MULTIPLE HIGH GRADE GOLD DRILL INTERCEPTS COINCIDENT
WITH CHARGEABILTY ANOMALIES INDENTIFIED
AT WESTERN FLANK ZONE AND SHALE SADDLE TARGETS
VANCOUVER, BC, May 17, 2021 /CNW/ – New Placer Dome Gold Corp. (“New Placer Dome” or the “Company“) (TSXV: NGLD) (OTCQB: NPDCF) (FSE: BM5) is pleased to report the results of a 19 line-kilometre induced polarization (IP) / resistivity ground geophysical survey completed during late 2020 at its flagship Kinsley Mountain Gold Project (“Kinsley Mountain“) in Nevada. The results of the IP/resistivity survey reveal high grade gold mineralization at the Western Flank Zone is associated with changeability anomalies along the Kinsley Northwest / Mine (KNW) fault zone. Multiple chargeability anomalies have been identified at the high grade Western Flank Zone and Shale Saddle target that warrant expansion of the IP geophysical grid and follow-up drill testing.
Kinsley Mountain is located 90 km south of the Long Canyon Mine, 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 IP / Resistivity survey successfully identified the deposit and shows the target is open for extension laterally in undrilled ground.
The 2020 Kinsley Mountain reverse circulation and diamond drill campaign comprised 49 drill holes totaling 17,970 metres and tested five targets within the greater Resource area. To date, only 20% of Kinsley Mountain has been drill tested. Exploration drilling planned for 2021 is expected to build on several new discoveries and also expand the current indicated and inferred resource at the Western Flank Zone, Main Pit North Oxide and Secret Spot targets.
In 2020 New Placer Dome conducted a review of historical geophysical surveys at Kinsley Mountain and noted chargeability anomalies coincident with high grade gold mineralization at the Western Flank Zone within a single 2015 IP/resistivity orientation survey line. Subsequent electrical property measurements of WFZ Secret Canyon shale-hosted high grade gold mineralization, and surrounding shale in drill core confirmed an apparent chargeability contrast between mineralized and un-mineralized Secret Canyon shale rocks at Kinsley Mountain.
New Placer Dome commissioned an expanded program of IP/resistivity over the WFZ resource and high-priority Shale Saddle target areas and has confirmed a correlation between the geophysical survey results and historically drill confirmed high grade gold in associations with sulphide mineralization.The 2020 IP/resistivity comprised a total of 19 line-kilometres over nine lines; including 5 lines at WFZ and 4 lines at the Shale Saddle target (Figure 1). 2020 drill hole KMR20-035 is located on the margin of a larger untested chargeability anomaly that also warrants follow-up drill testing (Figure 2).
1 Technical Report and updated estimate of mineral resources on the Kinsley Project, Elko County, Nevada, U.S.A., effective January 15, 2020 and prepared by Michael M. Gustin, Ph.D., CPG, Moira Smith, Ph.D., P.Geo. and Gary L. Simmons, MMSA under New Placer Dome Gold Corp.’s Issuer Profile on SEDAR (www.sedar.com).
Max Sali, CEO and founder of New Placer Dome commented, “With the release of the 2020 IP/resistivity survey results we are extremely pleased to have identified a new gold vectoring tool that has potential to contribute to new discoveries within the Kinsley Mountain Gold Project. During 2021, we look forward to expanded geophysical surveys and drilling to build on multiple new discoveries made during 2020 and increase the current indicated and inferred resource at the Western Flank Zone, Main Pit North Oxide and Secret Spot targets.”
- High grade shale-hosted gold mineralization at Western Flank Zone exhibits an apparent changeability contrast with un-mineralized shales representing an important new gold mineralization vector at Kinsley Mountain
- IP/resistivity surveys have defined multiple untested chargeability anomalies at the Western Flank Zone and Shale Saddle target that warrant follow-up drill testing
- Expanded IP/resistivity surveys are warranted to the south to cover the Secret Spot oxide and high-grade sulphide new discovery
Figure 1. Western Flank Zone IP Chargeability Section L450E
Figure 2. Shale Saddle Target IP Chargeability Section L6600N
Methodology and QA/QC
Two IP/resistivity grids were completed during 2020 covering the WFZ and Shale Saddle target area. Five lines spaced 150 metres apart were completed at Western Flank and four lines spaced 150 metres apart were completed at Shale Saddle. Line lengths ranged from 1,300 metres to 2,300 metres. Data were collected using the Direct Current Resistivity, Induced Polarization (“DCIP”) method, on a 16-channel pole-dipole array with a dipole size (a-spacing) of 100 m. A GDD GRx16 receiver and GDD 5000W-2400V-20A IP Tx model Tx4 transmitter was used. Raw data were loaded into Geosoft Oasis Montaj software for quality control and review. The reviewed data were used to produce pseudo section plots of apparent resistivity and apparent chargeability and were the input for the inversion. Inversions were completed using the UBC-GIF DCIP2D inversion codes. Each line of data was inverted independently. The resistivity and IP inversion is a two-step process. The resistivity inversion is run first, and this model is used in the chargeability inversion. Multiple inversions were completed for quality control.
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)2. 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.
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.
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.
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, 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.
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.
2 Technical Report and updated estimate of mineral resources on the Kinsley Project, Elko County, Nevada, U.S.A., effective January 15, 2020 and prepared by Michael M. Gustin, Ph.D., CPG, Moira Smith, Ph.D., P.Geo. and Gary L. Simmons, MMSA under New Placer Dome Gold Corp.’s Issuer Profile on SEDAR (www.sedar.com).
SOURCE New Placer Dome Gold Corp.
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