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Kinsley Mountain Gold Project

20% ownership

The Kinsley Mountain project (“Kinsley Mountain”) is located in Elko County between the towns of Ely and Wendover, Nevada.  Kinsley Mountain lies roughly 75 kilometres (45 miles) southeast of the Long Canyon property where the geological team of Liberty Gold defined a significant gold resource in what is now recognized as an emerging gold district.  The Company’s Nevada subsidiary has the rights to a mining lease covering 141 unpatented lode mining claims on U.S. Bureau of Land Management (“BLM”) land covering an area of approximately 1,136 hectares (2,807 acres). The mining lease agreement has a 3% net smelter returns royalty on production. Additional staking has increased the size of the project to 513 unpatented lode claims on BLM land plus 6 leased patents totaling 4,213 hectares (10,410 acres), and hosts a past-producing mine with an extensive exploration database and numerous, untested gold targets.

On October 28, 2013, Nevada Sunrise announced the signing of the Kinsley Mountain joint venture agreement (the “Joint Venture”) between the Company and Liberty Gold Corp (“Liberty Gold” formerly Pilot Gold Corp.).  A Delaware limited liability company, Kinsley Gold LLC, was formed to manage the Joint Venture with Liberty Gold as the operator.

2020 Resource Estimate

In February 2020, New Placer Dome published an updated mineral resource estimate stating that Kinsley Mountain hosts Indicated Resources of 418,000 ounces of gold grading 2.63 g/t Au (4.95 million tonnes), and 117,000 inferred ounces of gold averaging 1.51 g/t Au (2.44 million tonnes)1. The Company believes there is significant upside potential for new high-grade gold discoveries and for expansion of the footprint of known mineralization and contained resources at Kinsley.
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).

In June 2020, Liberty Gold entered into an option agreement with New Placer Dome whereby New Placer Dome acquired Liberty’s 79.99% interest in Kinsley Gold LLC. On December 3, 2021, New Placer Dome and Copaur Minerals Inc. (“Copaur”) announced a binding letter agreement dated Nov. 30, 2021, pursuant to which Copaur will acquire all of the issued and outstanding common shares of New Placer Dome in an arm’s-length transaction projected to complete in 2022.

The Company elected to participate in the 2020 and 2021 exploration programs. During the three months ended December 31, 2021, the Company paid a total of US$42,525 (CAD$53,604) as part of the Company’s proportionate share of the 2021 cash calls. During the year ended September 30, 2021, the Company paid a total of US$784,619 (CAD$1,017,181) as part of the Company’s proportionate share of the 2020 and 2021 cash calls, of which $US 44,022 (CAD$55,291) was paid for the Company’s proportionate share of the 2021 Royalty Payments.

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).

History of Exploration

Gold mineralization was discovered on Kinsley Mountain in 1984. Subsequent exploration defined sediment-hosted gold mineralization concentrated in the Kinsley trend, and includes at least five distinct deposits hosted in strata ranging from middle-to-late Cambrian in age. Gold mineralization occurs within a stratigraphic section of Middle to Upper Cambrian-age sedimentary rock units including limestone, dolomite and shale. This mineralization exhibits characteristics similar to other sedimentary rock-hosted “Carlin-type” gold deposits in Nevada. Gold enrichments occur in both preferred bedding strata and structurally-controlled zones as disseminated mineralization within altered sedimentary rocks.

Between 1994 and 1999, Alta Gold Co. (“Alta Gold”) produced approximately 138,000 ounces of gold at .042 opt gold (1.4 grams/tonne gold) from oxide ore in a heap leach operation at Kinsley Mountain. Mining by Alta Gold was restricted to a cluster of deposits aligned along a northwest-oriented fault zone.

Exploration drilling has identified several other mineralized centres which are yet to be developed. Mining by Alta Gold ceased during a period of low gold prices.

Gold mineralization at Kinsley Mountain consists both of shallow low-grade oxide ore, which was mined and produced by Alta Gold, and deep higher-grade sulphide mineralization. This deeper mineralization was tested by a limited number of drill holes. Prior to the establishment of the Joint Venture, Nevada Sunrise assembled a substantial historical archive for the Kinsley Mountain property, including records for 1,156 drill holes drilled prior to 2011 (prior to Liberty Gold’s exploration programs) with a total length of 244,900 feet (74,700 metres) or an average depth of only 212 feet (64.7 metres).

Liberty Gold began exploration at Kinsley Mountain in 2011 and drilled 27,761.9 metres (91,082 feet) in 91 reverse circulation (“RC”) holes and 36 core holes to the end of 2013. Exploration at Kinsley Mountain accelerated in 2014 following Liberty Gold’s gold intercept in drill hole PK091CA in late 2013, which returned 8.53 grams/tonne (“g/t”) gold over 36.6 metres, including 29.43 g/t gold over 7.6 metres. This high-grade gold discovery area is known as the Western Flank Zone. From 2014 to 2019, Liberty Gold drilled an additional 79 RC holes and 35 core holes totaling 39,433.5 metres (129,375 feet), and carried out ground and airborne geophysical surveys. 

Mineral Resources Estimate Technical Report

On November 4, 2015, in conjunction with Liberty Gold, Nevada Sunrise announced a technical report for Kinsley Mountain dated December 16, 2015 compliant with National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) entitled “Updated Technical Report and Estimated Minerals Resources for the Kinsley Project”, effective October 15, 2015. The 2015 technical report was subsequently filed on SEDAR and can be accessed on Nevada Sunrise’s SEDAR profile at www.sedar.com

Barrian Mining Corp. (now New Placer Dome) filed an updated technical report for Kinsley Mountain (the “Updated Technical Report”) on February 21, 2020, entitled “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, with an effective date of January 15, 2020. The Updated Technical Report can be accessed on New Placer Dome’s SEDAR profile at www.sedar.com.

The Updated Technical Report states that gold resources at Kinsley Mountain were modelled and estimated by: evaluating the drill data statistically; utilizing the geologic interpretations and drill data provided by Liberty Gold to interpret mineral domains on east-west cross sections spaced at 25-metre intervals; rectifying the mineral-domain interpretations on north-south long sections spaced at five-metre intervals; analyzing the modelled mineralization spatially and geostatistically to aid in the establishment of estimation parameters; and interpolating grades into a three-dimensional block model, using the rectified mineral domains as primary constraints. 

The Kinsley Mountain gold resources are presented in the table below:

Indicated

Inferred

Tonnes

g Au/t

oz Au

Tonnes

g/t Au

oz Au

4,948,000

2.63

418,000

2,438,000

1.51

117,000

1. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. 

2. Mineral Resources are reported at a 0.2 g Au/t cutoff for oxidized mineralization potentially available to open-pit mining and heap-leach processing; a 1.0 g Au/t cutoff is applied to Secret Canyon Shale and all other transitional (mixed) and unoxidized mineralization potentially available to open-pit mining, milling, flotation, and shipping to a third-party roaster or autoclave; and a 2.0 g Au/t cutoff is applied to all other mineralization that could potentially be mined by underground methods. 

3. Rounding may result in apparent discrepancies between tonnes, grade, and contained metal content. 

In order to determine the limits of modelled mineralization potentially available to open-pit extraction, a pit optimization was run using a $1,600/oz gold price and $2.00/t mining cost. Oxidized, potentially heap-leachable mineralization used costs of $2.75/t for processing and $1.55/t for General and Administrative (“G&A”) and a gold recovery of 75%. Mixed and unoxidized mineralization that could potentially be processed by flotation, leaching of the flotation tails, and custom oxidation of the flotation concentrates by roaster or autoclave used costs of $35.00/t for processing and $7.75/t for G&A, and 85% recovery. Mineralization hosted within the Secret Canyon Shale, which potentially could also be processed by flotation, leaching of the flotation tails, and custom oxidation by roaster or autoclave, used costs of $31.00/t for processing and $7.75/t for G&A cost, with 95% recovery. 

Resources potentially available to underground extraction are limited to groups of blocks that lie proximal to the optimized pits that constrain the potential open-pit resources.

Metallurgical Test Results

In early 2015, the Company reported results from an initial metallurgical program designed to address the recovery of gold from the Secret Canyon host rock to produce a high-grade concentrate.  The metallurgical test results demonstrated that high-grade sulphide mineralization from the Western Flank zone can produce a concentrate with excellent gold recoveries, at potentially low capital and operating costs. 

The test work, initiated in March 2015, used the same flowsheet developed for mineralization hosted in the Secret Canyon Shale. Summary highlights include:

Composite

Overall Au Recovery (%)

Concentrate Grade (g/t)

Calculated Feed Grade (g/t)

WF-CC#1

83.0

52.3

4.82

WF-CC#2

82.6

42.0

2.81

Concentrates were assayed for deleterious elements and were found to contain arsenic and antimony.  Arsenic in the concentrate tested ranged from 1.55% to 3.14% and averaged 2.35% while antimony in the concentrate tested ranged from 0.048% to 0.067% and averaged 0.058%.  While arsenic and antimony are elevated, it is believed the levels would not preclude direct sale to a typical Nevada refractory ore processing facility.

Gary Simmons, of GL Simmons Consulting, LLC (B.S. Extractive Metallurgy), a Qualified Professional with the Mining and Metallurgical Society of America is the Qualified Person, within the meaning of National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”), has overseen the collection and verification of the metallurgical data and reviewed and approved this technical disclosure. Mr. Simmons is independent of Liberty Gold and Nevada Sunrise. Metallurgical testing was conducted at Hazen Research, Inc. in Denver, Colorado.

2020 Exploration Program and Results

Following the closing of the transaction between Liberty Gold and New Placer Dome in June 2020, New Placer Dome assumed operatorship of the Kinsley Mountain joint venture and was vested with a 79.99% interest. A program and budget for 2020 exploration totaling US$3.28 million was presented and approved by the joint venture and Nevada Sunrise subsequently elected to pay its proportionate 20.01% share. In November 2020, the Company paid its proportionate share of the 2020 cash call of US$313,131 to maintain its 20.01% interest in the joint venture. On February 10, 2021, the Company paid the next 2020 cash call of US$423,210 to maintain its 20.01% interest.

On July 29, 2020, the Company was informed by New Placer Dome that a drilling program of up to 20,000 metres had commenced at Kinsley Mountain. 

The 2020 Kinsley Mountain RC and diamond drill campaign was completed in November 2020 and comprised 49 drill holes totaling 17,970 metres (58,957 feet) testing five target areas within the greater resource area, which consisted of 39 RC holes for 13,610 metres (44,652 feet) and 10 diamond drill holes for 4,360 metres (14,305 feet), with 3 holes abandoned and re-drilled from the same locations. New Placer Dome reports that results of the 2020 drilling warrant further drilling in 2021 to build on multiple new discoveries and potentially increase the current indicated and inferred resources at the Western Flank Zone, Main Pit North Oxide and Secret Spot targets.

On April 28, 2021, Nevada Sunrise reported that New Placer Dome had provided assay results for the final thirteen drill holes completed during 2020 at Kinsley Mountain. See Table 1 below for all 2020 drill holes exhibiting significant gold mineralization.

Drilling at the Secret Spot target has yielded a new discovery of near-surface oxide gold mineralization, in addition to new, deeper high-grade sulphide gold intercepts. Diamond drill hole KMD20-006 testing across the Transverse fault intersected a total of four separate mineralized intervals, including multiple oxide gold zones from surface within Dunderberg shale and the highest-grade interval to date within the Secret Canyon shale at the Secret Spot.  

Highlights of the April 28, 2021 results include:

  • 1.76 grams/tonne gold (“g/t Au”) (oxide) over 18.9 metres (“m”) from surface, including 4.46 g/t Au (oxide) over 6.1 m in KMD20-006 at Secret Spot (Figure 1, and Table 1);
  • 3.81 g/t Au (sulphide) over 11.6 m from 486.2 m to 497.7 m, including 11.3 g/t Au (sulphide) over 2.9 m in KMD20-006 at Secret Spot (Figure 2); 
  • 1.77 g/t Au gold (oxide) over 25.3 m, including 2.75 g/t Au over 10.1 m in KMD20-07B at Secret Spot (Figure 1); 
  • 0.79 g/t Au (oxide) over 39.8 m in KMD20-008 at Secret Spot (Figure 1);
  • 0.53 g/t Au (sulphide) over 19.8 m in KMD20-003 at the Western Flank Zone (Figure 3);
  • 0.64 g/t Au (oxide) over 10.7 m in KMR20-029 at the Main Pit North shallow oxide target (Figure 4).

Kinsley Mountain Gold Project 2020 Drill Hole Results Overview

Figure 1. Secret Spot Target Drill Plan KMD20-006 / KMD20-007B / KMD20-08

Key Points

  • New discovery at Secret Spot includes multiple at or near surface Dunderberg shale-hosted oxide gold drill intercepts that warrant follow-up drilling; 
  • Secret Canyon shale gold (sulphide) intercepts within KMD20-006 represent the highest-grade interval to date at Secret Spot; illustrating the potential of the Secret Spot target to yield high grade gold mineralization similar in tenor to the Western Flank Zone resource located 1.5 kilometres to the north; 
  • At Western Flank, discovery of a broad zone of within-pit Hamburg limestone-hosted gold (sulphide) mineralization within drill hole KMD20-003 on the southeast margin of the resource is open to expansion in all directions.

Figure 2. Secret Spot Secret Canyon Shale Drill Section KMD20-006

Figure 3. Western Flank Zone Drill Section KMD20-003 


Table 1. Kinsley Mountain Gold Project - 2020 Significant Drill Intercepts

Hole ID

(dip/azimuth) (degrees)

Released

Zone

From (m)

To (m)

Interval (m)1

Au (g/t)*

CN Soluble Au Recovery** (%)

KMD20-003 (-75/147)

 

28-April- 2021

 

Western Flank

189.3

209.1

19.8

0.53

Sulphide

KMD20-006 (-77/225)

Secret Spot

Dunderberg

Shale

0.0

18.9

18.9

1.76

79%

including

1.5

7.62

6.1

4.46

93%

and

35.0

55.5

20.5

1.72

91%

including

38.1

48.8

10.7

2.58

92%

and

Secret Spot Secret Canyon

Shale

451.1

475.5

24.4

1.03

Sulphide

including

473.0

475.5

2.4

5.98

Sulphide

and

486.2

497.7

11.6

3.81

Sulphide

including

493.5

496.4

2.9

11.3

Sulphide

KMD20-007B (-73/247)

Secret Spot Dunderberg

Shale

2.8

16.9

14.1

0.44

78%

and

38.1

63.4

25.3

1.77

86%

including

38.1

48.2

10.1

2.75

93%

and

Secret Spot Secret Canyon Shale

560.8

577.2

16.3

1.08

Sulphide

KMD20-008 (-76/184)

Secret Spot Dunderberg Shale

2.7

42.5

39.8

0.80

79%

KMR20-029 (-61/187)

Main Pit North Oxide

105.2

115.8

10.7

0.64

64%

KMR20-030 (-65/216)

6-Apr-2021

Main Pit North

Oxide Target

108.2

144.8

36.6

2.88

84%

including

109.7

117.4

7.6

9.83

88%

KMR20-021 (-57/064)

137.2

152.4

15.2

0.77

61%

KMR20-022 (-57/064)

149.4

173.7

24.4

1.05

91%

including

152.4

161.5

9.1

2.13

96%

KMR20-023B (-66/123)

108.2

111.3

3.1

4.83

100%

and

147.8

175.3

27.4

0.40

75%

KMR20-028 (-56/209)

117.4

126.5

9.1

0.78

62%

KMR20-027 (-61/164)

KNW-Sulphide Fault

35.1

67.1

32.0

1.20

Sulphide

including

64.0

67.1

3.1

5.81

KMR20-026 (-90)

 23-Mar-2021

Western Flank

135.6

141.7

6.1

9.08

Sulphide

and

199.6

207.3

7.6

15.1

including

199.6

204.2

4.6

24.1

KMR20-002 (-82/314)

300.2

339.9

39.6

1.78

74%

including

310.9

324.6

13.7

3.63

83%

KMR20-003 (-70/314)

362.7

378.0

15.2

2.51

Sulphide

including

362.7

368.8

6.1

4.16

KMR20-004 (-68/160)

11-Jan-2021

11-Jan-2021

 

Western Flank

Extension

260.6

271.3

10.7

5.15

69%

KMR20-004 (-68/160)

260.6

271.3

10.7

5.15

69%

including

265.2

269.8

4.6

8.12

74%

KMR20-007 (-75/280)

Western Flank

283.5

289.6

6.1

1.15

Sulphide

KMR20-008 (-83/305)

294.1

300.2

6.1

4.83

Sulphide

and

310.9

318.5

7.6

3.07

Sulphide

KMR20-009 (-70/110)

283.5

295.7

12.2

1.74

Sulphide

KMR20-016 (-85/235)

309.4

330.7

21.3

3.38

73%

including

317.0

323.1

6.1

5.78

100%

KMR20-017 (-75/320)

320.0

358.1

38.1

2.63

Sulphide

including

326.1

332.2

6.1

10.2

Sulphide

* 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%  

2020 Geophysical Survey Results

On May 17, 2021, Nevada Sunrise reported that New Placer Dome Gold had provided results from an induced polarization (“IP”)/resistivity ground geophysical survey completed in 2020 at Kinsley Mountain. 

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 (“WFZ”) within a single 2015 IP/resistivity orientation survey line. Subsequent electrical property measurements of WFZ Secret Canyon shale-hosted gold mineralization and surrounding shale in drill core confirmed an apparent chargeability contrast between mineralized and unmineralized Secret Canyon shale rocks at Kinsley Mountain. 

New Placer Dome subsequently 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 historical drilling that intersected high-grade gold in association with sulphide mineralization. The 2020 IP/resistivity comprised a total of 19 line-kilometres over nine lines, including 5 lines at the WFZ and 4 lines at the Shale Saddle target (Figure 5). Drill hole KMR20-035, drilled in the 2020 program, is located on the margin of a larger untested chargeability anomaly (Figure 6).

The results of the 2020 IP/resistivity survey reveal that high-grade gold mineralization at the WFZ is associated with chargeability anomalies along the Kinsley Northwest/Mine fault zone. Multiple chargeability anomalies have been identified at the high-grade WFZ and Shale Saddle targets that warrant expansion of the IP geophysical grid and follow-up drill testing.  

Key Points

  • High-grade, shale-hosted gold mineralization at the WFZ exhibits an apparent chargeability contrast with unmineralized shales representing an important new gold mineralization vector at Kinsley Mountain.
  • IP/resistivity surveys have defined multiple untested chargeability anomalies at the WFZ and Shale Saddles 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 5. Western Flank Zone IP Chargeability Section L450E

 

Kinsley Mountain NI 43-101 Technical Report


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