A New Pick From Allan Barry Reports

January 28, 2019

Newrange Gold (NRG.V)

Newrange had results out earlier today that caught my attention for a couple reasons. One being a nice high-grade gold intersection, the second was results of twinning a reverse circulation (RC) drill hole, with a core hole that returned significantly higher grades.

Normally twinning drill holes doesn’t catch my attention, but, what made these results peak my interest was the difference in the grade between the RC hole and the core hole. RC drilling is used because it is fast and cheaper than core drilling, it does have its limitations as it breaks the rock into little pieces, so they can’t learn as much about the geology that can be seen in core. 

Something caused them enough concern to twin the RC with core, and sure enough, the grades were significantly better. Indicating that the RC drilling was under-reporting the gold grade. They have more holes pending that will see if this was a one-off or is a reason to cause them to switch to core drilling on future holes. Exploration is hard enough, no need to add to the challenge. I’m looking forward to finding out if this happens on more holes and if they switch to core.

Another thing that can cause problems with RC drilling is that if you have visible gold, you likely aren’t going to see it. They are seeing visible gold in the core hole, as well as high-grade intervals, so it is important for their exploration efforts that they see that visible gold.

The high-grade intersection of 1.53 metres of 27.93 g/t in the core, had only 9.40 g/t gold over the same length using RC drilling. Not only is the RC under-reporting gold in the lower grade areas, but, as you can see there was 18.50 g/t gold missing in the high-grade intersection as well. 

That is a lot of gold to be missing, and for that reason alone, I would guess they will be switching to core in the future drilling. Losing that much gold will cost a company in their stock price, in their financing efforts and in their ability to estimate what they have in the ground.

Whether they were looking in the lower grade or high-grade portions of the zone, they had significantly better results with the core over the RC drilling. This effort to twin the holes has given them evidence they are losing gold using RC drilling, and that the potential for a lot more gold can be recovered using core holes. 

I’m looking forward to see additional core holes, and if this trend in better grades with the core drilling continues. Ultimately, if it does, they will likely switch over to core, which could give them more results to grab the markets attention.

All the best,

Allan Barry Laboucan
Allan Barry Reports
Advance Gold (AAX.V)

P.S. my reports are for information purposes only, before making any investment decisions it is important to do your homework and speak with your financial advisers.

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Not Investment Advice

It is important for you to understand, Allan Barry Laboucan is not a licensed investment advisor and all readers should consult a licensed investment advisor before making any investment decision and to consult the company’s latest regulatory filings to fully understand the risks. This site represents the opinion of Allan Barry Laboucan alone. Do not trade in securities you read about online unless you have independently verified all information and understand that speculating in small, speculative securities like those discussed on AllanBarryReports.com often results in total loss. Readers are responsible for their own trades.