Newrange Gold (TSX-V:NRG, OTC: NRGOF) has commenced diamond drilling at its flagship Pamlico Project in Nevada's Walker Lane Trend. Newrange had to switch drill contractors after Major Drilling abruptly pulled its RC rig off the property in February, promising it would return in a few weeks. Three months later Newrange has contracted American Drilling out of Spokane to diamond drill multiple high priority targets at Pamlico.
Newrange has four high priority drill target zones for this phase of drilling at Pamlico:
- The '115 Target'
- The '91 Zone'
- The 'Line 5' IP Anomaly (AKA Big Deep IP Anomaly)
- The Skarn Zone
This next phase of drilling at Pamlico will begin at the '115 target' - hole 115 intersected 12.5 g/t gold over 4.5 meters approximately 85 meters east of the high-grade Merritt Zone. 5-6 holes will be drilled in order to determine the attitude, size and true width of this new zone which remains open to the north and east and to depth. This new mineralized '115 Zone' is completely oxidized and, being so close to surface, is well within common open-pit mining limits.
The holes at 115 will be relatively shallow and Newrange should be able to expedite sending samples to the lab for assaying and a quick turnaround. The discovery of the 115 zone has helped to validate Newrange's thesis that Pamlico hosts multiple high-grade gold zones surrounded by halos of lower grade bulk tonnage material which exist over a much broader area.
After drilling at 115 is completed, Newrange will move the rig over to the 91 Zone, where potential exists for an intrusive related gold system with significant size potential. The 91 Zone was discovered late last year with hole P20-091 which intersected 0.744 grams gold per metric tonne over 18.3 meters, within a larger envelope of 0.403 g/t Au over 51.8 meters. Importantly, the entire interval from 122.0 meters to the bottom of the hole at 335.4 meters was anomalous in gold, averaging 0.184 g/t Au over those 213.4 meters.
The key aspect of hole 91 is that the style of alteration and mineralization in this hole is interpreted to be related to an intrusive body - given the close proximity to the 'Line 5' IP anomaly (also known as the Big Deep IP Anomaly), the mineralization intersected in hole 91 could represent distal mineralization related to a large porphyry system, reflected by the main IP anomaly that is up to one kilometer across and open to the north and south.
Once Newrange has drilled a few follow-up holes at the '91 zone', the diamond drill rig will be moved up on top of the limestone ridge for a deep 500+ meter hole into the Big Deep IP anomaly, an anomaly that could represent a large porphyry system.
Newrange is also conducting a follow-up IP survey to better define an anomaly that is more than 3 kilometers x 3 kilometers in size, and locally stronger than any other anomaly on the property. This is in conjunction with evidence of skarn alteration and copper-gold mineralization at surface, yet this 'Skarn Zone' has never been drill tested. Drilling the other priority targets at Pamlico first will give Newrange additional time to prep targets in the Skarn Zone area.
Newrange has roughly C$3.5 million in cash and is well funded for this next phase of diamond drilling at Pamlico. Since beginning coverage on Newrange in May 2020 I can definitely state that this is the most excited I have been about the potential for a new discovery, something that could send Newrange shares to multiples of its current share price.
Evidently Newrange CEO Bob Archer agrees with me and he has been steadily accumulating a sizable position in NRG shares in recent months:
Archer has purchased roughly C$250,000 worth of NRG shares in the last six months. This sum represents more than two years of his salary. A sizable wager by any account, and a strong vote of confidence by a professional geologist who likes what he is seeing at Pamlico.
At C$.14 Newrange shares offer an attractive risk/reward drill speculation and the NRG chart is poised for a breakout from an 8+ month bottoming process:
Confirmed bottom with close above $.17, targets $.25+. Strong support at $.12, then $.10.
Disclosure: Author owns NRG.V shares at the time of publishing and may choose to buy or sell at any time without notice. Author has been compensated for marketing services by Newrange Gold Corp.
DISCLAIMER: The work included in this article is based on current events, technical charts, company news releases, and the author’s opinions. It may contain errors, and you shouldn’t make any investment decision based solely on what you read here. This publication contains forward-looking statements, including but not limited to comments regarding predictions and projections. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. This publication is provided for informational and entertainment purposes only and is not a recommendation to buy or sell any security. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions. Junior resource companies can easily lose 100% of their value so read company profiles on www.SEDAR.com for important risk disclosures. It’s your money and your responsibility.