VIDEO: Newrange Gold Corp. CEO Robert Carrington on Expanding to Nevada and Turning a Historical Gold Mine into Big Profit
Newrange Gold Corp. (CVE:NRG) (OTCMKTS:CMBPF) (FRA:X6C), previously named Colombian Mines Corporation, acquired property in Nevada, Colorado, in 2016. CEO Robert Carrington talks to James about the second phase of drilling for the Pamlico gold project, which boasts newly-discovered high-grade gold mineralization.
James West: Bob, welcome back.
Robert Carrington: James, thanks for having us back.
James West: Bob, it’s been a while since Colombian Mines has become Newrange Gold now. We last talked at the PDAC in March 2016. Tell me about how Colombian Gold Mines has evolved into Newrange Gold, and about the new project that you’ve been working on.
Robert Carrington: We started life as Colombian Mines, and we were focused on exploring a large portfolio of projects from Colombia, very successfully. But in 2016, we branched out and acquired the Pamlico District in Western Nevada, and then in December of 2016, to better reflect the company’s expanded focus, we changed the name to Newrange Gold.
Since changing the name, we’ve conducted geochemical sampling, mapping, a first phase of drilling, and we’re now engaged in our second round of drilling on the Pamlico property, with the first stage had exceptionally good results. We’re expecting additional results later this month from Phase II.
James West: Sure, okay. So when you say ‘exceptionally good results’, what do you mean by that? What are some of the better intercepts?
Robert Carrington: We had individual intercepts up to 340 grams per metric tonne. We had much larger intercepts, 29 metres of 13 grams, 9 metres of 49 grams, very, very significant intercepts. Basically, extremely high-grade by any modern standards. And the advantage to that for us is that, regardless of what gold prices do, we’ll be the last man standing.
James West: Sure. Okay, so what’s the geological context of the property generally?
Robert Carrington: The property is generally located in what’s considered to be the Walker Lane. It’s a large regional, structural trend generally parallel with the famed Battle Mountain and Carlin Trend in Nevada. Some of the largest mines are the Comstock Load, that’s produced 8.5 million ounces of gold and about 400 million ounces of silver; the Tonepa district, which product several hundred million ounces of silver; and the currently operating Round Mountain Mine has past production plus current reserves exceeding 30 million ounces of gold.
James West: Thirty million ounces. How long has that been in production?
Robert Carrington: Since I was in high school.
James West: That’s not that long ago!
Robert Carrington: Well, since, I don’t know – I know it was in production in 1974.
James West: Okay. In your presentation materials you describe it as a ‘district-scale potentially gold opportunity’. How is it that something so large, in an area so prolific for gold, hasn’t been already poked to Swiss cheese with drill holes?
Robert Carrington: There’s a number of factors that contributed to that. The district was discovered in the 1800s, and at that time, most of your small artisanal miners, who were the people that operated in the district, would be looking for quartz veins with coarse gold in them, much like some of the very flashy show specimens that we have here. But the real potential of the district is for extremely fine-grain gold hosted in large zones that are choked with iron oxides. It’s almost impossible to even pan gold out of these; there’s no coarse gold that we’ve seen in them. And as such, the historic mining would have completely missed them. In fact, there are prospect shafts on quartz veins within our currently planned drill pattern that never produced any gold, and they are literally probably less than 10 metres from multiple hundreds of grams of gold.
James West: Right.
Robert Carrington: The next factor that really contributed to that is, the property has been in private ownership, private family ownership, since the late 1800s, and those families basically did their own thing, their own way, that usually did not include a geologist. And so they produced the coarse gold that their granddaddy had told them about, and never really sampled the property properly.
When we acquired the property in 2016, there was a brand new, 200-metre decline that had been driven by the family that we acquired it from, but they had never bothered doing any sampling. We went in and did very systematic socket channel sampling on the property, came up with metre-and-a-half intervals that assayed at 150 grams with absolutely no visible gold, and a over 70-metre interval in there that ran right at 3 grams.
Their focus had been on the cross two quartz veins in the decline that did have limited amounts of quartz-free gold in it. But they never had a clue there was any other gold in some of these major structures.
James West: Okay, so then, now tell me about the capital structure: how much money you’ve raised, who are your major shareholders…
Robert Carrington: Well, since we acquired the property, we’ve raised a little over $2 million, $2.7 million, and we’ve spent almost all of that on the Pamlico property. We still have approximately $1 million in the treasury, and the ability to bring another 1.1 million in very easily. So we’re in remarkably good shape that way. The company has absolutely no debt; I refuse to incur debt as a non-producing junior company.
James West: Sure. And so you conducted one drill program and you’re going to do another one; what are the other catalysts that, as investors, we can look for to drive value into the company going forward?
Robert Carrington: Driving value in the company going forward, we’ve just completed property-wide geophysical surveys. We have airborne magnetics and radiometric surveys, and a property-wide gravity survey that will help guide future exploration on additional targets.
One of the important things: it is truly a district-scale play. That 2,200 hectares that we have now covers at least five additional volcanic-hosted, high-grade targets where there are multiple samples in outcrop that exceed an ounce per tonne. There’s also potential for sediment-hosted mineralization in the eastern part of the property, where there’s a large belt of carbonate rocks that contain outcrops as high as five grams of gold along altered and mineralized structures.
James West: Wow.
Robert Carrington: Now, those same structures may project into the underlying volcanic rock, and there may be very significant high-grade targets at depth below the carbonate sequence there as well. So it’s a very interesting property with truly district-scale potential.
James West: Sure, lots of opportunities there, exploration-wise.
Robert Carrington: Yes.
James West: Great! Well, let’s leave it there. We’ll come back to you in a short while. I’ll come down to visit the property and hopefully shoot some more footage. Thanks very much, Bob.
Robert Carrington: Maybe we’ll even see if you can find some gold.
James West: Sure, that’d be great! Thank you.
Robert Carrington: Okay. Thank you.
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