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Precipitate Gold Corp. (TSXV: PRG): Exploring a District-Scale Land Package, Located Adjacent to Barrick’s Pueblo Viejo Mine, One of the Largest Gold Mining Operations; Interview with Jeffrey Wilson, President, CEO

on 9/20/2019
Precipitate Gold Corp. (TSXV: PRG) is a Vancouver based, early-stage junior mineral exploration Company, focused on exploring and advancing its wholly owned Pueblo Grande Project in the Dominican Republic. The project, acquired in January 2019, offers a district-scale land package strategically located immediately adjacent to Barrick’s Pueblo Viejo mining operation, which is one of the largest gold mining operations in the world. We learned from Jeffrey Wilson, President, CEO, and Director of Precipitate Gold, that they have just finished an extensive campaign of geochemical surveying, geophysical surveying, and detailed geological mapping of the project and defined eight distinct drill targets for the exploration program that is about to commence in the coming months. Mr. Wilson believes that we are in the early stages of an exciting bull market for gold and precious metals, and Precipitate Gold is well positioned to make gold discovery and benefit from the new gold prices.

The view from Precipitate’s Pueblo Grande Project looking onto Barrick’s Pueblo Grande Mining Operation

Dr. Allen Alper: This is Dr. Allen Alper, Editor-in-Chief of Metals News, interviewing Jeffrey Wilson, President, CEO, and Director of Precipitate Gold Corp. Jeff, could you give our readers/investors an overview of your Company and also what differentiates your Company from your peers?

Jeffrey Wilson: Absolutely. Be my pleasure. Precipitate Gold is an early-stage junior exploration company. We are very much focused on discovery, certainly a commodity focus on gold, and to a lesser extent on silver and copper. But we largely look at gold exploration claims in sizeable, prolific districts, where mineralization has previously been identified and/or is known or being mined. Significant exploration targets, with similar affinities to those that have been identified already, still remain to be tested or remain untested.

We have focused our efforts since 2012 in the Dominican Republic, a little bit off the beaten track for a lot of junior mining investors a slightly unique jurisdiction, but worth noting there have been several multimillion ounce deposits delineated in the last 10 years or so. Most importantly, one of the largest gold mining operations in the world exists in the central part of the Dominican Republic. That's Barrick's Pueblo Viejo mining operation, which started out as nearly 20 million ounces of gold, 100 million ounces of silver, and almost half-a-billion pounds of copper.

So this is an area where mineralization is known. It's being mined on several different fronts, in different parts within the country. Mining is understood, appreciated, and we think it's a place where there's still quite a substantial amount of under-explored exploration potential, and that's the reason for our presence in that country.

Dr. Allen Alper: That sounds very good. Could you tell us a bit more about the project?

Jeffrey Wilson: Certainly. Our initial project in the country is called our Juan de Herrera. It's a project located immediately adjacent to GoldQuest's Romero deposit, where GoldQuest delineated about three-and-a-half million ounces. That's currently at a PEA stage. It's awaiting an environmental permit for exploitation from the government. During the waiting period for that permit to be granted to GoldQuest for their Romero project, we've elected to put on hold our project in that region, viewing it as something that will have much more value to our shareholders for ongoing exploration, once GoldQuest has some clarity of a path forward with their permits.

In the interim, about a year ago now, we picked up an additional project in country, which has now become our primary focus and our flagship asset. It is called Pueblo Grande. Now Pueblo Grande is located in an area of the country where mining is much more prevalent than, say, where our Juan de Herrera is located. We are situated immediately adjacent to Barrick's Pueblo Viejo mine, pushed right up against their claim boundary on three sides.

This is a project that had been worked by previous operators in the past. One of our directors, Alistair Waddell, who is a geologist, who spent a number of years working in the Dominican Republic as a prospecting exploration geologist, came to us and said, "There's this ground adjacent to Barrick Pueblo Viejo that I have highly coveted for many, many years. I think there's a significant exploration target there that's never been adequately targeted. If there's an opportunity to acquire that ground, I think there's a significant discovery potential within that prospect." So about a year or so ago, we executed on completing negotiations with the junior company that had previously held this ground to do a deal to buy it outright 100%. We were fortunate that, at that time of course, gold was still quite out of favor, in the summer and fall of 2018.

The company that we were acquiring it from had run out of money. They were running up against some deficiencies with their taxes and technical reporting for the mining department. So we were able to come in at a time when, perhaps, a deal was most likely to be done, and so we were able to do a relatively favorable deal to acquire 100% of this ground. We closed that deal in January of 2019.

Since January, we've been doing our own work programs. We've inherited quite an extensive amount of data from the outgoing operators, but then we went in and did an extensive campaign of geochemical surveying, geophysical surveying, detailed geological mapping to really vector in on how and where we would want to drill this highly perspective and quite large target area. Just last week we put out a news release outlining the results of all of that work. We have used the compilation of that to delineate eight distinct drill targets, within this primary target area, at our Pueblo Grande project, where we're proposing to drill and hopefully commence that drilling in the coming months.

Dr. Allen Alper: Sounds exciting! Sounds like the upcoming months will be a very interesting, and important time for Precipitate Gold Crop. Could you tell our readers/investors a little bit about your background and your team?

Jeffrey Wilson: Absolutely. I've been exclusively in the mineral exploration side of the capital markets business for about 25 years now. I started in the early to mid-90s and worked largely with a focus on finance and investor relations. I was lucky enough to work with a number of groups, through my tenure early on in my career, where we had a number of companies that were taken over, bought out by majors. I was a Director of a company called Welcome Opportunities that was bought by Frank Giustra and the Endeavour Mining group in 2002. I was then a director of a company called Aquiline Resources, which was eventually bought out by Pan American Silver. Then I was a founding member of a company called Silver Quest Resources, bought out, in about 2010 by New Gold.

I've had the good fortune to be involved with good technical teams that find highly prospective targets and in most cases, have made significant discoveries that have advanced to a point where the mid-tier or the major companies want to have them. The team, I've surrounded myself with here at Precipitate, falls in line with that strategy.

We have Adrian Fleming, on our Board of Directors. Adrian is a geologist, who cut his teeth with Placer Dome, notably was the President and CEO of Underworld, bought out by Kinross. He was recently on the Board at Northern Empire. It was just bought by Coeur Mining, I think, about a year-and-a-half, two years ago.

Quinton Hennigh is a PhD geologist who is on our Board. Quinton is a fairly well-known and well-regarded geologist for a number of different reasons. The most recently, perhaps, the work that he's done with Novo Resources in Australia. Having seen Novo go from a 60 cent stock to a billion dollar market cap back in 2016. He really has become a very high-profile, well-regarded geologist.

Alistair Waddell is also a geologist, who was a founder of GoldQuest in the Dominican Republic for several years. He then switched over a Kinross, where he was a VP of Greenfields Exploration. Having looked at a lot of different projects and a lot of parts of the world, and is now running a junior company in Australia.

Lon Shaver is on our Board, as well. Lon is a former investment banker who's now a Vice President at Silver Corp Mining.

So I think you look at the Board, you look at the Management Team, which includes my Vice President of Exploration, Michael Moore, and his extensive international experience. We're very much a technically focused team, with a strong emphasis on geology and mineral exploration, but also people who have run and managed junior companies and understand the fiscal responsibilities. But also, perhaps most importantly, understand what we're trying to accomplish here, which is to go and find something real.

At the end of the day, I think the upside for us in the gold business and the mineral exploration business is this belief that there's a shortfall in terms of supply and that the majors, as gold starts to move in the way that it has in several recent months, there's going to be a push to reach out and identify supply and try to increase throughput. I think the way to succeed in a market like that is to go out and find something new, make a new discovery in environments where major companies want to be and where they will happily, perhaps, pay a premium to secure that supply.

So, part of our strategy has been to be in known districts, with the right kind of geological affinities and areas where mid-tier and major companies are comfortable and/or just distantly working. That's how we've positioned ourselves and part of our strategy going forward. Obviously, there's a great amount of uncertainty with mineral exploration and discovery, but if we are successful on the ground, our belief is that we can have the same kind of successful strategies that many of us have had in other endeavors in the past.

Dr. Allen Alper: You and your team are extremely strong, with great experience, great accomplishments. I'm sure you have the team put together to move your Company forward aggressively.

Jeffrey Wilson: Yep.

Dr. Allen Alper: Could you tell our readers/investors a bit about your share and capital structure?

Jeffrey Wilson: Certainly. The Company's been around since 2012. The Company's never rolled back or consolidated. We've been very mindful of dilution and raising money. The Company currently has 82 million shares issued and outstanding and 88 million on a fully-diluted basis. There are no existing outstanding warrants on the Company. We have a market cap of about $8 million today. Somewhere in the $8 to $10 million range, depending on the share price.

Our share structure is made up of a number of key substantial shareholders. The single largest shareholder of the Company is another public company called Strategic Metals Ltd. Strategic Metals, some people will know, is made up of a very strong, reputable exploration group here in Vancouver. Up until their investment in Precipitate back in late 2015, they had never invested in any other company operating outside of the Yukon. The Yukon was really their bread and butter and the jurisdiction where they all had expertise. But they really liked what we had put together in terms of an exploration portfolio in the Dominican Republic, and so they came in on a financing in 2015, then increased their position in late 2016, and now sit at about a little over 20% of the issue capital.

Management and founders sit on about a 10 to 15% of the capital. People like myself, I've invested in every financing and equity raise that the Company's done in its existence.

We have a couple of institutional investors out of Europe who are in for a little under 10% each. Again, these are groups that have participated in multiple financings and looked to maintain their interest in the Company, supporting Management's plans to go forward.

Then a couple of high-net-worth individuals out of the United States, who've also been very supportive on financings and in the market, sitting at, probably cumulatively, about another 20%.

So quite quickly, you get somewhere north of 50% of the Company's capital held in about half a dozen hands or so. So I'm quite comfortable, with the support that we get from our existing shareholders. We have a nice balance of institutional shareholders, long-term sizable shareholders, and some retail, as well.

Dr. Allen Alper: Well, that sounds great. Sounds like you have great support there. I have great respect for Strategic Metals. I've done interviews with them many times.

Jeffrey Wilson: Very good.

Dr. Allen Alper: I also have great respect for Dr. Quinton Hennigh. I've interviewed him about five times on Novo Resources. I also interviewed TriStar, the new company that has Quinton on the Board, as a Director. So you have great support. Excellent! Could you tell our readers/investors the primary reasons they should consider investing in Precipitate Gold?

Jeffrey Wilson: We think the real leverage in our sector comes from discovery. Obviously high risk, high reward. We are now starting to see a gold market that looks as if it's performing and behaving. And I think there's a lot of belief that we're in the early stages of what could be an exciting bull market for gold and precious metals. I think discovery stories compound the potential of these things, if you're in a rising market. I think it's critical to know what a company has to do or is about to do before you invest. We've spent a lot of time in the last 12 to eight months getting ourselves prepared for a drill program.

One of the most important catalysts for any exploration and discovery company is exploration drilling, discovery type drilling. We have these projects owned outright 100%. All of our properties are owned 100%. There are no outstanding or remaining option payments. There're no work commitments or obligations. So we've positioned ourselves, now, where we own the properties outright. We have done all of the necessary scientific and exploration work, geochemistry, geophysics mapping to delineate drill targets. And we're now, I'm hoping, a matter of weeks away from having our necessary drill permit and being in a position to commence on a drill program at a project that's located literally up against the claim boundary of, perhaps, the fifth largest mining operation in the world in an area that's gone largely untested. So this, to me, makes for quite a compelling entry point.

As I said, a lot of hard work and effort has gone to get us to this point now. As we ramp up toward the last couple of pieces of the puzzle to be able to commence the drill program, I think this is when it gets exciting for investors. So you have a strong technical team that's spent quite an extensive amount of time trying to identify a secondary, or what would now become our primary, asset for the Company in acquiring this Pueblo Grande land package. It was a long arduous task, getting that deal structured in a way that was best for Precipitate shareholders. We put in the time and effort to get the targets delineated. Now we're really right at the cusp of dropping the flag and getting started. This is really where the rubber hits the road for discovery companies and exploration investors.

So I think the timing now looks to be spot on for Precipitate. Admittedly we don't know what's in the ground. This is exploration. But I think the work that we've done to delineate these targets is sound. Now is the time to go out and drill them to find out what exactly what we have subsurface.

Dr. Allen Alper: All those sound like excellent reasons for our readers/investors to consider investing in Precipitate Gold Corp. Is there anything else you'd like to add, Jeff?

Jeffrey Wilson: Along with all the wonderful things I can say about Precipitate, it's worth knowing that Barrick, to whom we're attached, has recently announced the new exploration target, within their property package, that is right up against the claim boundary where we're going to be drilling later this year. So I think that tends to validate or speaks to some of the prospective nature of where we're going hunting.

Secondly, Barrick's CEO, Mr. Bristow, recently said, this summer, that Barrick still sees this as one of their tier one property assets and that they're going to inject an additional billion dollars into their Pueblo Viejo operation for ongoing expansion and development. I think that speaks to their commitment to that project, to this region. It gives us comfort that if we were able to find a meaningful resource or deposit here, there's perhaps a strong desire from the people next door to want to monitor and watch that as we progress.

Dr. Allen Alper: Oh, that sounds excellent. It's nice to be in a good neighborhood with a lot of gold.

Jeffrey Wilson: Absolutely. Absolutely. Yeah. Another where we're very much focused is a key target area that we're calling a Loma Cuaba, or the Lithocap Zone, that's to the west of the Pueblo Viejo pits. We have another 8,000 to 10,000 hectares of ground that also has some pretty impressive prior drill results, some very interesting geochem in areas that we will be continuing to explore, with boots on the ground in the months ahead. I think the lowest hanging fruit and the most attractive target area for us, at this point in time, is this Loma Cuaba, which is just on the other side of the Pueblo Viejo mine. So that's where we're going to focus at first, but by no means is this a one-trick pony. There're a lot of additional target areas, within this large, large land package, where we intend to spend some time.

Dr. Allen Alper: That's a great position to be in, to have many very potential and great targets to explore. Excellent!

Jeffrey Wilson: Yes and I want to thank you for interviewing Precipitate Gold Corp. for Metals News.

Dr. Allen Alper: I’ve enjoyed talking with you and learning all about your exciting resources. We’ll publish your press releases as they come out so our readers/investors can follow your progress.

Jeffrey Wilson
President & CEO

Tel: 604-558-0335 Toll Free: 855-558-0335

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