Source: Maurice Jackson for Streetwise Reports 05/01/2018
Maurice Jackson of Proven and Probable sits down with Northern Empire Resources CEO Michael Allen to discuss his company’s discovery and exploration of gold deposits in Nevada.
Maurice Jackson: Today, we will discuss a company that is expanding and discovering heap-leach gold deposits in Nevada, Northern Empire Resources Corp. (NM:TSX.V; PSPGF:OTC.MKT ). I am speaking with Michael Allen, the president, CEO and director of Northern Empire. For someone new to the story, please share who is Northern Empire, and what is the thesis you’re attempting to prove?
Michael Allen: I guess the best way to describe Northern Empire is it’s a group of businessmen who happen to specialize in the mining industry. If you look at our board, we’ve got a very adept group that has created a lot of shareholder value. That would be things like founding International Royalties, which was sold for $700 million. The Kaminak founder is on the board; that company just sold for $520 million. Also, the most recent transaction on the board is New Market, which was sold to Kirkland Lake Gold for $1 billion. We are businessmen who specialize in mining.
The thesis for Northern Empire is that we’ve assembled a district scale land package in the southern part of Nevada, in something called the Walker Lane, about two hours northwest of Las Vegas. The property has four deposits on it. We feel that we can expand all four of those deposits through exploration and drilling with the extensions off. Also, the real upside is discovering new deposits that are amenable to heap-leach processing in the state of Nevada on our property.
Maurice Jackson: Michael, let’s discuss your latest press release entitled “Northern Empire Provides Regional Update and Identifies Several New Exploration Targets.” What are some of the key points from this press release that really have your attention?
Michael Allen: This press release is the culmination of a lot of work that has been done by the exploration team on the project. What we’ve been able to identify is that the key controls to the mineralization, particularly on the Crown part of the project, which is in the northern part. What we have identified are seven new exploration targets. They’re just classified from more or less from west to east in the list that’s on the news release. The Road Zone is just to the north of the Daisy deposit. What we like about that is that end, the Gold Ace Fault target is that they are shallow mineralization around a known deposit. We think that there is a potential there for adding ounces that are immediately minable, given the proper study and the drilling off the resources. That’s what the focus has been for both the Road Zone and the Gold Ace Fault, it’s immediately adjacent to the Daisy series of deposits. We think that there is a potential for expanding that deposit.
Crowell Extension is where we get into the real nitty gritty of what we’ve been doing on the project. The Crowell was a historical mine. Actually, there was a geologist that went down in it recently, not by our guys. He sampled the rib got 0.2 ounces per ton, 7 grams. Where this mine is, is actually at the hinge of a very large scale antiform, a big fold structure that points off to the northeast. This antiform, the hinge would be where it is most permissive for fluids to get through and mineralize. The very high-grade samples that were collected there historically, 7 grams, indicate that potential. It starts to create a story of us being able to link up the deposits there.
Further to the east, we get into the Radio Tower and Secret Pass East. Radio Tower is the updip extension of the Secret Pass deposit. There’s some really interesting geochemistry there that suggests that there is a target at depth. Secret Pass East is where the Fluorspar Canyon detachment fault comes to surface. That’s a key driver of mineralization on the property. We’ve got a large area that hasn’t been effectively explored in the past. We’ve got surface samples up to 5 grams per ton at surface. It’s a big target at 1200 meters long, so that’s a lot of ground and a lot of potential for more ounces.
Number six and number seven are more, what I would say generative targets. The Ronko Jasperoids are something that we’ve been looking at, and we discovered. It was simply a boot leather mapping and sampling exercise where one of our geologists went out and started mapping outcrops. It’s a significant system. It’s 500 meters long, up to two grams per ton at surface. There’s no drilling out there.
Also, the range front fault zone is very interesting because this is where you get truly long ball potential. If you look at some of the bigger deposits in the state of Nevada, particularly the Carlin ones, they exist at these range front faults where you’ve got structures intercepting favorable host rocks. We’ve identified these structures through our mapping and through our geophysics. Then, the favorable host rock is also there. This is something that we’ve been looking at and are eager to get our team more onto the ground, and get them exploring there, because that is truly a game changer type geology out there.
Maurice Jackson: Northern Empire’s technical team has over 80 years of experience in Nevada, and you’ve stated that the Sterling Gold Project resembles a Carlin type of mineralization. That’s a pretty significant comment from you for current and prospective shareholders to consider.
Michael Allen: It’s not something that we say flippantly. We’ve got guys that are on the ground that are 30-year Nevada geos. They know what they’re looking at. What …read more