Red Pine Exploration

Leading Revival of Wawa Gold Camp

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Overview

Red Pine Exploration Inc (TSXV:RPX) is a gold exploration company focused on identifying, acquiring and developing prospective properties in Ontario, Canada. Red Pine is currently focused on developing its flagship Wawa gold project, located near Wawa, Ontario. The Wawa gold project sits within a mining-friendly jurisdiction that hosts properties owned by Argonaut Gold (TSX:AR) and Alamos Gold (TSX:AGI). The project is also supported by established infrastructure as well as a receptive and skilled community.

Owning 60 percent of the Wawa property, Red Pine is working with a strategic partner, Citabar LP, that is financing the remaining 40 percent of the project. Working closely with Red Pine’s management team, which has significant experience in developing projects in Canada, the company’s partner is invested in advancing the Wawa gold project to production.

Since becoming involved in the property in 2014, Red Pine has developed two resource estimates for the property, one for the Surluga deposit and one for the Minto Mine South deposit. The Surluga deposit has an indicated resource of 1.2 million tonnes grading 5.31 g/t gold and an inferred resource of 2.36 million tonnes grading 5.22 g/t gold. The Minto Mine South deposit has an indicated resource of 105,000 tonnes grading 7.5 g/t gold and an inferred resource of 354,000 tonnes grading 6.6 g/t gold. Both deposits remain open in all directions, providing the company with expansion potential.

In addition to the two deposits already defined on the property, Red Pine believes that the Wawa gold project has the potential to host an additional six deposits and has generated a pipeline of several high-priority targets. The majority of the targets rest within the six-kilometer Wawa gold corridor, a gold mineralization zone that could be the controlling mineralization structure for the property. 

Red Pine intends to test the six additional gold-bearing structures on the property in its upcoming work program as well as prove the continuation of the Surluga deposit to depth. The company is initiating a drill program at the newly discovered Cooper Structure and intends to conduct some drilling around the past-producing Grace-Darwin mine, where Red Pine intersected 23.1 g/t gold over 8.14 m (DG-17-56). Red Pine is currently compiling an internal scoping study that will help guide the future development of the property.

The Red Pine management team also plays a leadership role in two other companies, Honey Badger Exploration Inc (TSXV:TUF) and MacDonald Mines Exploration (TSXV:BMK), with exploration focus across Canada. Under this structure, the three companies are able to share costs. Additionally, a combined diversified portfolio of materials and regions helps to de-risk the activities of the management team.

The team is also notably invested in the Red Pine, holding 14 percent of shares. The next largest shareholder is MacKenzie Investments, which has been involved as a shareholder since April 2018, holding three percent of shares.

Company Highlights

  • The Wawa project hosts 8 known gold deposits, two of which have NI 43-101 resources. 
  • The Surluga deposit has an indicated resource of 1.2 million tonnes grading 5.31 g/t gold and an inferred resource of 2.36 million tonnes grading 5.22 g/t.
  • The Minto Mine South deposit has an indicated resource of 105,000 tonnes grading 7.5 g/t gold and an inferred resource of 354,000 tonnes grading 6.6 g/t gold.
  • The Surluga and Minto Mine South deposits both remain open in all directions, offering expansion opportunities. 
  • Ongoing exploration is being conducted on an additional six gold-bearing structures on the property. 
  • Historical gold recoveries of 93.5 percent to 95.5 percent.
  • 40 percent of flagship property held by strategic financial partner, Citabar LP.
  • Strong management team with vast experience developing projects in Canada.
  • Management holds 14 percent of company shares.

Flagship Property: Wawa Gold Project

The Wawa gold project is a 6,519-hectare property, of which Red Pine has a 60 percent interest. The property is located two kilometers away from the town of Wawa, Ontario and sits within 40 kilometers of both Argonaut Gold’s Magino deposit and the operating Island Gold mine now owned by Alamos Gold, following their acquisition of Richmont Mines.

red pine District Scale Potential

Due to its prominent location in a safe and reliable jurisdiction, the Wawa gold property is supported by established mining infrastructure, an available and skilled workforce and a navigable regulatory system. The property is crossed by a powerline and is near both the TransCanada Highway and the railway, making it easily accessible. Red Pine has also developed its local community relationships and signed a memorandum of understanding (MOU) with the Michipicoten First Nations (MFN) community, whereby both parties consult one another during the company’s exploration activities.

“The company, and its predecessors, have always maintained a good working relationship with MFN,” said Red Pine President and CEO Quentin Yarie. “This MOU formalizes the consultation process regarding the development of the Wawa Gold Project, and enables MFN to understand the potential impacts of the development of the Project on the exercise of aboriginal and treaty rights.”

Resource Estimates 

To date, Red Pine has defined two resource estimates on its Wawa gold project, following an intensive 2018 exploration program. The resource estimates are for the Surluga deposit and the Minto Mine South zone. 

Surluga

Red Pine released an updated mineral resource estimate for the Surluga deposit in June 2019. The report outlined an indicated resource of 1.2 million tonnes grading 5.31 g/t gold and an inferred resource of 2.36 million tonnes grading 5.22 g/t. The deposit remains open at depth, offering the company further expansion potential.  

The new resource estimate contained a significant increase in grade, quality and continuity of the gold zones at Surluga when compared to the 2015 estimate, which has an inferred resource of 19.8 million tonnes grading 1.71 g/t gold when using a 0.40 g/t gold cut-off. The report outlined an underground mining scenario and used a 2.7 g/t gold cut-off grade.

Minto Mine South 

In July 2019, Red Pine released its maiden resource for the Minto Mine South zone. The report outlined an indicated resource of 1,307,000 tonnes grading 5.47 g/t gold and an inferred resource of 2,716,000 tonnes grading 5.39 g/t gold. Both deposits remain open at depth.

“We firmly believe in the potential of the Minto Project to grow with additional exploration. Our current drilling that supports the resource estimate covers approximately 15-20% of the footprint of the Minto Mine South structure extrapolated within a reasonable level of confidence. This suggests that our initial resource could represent the initial footprint of a larger gold resource in the Minto Mine South Project area. Additional potential is also present in multiple zones of the Minto Stockwork not included in the resource and in the recently discovered structure parallel to Minto Mine South that was mined in the 1930s in the Parkhill mine,” said Yarie.

Historical production

Historically, the property has hosted eight past-producing mines, with a collective production of 120,000 ounces. However, these eight deposits were owned by different operators and were never geologically connected. The largest deposit on the property is the Surluga deposit, which has seen 252 surface drill holes, 1,339 underground holes and has historically produced 8,600 ounces.

red pine historic average grade

Red Pine exploration activities

Since entering into the project in late 2014, Red Pine released an updated NI 43-101 inferred resource estimate for the Surluga deposit in 2015. Beyond the Surluga deposit, the company has also conducted additional work to determine the resource potential in the remainder of the property. As part of an initial sampling program, Red Pine sampled 146 historic holes and 46 percent of these returned additional gold findings. The samples returned grades of up to 109 g/t gold over 0.86 meters in an unsampled core. 

Over the course of 2016 and 2017, Red Pine conducted a broad scale drilling initiative across the property in the areas associated with the past-producing mines so as to develop an updated resource and link the mineralization areas. Part of this initiative led to the discovery of a new high-grade zone in the Jubilee shear, which showed results of up to 14.66 g/t gold over 15.23 meters.

The company’s exploration activities also prompted four other discoveries in the Minto Mine South zone, the Surluga North zone, the Hornblende-William zone and the Grace-Darwin zone, all located across the six-kilometer Wawa gold corridor.

red pine table 2

Within 2018, Red Pine conducted an extensive exploration and drilling program over the Surluga deposit and Minto Mine South zone, with the aim of updating and developing the Surluga resource as well as developing an initial resource estimate for the Minto Mine South zone. Drill highlights from the Surluga deposit and Minto Mine South include one meter grading 56.8 g/t gold and 2.9 meters grading 32.16 g/t gold at the Surluga deposit, and two meters grading 11.47 g/t gold and three meters grading 27.84 g/t gold at Minto Mine South. 

Red Pine also completed a gravity survey to trace any gold mineralization to the Jubilee stock to the southwest to generate additional exploration targets. The survey was able to confirm the extension of the Jubilee stock to the southwest, providing the company with additional exploration opportunities. 

Aside from expanding and confirming zones of mineralization, Red Pine was also able to define a new high-grade structure called Cooper. The Cooper structure resides one kilometer north of the Surluga extension and 2.8 kilometers northeast of the Minto Mine South deposit. The company intersected 0.31 meters grading 27 g/t gold at the structure. 

Outside of the drill program, Red Pine also sampled and logged over 13,200 meters of historic core taken in and around the Surluga deposit. Highlights from the program include 0.6 meters grading 14.5 g/t gold, 0.7 meters grading 9.36 g/t gold and 1.74 meters grading 22.8 g/t gold. 

Moving forward, Red Pine will be testing six gold-bearing structures on the property: the Cooper shear system, Grace deformation zone, Hornblende shear zone, Minto B shear zone, Minto Lower/Parkhill #4 shear zone and the southern extension of the Jubilee shear zone. Mechanized stripping is currently underway at the Cooper shear system, Grace deformation zone and Jubilee shear zone.

red pine discoveries multiple gold zones

Management

Quentin Yarie, PGeo—President, CEO and Director

Quentin Yarie is an experienced geophysicist and a successful entrepreneur with extensive project management and business development experience. He was previously the Business Development Officer at Geotech Ltd, a geo-physical airborne survey company, and a Senior Representative of Sales and Business Development for Aeroquest Limited. From 1992 to 2001, Yarie was a partner of a specialized environmental and engineering consulting group where he managed a number of large projects including the ESA of the Sydney Tar Ponds, the closure of the Canadian Forces Bases in Germany and the Maritime and Northeast Pipeline Project. He currently serves as President and CEO for Honey Badger Exploration Inc., and as President and CEO for MacDonald Mines Exploration, both resource exploration companies headquartered in Toronto, Canada.

Craig Scherba, PGeo—VP Exploration

Craig Scherba is a professional geologist with over 20 years of mineral exploration experience both in Canada and abroad. He was an integral member of the exploration team that developed Nevsun Resources; high-grade gold, copper and zinc Bisha Project in Eritrea and led the exploration team that discovered Energizer Resource’s world-class Molo Graphite Project in Madagascar. Scherba serves as President and CEO of Energizer Resources (TSX:EGZ) and is the Vice President Exploration of MacDonald Mines Exploration Ltd and Honey Badger Exploration Inc.

Tara Gilfillan, CPA, ICD.D—CFO

Tara Gilfillan is a financial executive, entrepreneur and independent board member with over 20 years of experience, outside and within the mining industry. She holds a business degree from Queens University and a Chartered Accountant designation. She has a strong financial and operational background. She has held the roles of controller and CFO of mining companies, CFO and interim CEO of a global engineering consultancy company, as well as co-founding a successful engineering start-up company. 

Drew Anwyll, M.Eng., P.Eng. – Director

Drew Anwyll is a mining engineer with over 25 years of international experience in operations start-up, construction and project management of both open pit and underground mines. He was most recently the Senior Vice President Technical Services at Detour Gold Corporation, where he led the strategic work associated with long term planning, exploration, technical and operational oversight of the Detour Lake mine. Prior to this role, he was VP Operations and Mine General Manager at Detour during the construction and initial start-up of the mine. He holds a Bachelor’s and a Master’s degree of Engineering from McGill University.

Andrew Baumen, P.Eng. – Director

Andrew Baumen is a mining engineer with over 30 years in the mining industry. He is an innovative leader with recognized achievements in operational open pit and underground mine management and strategic business planning. He was formerly VP of Technical Excellence at Barrick Gold Corp., and General Manager at Barrick’s Hemlo operations. He holds a Bachelor of Applied Science (B.Sc.) in Mining Engineering from Queens University.

Dr. Robert Dodds, Ph.D., P.Eng. – Director

Dr. Robert Dodds has over 44 years of experience in the mining industry and has authored 17 scientific articles published in various North American technical journals. He has worked in resource exploration, development and production with various resource companies including, Barrick Gold Corporation, The Kidd Creek mine, Teck Resources Limited, Cominco, The Kerr Addison mine, Noranda Inc. and Diavik Diamond Mines Inc. He acted as Manager and Operator at a gold mine in northwestern Ontario and has provided engineering services for mining operations. He’s held senior management positions with Algonquin Power Utility Corp and was, most recently, CEO of Augustine Ventures Inc. before its merger with Red Pine Exploration.

Peter Kampian, CPA, CA – Director 

Peter Kampian has over 30 years of experience in investment management related to electrical generation, manufacturing, securities exchange and public accounting. He is the Chief Financial Officer at Mettrum Health Corp. and the Chief Executive Officer at Edge Financial Consulting Services Inc. He was formerly the Chief Financial Officer at One World Energy Inc. and Algonquin Power Income Fund. He is a Canadian Chartered Accountant and holds a Bachelors of Business Administration Degree from Wilfrid Laurier University.


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