It’s a unique opportunity alright.
Newrange Gold Corp (CVE:NRG) has managed to get its hands on a significant amount of ground in one of the world’s most prolific mining jurisdictions, but what’s more to the point is that this ground has been in private hands since 1896 and remains virtually unexplored.
The jurisdiction? – Nevada, rated number one mining destination in the world by the Fraser Institute.
The opportunity? – Newrange’s Pamlico gold project, located within Nevada’s Walker Lane district, and host to more than 300 old mining workings dating back to the late decades of the 19th century.
At one time, according to Newrange chief executive Bob Archer, miners on Pamlico were producing some of the highest grade gold ore in the state. And that was before any of the modern 20th century and 21st century techniques could be applied.
Not surprising then that on the home page of Newrange’s website Archer describes the project as a “sleeper” and one that could have “major discovery potential.”
Not surprising either that at the recent 121 conference in London, Archer’s ticket was completely booked out – for two days he had back-to-back meetings.
Markets are tough for miners at the moment, everyone knows that. But there’s still plenty of expert investors out there looking for the right opportunity to pile into.
Is Newrange that opportunity?
Archer, an experienced mining industry executive with many years of experience behind him, certainly hopes so.
And it’s not just because of the historic grades that the district has produced in days of yore.
“The old timers weren’t aware of the really fine gold at Pamlico,” says Archer.
“They were just looking for the high grade veins. But what we’re finding is higher grade pockets separated by much lower grade material.”
There are two main areas of focus at the moment, Pamlico Ridge and Good Hope.
Drilling at the Merritt area of Pamlico Ridge has returned grades as high as 4.19 grams per tonne over 21.3 metres and 3.69 grams over 36.6 metres. Both of these intercepts had sections within them that ran at much higher grades.
Meanwhile, at Good Hope recent underground channel sampling has returned grades of 13.89 grams per tonne gold and just over 71 grams per tonne silver over 40 metres. Factor in the hanging wall and footwall and the mineralisation looks even more impressive.
“We know there’s gold scattered all through the ridge,” says Archer.
“The question is, what do we need to make this go? After all, a lot of mines in Nevada run at less than 0.5 grams per tonne and our average grade is already better than that.”
Archer’s experienced miner’s eye reckons that Pamlico could host what he calls a “potentially big system” possibly two or more kilometres long.
There are pockets of high grade material all over the property, to be sure, but just how many there are remains the key question for Newrange to answer.
“We’re going to focus on how many high grade areas we have,” says Archer. “Once that’s established, then we can go and build a resource.”
So in that sense, it’s still early days. But even if the full extent of the mineralisation isn’t known yet, plenty can be gleaned from the company’s recent metallurgical results, which showed recoveries up to 97%.
The ore is oxidised down to 300 metres, and looks very easy to process. It’s nicely located too – right off the highway in the best mining destination in the world. And what’s more, it’s on a ridge, meaning stripping ratios will be kept very low, and by extension that means costs will be too.
All told, there’s very little not to like about Newrange. More exploration results could get the shares moving significantly as the concept becomes more established in the minds of investors.
And now that the gold price is tracking above US$1,300 again, and likely to stay there, there could be plenty of interest.