Red Lake Mining Division, Ontario, Canada
Newrange has purchased a 100% interest in the Argosy Gold Mine Property, subject to a 2.5% NSR. Newrange has made a cash payment of $100,000 and issued 4,461,007 NRG shares to Great Panther Mining Limited. A further $250,000 worth of shares is due on the first anniversary of closing. The property consists of 43 patented claims and 17 Mining Licences of Occupation comprising 604 hectares.
The Argosy Gold Mine is situated in the northern part of the Birch-Uchi Greenstone Belt of the Superior Province of the Precambrian Shield. The Birch-Uchi Belt lies between the prolific Red Lake and Pickle Lake Greenstone Belts and contains similar geology. Located 110 kilometres east-northeast of Red Lake, the property hosts the most significant past-producing gold mine in the Birch-Uchi Belt. It lies just 10 kilometres northwest of the Springpole Deposit being advanced by First Mining Gold Corp. (4.7 million ounces Au in Indicated resources).
The Argosy (formerly Jason) Gold Mine was mined between 1931 and 1952 and produced 101,875 ounces of gold and minor amounts of silver from 276,573 tons of ore at an average grade of 0.37 ounces per ton (12.7 g/t) Au. The mine was only developed to a depth of 900 feet (270 metres), however, and although developed ore reserves had been exhausted at the time the mine closed, it is known that high-grade gold mineralization extends below the old workings (up to 15.8 g/t Au over 3.5m). The property lay dormant until 1974 and has been only intermittently explored since.
Diamond drilling in October 2002 by a previous operator confirmed the extension of the gold mineralization below the old workings with intercepts of 11.75 g/t over 1.55m and 14.39 g/t over 0.7m on the Number 2 Vein, 100 metres below the old mine development. Additional intercepts of 14.67 g/t over 1.7m on the Number 3 Vein and 12.02 g/t over 1.29m on the Number 8 Vein highlight the potential to build resources on parallel, un-mined veins.
The property is underlain by a drag-folded sequence of mafic and intermediate volcanics, greywacke and iron formation. Carbonate and sericite alteration occur over an area of about 3km X 3km. A large body of quartz porphyry occurs on the southern portion of the property and related dykes are found intruding the volcanic and sedimentary rocks. Quartz veins mineralized with sulphides and gold occur in north-south trending fractures dipping westward between 30 and 85 degrees.
There is exceptional exploration potential on the property and Newrange will be completing a 3D model from previous data in order to mount an exploration program that could be gin as early as January with a winter drill program.