Investing in Gold 2021 – A Look at Newrange Gold Corp. (TSXV:NRG / OTC: NRGOF)

黄金投资2021:Newrange Gold Corp.
Published on: February 4, 2021
Author: Caroline Kong

With gold prices seeing the highest growth in 2019 to 2020 since the last commodities Super Cycle in the late 2000s, investors are scrambling to find investment opportunities in this exciting sector.  Today, investing in gold companies is an excellent way investors can gain exposure to gold.  Doing so was profitable in 2020, with Newmont Corporation (TSX: NGT) stock price grew almost 40% in the year 2020, while Barrick Gold Corp (TSX: ABX) grew over 20% in that same time.

One company, in particular, is worth investors’ attention: Newrange Gold Corp. (TSXV:NRG and OTC:NRGOF) is a gold exploration company that is primarily focused on exploring the Pamlico property in Nevada.  While significantly smaller than Newmont and Barrick, there are compelling reasons to keep an eye on this up-and-coming gold stock.

Why Look at Gold Exploration Companies?

Gold stocks are highly liquid assets that investors can keep securely in their portfolios without needing to purchase physical gold. When investing in gold companies, investors can buy shares in the form of ETFs or individual mining stocks. As Forbes reported in 2020, “Junior gold miners tend to be more volatile than larger gold miners, which in turn are more volatile than the metal itself. In a bull market, volatility should be your friend if you can stomach a bit of whipsawing.”

Also, junior gold explorers tend to see greater impact on their stock prices from successful exploration activities.  This make sense if you think about how a large gold miner like Barrick Gold will have numerous operating mines as well as numerous exploration properties within its portfolio.  News of a successful drilling campaign may be drowned out by the rest of its business but with a junior miner, the news is loud and clear, and typically, investors respond.

Who is Newrange Gold?

Gold companies such as Newrange Gold Corp. (TSXV: NRG) are involved in exploration mining, meaning that while they do not mine for gold, they explore their assets to determine how much gold is within the ground.  They do this typically by drilling core samples and using the results to calculate an estimate for the amount of gold on the property.  In Newrange’s case, the Company’s flagship project is the high-grade, near-surface gold discovery at Pamlico in mining-friendly Nevada, US.

In 2016, Newrange Gold expanded into the United States by purchasing the 2548 hectares (25.48km2) Pamlico project in Nevada, which is among the top five gold mining areas in the world.  The Pamlico project is now Newrange’s flagship project, and within its area, include numerous past producing mines and workings.  Initially established in the late 19th century, the Pamlico property is historically known for its high-grade underground gold production.  What is interesting for investors is that the area is relatively unexplored since the 19th century and has been held in private hands.  For investors, the idea of an underexplored area combining with modern technologies and exploration techniques should present a fascinating opportunity.

Newrange also holds the 38.5 km2 North Birch Gold project in Ontario and in January, the Company exercised its option to acquire a 100% interest in the H Lake Property, which forms the western portion of its North Birch Project east of Red Lake, Ontario.  Most interesting about this project,  the property covers an intensely folded and sheared iron formation that is similar in appearance to the one hosting Newmont Goldcorp’s Musselwhite Mine (past production, reserves and resources exceed 7 million ounces Au), some 190 kilometers to the northeast.

Newrange’s Game Plan

For gold exploration companies like Newrange, developing the value of their property is reminiscent of assembling a puzzle. Through the use of exploration drilling, the company collects data of what is in the ground, and, with enough data, can formally announce to the public that they have.

Newrange has been busy executing this game plan.  In January 2020, the company published the results of their recent drilling program.  As summarized in the news release:

“These drill results, together with all of the Company’s previous drilling and underground sampling, continue to indicate that oxide gold mineralization at Pamlico occurs in a large, near surface, shallow-dipping to nearly flat, laterally extensive structural zone”

With an additional CAD$2.3 million in its coffers, the company has the war chest to proceed with its near term exploration work.

What Can Affect the Outlook for Newrange?

Two major factors can affect the value outlook for Newrange:

Firstly, the results of their exploration programs at Pamlico (Nevada) and North Birch (Ontario).  As results are published in a consistent manner, the company will continue to build momentum with investors who are looking for an active gold company with assets in stable regions.

Secondly, the price of gold has soared in 2020, reaching its highest valuation in more than seven years. The outlook for 2021 is equally as promising, given the $1.9 trillion relief package recently signed by President Biden. Whether investing in gold companies or physical assets, investors can expect to see great returns.

Disclaimer: The company described in this article is a customer of NAI Interactive Ltd. This material is for informational purposes only and is not intended as a recommendation or offer or solicitation for the purchase or sale of any securities or financial instruments, or for transactions involving any financial instrument or trading strategy.

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