New Gold Zone At Pamlico Project With Implications for Porphyry-Related Mineralization

VANCOUVER - Newrange Gold Corp. has discovered a new zone of gold mineralization at its Pamlico Gold Project in Nevada. Hole P20-091, drilled more than 1,300 meters north-northeast of Pamlico Ridge to test a near-surface Induced Polarization (IP) chargeability anomaly near the historic Central and Sunset Mines, intersected 0.744 grams gold per metric tonne (g/t Au) over 18.3 meters, within a larger envelope of 0.403 g/t Au over 51.8 meters. Importantly, the entire interval from 122.0 meters to the bottom of the hole at 335.4 meters is anomalous in gold, averaging 0.184 g/t Au over those 213.4 meters.

There is a very sharp geochemical boundary at 115.85 meters, with almost every sample above that being below the assay detection limit and almost every sample below it containing at least anomalous amounts of gold, with the highest at 2.28 g/t Au. Hole P20-090, drilled on another IP anomaly about 207 meters to the south of 91, was abandoned in highly brecciated rock at 216.5 meters and contained some anomalous gold below 165 meters that was lower grade and less consistent than in hole 91. In both holes, gold is hosted in a volcano-sedimentary unit and is believed to reflect a zone of alteration, possibly peripheral to a buried porphyry. The mineralized rock is variably silicified and sericitized, with 1-2% very fine-grained pyrite below 170 meters (the pyrite is oxidized above this level).

Elsewhere in the district, drilling has shown this volcano-sedimentary unit to be less receptive to mineralization than the rhyolite and latite tuffs known to underlie it, suggesting the 'Line 5' IP anomaly may be closer to or reflect the source mineralization for the entire district. The Company considers it likely that a buried porphyry system is the heat engine that drove fluid migration and mineralization throughout the Pamlico district including the gold mineralization in the nearby Central and Sunset mines as well as the mines along Pamlico Ridge.

"This is a very exciting discovery," said, Robert Archer, CEO. "Every IP anomaly we have tested has intersected fine-grained pyrite, indicating that the method is working well and potentially outlining a district scale zone of propylitic alteration. Hole 91 is the closest to the large 'Line 5' IP chargeability anomaly (see IP pseudo-section here) and contains the most consistent gold and strongest alteration of any hole to date. While we will obviously need more drilling to confirm our theory, we are currently interpreting this new discovery to represent distal mineralization related to a large porphyry system, reflected by the main IP anomaly that is up to one kilometer across and open to the north and south."

Holes P20-84 through 89 were drilled along the Pamlico Ridge target and down dip projections of it, most intersecting gold mineralization. Importantly, hole P20-88 was drilled 55 meters northeast of hole P20-53 to test the down dip projection of mineralization encountered in that hole (1.5 meters of 5.271 g/t Au within 15.2 meters of 1.194 g/t). Hole 88 intersected 1.5 meters assaying 4.91 g/t Au within 12.2 meters averaging 0.683 g/t Au in the projected target zone, demonstrating excellent continuity.