(TheNewswire)
VANCOUVER, BRITISHCOLUMBIA – TheNewswire - September 13, 2022 (TSXV:NRG ) , (OTC :NRGOF ) , ( Frankfurt:X6C)– Newrange Gold Corp. (" Newrange " or the “ Company ") announcesthat, on September 12, 2022, it signed a non-binding Letter of Intentwith Great Panther Mining Limited (“Great Panther”) to acquire a100% interest in the Coricancha Gold-Silver-Copper-Lead-Zinc(“Au-Ag-Cu-Pb-Zn”) Mine in Central Peru(“Coricancha”) . It is anticipated that aDefinitive Agreement will be signed in the coming weeks.
Coricancha is a high-grade, narrow-vein,gold-silver-copper-lead-zinc underground mine in the CentralPolymetallic Belt of Peru. It is located 90 kilometres east of Limaon the Central Highway and comprises a 600 tonne per day processingplant, dry-stack tailings storage facility and all necessary surfaceand underground infrastructure. The mine was in productionintermittently from 1906 – 2013 and has been on care-and-maintenancesince then but is in excellent shape and is fully permitted. It islocated within a well-established mining district and localcommunities are fully supportive of the operation. Two of threecommunity agreements are already in place, with the third only pendinga final signature.
“I am very excited about the opportunity to acquirethe Coricancha Mine,” stated Robert Archer, President and CEO ofNewrange. “I believe the project presents an exceptionalopportunity to build a significant resource, develop the known veinstowards production and further explore the property. Despite thelong production history, there have only been 105 holes drilled on theproperty since 2010 and there is tremendous opportunity to extend themine life and make new discoveries. In making this acquisition,Newrange is effectively following a well-established business model ofbringing a past producing mine back into production, with the intentto supplement the future growth of the Company out of cash flow ratherthan straight equity.”
A Mineral Resource Estimate was filed for Great Pantherwith an effective date of December 20, 2017 1 that isconsidered by Newrange to be Historical in nature. The Company isnot relying on these estimates as a qualifiedperson on behalf of Newrange has not done sufficient work to classifythem as current mineral resources. Newrange intends to conduct its own drilling to bring the resource estimateinto compliance for the Company. The Historical Resource comprisestotal Measured and Indicated Resources of 752,759 tonnes at 5.8 gramsper tonne (“g/t”) Au, 200 g/t Ag, 0.53% Cu, 2.07% Pb and 3.26% Zn(999 g/t silver equivalent ounces 2 (“Ag EqOz”)), for a contained 24.20 million Ag Eq Oz, and total InferredResources of 943,160 tonnes at 5.0 g/t Au, 209 g/t Ag, 0.64% Cu, 1.45%Pb and 3.25% Zn (934 g/t Ag Eq Oz) for a contained 28.36 million Ag EqOz. The Historical Resource Estimate and associated PreliminaryEconomic Assessment are available as a reference on SEDAR at www.sedar.ca .
There are more than twenty veins known in theCoricancha deposit with most past production having come from theConstancia and Wellington Veins, approximately 600 metres apart andparallel to one another. They have a known strike length of morethan 1,500 metres and a vertical extent in excess of 1,000 metres. Athird vein, Escondida, lies between, and appears to connect, the twoand has seen minimal exploration, development or production yet showsexcellent potential, particularly where it is exposed on the mainhaulage level at 3140 metres above sea level. A development drift onthis level exposed the Escondida vein overseveral hundred metres of strike length and ended at a face assaying429 g/t Ag, 7.17% Cu, 0.42 g/t Au, 0.37% Pb and 0.68% Zn over 2.1metres.
There is a general zonation from gold, silver andarsenic in the upper parts of the deposit towards copper and silver inthe ‘lower’ levels (the system has not been adequately testedbelow the 3140m level). Lead and zinc occur throughout the depositin varying amounts.
In the Letter of Intent, the acquisition iscontemplated to take place via a share purchase agreement wherebyNewrange will purchase all of the shares of Great Panther PeruHoldings Ltd. and Great Panther Silver Peru, S.A.C., both wholly ownedsubsidiaries of Great Panther and the owners of the Coricancha Mine. Terms of the acquisition call for Newrange to make a single cashpayment of US$750,000 to Great Panther upon closing and thetransaction will be on an “as-is” basis. Being a cash-onlytransaction, shareholder approval will not be required. As the acquisition will be subject to financing, theCompany is contemplating a ‘one new for six old’ shareconsolidation and subsequent name change to be effective upon closing. The transaction will constitute a Fundamental Acquisition forNewrange and will be an arm’s length transaction, further details ofwhich will be announced upon signing of the Definitive Agreement. Similarly, details of the financing, share consolidation and namechange, should they occur, will be announced in due course, all ofwhich will be subject to TSXV approval.
Note (1): NI 43-101 Resource Update Technical Reporton the Coricancha Mine Complex, Huarochiri Province, Lima Region, Perufor Great Panther Silver Limited. Submitted by Golder AssociatesInc. as Report Assembler of the work prepared by or under thesupervision of the Qualified Persons Named as Authors.
(2): Ag Eq g/t = Ag g/t + (Pb grade x ((Pb price perlb/Ag price per oz) x 0.0685714 lbs per Troy Ounce x 10000 g per %))+(Zn grade x ((Zn price per lb/Ag price per oz) x 0.0685714 lbs perTroy Ounce x 10000 g per %)) + (Cu grade x ((Cu price per lb/Ag priceper oz) x 0.0685714 lbs per Troy Ounce x 10000 g per %)) + (Au grade x(Au price per oz/Ag price per oz)).
Newrange is currently focused on district-scale explorationfor precious metals in the prolific Red Lake District of northwesternOntario. The past-producing high-grade Argosy Gold Mine is open todepth, while the adjacent North Birch Project offers additionalblue-sky potential. The proposed acquisition of the Coricancha Minein Peru will give the Company a renewed focus on mine siteexploration, development and production but the Company still intendsto advance the Red Lake projects. Further information can be foundon our website at www.newrangegold.com .
Signed: “Robert Archer”
President & CEO
Forfurther information contact :
Phone: 760-898-9129
Email: info@newrangegold.com
Website: www.newrangegold.com
Neither the TSXVenture Exchange nor the Investment Industry Regulatory Organizationof Canada accepts responsibility for the adequacy or accuracy of thisrelease .
Some of the statements in this newsrelease contain forward-looking information that involves inherentrisk and uncertainty affecting the business of Newrange Gold Corp.Actual results may differ materially from those currently anticipated in suchstatements.
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