Kinsley which is also located in Nevada.
New Placer Dome has persistently advanced Bolo these last few years and has indications to host the next big Carlin gold deposit.
The Bolo project is 3,335 acres and is located near Kinross’s Round Mountain mine which has produced over 10M ounces of gold.
I encourage my readers to dive deep into the companies Bolo page: https://newplacerdome.com/bolo/ to get a glimpse of the asset its geological setting as the geology checks all the boxes to host something really special.
I am going to go through the company’s assets extensively in the coming weeks in a pure commentary article as I want this introduction to be purely centred around the Q&A interview I did with the CEO and Founder of the company, Maximilian Sali, to give the Gold Telegraph readers an introduction and a general update:
Thanks, Max, for answering some questions to give the Gold Telegraph subscribers and readers an update and introduction on New Placer Dome, which is positioned well for a very exciting 2021.
First, can you give us a brief overview of the company and its exciting portfolio of assets?
New Placer Dome is a junior exploration company strictly focused in Nevada where we currently operate three properties of different scale. Our flagship asset Kinsley has a current resource of 535k ounces which is a mix of oxide and sulphide and includes a high-grade sulphide resource of 302k ounces grading 6.11 g/t and has an economic underground model because of the grade. We recently completed an almost 18k metre drill program and have released the first 9 holes out of 49 holes to market and had some significant initial intercepts including 10.22 g/t gold over 6.1 metres near are current resource.
The second asset that we have which was our original flagship asset is Bolo, a carlin-style oxide gold project that drilled 6000 metres total of the last two drill seasons and an expected additional 6000 metres in 2021 before we put out a maiden resource. So far Bolo is looking like an open pitch, heap leachable scenario based on the evidence we have so far and we are very encouraged by what we have seen and are excited to continue working on this project.
Troy Canyon is strategically located near Bolo and has some historical previous high-grade production. We own 100 percent of Troy Canyon and expect to apply for drill permits very shortly and test some of the areas around where previous production has occurred.
The company recently received and published initial results (6.1 meters of 10.22 g/t gold at the extremely promising Kinsley deposit, which is exceptionally high grade.
To give my readers some context of Kinsley high-grade nature, here are some historical drill hole results:
When will investors see further updates and assays from the 2020 program, which was 49 drill holes totaling 17,970 meters?
What investors or potential investors will see first is another batch of holes out of Bolo that we drilled in 2020 followed by another 9 holes from Kinsley mid Feb. We will have another four Kinsley releases with 9 holes per release and 90 percent of these holes were focused on making a new high-grade gold discovery on all new parts of the project that were never previously tested. we are very excited about this as any new discovery in Nevada of this grade near an existing resource could be a game changer for our company.
With more assays pending, can you touch on the growth potential of Kinsley, Max? With 40 holes remaining to be published, can you touch on the new zones the company drilled as part of this program?
I think the most important part of this is the shale formation we are targeting on different parts of the property as opposed to the zones. Yes we have different names for different parts of the property but the secret canyon shale for this particular project is where the high-grade gold is hosted. Any rock can technically host gold, some better then others, but at Kinsley it’s a certain shale formation that hosts most of the gold mineralization and that’s what we are targeting. Its highly unlikely that the secret canyon shale at the western flank zone is the only zone on the property where this formation occurs that hosts high-grade gold. The best pathfinder element for high-grade gold is high-grade gold.
Another exceptional asset the company owns is Bolo. I personally see as much value in Bolo as Kinsley due to its widespread gold mineralization at the surface, which is headlined with 1.33g/t gold over 133 meters.
The company also strategically acquired Troy Canyon, which truly solidifies its presence in the area and has showcased bonanza grade potential through its surface rock sampling returns, including 43g/t gold and 526 g/t silver.
Can you touch on the plans for these exciting assets in 2021?
So the reason we were attracted to Bolo was because of the historical hole that you mentioned above which was 1.33 gt/ oxide over 133 metres from surface. We signed Bolo in the summer of 2018 when gold fell below 1200 which meant very good deal terms for us meaning no cash payments were part of the deal. Just an exploration spend and share payments.
We drilled Bolo in 2019 and hit some the highest grade oxide results in Nevada in 2019 including a new discovery at a depth of 188 metres which was 12.2 metres of 3.32 g/t oxide. Investors need to remember that in Nevada, companies can produce gold at .3 grams oxide so this is substantially economical grade and Bolo at this time is looking like it could be an open pitch heap leachable asset. We are currently waiting on the remaining 9 holes from the 2020 drill program which was designed to test continuity at depth and length and then following our 2021 drill program which will be Bolo’s biggest drill program yet at around 5000 metres we will do a maiden resource and are aiming towards 1m ounces.
Finally, Max, it is evident that New Placer Dome, at its present valuation with two very advanced stage assets, will absolutely thrive in this very exciting gold market we are drifting into.
If you don’t mind, what is your present outlook on the gold industry as a whole? How do you see hard assets behaving during a time when central bank balance sheets are skyrocketing?
Well the reason I founded a gold company almost three years ago and starting looking for assets in the great basin is because I felt that the problems in the world and the money that has been printed has to one day catch up the value of currencies and cause gold to once again shine and become a real store of value.
We saw gold hit almost 2100 in the summer mainly due to the fact that the pandemic has caused trillions of dollars of monetary stimulus and we see that more stimulus is on the way right now. I am shocked that the gold pullback lasted as long as it has recently but like yourself, agree that we are drifting closer to another big real rally in gold and I feel that 2021 will be a year where gold hovers around 2500 dollars an ounce. What does that for my reserves at Kinsley is values the already economics resource much higher and what we intend to do is significantly increase that resource through our 2021 drill program by adding ounces globally on the property by finding new discoveries at the same grade as our current resource which is 6.11 grams. Think of the Kinsley gold deposit like a string of pearls. We think we can find more of the pearls containing a quarter million ounces or more on multiple parts of the property and when you combine all of them you get a number north a million and maybe more then that.
Bolo is also an asset that believe could hit the million-ounce mark within the next 18 months, following the summer 2021 drill program and assay results. I know 18 months sounds like a while now but in mining, 18 months is very quick and I think when you look at most investors timeline, they are willing to wait and watch there investment along with an asset like Bolo grow.
Thank you for the update, I am looking forward to chatting with you in a few months as we get some more drilling results.
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