Newrange Gold Corp. (TSXV: NRG, OTC: NRGOF)
“Where Exploration INTERSECTS Discovery”
Earlier in September, Newrange Gold Corp. announced that it signed a non-binding Letter of Intent with Great Panther Mining Limited to acquire a 100% interest in the Coricancha Gold-Silver-Copper-Lead-Zinc (“Au-Ag-Cu-Pb-Zn”) Mine in Central Peru (“Coricancha”).
The Coricancha mine that Newrange is acquiring significantly more advanced that Newrange’s existing projects, the North Birch Gold Project and the Argosy Mine Project. As stated in their press release, the
“Coricancha is a high-grade, narrow-vein, gold-silver-copper-lead-zinc underground mine in the Central Polymetallic Belt of Peru… comprises a 600 tonne per day processing plant, dry-stack tailings storage facility and all necessary surface and underground infrastructure. The mine was in production intermittently from 1906 – 2013 and has been on care-and-maintenance since then but is in excellent shape and is fully permitted.”
Peru has long been famous for its mining industry. Mining accounts for nearly 10% of GDP, while mineral export revenues reached $27.2 billion in 2021, representing 60% of the country’s total exports. Peru is among the primary producers of mineral commodities in the world. Peru is the world’s second-largest producer of copper, silver, and zinc and Latin America’s largest producer of gold.
The country is home to vast metal reserves: Peru ranks second in the world in copper reserves, seventh in gold reserves, and first in silver reserves. Peruvian copper deposits are typically porphyritic in nature, gold deposits are orogenic, and silver is often produced as a by-product from copper and gold.
Peru has approximately 200 operating mines and several large projects ready for development. In March 2022, direct employment in the mining sector in Peru came to over 237,850 workers, exceeding 2021 by 4.5%. According to the 2021 Portfolio of Mining Construction Projects from the Ministry of Energy and Mines, Peru has 43 main projects in different stages of development targeting a variety of metals and minerals, representing a total investment of more than $53 billion. Copper projects represent 69% ($36.5 billion), gold 15%, and iron ore 11 %.
A comprehensive mine map for Peru shows how extensively the mining industry is operating in the country:
In its press release announcing the impending acquisition, Newrange was hopeful of its potential for growing shareholder value.
“I am very excited about the opportunity to acquire the Coricancha Mine,” stated Robert Archer, President and CEO of Newrange. “I believe the project presents an exceptional opportunity to build a significant resource, develop the known veins towards production and further explore the property. Despite the long production history, there have only been 105 holes drilled on the property since 2010 and there is tremendous opportunity to extend the mine life and make new discoveries. In making this acquisition, Newrange is effectively following a well-established business model of bringing a past producing mine back into production, with the intent to supplement the future growth of the Company out of cash flow rather than straight equity.”
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