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Newrange acquires past-producing Argosy Gold Mine

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Global Mining Review,

Newrange Gold Corp. has signed a definitive agreement to acquire a 100% interest in the past-producing, high-grade Argosy Gold Mine in the Red Lake Mining Division of Northwestern Ontario.

The Argosy Gold Mine is the most significant past-producer in the Birch-Uchi Greenstone Belt, previously producing 101 875 oz of gold and 9788 ounces of silver at a gold grade of 0.37 oz/t (12.7 g/t) (Ontario Ministry of Northern Development & Mines archives). The mine closed in 1952 due to high operating costs and a US$35/oz gold price. Production came from only four veins, although 12 are now known, and only to a depth of 900 ft (270 m). The property consists of 43 patented claims and 17 Mining Licences of Occupation comprising 604 ha.

Robert Archer, Newrange CEO, comments:

“The acquisition of a past-producing, high-grade mine in an area of active exploration presents a unique opportunity to increase shareholder value.

“The Argosy Mine has seen minimal exploration below the old mine workings and there is excellent potential to extend the mineralisation to depth and to discover new veins elsewhere on the property. The Argosy Mine is approximately 10 km northwest of the Springpole Deposit being advanced by First Mining Gold Corp. and less than a kilometre from our North Birch Project. We look forward to commencing the first exploration on the property since 2004.”

The agreement will entail the purchase of Cangold Ltd, the owner of the mine and a fully owned subsidiary of Great Panther Mining Ltd. Terms of the acquisition call for Newrange to make a cash payment of CAN$100 000 and issue CAN$650 000 in Newrange shares to Great Panther on closing and a further CAN$250 00 in shares on the first anniversary of closing.

The closing date is expected to occur within 90 days.

As there are already underlying Net Smelter Return royalties totalling 2.5%, Great Panther will not retain an additional royalty.

The agreement is subject to the approval of the TSX Venture Exchange.

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