Analysts at Noble Capital Partners reiterated an “Outperform” rating on Newrange Gold Corp as the company started drilling at its North Birch project, in the Birch-Uchi greenstone belt northeast of Red Lake, Ontario.
Roughly 2,000 meters of drilling is planned, with the first five holes testing a three-kilometer (km) strike length of the main target.
“The rating is Outperform. We think 2022 will be an eventful year for Newrange as activity accelerates at projects in the Birch-Uchi Belt in Ontario. We believe the drilling program could reveal the significant discovery potential at North Birch and unrealized potential remaining at Argosy,” analysts at Noble Capital wrote in a note to clients.
READ: Newrange Gold kicks off drilling at its North Birch project near Red Lake, Ontario
Noble noted that Newrange has well-defined targets. In April 2021, Newrange completed an induced polarization (IP) survey over the eastern portion of the North Birch project area. The survey revealed several well-defined chargeability anomalies which will be targeted for drilling that coincide with the target horizon which is believed to be a sheared limb of a folded iron formation.
“Newrange is still targeting March to begin first phase drilling at the past-producing Argosy gold mine. Drilling will test the depth of known veins below historic mine workings and the continuity of other veins,” said the analysts.
Newrange has compiled information from 72 historic drill holes in conjunction with outlines of the underground mine workings to complete a preliminary three-dimensional model that is being used to better understand Argosy's vein system and assist in planning the drill program.
Noble Capital reiterated its C$0.15 price target on Newrange Gold’s shares. The company’s stock currently stands at around C$0.08 in Toronto.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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