A new gold discovery in a virtually unexplored area
Led by team of successful mine finders
Nevada rated number one mining destination in the world by the Fraser Institute
Newrange Gold Corp (CVE:NRG) is advancing a new high-grade, near-surface gold discovery at its potentially highly exciting Pamlico project in mining friendly Nevada, USA.
The firm has a large footprint, covering 1,670 hectares, which also encompasses a past gold producing area (with old mine workings) but has been unexplored and in private hands (three families) since 1896, so has seen almost no modern exploration techniques. Newrange is earning into 100% of its flagship project via staged annual payments up to 2044.
Earlier this month, the group revealed it had agreed to sell its Colombian assets to Australia’s Andean Mining Corporation in a US$1 million deal to focus on the Pamlico group of mines, including the Good Hope, Gold Bar and Sunset mines nearby.
It continues to own the Yarumalito gold porphyry project in Colombia for now, which covers 1,456 hectares of highly prospective ground a few kilometres north of the famed Marmato district. The state of Nevada is a well-known mining hotspot and the world's fifth largest producer of the yellow metal, with an eye-watering 169.1 million ounces having been generated from the state between 1835 and 2018.
The focus recently has been an area, which has been partially mined for gold over 1,500 metres by 1,000 metres, which the firm is only just beginning to understand, and where high grades have been found, including even specimen gold at surface.
The firm has been sampling underground at the old Good Hope mine (thought to be the source of surface gold) and found some very nice grades over good distance, including 13.9 g/t (grams per ton) gold and 71.2 g/t silver over 40 metres at the 5690 level.
Good Hope lies one end of the so-called Pamlico Ridge, around 850 meters apart from the Merritt area, which has previously returned grades as high as 4.19 g/t over 21.3 metres and 3.69 grams over 36.6 metres. The underground workings consisting of meters of tunnels and adits (entrances) lie inbetween.
The company is using a laser scanner to test these workings and map them to understand their location and structure, so as not to drill into them. Also panned is geophysics to target drilling and there are permits for a 1,000-tonne bulk sample at one of the underground workings.
Newrange is basically trying, through a build-up of work, to show these zones are all connected, ahead of a resource estimate.
There are around 8,000 meters (m) of tunnels scattered throughout the district and 300 adits in the old workings but no maps and data.
What the CEO says
Veteran mining industry member Bob Archer, who became CEO in January, has decribed the project as "terrific". Talking to Proactive last month, referring to the sample results at Good Hope, he said:
"It really just validates our thesis, our geological model, that there are a series of these very high grade pockets scattered throughout that ridge, throughout the district, and because they are all very close to surface we think that there's potential to mine the whole thing by open pit methods rather than underground, so that's kind of the way we're focusing on it right now."
He also added that he suspects the company may be bought out by a larger company within a few years once the project is advanced.
"Ultimately, the way things are in Nevada right now, being such a great place to work and a lot of the larger comanpies looking for new resources and projects with lots of upside, so I suspect we'll probably get taken out within a few years," he said.