Shares in Newrange Gold Corp (CVE:NRG) (OTCMKTS:NRGOF) shot up Thursday as it revealed encouraging metallurgical testing results from its Pamlico project in Nevada.
In a statement, the Vancouver-based firm said that a preliminary screen test had successfully produced a concentrate, which assayed 26.530 grams gold per metric tonne (g/t gold).
That was from a sample of Pamlico mineralization with a head grade of 4.291 g/t of the yellow metal.
Shares in Toronto surged nearly 10% to $0.17.
The sample was screened into two sizes. The coarse fraction assayed 1.020 g/t gold and contained only 20.72% of the gold in 87.18% of the sample volume, while the fine fraction assayed 26.530 g/t of gold, representing 79.28% of the gold, in 12.82% of the original sample weight.
"Although further testing is required, the implications of this preliminary test are significant," said Robert Archer, Newrange CEO. "By implementing simple, low cost screening and concentrating approximately 80% of the gold in less than 13% of the sample weight, it may be possible to eliminate a crushing circuit altogether, to mine large volumes of low-grade mineralization, and substantially reduce the volume of material to be processed."
This, said Archer, would lead to a smaller processing facility, which would materially reduce permitting requirements, capital and operating expenditure costs, he said.
"Furthermore, it indicates the potential to deliver higher grade feed to a processing facility, thereby allowing more intense treatment of higher grade material, which could result in higher extraction and recovery rates."
Additional samples from multiple areas on the property have been collected and submitted for further screen testing, said Newrange.
The Pamlico project covers the historic Pamlico group of mines, as well as the nearby Good Hope, Gold Bar and Sunset mines.
The firm reckons that the property, which lies along US Highway 95 and enjoys excellent infrastructure, has the potential to host a large lower-grade gold deposit with excellent metallurgy
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