Newrange Gold Corp (CVE:NRG) (OTCQB:NRGOF) has received a repeated 'outperform' rating from Noble Capital Markets ahead of initial drill results expected shortly from its flagship Pamlico project in Nevada, USA.
The broker has also upped the price target on the stock to US$0.25 from US$0.15 previously, versus a current share price in New York at US$0.22.
"The release of drilling results could act as positive catalysts for the stock assuming positive outcomes," said Noble analysts.
"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."
To date, Newrange has drilled 15 holes, representing around 1,600 meters of drilling and samples have been sent to the lab.
The initial part of the program entails drilling 30 to 35 holes for a total of between 3,000 and 3,500 meters. Up to 10,000 meters of drilling are expected over the next several months.
The firm is using Reverse circulation (RC) drilling to test the continuity of near-surface gold around and between historic workings of the Pamlico, Gold Bar and Good Hope mines.
Meanwhile, at the group's North Birch project in Ontario, Canada, while awaiting exploration permits, Newrange has completed the reprocessing of airborne magnetic data to help interpret the structure.
"Although the timing and scope is still to be determined, management contemplates a diamond drilling program at North Birch. In our view, while it is possible a few holes could be drilled in the Fall, the drilling program is more likely to commence in 2021," said Noble.
Newrange's flagship Pamlico asset hosts multiple high-grade volcanic and sediment hosted targets with potential to discover significant gold deposit.
It consolidates multiple historic mines with more than 300 mine workings on the property.
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