Newrange Gold Corp (CVE:NRG) (OTCMKTS:CMBPF)(FRA:X6C) is gold exploration company that is embarking on a new life with an historical mine project in Nevada with eye-popping (non-43-101 compliant) historical grades.
As stated in the company’s press release of November 3rd, 2016, “Discovered around 1884, more than 300 historic mine workings explore approximately 100 veins on the property. With only 104 drill shallow holes on the property, multiple highly prospective drill targets remain entirely untested and all known mineralization remains open to expansion.
I interviewed CEO Robert Carrignton at their booth at PDAC earlier this month, and here is what he had to say.
James West: Robert you had spent a lot of time in Colombia, and when markets went soft in the last five years, you sort of changed it up and now turned your focus to Nevada. Tell me about your new project in Nevada.
Robert Carrington: The Pamlico project is a real exciting high grade discovery – potentially one of the highest grade discoveries in the U.S. this century. And we acquired it because of financial stress involved in a family that had owned it for a number of years. Pamlico has been in private ownership since about 1900. The property itself is tremendously under-explored in terms of modern exploration. Historically, the district was discovered in about 1886, and was almost immediately becoming one of the highest grade districts in Nevada.
In the late 1800’s, Pamlico was direct shipping ore to custom mills that was assaying over 7,900 grams per tonne…
James West: That’s insane…what’s that in ounces?
Robert Carrington: That’s about 220 ounces per tonne.
James West: Okay just for the audience, we can’t exactly categorize that as 43-101 compliant historical statement, so its historical in nature, and not to be relied upon.
Robert Carrington: But there are historic production records of that. This table is historic drilling by prior operators – mostly the Merritt family, that owned the project – they were the sellers when we bought the project. The patriarch of the company was a very successful construction and mine contracting company in Arizona. They had decided to develop this property themselves. They drilled off an extremely high grade ore chute – you can see most of the results here.
Drill Results from Pamlico
James West: Okay so these results that we’re looking at here – how likely is that you’re going to re-encounter those in your next drill program?
Robert Carrington: Almost certain.
James West: It’s not a case of hit or miss, it’s only hit?
Robert Carrington: Pretty much hit. What it really comes down to is, how big can we grow it? And the really exciting thing is, that with the channel results we announced Thursday, it looks like we’re going to be able to grow it a lot. Because Pamlico has always been modeled as a high grade, narrow vein district, and the work that we just completed shows that in fact there is broad-scale dissemination in the wall rock between the veins, in addition to these very high grade veins. Its in some ways an analogy to the giant Round Mountain mine. Round Mountain’s about 50 miles to the east of us.
James West: Wow. And how’s long’s Round Mountain been around?
Robert Carrington: Around 38 years now.
James West: Continuous production?
Robert Carrington: Continuous production.
James West: And how many ounces do you think its produced do you think?
Robert Carrington: I think its around 8 million ounces of physically recovered gold. I actually don’t have the exact numbers on that. But I know there’s over 2 million ounces of reserves remaining, and effectively, there’s no end in sight to Round Mountain. And right now, for all the world, it looks like we’re just starting to scratch the tip of the iceberg at Pamlico.
James West: How many veins have you encountered?
Robert Carrington: There are over 100 mapped veins on the Pamlico property. The amazing thing about many of these veins is they occur in vein swarms. So that they’re actually broad zones of veins with similar attitudes, strike, dip – and these vein swarms project to depth, so that there’s tremendous potential probably for a bulk-minable high grade underground mine at Pamlico. There are at least six major high grade targets at projected intersections of those. In addition, the preferred host is a brittle rhyolite unit that holds open fractures very well. Overlaying that is a volcanoclastic andesite that doesn’t sustain open fractures very well, but that is in fact the rock unit that is hosting the Merrit zone and the high grade that we just recently announced. And so the veins that we’ve sample in the declines, which are only about 60 meters below the surface – about 190 feet below the surface – will project down into that rhyolite, and its likely that we’ll see a lot more mineralization like this spectacular gold that came out of Pamlico in its early days, like many of these coarse samples that you see behind me.
James West: Okay so then in 2017, what’s the exploration budget, what’s the program?
Robert Carrington: Initially we’re going to complete the socket channel sampling in the decline, we’re going to be doing a bunch of trenching to tie the geology we see in the decline to the surface, and then we’ll begin drilling in the immediate area of the decline and the Merritt zone to grow that high grade. On a more property wide scale, we’re going to be doing a bunch of geophysics, and quite a bit of MMI geochemistry.
There’s some really exciting characteristics of the Pamlico veins, and that they typically do not outcrop, and in fact they weather recessively, and you get a co-leachate cap that forms over the top of the veins. You can actually see this in a number of old mine workings and in various places.
So conventional geochemistry doesn’t seem to show the gold at Pamlico very well. But I’ve used MMI successfully all over Canada, South American, a few other places in Nevada, and the Mobile Metal Ions (MMI) will actually migrate to the surface through the co-leachate even, and so we should be able to pick these zones up, and that will help identify the better targets, then we’ll go in and do trenching and ultimately drilling.
James West: Okay so lots of news this year.
Robert Carrington: Yup.
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