NEW DRILLING INTERSECTS GOLD MINERALIZATION 75 METRES
OUTSIDE RESOURCE PIT SHELL AT
MAIN PIT NORTH OXIDE GOLD TARGET
New Placer Dome Gold Corp. (TSX-V: NGLD) (OTCQB: NPDCF) (FSE: BM5) is pleased to report the following assay results for an additional fourteen reverse circulation drill holes completed during 2020 at its flagship Kinsley Mountain Gold Project in Nevada. Drilling at the Kinsley Main Pit North target has yielded high-grade near surface oxide-gold intercepts. Two separate zones now confirm new high-grade gold intercepts. The Company awaits additional drill results from Main Pit North target; and high-priority Secret Spot and Shale Saddle targets.
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 of 302,000 ounces of gold grading 6.11 g/t Au (1.54 million tonnes)1.
The recently completed 2020 Kinsley Mountain RC and diamond drill campaign comprised 49 drill holes totaling 17,970 metres (39 RC holes for 13,610 metres, and 10 diamond drill holes for 4,360 metres), and tested five target areas within the greater Resource area. Assay results from 13 holes are still pending, including all core holes. To date, only 20% of Kinsley Mountain has been drill tested, with current results warranting further immediate drilling planned in 2021 to build on multiple new discoveries and increase the current indicated and inferred resource.
RC drill hole KMR20-030 testing the Main Pit North area intersected high-grade oxide gold approximately 200 metres down-dip from the Main heap-leach open pit that historically exploited high grade Dunderberg shale hosted oxide gold at surface. The KMR20-030 intercept occurs 75 metres outside the current resource pit shell providing opportunities for near pit resource expansion during 2021.
Max Sali, CEO and founder of New Placer Dome commented, “The Kinsley Mountain Project is well-known for its high-grade Western Flank Zone with its flotation amenable2, sulphide gold mineral resource. However, we have not lost sight of the potential for discovery of relatively shallow oxide gold at Kinsley. Last year, the New Placer Dome technical team recognized the potential of high-grade oxide gold values intersected within a limited number of drill holes adjacent to the historical heap-leach oxide Main Pit. We targeted the area with a modest campaign of ten RC drill holes totaling 1,500 m. The exceptional results released today point the way to future drilling to target these exceptionally high-grade oxide gold mineralization zones.”
|1Technical 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).|
|2Metallurgical testing indicates Western Flank Zone Secret Canyon sulphide is not carbon refractory or silica encapsulated. Flotation plus leached tails processing of Secret Canyon sulphide yielded 89-95% gold recovery, at 98.6-312 g/t gold concentrate grade.|
Figure 1. Main Pit North Oxide Target 030 Az. Drill Section
KMR20-030 / KMR20-028
Table 1. Kinsley Mountain Gold Project 2020 Significant Drill Intercepts
|Released||Zone||From (m)||To (m)||Interval
|KMR20-026 (-90)|| 23-Mar-
|*True widths of the mineralized intervals are interpreted to be between 60-90% of the reported lengths.|
|*Drill composites were calculated using a minimum cut-off of 0.20 g/t gold.|
|**”Sulphide” defined as CN soluble gold recovery of <50%|
Drill hole KMR20-001 (-70/060), collared at the east side of the Western Flank Zone, did not intersect significant mineralization. Drill hole holes KMR20-020 (-65/010), KMR20-024 (-69/180), and KMR20-025 (-67/150) collared on the west and east sides of the Main Pit North oxide target; and drill holes KMR20-018 (-69/292) and KMR20-019 (-79/311) drilled in the KWN-Sulphide Fault area, did not intersect significant mineralization (Figure 4).
Figure 2. Main Pit North Oxide Target North-South Drill Section
KMR20-021 / KMR20-022 KMR20-023B
Figure 3. KNW-Sulphide Fault Area Drill Section KMR20-027
Figure 4. Kinsley Mountain Gold Project 2020 Drill Holes and Pending Status
Methodology and QA/QC
Assaying was performed by ALS Global, 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 analysis with atomic absorption spectroscopy 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 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.
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.
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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