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 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).
Results show high grade, oxide gold mineralization about 85 meters to the east of the Merritt Zone. 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. Newrange expects to begin this program in about three weeks.
"Newrange has made significant progress with its exploration and drilling program at Pamlico. The recent results are very encouraging and are helping management's understanding of the geological environment at Pamlico," Reichman wrote. "The diamond drilling program could provide a leap forward in management's identification of the source of mineralization throughout the Pamlico district."
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 $0.135 per share.
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Disclosures for Noble Capital Markets, Newrange Gold Corp, Feb. 24, 2021
Company Specific Disclosures
The Company in this report is a participant in the Company Sponsored Research Program ("CSRP"); Noble receives compensation from the Company for such participation. No part of the CSRP compensation was, is, or will be directly or indirectly related to any specific recommendations or views expressed by the analyst in this research report.
The Company has attended Noble investor conference(s) in the last 12 months.
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Senior Equity Analyst focusing on Basic Materials & Mining. 20 years of experience in equity research. BA in Business Administration from Westminster College. MBA with a Finance concentration from the University of Missouri. MA in International Affairs from Washington University in St. Louis. Named WSJ 'Best on the Street' Analyst and Forbes/StarMine's "Best Brokerage Analyst." FINRA licenses 7, 24, 63, 87.
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