In a Feb. 24 research note, Noble Capital Markets analyst Mark Reichman reported that Newrange Gold Corp. (NRG:TSX.V; NRGOF:OTCQB) discovered, through drilling, a new high-grade gold mineralization near the Merritt zone at its Pamlico project.
"The recent results are very encouraging and are helping management's understanding of the geological environment at Pamlico," wrote Reichman.
The analyst reviewed the latest drill results, a combination of 19 older holes (up to hole P20-110) placed in the Gold Box Canyon, the Good Hope mine and the Merritt zone, along with six new holes (from P20-111 through P20-117).
Overall, results show oxide gold mineralization about 85 meters to the east of the Merritt zone, and it is high grade. Hole P21-115, for example, encountered several gold structures with high grades, up to 22.35 grams per ton, over 1.5 meters, with lower-grade material surrounding them. Because the mineralization in this new zone is close to surface, it likely could be mined via an open pit.
Reichman pointed out that the newfound mineralization bolsters management's hypothesis that multiple high-grade zones, enveloped in lower-grade halos, exist over a much broader area.
Given these findings, the analyst noted, Newrange plans to follow them up with reverse circulation drilling to better assess the parameters of the new zone.
Also, the company intends to conduct diamond drilling, at least five holes' worth, to test a deep chargeability anomaly identified on the induced polarization survey currently underway. This untested anomaly, in the Skarn zone area, extends more than 2.5 kilometers (2.5 km) from north to south and at least 1 km from east to west, in the area of the Skarn zone. Newrange expects to begin this program in about three weeks.
"The diamond drilling program could provide a leap forward in management's identification of the source of mineralization throughout the Pamlico district," Reichman wrote.
Noble Capital has an Outperform rating and a $0.20 per share target price on Newrange Gold, the stock of which is trading today at about $0.10 per share.
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