Newrange Gold Corp (CVE:NRG) (OTCMKTS:NRGOF) shares surged on Tuesday as the explorer posted highly encouraging drilling assays from its flagship Pamlico project in Nevada, which showed near surface oxide gold mineralization.
One hole in the Merritt Zone at the property hit 14.85 grams per tonne (g/t) gold and 3.57 g/t silver over a 9.15-meter interval from a depth of 53.35 to 62.50 meters (m), the firm revealed.
Newrange Gold says drilling at Nevada project continues to demonstrate widespread nature of gold mineralization
This zone contained a high-grade core, which returned 34.11 g/t of the yellow metal and 7.64 g/t silver, which was found in a larger 32.01 meter interval assaying 4.74 g/t gold and 2.25 g/t silver from a depth of 44.21 to 76.22m.
Significantly, this hole expanded the footprint of high-grade mineralization by filling in an important gap between three adjacent holes.
Meanwhile, a second hole expanded this oxide gold mineralization to the southeast with an intercept of 6.10m averaging 0.484 g/t gold, Newrange told investors.
It added it was expanding the drill pattern in this and other areas of the project, including step outs on the highest grade in its 2017 program that contained multiple high-grade intercepts including 6.1 meters averaging 97.94 g/t gold.
Road construction will also begin shortly to drill test the upper Good Hope Mine at a similar rhyolite/latite contact zone where underground channel sampling has identified consistent high-grade results, including 40 meters averaging 13.89 g/t gold and 71.19 g/t silver in the 5690 level of the mine, the firm added.
Newrange is earning into 100% of Pamlico, which lies along US Highway 95, via staged annual payments up to 2044.
There are around 8,000m of tunnels scattered throughout the district and 300 adits (entrances) in the old workings but no maps and data.
It is also home to a past gold producing area (with old mine workings) but has been unexplored and in private hands (three families) since 1896 so it has seen almost no modern exploration techniques.
In Toronto on Tuesday, shares in the company advanced over 22% to C$0.16 each.
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