As inflation continues to rage and geopolitical tensions continue to escalate, investors are beginning to position with risk-off assets. Last week, the U.S inflation print came in at its hottest level since 1982.
Central banks continue to stockpile gold as its holdings are currently at 31-year highs, and demand for 2022 indicates that it will remain strong.
The president of the National Bank of Poland recently announced that they intend to add 100 tons of gold this year, a significant bump from its present holdings of 230 tons.
Poland’s central bank recently went on the record and said it would use everything at its disposal to stem surging inflation and boost the zloty.
Gold is a great place to start as it has always been a reliable hedge against inflation and economic uncertainty throughout history.
New Placer Dome:
Since my last update on New Placer Dome (TSX-V:NGLD) lots has transpired. They are now back on track to advance their assets located in Nevada, one of the world’s richest gold mining districts.
They announced a transaction with Copaur Minerals, giving shareholders exposure to advanced properties in both Nevada and British Columbia.
Here are the transaction highlights:
If the deal is approved, the company will be well-capitalized with a diverse geographic asset base with significant exploration upside with experienced leadership.
In the meantime, the company has been very active at its flagship asset in Kinsley Mountain and at Bolo.
Kinsley Mountain:
As many of my readers know, Kinsley was a former producing asset between 1995 and 1999; the project produced 138,000 ounces of gold.
New Placer Dome recently updated the resource estimate, consisting of 535,000 ounces of gold.
The project is 10,410 acres, with only 20% explored through drilling.
The project has produced some very notable high-grade gold intercepts in its history, which headlines at 42.7 metres @ 10.5 g/t:
The project is located 90 km south of the Long Canyon Mine, operated by Nevada Gold Mines.
Currently, the company is conducting a geophysical survey in the underexplored north range area. A single line was completed in the underexplored Kinsley North Range in 2021, with an additional 39 line-km planned.
The company reported three new gold discoveries during the 2020 drill season at Secret Spot, Western Flank Extension, and the Main Pit North oxide targets.
By conducting this geophysical program, the company is laying the groundwork for an extensive drill campaign in the coming months by identifying high-quality drill targets to continue expanding the resource.
Bolo:
Bolo is a high-grade oxide gold and silver project residing on a 3,335-acre land package near Kinross’s Round Mountain mine, producing over 10M ounces of gold in Nevada.
The project is an exciting development asset with significant potential for new discoveries. The company has commenced a 1,700-metre diamond drill program targeting the Mine Fault and other mineralized structures that host the South Mine Fault, Uncle Sam, and Northern Extension mineralized gold zones.
The project has proven to host widespread gold mineralization at the surface as the company reported 13.7m of 4.97 g/t gold during the 2019 program, and during the 2020 drill program, the company continued to expand the footprint of South Mine Fault Zone gold mineralization.
Today, I am pleased to be catching up with New Placer’s CEO, Max Sali, for a general update on New Placer and for what followers of the story should expect in the weeks ahead:
Alex Deluce:
Firstly, thank you for taking the time, Max, to provide the Gold Telegraph readers with another update on New Placer Dome. Lots have transpired since we the last time we spoke.
Can you touch on the recent announcement which would combine New Placer and Copaur Minerals? What made this the perfect fit for both companies?
Maximilian Sali:
Thanks Alex, always great to talk to you.
The group behind Copaur has a number of companies in the group which also include Benchmark Metals (200+ million market cap) and Thesis Gold (150+ million market cap) and have been able to raise significant capital in the last 2 years for these companies and another in excess of $150m dollars.
We both use Apex geoscience for all our exploration work and the Metals Group was in the same office as Apex, so everyone knew our projects and everyone was very impressed with the results at Kinsley and Bolo.
Copaur, going into a winter season figured we could merge the companies and have a company with assets in two of the best jurisdictions for mining in the world and be able to deliver a significant value increase to New Placer Dome shareholders based on their ability to raise capital and move projects forward.
Alex Deluce:
The company recently commenced drilling again at Bolo. Can you highlight what is planned for this program? Also, does the company still plan on publishing a resource estimate in the next 12 months at Bolo?
Maximilian Sali:
Bolo as you know was our original flagship asset before acquiring Kinsley and back in 2019 when we drilled Bolo following very successful geophysics, we hit very good oxide gold in every hole.
The results from the most recent geophysics further North of the South Mine Fault showed similar results and so we could potentially see significantly more oxide gold on a separate part of the property but close enough that we can potentially connect all three of these zones. And yes, I am aching to put out a resource on Bolo this year.
I think the market will be very impressed with the maiden resource, especially considering we are getting almost no value for this asset.
Alex Deluce:
Geophysics has resumed at Kinsley. What is the plan for Kinsley in 2022 after the exciting discoveries that were made in 2021?
Maximilian Sali:
The plan for Kinsley is following all the results of the geophysics around 80km worth of line shot is to go pick some home run drill targets and find another Western Flank zone on an undrilled part of Kinsley and think of Kinsley like having a string of pearls.
The Western Flank zone has 302k ounces of gold at an average 6.11 grams.
If we can hit another one of the “pearls” that could significantly add ounces very quickly to current resource at Kinsley.
One thing to note is that the work has been done and the kinlsey sulphide floats are very high grade concentrate unlike most sulphide gold.
Alex Deluce:
Finally, Max, what is your current take on the gold market?
Maximilian Sali:
My view is we have to stay patient and wait until people realize what most gold bugs already know.
At some point the markets are going to have an unpreventable massive drop and gold will hit new higher highs for longer period of time.
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