Resource World Magazine

j u n e / j u l y 2 0 1 4 www.resourceworld.com 41 There are many well known geologic for- mations that are highly prospective for the discovery of mineral resources within the Dominican Republic. One of the larg- est gold mines in the world, Pueblo Viejo, has recently been developed in a joint ven- ture between Goldcorp and Barrick Gold. Several other active mines are currently in production and a number of intriguing exploration prospects are in the pipeline. So it should not surprise anyone that eco- nomic deposits can be found within the island nation. In 2012, junior explorer GoldQuest Mining Corp. [GQC-TSXV] reported a drill core interval of 235 metres grading 7.9 g/t gold plus 1.4% copper from its Romero Project in the DR, and that did indeed grab the attention of the mining world. Shares of GoldQuest surged from mere pennies to a high of nearly $2 in about three months. It also prompted the launch of a new junior explorer, with an all-star team of talented and successful management, to focus on under-explored prospects in proximity to the big strike. Precipitate Gold Corp. [PRG-TSXV] completed its IPO in 2012 and secured exploration rights for a large property immediately adjacent to Romero. The hold- ings comprise a roughly 40 km stretch along trend from the GoldQuest discovery, although not all of the 40 km display the target Tireo volcanic rocks. Precipitate then got down to business and commenced a wide program of map- ping and fieldwork, including soil and grab sampling, along with trenching. The results from this initial program identified two main gold-in-soil anomalies within the property area; the Ginger Ridge Zone, and the Melchor Zone. To advance to the next phase, the com- pany required permitting approval and a lengthy delay ensued while the final con- cession application progressed through government bureaucracy. Earlier this year, the work permit and concession were finally granted to enable Precipitate to fol- low up on the encouraging field work, and a critical induced polarization program was completed to generate drill targets. The interpretation of this program has extended the corridor of anomalous gold showings at Ginger Ridge to more than 2 km along strike, and it remains open with the potential for further expansion. Surface trenching has also been completed within this zone and good gold grades were encountered, including a contiguous 32.5 metre trench bearing 1.0 g/t gold plus 18 g/t silver. It is important to note that the charge- ability highs of the IP program correlate strongly with the geochem "bullseyes" from sampling and trenching work. The early phase work that has been completed has built strong evidence that a poten- tial intermediate epithermal gold system exists with several wide target areas now defined. One interesting element is that despite the close proximity to the Romero discov- ery, and similar geology exposed at Ginger Ridge by Precipitate Gold, it appears to be a different regime of alteration that is being encountered. For one thing, there is very little copper in the assay samples collected by Precipitate. This is perhaps just another indication of just how robust the prospec- tive geology of this region may be, to host so many different distinct systems of altera- tion within a small geographic area. The management team at Precipitate and their geologists are experienced and know the country well, with a track record of exploration success. Senior management has achieved notable discoveries in the past while working with other juniors. They understand how to run a junior explorer and the need to have tight control of spending while being able to effectively deal with other areas of administration and corporate governance beyond the action in the field. Limiting spending has enabled the com- pany to curtail financing through equity offerings during this market dip when the majority of junior explorers are struggling with low market caps. The capital structure for Precipitate Gold remains tight with just 34 million shares on a fully diluted basis. Management and insiders collectively own about 45% of the outstanding shares. The company will need to complete an equity offering to fund the next phase of exploration, but even so, this should not be overly dilutive despite the current, low share price. The project is fully permit- ted for drilling and the company plans to move ahead with the next phase of explo- ration this summer, using man-portable drilling rigs to test some of the high pri- ority targets identified at Ginger Ridge. This could be good timing for investors to receive positive news in time for the win- dow of seasonal strength typically enjoyed by junior mining companies in the fall. n Field crews dig trenches at Precipitate Gold's Ginger Ridge Gold Zone at the company's Juan de Herrera Project in the Dominican Republic. Precipitate Gold file photo. Precipitate Gold exploring Dominican Republic by Staff Writer MINING

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