- Pamlico is new gold discovery in virtually unexplored area of Nevada
- Nevada rated fifth-largest gold producer and number one mining destination in the world
- Exciting ground in Ontario too
What Newrange Gold does:
Newrange Gold Corp's (CVE:NRG) flagship project is the high-grade, near-surface gold discovery at Pamlico 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 it 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 in November 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.
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 kilometers (km) northeast of the town of Red Lake, Ontario.
How is it doing:
On May 27, the group revealed it was set to get drilling again at its flagship Pamlico project in Nevada, USA, starting on Thursday, May 28, and a drilling contractor had been mobilized.
The initial part of the program will comprise between around 3,000 and 3,500 meters (m) of drilling in 30-35 holes, primarily along Pamlico Ridge, Newrange said, adding that up to 10,000 m was expected to be drilled in the next few months.
Reverse circulation (RC) drilling will be used as the holes will be relatively shallow, the group noted, and it will be designed to test the continuity of near-surface gold mineralization around and between the historic workings of the Pamlico, Gold Bar and Good Hope mines. The crew will be working under a strict coronavirus (COVID-19) protocol, both on and off-site.
Applications have been submitted for permitting the rest of the drill program and once that is received and roadwork completed, drilling will continue with a combination of RC and diamond drilling in new target areas, the group said.
Meanwhile, on May 8, the group announced, as expected the sale of its remaining non-core Colombian assets. to Andean Mining Corporation, which is a private Australian company. As part of the agreement, Newrange Gold will receive US$750 thousand in February 2021.
At North Birch in Ontario, applications for permits have been submitted but the authorities have placed a 'Temporary Hold' on all applications until COVID-19 restrictions are lifted.
Newrange said that once this happens and the permits are granted, it intends to conduct line cutting, geological mapping and sampling and Induced Polarization (IP) geophysics. This work will be used to generate targets for future drilling, it added.
In January this year, to augment the Nevada asset, Newrange 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.
What the broker says:
On May 28, Noble Capital reiterated its 'outperform' rating and US$0.15 target price on Newrange Gold following the group's recent drilling results from Pamlico.
"Based on outcomes associated with the company's drilling program, investors may gain a better understanding of the project's mineral potential," Noble analyst Mark Reichman said in a note to clients.
"The release of drilling results could act as positive catalysts for the stock assuming positive outcomes. In our view, the company's advance exploration work, including underground mapping, sampling, and geophysical imaging, has enhanced the probability of a successful drilling program," he added.
What the boss says:
Robert Archer, CEO, speaking to Proactive's Steve Darling, on the Nevada work, said: "This first pass will focus in and around those historic, underground workings and will give us a much better sense as to the distribution of the gold, the continuity, grades, that type of thing because these areas have never really been drill tested before as far as I know."