Newrange holds 100% undivided interests in the mineral licences that cover all potential mineralization at El Dovio and has purchased 100% of the surface rights covering the same ground at El Dovio. In October 2018, the Company has entered into a Joint Venture Option Agreement with Andean Mining Pty. Ltd. of Australia whereby Andean Mining can earn an undivided 65% in the El Dovio Project for cash and shares payments plus exploration work commitments. The property covers high-grade polymetallic gold-silver-copper-zinc mineralization in a belt of marine volcano-sedimentary rocks known to host other polymetallic and Volcanogenic Massive Sulfide (VMS) prospects and mines. Exploration at El Dovio indicates significant potential to discover deposits with high unit value and low metal prices sensitivity.
Work by Newrange has materially expanded the strike of known mineralization at El Dovio and identifies a zone hosting high-grade polymetallic mineralization ranging from 10 to 68 meters wide in outcrop and approximately 1 kilometer long that has locally been traced down dip more than 120 meters below outcrop with current drilling. Mineralization remains open to extension on strike and to depth. Prospect drilling in the Brazo 1 area of the property intersected fine grained bedded sulfides consisting of pyrite with trace amounts of sphalerite and chalcopyrite in an exhalative horizon, confirming the presence of a VMS target on the property.
Location and Mining History
The El Dovio project, is situated in the municipalities of El Dovio (Department of Valle del Cauca) and Sipi (Department of Choco) in the western range of the Colombian Andes at an elevation of approximately 1,400 meters. The El Dovio mineral licenses are 100% owned by Newrange, covering 10,106 hectares. Outcropping mineralization in what is now known as the Sabana Blanca zone was first discovered in 1974 but lack of access prevented exploration until the 1980’s when a road was built to the nearby hamlet of Lituania. In 1988, a short exploration adit was driven on high-grade mineralization in Quebrada Soberana (Soberana Creek) and between 1991 and 1993, 691 meters of small diameter A and B diameter core was drilled in 15 shallow holes. Less than 41 meters of that core was ever assayed. That work returned values averaging 5.05 g/t gold, 24.1 g/t silver, 2.14% copper and 2.00% zinc, over widths ranging from three to fifteen meters in surface, underground and drill exposures.
Work by Newrange is expanding on these results with geological mapping, geochemical and geophysical surveys and diamond core drilling. This work traces mineralization in the feeder or “stringer” zone for approximately one kilometer along strike and has identified a highly prospective bedded sulfide horizon at the Brazo 1 target zone.
Mineralization at El Dovio occurs within a north-northeasterly trending belt of Cretaceous aged, volcano-sedimentary rocks termed the Cañasgordas Group, in a metallogenic belt more than 800 kilometers long known to host a number of gold-bearing polymetallic and VMS deposits. The Cañasgordas Group is composed dominantly of thoelitic basalts, andesites and diabase referred to as the Barroso interbedded with sedimentary units composed of mudstone, shale, sandstone, greywacke, chert and minor limestone.
During 2014, drilling encountered bedded sulfide mineralization indicative of a VMS system in the Brazo 1 zone. Bedded sulfide mineralization at Brazo 1 consists of finely bedded pyrite with traces of chalcopyrite and sphalerite in thin bedded carbonaceous chert sediments overlying metamorphosed volcanic rocks in substantially the same geologic environment found at Mina El Roble. At Atico Mining’s (TSX-V: ATY) Mina El Roble VMS deposit, high-grade, bedded sulfide mineralization occurs in carbonaceous sedimentary chert just above the contact with underlying metamorphosed volcanic rocks.
Metallurgical studies conducted on a composite bulk sample from the Sabana Blanca adit, yielded exceptional results achieving recoveries of 96.4% of the contained gold, 97.8% of copper, 91.1% of silver and 96.8% of the zinc.
Flotation tests were conducted on a bulk composite sample selected to characterize mid to low -grade, high sulfide, gold - copper mineralization typical of known mineralization at El Dovio from the Sabana Blanca adit. Metallurgical sampling indicated a head grade of 5.3 g/T Au, 4.7 g/T Ag, 0.86% Cu and 1.12% Zn for the sample which was treated using standard froth flotation methods after stage crushing and grinding to 80% passing 75 microns (200 mesh), a prevalent grind size in modern mills.
- $300,000 US on signing (paid) plus 15% of issued shares with non-dillution clause such that NRG will hold 15% of post IPO Issues and Outstanding
- $100,000 US within 6 months of efective date
- $3 million US work commitment within 3 years
- Commitment to list on recognized exchange within 3 years
- NRG has “claw back” where by it may elect to become 50% shareholder by “selling” it 35% retained JV interest to Andean earning its interest. NRG may also elect to sell its interest for cash or combination thereof