- Pamlico is new gold discovery in a virtually unexplored area of Nevada
- Exciting ground in Ontario too
- Nevada rated fifth-largest gold producer and number one mining destination in the world
What Newrange Gold does:
Newrange Gold Corp's (CVE:NRG) flagship project is the high-grade, near-surface gold discovery at its Pamlico project in mining-friendly Nevada, USA.
The company boasts a large footprint, covering 2,548 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 Pamlico, 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 last 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. In 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 last year, it emerged that a subsidiary of GoldMining Inc (CVE:GOLD) would buy Newrange'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.
These asset sales brought in cash for the next round of drilling in Nevada.
The firm also holds the 3,850 hectare North Birch Gold project (the new name for its optioned Western Fold Property and H Lake property. The ground lies around 100 km northeast of the town of Red Lake
How is it doing:
In January this year, augmenting its exciting Nevada asset, Newrange revealed it had enlarged its footprint in the famous Red Lake area of Ontario with a new option agreement to earn 100% of the H Lake property from Bounty Gold Corp.
The new project is contiguous to the western boundary of the firm's Western Fold property (now called the North Birch gold project) in the Birch-Uchi greenstone, which Newrange optioned from AurCrest Gold Inc late in 2019.
Together, the two properties encompass 3,850 hectares and cover the entire iron formation package.
n February, Newrange said its recently completed Induced Polarization and Resistivity (IP) survey for Pamlico in Nevada had successfully generated several targets worthy of drill testing.
Given the trend and extent of the IP anomalies, the firm also acquired more ground, namely 105 additional claims, adding 878 hectares to the site.
The firm said it is now designing and initiating permitting for a drill program to test the most prospective anomalies, in conjunction with drilling from existing permitted sites on and in the vicinity of Pamlico Ridge. Drilling is expected to start in the latter half of the first quarter of 2020, the firm added.
What the broker says:
After Newrange's third-quarter results to end January, Noble repeated an 'outperform' rating on the shares, saying the firm has assembled a highly prospective portfolio in Nevada and Ontario. The price target for the stock, however, was reduced to C$0.20 from C$0.25 due to lower peer group multiples.
"Looking ahead, exploration efforts will continue at Pamlico, including reverse circulation and diamond drilling at targeted zones at Pamlico and diamond drilling at the North Birch project. Timing may be influenced by (coronavirus) COV-19 precautionary measures," Noble's analysts said in a note to clients.
The firm is not at revenue-generating stage and Noble narrowed its full-year 2020 loss estimates for the firm to around C$1.48 million, or (C$0.01) per share compared to previous estimates for a loss of C$1.02 million , or (C$0.02) per share.
What the boss says:
Robert Archer, Newrange’s CEO, said in February of the IP anomalies at Pamlico: "We can see several subtle anomalies that correlate well with gold mineralized zones identified by our drilling near the end of the Merritt Decline, and with the Pamlico, Gold Bar and Good Hope mines, leading us to believe that other similar anomalies identified by the survey may represent untested mineralization.
"These anomalies vary in depth from close to surface to approximately 200 meters and, while it is difficult to say to what extent some of these may be interconnected, we can see pronounced trends that extend several hundred meters with similar attitudes to those observed in mineralized structures."