New Placer Dome Gold Corp. acquires 100% of the Troy Canyon Gold silver project in Nevada and provides Kinsley Mountain gold project update
New Placer Dome Gold Corp. has exercised its property option agreement and has acquired 100 per cent of the Troy Canyon gold property located in Nye county, Nevada, from Brocade Metals Corp., a private company. The Troy Canyon Project has returned historical underground stope rock grab samples assaying 576 g/t gold and greater than 100 g/t silver . The Troy Canyon Project is subject to a 1% underlying net smelter returns royalty which may be repurchased by New Placer Dome for USD
$1,000,000 in cash and a 0.5% net smelter returns royalty to Brocade which may be repurchased by New Placer Dome for USD $500,000 in cash.
New Placer Dome recently completed a campaign of surface and underground rock sampling at Troy Canyon. A total of 59 surface and underground rock grab samples from outcrop or rock float were collected, which included numerous samples pyrite-galena-chalcopyrite mineralized quartz vein samples consistent with historically reported mineralization. The samples have been submitted to ALS Global in North Vancouver for gold fire assay and multi-element geochemical analysis.
Max Sali, CEO and founder comments, "We are pleased to have acquired 100 percent of this prospective asset in Nevada that has previous gold production through from a mine shaft. Troy is located strategically new Bolo and recent field work at Troy has encouraged us to exercise the option. As the asset terms were negotiated in September of 2019 in a much different gold environment, the board felt it was an excellent value add for our shareholders."
Update on Kinsley Mountain
Reverse circulation, and diamond core drilling continues at pace with three rigs turning at Kinsley Mountain. A total of 21 drill holes totaling 7,981 metres ( ~26,000 feet) have been completed to date testing priority targets at the high-grade gold Secret Canyon Shale-hosted Western Flank Zone; to the east along the Kinsley northwest fault; and parallel Transverse fault to the south.
Upcoming target areas being prepared for drilling include Secret Spot located 1.5 km to the south of the Western Flank Zone where previous Secret Canyon shale RC drill intercepts returned assays of 1.34 g/t Au over 25.9 metres (PK-135) within a structural setting considered to be analogous to the Western Flank Zone, in addition to shallow high grade oxide gold Dunderberg Shale-hosted mineralization adjacent to the historical Kinsley Mountain open pits that returned assays of 16.43 g/t Au over 5.48 metres within a broader zones of mineralization averaging 5.48 g/t Au over 20.4 metres2 (PK014C).
Troy Canyon Summary
The Troy Canyon silver gold project is located in the Grant Range of eastern Nye County, Nevada, approximately 150 km east of Tonopah. The project consists of 59 contiguous unpatented mineral claims that cover 493 hectares of land centered approximately on the historical Locke gold mine. High-grade gold mineralization occurs within massive quartz veins, vein breccias and narrower sheeted vein and stockwork zones. The quartz system is exposed for 300 meters along the sheared, northerly trending contact between hanging wall recrystallized limestone of Cambrian age and footwall quartz monzonite of the Tertiary (23 Ma) Troy pluton.
The Troy Gold-Silver Project has seen limited modern exploration effort, and was a former small producer. Gold mineralization was first identified at the project in 1867 and small-scale mining commenced in 1869. The most recent mining took place from 1948 to 1950 where 643 ounces of gold and 660 ounces of silver were reportedly produced from 1,859 tons of mineralized rock, at an average grade of 11.83 g/t gold (0.345 oz/t Au) and 12 g/t silver (0.355 oz/t Ag).
The area of the old Locke Mine in Troy Canyon hosts mesothermal gold and silver mineralization with potential for economically significant concentrations. Mesothermal systems typically are persistent to great depths. To date the system seen on the Troy Canyon Project has only been investigated over a vertical extent of approximately 180 metres, with the bulk of the work having been concentrated on the hanging wall of the quartz host.
Recent assessments (late 1980s to early 2000s) of the project by multiple companies include sampling of surface and underground quartz exposures, mine dumps, mineral processing facilities, and tailings piles. In 2004, Miranda Gold Corp determined that stopes were developed on multiple 'stacked' north-trending, moderately east-dipping veins. Three of 13 underground stope rock grab samples collected by Miranda reportedly returned 47.8 g/t gold, 48.4 g/t gold, and a high of 576 g/t gold* (16.8 oz/ton Au). The remaining 10 rock samples collected from underground stope and adit wall outcrops returned values ranging from <1 g/t gold to 8.8 g/t gold, and from 0 g/t silver to 27 g/t silver.
In 2007, Portage Minerals Inc. completed a multi-parameter exploration program on the project that included a property-wide soil geochemical survey, focused IP/Resistivity and CSAMT surveys, and rock chip sampling and surveying of the main Locke mine underground workings. The soil geochemical program identified several zones of anomalous gold outbound of the mine and a strong northwest trending IP anomaly in the southeast part of the survey area.
Gold mineralization is associated with grey, late-stage vuggy, sugary limonitic quartz and minor sphalerite, galena and arsenopyrite, and a strong gold-bismuth correlation suggests that mineralization is part of an intrusive-related mesothermal gold vein system. Compiled data for the Troy Canyon Project reference only one exploration drill-hole which apparently was terminated in mineralized limestone before reaching the vein.
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), 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). 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 market 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.
 National Instrument 43-101 Technical Report on the Troy Canyon Project, Portage Minerals Inc., with an effective date of February 5, 2007 prepared by Jim Chapman, P.Geo. is located on SEDAR (www.sedar.com) under Portage Minerals Inc.'s profile.
 True widths of the mineralized intervals are interpreted to be between 60-90% of the reported lengths.
 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).