New Placer Dome Gold (TSX-V: NGLD) CEO Max Sali on First Drill Hole into the South Mine Fault of the Bolo Gold-Silver Project & Forthcoming Drill Hole Results from the Kinsley Mountain Gold Project
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the CEO of New Placer Dome Gold (TSX-V: NGLD)(OTC: NPDCF), Mr. Max Sali. Max, how are you this morning?
Max Sali: I'm very good. Thank you, Gerardo. How are you?
Gerardo Del Real: I'm well, I'm well. Thank you for coming on. You had some news yesterday that I think the market didn't quite understand. You announced, after a trading halt of several days, a 38.1-meter intercept of 1.08 grams per tonne gold in the very first drill hole at the South Mine Fault. Obviously, in Nevada, 1.08 grams, 38 meters and 26 grams per tonne silver, at the bottom – because this was an extension of a hole – is pretty darn good. The stock sold off. Can you give me some perspective and context on the release?
Max Sali: Yeah, I think the problem is people don't understand that it is an oxide system and anything over 1 gram oxide in Nevada is very good. If you look at other companies, they can produce at 0.3 grams oxide and they're very profitable. I think people are kind of getting Bolo and Kinsley confused. At Bolo, it's a good carbon oxide system, potentially open pit heap leachable. I think that the high-grade numbers at Kinsley really confused the market and the timing. The halt for us was a little longer than we wanted to. We had to go back and forth with IIROC over an image. I think that's why you saw the extra day on the halt. I think retail assumed because of length of the halt, it was going to be a blowout hole.
For our first hole drilling there it is a very good hole. What we've done is we've extended mineralization down below 300 meters, which is what we wanted to do, to show that it continued to depth. Now having silver towards our more silver section of the property, is starting to show continuity that these zones connect. So we're very happy, but we're humble. We got four more holes at the lab for Bolo. We look to release those in the next 10 days. We hope the market understands these results and we can really show the market what we have.
Gerardo Del Real: There's a comment in the release that says the initial drill hole and visual indications of Carlin-style mineralization within additional drill holes for which assays are pending are encouraging. When do you anticipate assays for the next set of holes that are due to be announced?
Max Sali: The other four holes were received at the lab August 28. We expect an average turnaround at 21 days. I would assume next week we're going to start getting the data in from those holes. What we will do is we'll compile all four holes and put them all out at once, probably the following week so we can really show the market what the drilling so far has done. We've competed more than that to date. We completed about 2,300 meters for 8 holes, and we expect another batch of holes to go to the lab sometime in early October.
We're very excited about these holes coming out of Bolo, but we are also very excited to say that we have 13 holes at Kinsley that will be sent to the lab sometime next week, for again, a turnaround of about 21 days. We're hoping to get some of those Kinsley numbers out to the market mid to late October.
Gerardo Del Real: Again, Kinsley is the flagship and we are absolutely expecting high-grade results from that program. That's going to be a potential company maker if you are able to deliver. Max, is there anything else that you'd like to add?
Max Sali: Yeah. I think the purpose of these holes at Kinsley is we have 13 holes. We have two RC rigs and a core rig. The nice thing about the core rig is we can go into the resource and we can upgrade some of the inferred to indicated, so we can build the resource that way. We're also stepping out to show that the resource is bigger. We also have the deep RC rig testing all brand-new, pure exploration holes. If we can hit some similar numbers in a new exploration hole, as you said, that's a company maker and a game changer for us.
Gerardo Del Real: Agreed. Max, thank you so much for the update. Appreciate your time.
Max Sali: Thank you, sir.