A new gold discovery in a virtually unexplored area of Nevada
Top tier management
Nevada rated fifth-largest gold producer and number one mining destination in the world
What Newrange Gold does:
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 company boasts 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 the flagship project, which lies along US Highway 95, via staged annual payments up to 2044. There are around 8,000 meters (m) of tunnels scattered throughout the district and 300 adits (entrances) in the old workings but no maps and data.
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.
In June this year, the group revealed it had agreed to sell its Colombian assets (consisting of the El Dovio and Anori exploration projects) to Australia’s Andean Mining Corp for US$1 million to focus on the Pamlico group of mines, which includes the Good Hope, Gold Bar and Sunset mines nearby. Last month (September) Andean made its first-anniversary payment of US$250,000 for the purchase of the El Dovio exploration project in Colombia.
And on November 4 this year, it emerged that a subsidiary of GoldMining Inc (CVE:GOLD) would buy Newgrange's Yarumalito gold project in central Colombia for $1.2million in shares and cash ($200,000 in cash). The asset covers 1,456 hectares of highly prospective ground a few kilometres north of the famed Marmato district.
Newrange retains a 1% net smelter returns (NSR) royalty, which can be bought by GoldMining at any time before the completion of a feasibility study for $1 million.
How is it doing:
In June, Newrange said it had raised C$503,020 gross in a private placing to advance Pamlico, after issuing nearly 3.6 million units at C$0.14 each.
The firm has been carrying out underground sampling at the old Good Hope mine (thought to be the source of surface gold) and found some very nice grades over a good distance, including 13.9 g/t (grams per ton) gold and 71.2 g/t silver over 40 metres at the 5,690 level.
Good Hope lies at 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 consist of meters of tunnels and adits (entrances) lie in-between.
In October, the group said sampling had confirmed the existence of continuous gold and silver mineralization between the 5,570 and 5,518 levels at Good Hope. The mineralization is defined by 58 samples ranging in grades from 0.017 g/t gold and 68 g/t of gold, the company said.
And in July this year, the firm said work at the Gold Bar mine, which lies between the old Good Hope mine and the Merritt areas, was continuing and visible gold has been found in historic dumps in front of mine openings. Also, new underground workings have been discovered, adding to the estimated 8,000 meters of underground development, it said.
Newrange is basically trying, through a build-up of work, to show these zones are all connected, ahead of a resource estimate.
The company said it would submit applications in the third quarter for permitting of underground mining equipment at the Merritt decline and that a mine plan for the rehabilitation of the decline in preparation for taking a 1,000-ton bulk sample will also be developed ahead of work expected during the fourth quarter this year. Discussions are underway with third parties that have the ability to process this material.
- More exploration results
- Resource estimate
What the boss says:
Newrange chief executive Bob Archer, who took the helm in January, has described Pamlico as a "terrific" project.
Like at Good Hope, he believes there are a series of very high-grade pockets scattered throughout that ridge, throughout the district, and that there's potential to mine by open-pit rather than underground.
"Ultimately, the way things are in Nevada right now, being such a great place to work and a lot of the larger companies looking for new resources and projects with lots of upside, so I suspect we'll probably get taken out within a few years," the company boss has also said.