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viewNewrange Gold Corp.

Newrange Gold still advancing highly prospective assets in Nevada and Ontario

Snapshot

Newrange is earning into 100% of Pamlico, which lies along US Highway 95, via staged annual payments up to 2044

Newrange Gold Corp. -

Quick facts: Newrange Gold Corp.

Price: 0.13 CAD

TSX-V:NRG
Market: TSX-V
Market Cap: $15.61 m
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  • 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:

In late July, Newrange revealed the first drill results from an ongoing program at its Pamlico project highlighted by up to 9.5 grams per ton gold.

The company sank over 2,500 metres of reverse circulation drilling over 14 holes on the property, where the gold and silver mineralization consists of higher-grade structures surrounded by lower-grade material observed in previous drilling. In the 14 holes, one hole returned 6.1 metres at 1.1 grams per ton (g/t) gold, including 3 metres at 5.4 g/t and 1.5 metres at 9.5 g/t gold.

The initial part of the program, which was announced in May, 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:

In early September, Noble Capital Markets reiterated an Outperform rating on Newrange Gold as the miner advances its drilling operations at its Pamlico project in Nevada.

To date, the company has drilled 34 holes for a total of 3,462 meters of drilling and has reported for 14 holes that revealed higher grade structures, up to 9.5 grams of gold per ton. 

Noble said it expects that Newrange will release results from the remaining 20 holes shortly. Its analysts also believe an additional 35 holes could be drilled at the project’s Gold Bar and Good Hope mines.  

“Based on outcomes associated with the company's drilling program, investors may gain a better understanding of the project's mineral potential,” the analysts wrote in a note to clients.

“The next release of drilling results could act as positive catalysts for the stock assuming positive outcomes. In our view, the company has made significant progress at Pamlico which will only be enhanced as activity accelerates at priority targets, including the Good Hope Mine.”

Noble has a price target of US$0.25 on the stock, which recently traded around US$0.14 a share in New York and at C$0.18 a share in Canada.    

What the boss says:

Newrange Gold 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."

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Full interview: Newrange Gold prepares to get drills turning on their...

Newrange Gold (CVE: NRG-OTC: NRGOF) CEO Robert Archer joined Steve Darling from Proactive Vancouver with news the company has started their drilling program at their Pamlico project in Nevada. Archer telling Proactive how big the start of drilling will be and which areas they are going to be...

on 28/5/20

6 min read