Natural Resource Investor
Bullfrog Gold Corp.
September 13, 2016

Finding Gold in Nevada by Looking
Where It's Been Mined Before

Bullfrog Gold Corp. Compiles 470,000 oz. Gold Inventory Left Behind by Barrick's Bullfrog Subsidiary

This report will introduce you to Bullfrog Gold Corp. (OTCQB: BFGC), a gold exploration and development company started in 2011 with a gold project that is 120 miles NW of Las Vegas, Nevada. The company is dedicated to proving the maxim that if you want to find gold, the best place to look is where it has previously been found.

Located within the prolific Walker Lane Mineral Trend and only 4 miles west of the town of Beatty, Nevada, this gold mining area produced 2.3 million oz gold averaging 0.08 oz/t for Barrick Gold. Here, Barrick, et al, conducted major mining operations between 1989 and 1999.

Barrick's mines included the major Bullfrog pit (1.1 mil.oz @ 2.5 g/t gold), the underground Bullfrog mine (690,000 oz. gold @ 7.5 g/t), and the Montgomery-Shoshone pit (M-S) which yielded 220,000 oz gold @ 2.2 g/t gold. (See area maps below.)

Our own company, Bullfrog Gold Corp, began exploring this area in 2011 with the acquisition of its initial land position of 79 claims and two patents located immediately east and north of the Bullfrog and M-S open pit mines. Subsequently, the company optioned from another land owner 12 additional land patents that were previously leased by Barrick. These patents cover the NE half of the M-S pit and significant exploration areas north and south of the M-S pit. The company also leased and optioned from Barrick 28 claims and 6 more patents, two cover the SW half of the M-S pit and the balance of lands cover the northern third of the original Bullfrog deposit. Today, the company controls the entirety of the M-S, the northern third of the Bullfrog pit and all the area underground mined by Barrick, plus prospective lands to the east and north.

Gold Deposits in the Beatty Area
(M-S and Bullfrog includes Barrick + BFGC Estimates)

In all, the company now holds 2,200 acres here, including 99 federal lode claims, 20 patented claims and 8 mill site claims. Additionally, the company has identified significant additional mineralization and further exploration potential which has been based on an intensive study of Barrick's electronic and paper data bases. This data includes 157 miles of drilling in 1,298 drill holes, as well as more than 2,500 pounds of paper documents. Today, all this data would cost more than $40 million to re-create. This study yields some surprising results in terms of showing strong potential for additional gold content throughout this area.

It is noted that Bullfrog Gold is the only one to examine the electronic and paper data bases after they were shipped offsite in 2000; and is the only entity to thoroughly evaluate the mineralization remaining around and under Barrick's Bullfrog and M-S pits and between the Bullfrog pit and underground mine.

Current Gold Inventory Estimated at 470,000 oz. Gold

The Company has analyzed and estimated the remaining mineral inventories of gold around the Montgomery-Shoshone and Bullfrog mines at 470,000 oz. gold as summarized below:

Mineral Inventory Estimates:
Pit Areas Tonnes Millions Gold G/T Gold Ounces
M-S Shallow 1.1 1.06 38,612
M-S Deeper 0.9 0.93 26,813
Bullfrog North 13.3 0.88 375,051
BF NE Mystery Hill 0.9 0.80 26,813
Total/Average 16.4 0.89 469,961

The estimated mineral inventory was calculated by the company at an average of 0.89 g/t using manual cross-sectional methods and a nominal cut-off grade of 0.3 g/t. This cut-off grade is higher than most heap-leach projects now operating in the USA, suggesting that this area can be re-opened for productive, low-cost heap-leach processing. The above estimates are strongly supported by the close-spaced Barrick drill holes where 2.3 million oz gold were recovered.

The company believes the mineral inventory estimates can be readily and inexpensively upgraded with minor additional drilling to comply with US and Canadian estimation standards, as well as defining several additional exploration targets which can expand overall gold mineralization in the area.

M-S Pit Area:

In addition to mineralization immediately around the M-S pit, there is only one hole located within 150 meters from the NE pit limit and the next hole is 1,000 meters NE. Furthermore, these mineral trends and structures have been projected more than 4 km NE of the M-S pit, but only eight holes were drilled by Barrick in this large area.

Located east of the M-S pit area is an area that is 700 meters by 1,300 meters, but it contains only one shallow old hole from which no data is available. Only a portion of this area may be prospective, but additional study and exploration drilling is warranted. The adjacent lands east and north of this area also have limited drilling. The company now controls all the lands that cover the M-S pit.

Bullfrog Pit and Underground Mine Area:

From 1989 through 1994 Barrick recovered more than 1,346,000 ounces by conventional milling of Bullfrog ores using a pit cut-off grade of 0.5 g/t. From 1992 through 1998 approximately 690,000 ounces averaging 0.24 opt were recovered from the north extension of the deposit and below much of the Bullfrog pit using underground mining and a cut-off grade of 3 g/t. As a result, significant mineralization grading from 0.2 to 3.0 g/t remains between the pit and underground workings and in isolated high-grade intercepts that were too small or distant to develop and mine underground. Since Barrick's underground operations extracted 95% of their reserve, it is expected that an additional 5% or 34,000 ounces averaging 0.24 opt remain around the underground workings that are not included in the company's estimates. Half of this high grade may be within pit mining depths. Most of Barrick's Bullfrog production was from lands now controlled by the company.

The Mystery Hill structure is northeast and adjacent to the main Bullfrog deposit and has shallow mineralization for a known strike length of 300 meters. This area only contains 6 interior drill holes and has not been adequately drilled to estimate deeper potential down-dip or expanding mineralization along strike.


Heap-leach tests by Barrick and others show very good gold recoveries. Pilot heap-leach tests performed by Barrick in 1995 on 844 tons crushed to 1/2-inch size averaged 0.019 gold opt and recovered 67% of the gold in only 41 days while cyanide and lime consumptions were exceptionally low. Finer crushed materials yielded gold recoveries up to 75%. Barrick did not have lower cost heap-leaching facilities and used cut-off grades of 0.5 g/t for pit ore and 3.0 g/t for underground ore.

In 1986, St. Joe Minerals column-leached a 22-ton composite of minus 12-inch material grading 0.037 gold opt to simulate heap leaching material at a coarse run-of-mine size and recovered 49% in 59 days of leaching, which they projected to 54% for leaching 90 days. As a result, much additional gold could be recovered by run-of-mine heap leaching mineralization less than 0.3 gram per tonne and thereby further increase mineralization and enhance project performance.

Excellent Infrastructure:

It should be mentioned that project infrastructure and attributes include water rights to the entire area including the Bullfrog and the M-S mines area, a high-voltage electrical power line and substation site installed by Barrick, as well as a nearby town less than 4 miles away that hosts a population of 1,000 with associated amenities and services. A paved state highway crosses the southern property boundary, plus suitable access roads remain throughout much of the property. Pit ramps remain in excellent condition. Pit walls are stable up to 53 degrees, thus the ultimate amount of waste that must be removed with the resumption of mining will be significantly less than pits that require flatter slopes.

It should be noted that haulage ramps from the surface to the pit bottoms all remain in place thereby allowing expansion of the M-S and Bullfrog pits while minimizing costs, particularly up-front. Furthermore, nearly all waste produced from the Bullfrog and M-S pits could be sequentially back-filled in the large Bullfrog pit. This would significantly reduce waste haulage costs while also avoiding additional large waste dumps which would have associated environmental impacts and costs.

Strategic Land Acquisitions:

As reported above, the company acquired three strategic land positions in the Bullfrog Mining District which include the entire Montgomery-Shoshone deposit and the northern one-third of the main Bullfrog deposit where Barrick mined approximately 2.1 million ounces by open-pit and underground methods. In addition to prospective adjacent lands, these acquisitions contain significant remaining ounces of gold and provide the potential to expand both deposits along strike and at depth.

Details of these acquisitions are as follows:

The initial holdings of 2 patents and 79 lode claims were purchased on September 29, 2011. The Company issued 14.4 million shares of BFGC and granted a production royalty of 3% NSR on the property plus an aggregate 3% NSR cap on any acquired lands within one mile of the 2011 boundary. Thus, the original owner would not receive any royalty on acquisitions having an NSR of 3% or greater.

Twelve contiguous patents that include the northeast half of the M-S pit were optioned to purchase on October 29, 2014 from a private company based in Salt Lake City. The seller was paid $16,000 plus 750,000 shares of Bullfrog common stock on closing and, to earn a 100% interest, is scheduled to be paid $200,000 over nine years while performing no less than $100,000 of work per year for five years on or within 1/2 mile of the 12 patents. The selling company retained a sliding scale Net Smelter Return royalty ranging from 1% for gold prices below $1200/ounce and up to 4% for gold prices above $3,200 per ounce. For reference, Barrick terminated a lease on these patents after they ceased operations in late 1999.

Bullfrog's Lease with Barrick:

Bullfrog's lease and option with Barrick was signed on March 23, 2015 and includes 6 patents (two of which cover the southwest half of the M-S pit); 20 unpatented claims that cover the northern one-third of the main Bullfrog deposit and 8 nearby mill site claims. Bullfrog has access to Barrick's substantial data base within a 1.5 mile radius of the leased lands to further advance its exploration and development plans and programs. The lease and option also includes all Barrick's water rights appurtenant to the property. To maintain the lease and option, Bullfrog must spend $1.5 million within five years on the Barrick properties and then pay Barrick 3.25 million shares of Bullfrog stock while providing a 2% gross royalty on production from the Barrick properties.

Overriding royalties of 5% gross proceeds are limited to three claims and two patents in the main Bullfrog pit area. Barrick has retained a back-in right to reacquire a 51% interest in the Barrick properties, subject to definition of a mineral resource on the Barrick properties meeting certain criteria, and reimbursing Bullfrog in an amount equal to two and one half times Bullfrog's expenditures on the Barrick properties.

For reference, Barrick terminated all mining and milling operations in 1999 when gold prices averaged less than $300 per ounce for the year and reached a low of $258/oz. in August 1999. The company as a result is well positioned to explore such opportunities for the expansion of its mineral inventory. A patented claim on the east and north limits of the M-S pit is owned by the company, but Barrick never controlled or had access to that patented claim. The economic margins for heap leaching lower grades at current gold prices near $1330/oz are deemed much better than in 1999.

A series of corporate takeovers changed the land ownership of the area originally from St. Joe Minerals to Bond Gold, to Lac Minerals, and eventually to Barrick, who folded its tents in 1999. Modern production here started in 1989 and recovered approx. 2.3 million oz. gold from a conventional, 9,000-tonne/day cyanidation mill mainly fed from open pit mining, but significantly supplemented from mining underground ores that averaged 0.24 ounces gold per ton.

Beneath the M-S Pit:

Bullfrog management has estimated that 38,612 ounces of gold in 1.1 million tons of material averaging 1.06 grams per ton remains within the shallow zone under the existing M-S pit. An additional 26,813 ounces of gold averaging 0.99 gram per tonne remain in the deeper zone under the M-S pit. These manual estimates were based on cross sections typically spaced 15 meters apart, a nominal cutoff grade of 0.3 gram gold per ton at the top and bottom of mineral intervals, and drill data and pit surveys completed by Barrick.

Half of this M-S mineralization is on two Barrick patents within the pit and half is on two of the 12 other patents. The ratio of waste to mineral tons within a cross-sectional preliminary pit outline of the shallow estimate is 1.06:1 and the ratio for the overall estimate is 2.55:1. Additional drilling is required to test further down dip extensions of mineralization in the M-S area.

Significant drilling is required to test projections of mineralized trends and structures that extend for considerable distances to the north and east of the M-S pit on the original lands acquired by Bullfrog in 2011. Located east of the M-S pit is an area 700 meters by 1,300 meters in which there is only one shallow hole from which there is no data available. Only a portion of this area may be prospective, but it certainly warrants additional study and exploration drilling.

There is only one drill hole located about 150 meters NE of the M-S pit limit and another hole 1000 meters NE of the pit along strike of a major geologic structure. In this regard, Bullfrog's lands extend nearly 5,000 meters NNE of the pit and there has been very little drilling in this area, even though several structures have been mapped by Barrick and others. This situation suggests the potential for substantial additional gold mineralization to be discovered in this area.

To Depth:

Barrick drilled twelve deep holes in the M-S area, ranging from 318 meters to 549 meters deep, and these also suggest the potential expansion of the mineral resources. Notable mineral intercepts from four holes below the central part of the pit are summarized below:

Hole No. Intercept Data, Meters Gold G/T
Thickness Under Pit
717 51.8 70 1.35
18.3 135 0.59
15.2 150 0.68
*160.0 180 0.96
732 10.7 200 0.84
79.2 330 0.74
733 12.2 130 1.14
13.7 220 0.75
29.0 250 0.70
734 4.6 15 6.03
21.3 70 1.43
22.9 130 0.89
4.6 190 1.04
* 525 feet averaging 0.028 Au opt, includes 70 feet at 0.061 Au opt

These results demonstrate that substantial amounts of gold occur in this exceptionally large epithermal system that has good potential for expansion and possibly higher grades at depth. Note that four of these intercepts are less than 75 meters below the existing pit. Two holes located 40 meters and 90 meters east of the 160 meter interval in hole #717 contained no significant mineralization at this depth, whereas the 29 meters of minerals in hole #733 is 60 meters west and the mineral zone is open to the north, south and west.

In summary, Bullfrog Gold looks forward to adding shareholder value through exploring its expanded land position while building mutually beneficial business relationships with Barrick and other stakeholders in the area.

Management & Geological Team for Bullfrog Gold

David Beling President and CEO, is a Professional Mining Engineer with 52 years of experience, including engineering, permitting, financing and management of 12 open pit mines, 9 underground mines, 14 process plants and building of several corporations. His career initially included 14 years of employment with Phelps Dodge, Union Oil, Fluor, United Technologies and Westinghouse, then 38 years of project and executive management and senior consulting with 25 junior US and Canadian base and precious metal mining companies. During 2006 and 2007 he spearheaded an IPO, drove three equity raises totaling C$ 112 million and grew the company's market capitalization to US $460 million. Mr. Beling has served on fourteen Boards since 1981, including three mining companies distinguished by Canada's TSX Venture Exchange as top-10 performers. Beling also has extensive heap leaching success and performance in Nevada and drove the approval of the first Environmental Impact Statement approved for a mine in Arizona.

Beling is the mastermind behind the expansion of Bullfrog Gold in the area described above.

Other Management

Alan Lindsay Chairman. 40+ years of experience as a businessman, including 25 years in the mining industry. Developer and founder of several public companies.

Tyler Minnick, CPA Director Administration & Finance. 22 years of experience in accounting and auditing with public and private firms.

Clive Bailey, CPG Lead Geological Consultant Klondike Project. 42 years of experience with exploration, development and mine operations.

Joe Wilkins Sr. Geological Advisor. 49 years of experience. Discovered 2.7 MM ounce Bullfrog deposit mined by Barrick.

Outlook for Bullfrog Gold

Bullfrog seems to be firmly launched on the plan to upgrade its 470,000 oz. gold inventory to meet and comply with US and Canadian resource standards. But there is also a tremendous amount of exploration potential beyond this, as already noted in this report. The company would not say so, but it is obvious that there is a potential here for more than 1 million oz. gold. We look forward to seeing the next leg of development here.

Bullfrog recently reduced its debt from $3.0 million to less than $300,000. In summary, the following table shows the company is significantly undervalued compared to six peer companies, thereby providing an exceptional opportunity for investment.

Company & Project Comparisons
As of August 17, 2016 Exchange rate = C$ 1.286
Company Project Meas.+Ind. Res. Mark. Cap
$ x MM
Market Cap.
$ / Oz. M&I
x 1000
Oz. Gold
x 1000
Corvus Gold North Bullfrog (1) 28.8 628 82.0 130.57
Pershing Gold Relief Canyon 37.3 739 107.4 145.33
West Kirkland Hasbrouck/3Hill 65.1 927 36.1 38.94
Northern Vertex Moss Mine 15.5 377 32.7 86.74
Otis Gold Kilgore 27.3 520 24.2 46.54
Waterton Mt. Hamilton (2) 33.7 828 30.0 36.23
Averages 35 670 30.0 77.73
Bullfrog Gold Bullfrog (3) 16.4 470 11.7 24.89
(1) Excludes 135 mm t of inferred resources at 0.2 g/t
(2) Mt. Hamilton sold in 2015 for $30 million before prices increased substantially
(3) Assumes mineralization is M & I. Excludes inferred and exploration potential

We recommend that readers consider taking a position in Bullfrog Gold, which is traded on the OTCQB under the symbol of BFGC.

2016 Natural Resource Investor is a client-sponsored publication. The company has paid expenses of $59,000 for the production and dissemination of this report. This report is derived from our review of and discussions with the company's management and a review of the publicly filed company technical reports, and expresses the opinions of and is authored by the editors of Natural Resource Investor.

This report contains forward-looking information within the meaning of Section 27A of the Securities Act of 1993 and Section 21E of the Securities Exchange Act of 1934, including statements regarding expected growth of the company covered. In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the featured company notes that statements contained herein that look forward in time, which include everything other than historical information, involve risks and uncertainties that may affect the company's actual results of operations. Forward-looking statements are typically identified by the words: believe, expect, anticipate, intend, estimate and similar expressions, or which by their nature refer to future events. The company cautions investors that any forward-looking statements made by the company are not guarantees of future performance, and that the actual results may differ materially from those in the forward-looking statements as a result of various factors, including but not limited to, the company's ability to find and produce minerals from its properties successfully or profitably, to continue its substantial projected growth, or to be able to fully implement its business strategies.