Newrange Gold Corp (CVE:NRG) (OTCMKTS:NRGOF) is seeing positive results from current exploration program at the company’s Pamlico gold project in Nevada.
The junior explorer told shareholders on Tuesday that it had identified further high-grade mineralization averaging nearly 12.5 grams per ton gold and 50 grams per ton silver thanks to a sampling program on the 5570 level of the Good Hope Mine, situated on the project.
The new mineralization ranges from 0.1 to 1.1 metres, averaging 0.6 metres wide, over a strike length of 24 metres.
"We are starting to see a sizeable zone of continuous gold-silver mineralization building at the Good Hope Mine," said Robert Archer, Newrange’s CEO.
"The underground mapping and sampling program is proving to be an extremely valuable and cost-effective tool for us to build a 3D model of the mineralization in advance of drilling it."
According to Newrange, the high-grade zone is contained within a larger mineralized envelope that spans more than 142 metres in length and a width of 4 to 13 metres. The zone comprises mineralization found in both the hangingwall and footwall of the high-grade zone and is open to expansion along strike.
The company also noted that the zone lies below similar high-grade mineralization sampled on the 5690 level of the Good Hope Mine, where metal grades averaged 13.9 grams per ton gold and 71.2 grams per ton silver over 40 metres.
Good Hope is part of Newrange’s Pamlico gold project in Nevada, which covers the historic Pamlico group of mines as well as the Gold Bar and Sunset mines. The Vancouver-based company said that recent ongoing underground sampling revealed the source of the high-grade gold and silver at Good Hope, a former producer.
Newrange told shareholders that it had successfully completed channel sampling on multiple underground workings at Pamlico. The underground sampling program is being conducted in areas that have yet to be drilled so the company can better define the geological model at Pamlico and allow for 3D modeling of the historic mine workings to refine targets for upcoming drill programs.
Shares of Newrange jumped 6.1% higher on Tuesday morning at C$0.18 in Toronto, but lost 4.2% on OTC markets at US$0.14.
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