Red Pine Exploration Inc. (TSX-V:RPX) ("Red Pine" or the "Company") is pleased to announce that it has entered into an agreement with Haywood Securities Inc. ("Haywood"), as sole underwriter and bookrunner, pursuant to which Haywood has agreed to purchase, on a "bought deal" private placement basis, 7,693,000 flow-through shares of the Company (the "FT Shares") at a price of C$0.65 per FT Share, with such FT Shares to qualify as "flow-through shares" (within the meaning of subsection 66(15) of the Income Tax Act (Canada)), for aggregate gross proceeds of C$5,000,450 (the "Offering").
The Company has granted Haywood an option to purchase up to an additional 15% of the Offering in FT Shares at the Issue Price (the "Underwriters' Option"), exercisable in whole or in part at any time up to 48 hours prior to the closing date.
The gross proceeds from the Offering will be used by the Company to incur eligible "Canadian exploration expenses" that will qualify as "flow-through mining expenditures" as such terms are defined in the Income Tax Act (Canada) (the "Qualifying Expenditures") related to the Company's projects in Canada. All Qualifying Expenditures will be renounced in favour of the subscribers of the FT Shares effective December 31, 2021.
The Offering is expected to close on or about November 18, 2021 and is subject to certain closing conditions including, but not limited to, the receipt of all necessary approvals including the conditional listing approval of the TSX Venture Exchange ("TSXV") and the applicable securities regulatory authorities. The Offering is being made by way of private placement in Canada. The securities issued under the Offering will be subject to a hold period in Canada expiring four months and one day from the closing date of the Offering.
In consideration for its services, the Company has agreed to pay Haywood a cash commission equal to 6.0% of the gross proceeds from the Offering and that number of non-transferable compensation options (the "Compensation Options") as is equal to 6.0% of the aggregate number of FT Shares sold under the Offering. Each Compensation Option is exercisable to acquire one common share of the Company at a price equal to the Market Price (as defined by the TSXV) as of the date hereof for a period of 24 months from the closing date of the Offering.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.
Red Pine Exploration Inc. is a gold exploration company headquartered in Toronto, Ontario, Canada. The Company's common shares trade on the TSX Venture Exchange under the symbol "RPX".
The Wawa Gold Project is in the Michipicoten greenstone belt of Ontario, a region that has seen major investment by several producers in the last five years. Its land package hosts numerous historic gold mines and is over 6,900 hectares in size. The Company's Chairman of the Board is Paul Martin, the former CEO of Detour Gold. The Board has extensive and diverse experience at such entities as Alamos, Barrick, Generation Mining, Detour Gold and Paramount Gold Nevada Corp. Led by Quentin Yarie, CEO, who has over 25 years of experience in mineral exploration, Red Pine is strengthening its position as a major mineral exploration and development player in the Michipicoten region.
For more information about the Company, visit www.redpineexp.com
Or contact:
Quentin Yarie, President and CEO, (416) 364-7024, qyarie@redpineexp.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This News Release contains forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "potential" or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.
Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
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 100% owned 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.
Led by an experienced management and technical team, the Company's flagship Wawa Gold Project is located 2km southeast of the Municipality of Wawa, in Northern Ontario. The property, comprised of 6,753 hectares, hosts several former mines with a combined historic production of 120,000 oz gold. The property currently hosts a NI 43-101 Resource of over 700 Koz of gold (both indicated and inferred) at more than 5 gpt gold, contained between surface at 350m depth, that Red Pine is aggressively working towards expanding.
Since becoming involved in the property in 2014, Red Pine has developed two resource estimates for the property. The two mineral deposits, Surluga and Minto Mine South, are a currently estimated NI 43-101 resource of 1,307,000 tonnes @ 5.47 g/t gold for 230,000 ounces in the indicated category and 2,716,000 tonnes @ 5.39 g/t gold for 471,000 ounces in the inferred category.1 Both deposits remain open in all directions, providing the company with expansion potential, and over 95% of the contained ounces at both deposits are located between surface and a depth of 350 metres.
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, that, combined, could contain up to 3.0 Moz gold. 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 tested the continuation of the Surluga deposit to depth in its fall 2019 drill program and is awaiting assay results. The company also initiated a drill program at the newly discovered Cooper structure and conducted some surface exploration work (trenching and channel sampling) around the past-producing Grace-Darwin mine, where Red Pine intersected 23.1 g/t gold over 8.14 meters.
Red Pine announced in March 2021 that it completed its consolidation of the Wawa Gold Project through a definitive securities purchase agreement with the holders of the partnership interests in Citabar Limited Partnership as well as having completed a private placement financing of subscription receipts, led by Haywood Securities Inc., on March 23, 2021, for gross proceeds of $20,026,805. Alamos Gold had exercised its right to maintain its 19.9% stake on a partially-diluted basis. Former Detour Gold president and CEO Paul Martin was appointed Red Pine's director and non-executive chairman in February. Red Pine also announced the appointment of Mr. Jean-François Montreuil, P.Geo., Ph.D. as Vice President of Exploration of the Company. Dr. Montreuil has over 12 years' experience in mineral exploration and was the Head Geologist at Red Pine and MacDonald Mines Exploration where he contributed to the discovery and definition of the Minto Mine South deposit and the extension of the Surluga Deposit.
With the announcement of the project's consolidation of ownership to 100% (see February 23, 2021, News Release), Red Pine is now ready to execute a strategic drill program designed to expand the existing NI 43-101 mineral resources and to explore the multiple additional highly prospective targets on the property. An estimated 15,000 metres of diamond drilling is planned in 2021 with the program continuing into 2022.
Wawa Project highlights
100% ownership (recently consolidated from 63.31%)
Two mineral deposits (Surluga and Minto Mine South) with currently estimated NI 43-101 resource of 1,307,000 tonnes @ 5.47 g/t gold for 230,000 ounces in the indicated category and 2,716,000 tonnes @ 5.39 g/t gold for 471,000 ounces in the inferred category1
Resource principally located between the surface and 300 metres vertical depth
Discovery of higher-grade mineralization in the Jubilee Shear Zone (host of the Surluga Deposit) down plunge of the existing resource
Preliminary drilling identified five (5) high-grade gold exploration targets that could grow the current resource: Hornblende, Minto B, Grace/Nyman, Minto Mine South and Parkhill # 4 shear zones
Potential for additional high-grade gold targets in the extension of the Jubilee Shear Zone, south of the Parkhill Fault
2021 Drilling and Exploration Program
The main target for diamond drilling in 2021 will be the Jubilee Shear Zone, host of the Surluga Deposit NI 43-101 mineral resource. The resource extension and definition drilling program will test the higher-grade gold-bearing structures previously identified by Red Pine. The Company will also test a number of exploration targets on the property that have the potential to be converted into resources as Red Pine continues to develop the project.
Extension of the Surluga Deposit NI 43-101 Resource The Company will prioritize the extension of the higher-grade gold mineralization zone discovered in 2020, 300 metres down-dip of the current Surluga Deposit resource which generally lies from near-surface to a depth of 300 meters. Drilling the Jubilee Shear Zone extension at depth will also test the westernmost down-dip extension of the Minto Mine South Shear Zone, host of the second known resource on the Wawa Gold Project – the Minto Mine South Deposit.
2020 diamond drilling highlights in the Jubilee Shear Zone (Figure 1):
3.38 g/t gold over 13.3 m true width (“TW"), including 15.31 g/t gold over 1.64 m (SD-20-293)
5.2 g/t gold over 6.31 m TW including 15.7 g/t gold over 1.07 m and 12.4 g/t gold over 0.78 m (SD-20-289)
1.63 g/t gold over 23.34 m TW, including 17.32 g/t gold over 0.88 m and 14.72 g/t gold over 0.85 m (SD-20-292)
2.06 g/t gold over 11.8 m TW, including 3.67 g/t over 1.03 m and 7.45 g/t gold over 0.84 m (SD-20-291)
Jubilee Shear Zone south of the Parkhill Fault
In 2019 and 2020, Red Pine's mechanized stripping and mapping program on the Jubilee Shear Zone, south of the Parkhill Fault, indicated structural attributes comparable to those found north of the fault. Shallow historical drilling by Duraine Mines Ltd. in 1981 combined with Red Pine's geological mapping and channel sampling indicated gold mineralization. Drilling in this underexplored extension of the structure could expand shallow gold mineralization in the Jubilee Shear Zone to a 2 km strike length.
Diamond drilling highlights in the southern extension of the Jubilee Shear Zone (source AFRI 41N15NE0055 for Duraine Mines drilling results):
3.06 g/t gold over 2.70 m, including 41.14 g/t gold over 0.16 m (D81-02)
6.95 g/t gold over 1.01 m, including 15.39 g/t gold over 0.45 m (D81-04)
8.33 g/t gold over 1.34 m, including 24.34 g/t gold over 0.34 m (D81-08)
3.99 g/t gold over 1.00 m (S302 – RPX 2019 historic core sampling)
Grace and Nyman Shear Zones
The Grace and Nyman shear systems, host of the historical Darwin-Grace Mine, will be targeted for the discovery of shallow high-grade gold mineralization. Red Pine's 2017 drilling demonstrated that high-grade gold mineralization is still present outside the mine's historic footprint and that mineralization in the Nyman vein extends at depth. Red Pine's mechanized stripping and mapping programs located the Grace Shear Zone extension, 110 metres north of the northernmost underground development of the Darwin-Grace Mine. The 2021 drilling program will test this new area in the structure.
Red Pine's diamond drilling highlights in the Grace and Nyman Shear Zones:
42.22 g/t gold over 2.44 m, including 107.49 g/t gold over 0.54 m (DG-17-55 – Grace Shear Zone)
57.31 g/t gold over 3.14 m, including 138 g/t gold over 1.11 m (DG-17-56 – Grace Shear Zone)
10.1 g/t gold over 0.82 m (DG-17-66 – Nyman Shear Zone)
Hornblende Shear Zone
Red Pine's diamond drilling in the Hornblende Shear Zone showed that gold mineralization, with potential zones of higher-grade mineralization, occurs over a strike length of at least 1.6 km. The largest zone of higher-grade mineralization, identified by historic drilling and confirmed by Red Pine's drilling, occurs at the seventh level of the historical Surluga Mine. Red Pine's drilling in the Hornblende Shear Zone also identified additional zones of broad mineralization with discrete zones of higher-grade mineralization in the structure.
Diamond drilling highlights in the Hornblende Shear Zone include:
5.61 g/t gold over 8.5 m, including 15.42 g/t gold over 2.9 m (HS-15-31)
2.91 g/t gold over 4.5 m, including 5.77 g/t gold over 1 m (HS-15-28)
3.18 g/t gold over 9.54 m, including 19.54 g/t gold over 0.61 m (U0007L7)
Minto B Shear Zone
The Minto B Shear Zone is located above the Jubilee Shear Zone, over the central and southern segments of the Surluga Deposit resource, north of the Parkhill Fault. Diamond drilling and mechanized stripping traced the structure over a strike length of 1 km and uncovered broad zones of gold mineralization. A higher-grade core also occurs in the structure, the size and grade could be defined with additional drilling. Diamond drilling in the Minto B Shear Zone will be undertaken concurrently with resource conversion, definition and exploration drilling in the Jubilee Shear Zone.
Diamond drilling highlights in the Minto B Shear Zone includes:
2.1 g/t gold over 10.6 m, including 3.7 g/t gold over 5.6 m (SD-18-256)
13.65 g/t gold over 2 m (SD-15-07)
4.69 g/t gold over 6.1 m, including 14.37 g/t gold over 1.52 m (U1683L5)
Company Highlights
An estimated 15,000 metres of diamond drilling is planned in 2021 with the program continuing into 2022.
100% Wawa Gold Project ownership (recently consolidated from 63.31%)
The Wawa project hosts eight known gold deposits, two of which have NI 43-101 resources.
Two mineral deposits (Surluga and Minto Mine South) with currently estimated NI 43-101 resource of 1,307,000 tonnes @ 5.47 g/t gold for 230,000 ounces in the indicated category and 2,716,000 tonnes @ 5.39 g/t gold for 471,000 ounces in the inferred category1
Resource principally located between the surface and 300 metres vertical depth
Discovery of higher-grade mineralization in the Jubilee Shear Zone (host of the Surluga Deposit) down plunge of the existing resource
Preliminary drilling identified five (5) high-grade gold exploration targets that could grow the current resource: Hornblende, Minto B, Grace/Nyman, Minto Mine South and Parkhill # 4 shear zones
Potential for additional high-grade gold targets in the extension of the Jubilee Shear Zone, south of the Parkhill Fault
Strategic partners Alamos Gold (TSX:AGI) hold 19.9% of outstanding shares of Red Pine, and recently committed capital in latest $20M financing.
Strong management team with vast experience developing projects in Canada.
Management and insiders hold two percent of company shares.
Key Projects
Wawa Gold Project
The Wawa gold project is a 6,753-hectare property, of which Red Pine has a 100 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.
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 local First Nations groups, Michipicoten, Garden River, and Batchewana.
2021 Drilling and Exploration Program
The main target for diamond drilling in 2021 will be the Jubilee Shear Zone, host of the Surluga Deposit NI 43-101 mineral resource. The resource extension and definition drilling program will test the higher-grade gold-bearing structures previously identified by Red Pine. The Company will also test a number of exploration targets on the property that have the potential to be converted into resources as Red Pine continues to develop the project.
Extension of the Surluga Deposit NI 43-101 Resource The Company will prioritize the extension of the higher-grade gold mineralization zone discovered in 2020, 300 metres down-dip of the current Surluga Deposit resource which generally lies from near-surface to a depth of 300 meters. Drilling the Jubilee Shear Zone extension at depth will also test the westernmost down-dip extension of the Minto Mine South Shear Zone, host of the second known resource on the Wawa Gold Project – the Minto Mine South Deposit.
2020 diamond drilling highlights in the Jubilee Shear Zone (Figure 1):
3.38 g/t gold over 13.3 m true width (“TW"), including 15.31 g/t gold over 1.64 m (SD-20-293)
5.2 g/t gold over 6.31 m TW including 15.7 g/t gold over 1.07 m and 12.4 g/t gold over 0.78 m (SD-20-289)
1.63 g/t gold over 23.34 m TW, including 17.32 g/t gold over 0.88 m and 14.72 g/t gold over 0.85 m (SD-20-292)
2.06 g/t gold over 11.8 m TW, including 3.67 g/t over 1.03 m and 7.45 g/t gold over 0.84 m (SD-20-291)
Figure 1- 2020 diamond drilling highlights in the Jubilee Shear Zone
A review of historical data suggests that the Jubilee Shear Zone's northern extension, where limited drilling has been conducted, could host undiscovered zones of high-grade mineralization less than 300 metres below the surface. Geological data recorded in certain boreholes at the edge of the structure's current footprint suggests potential proximity to stronger mineralized zones.
Targets beyond Surluga
The section below summarizes the exploration targets identified for further investigation.
Figure 2 – Exploration targets that will be tested in 2021
Jubilee Shear Zone south of the Parkhill Fault
In 2019 and 2020, Red Pine's mechanized stripping and mapping program on the Jubilee Shear Zone, south of the Parkhill Fault, indicated structural attributes comparable to those found north of the fault. Shallow historical drilling by Duraine Mines Ltd. in 1981 combined with Red Pine's geological mapping and channel sampling indicated gold mineralization. Drilling in this underexplored extension of the structure could expand shallow gold mineralization in the Jubilee Shear Zone to a 2 km strike length.
Diamond drilling highlights in the southern extension of the Jubilee Shear Zone (source AFRI 41N15NE0055 for Duraine Mines drilling results):
3.06 g/t gold over 2.70 m, including 41.14 g/t gold over 0.16 m (D81-02)
6.95 g/t gold over 1.01 m, including 15.39 g/t gold over 0.45 m (D81-04)
8.33 g/t gold over 1.34 m, including 24.34 g/t gold over 0.34 m (D81-08)
3.99 g/t gold over 1.00 m (S302 – RPX 2019 historic core sampling)
Grace and Nyman Shear Zones
The Grace and Nyman shear systems, host of the historical Darwin-Grace Mine, will be targeted for the discovery of shallow high-grade gold mineralization. Red Pine's 2017 drilling demonstrated that high-grade gold mineralization is still present outside the mine's historic footprint and that mineralization in the Nyman vein extends at depth. Red Pine's mechanized stripping and mapping programs located the Grace Shear Zone extension, 110 metres north of the northernmost underground development of the Darwin-Grace Mine. The 2021 drilling program will test this new area in the structure.
Red Pine's diamond drilling highlights in the Grace and Nyman Shear Zones:
42.22 g/t gold over 2.44 m, including 107.49 g/t gold over 0.54 m (DG-17-55 – Grace Shear Zone)
57.31 g/t gold over 3.14 m, including 138 g/t gold over 1.11 m (DG-17-56 – Grace Shear Zone)
10.1 g/t gold over 0.82 m (DG-17-66 – Nyman Shear Zone)
Hornblende Shear Zone
Red Pine's diamond drilling in the Hornblende Shear Zone showed that gold mineralization, with potential zones of higher-grade mineralization, occurs over a strike length of at least 1.6 km. The largest zone of higher-grade mineralization, identified by historic drilling and confirmed by Red Pine's drilling, occurs at the seventh level of the historical Surluga Mine. Red Pine's drilling in the Hornblende Shear Zone also identified additional zones of broad mineralization with discrete zones of higher-grade mineralization in the structure.
Diamond drilling highlights in the Hornblende Shear Zone include:
5.61 g/t gold over 8.5 m, including 15.42 g/t gold over 2.9 m (HS-15-31)
2.91 g/t gold over 4.5 m, including 5.77 g/t gold over 1 m (HS-15-28)
3.18 g/t gold over 9.54 m, including 19.54 g/t gold over 0.61 m (U0007L7)
Minto B Shear Zone
The Minto B Shear Zone is located above the Jubilee Shear Zone, over the central and southern segments of the Surluga Deposit resource, north of the Parkhill Fault. Diamond drilling and mechanized stripping traced the structure over a strike length of 1 km and uncovered broad zones of gold mineralization. A higher-grade core also occurs in the structure, the size and grade could be defined with additional drilling. Diamond drilling in the Minto B Shear Zone will be undertaken concurrently with resource conversion, definition and exploration drilling in the Jubilee Shear Zone.
Diamond drilling highlights in the Minto B Shear Zone includes:
2.1 g/t gold over 10.6 m, including 3.7 g/t gold over 5.6 m (SD-18-256)
13.65 g/t gold over 2 m (SD-15-07)
4.69 g/t gold over 6.1 m, including 14.37 g/t gold over 1.52 m (U1683L5)
In 2020, Red Pine announced the latest assay results from its completed Summer 2020 drilling program of 5,300 metres at the Wawa Gold Project.
Highlights (Figure 1)
Holes SD-20-291, 292 and 293 successfully extended, at depth, the zone of higher-grade gold intersected in hole SD-20-289 earlier this year (see May 12, 2020 News Release)
A new zone of higher-grade mineralization was intersected in hole SD-20-293, the deepest hole to date completed by Red Pine
The gold mineralized zone was extended by more than 300 metres down-dip from, or 250 metres, below the current Surluga Deposit resource boundary (205,000oz Au @ 5.31 g/t in the indicated category and 396,000oz Au @ 5.22 g/t in the inferred category1)
Gold mineralization remains open at depth in all directions
Drilling Intersection Highlights
3.38 g/t gold over 13.3 m true width (“TW"), including 15.31 g/t gold over 1.64 m (SD-20-293) – New zone of higher-grade mineralization
1.63 g/t gold over 23.34 m TW, including 17.32 g/t gold over 0.88 m and 14.72 g/t gold over 0.85 m (SD-20-292)
2.06 g/t gold over 11.8 m TW, including 3.67 g/t over 1.03 m and 7.45 g/t gold over 0.84 m (SD-20-291)
Quentin Yarie, Chief Executive Officer of Red Pine stated, “The successful results from our Summer 2020 drilling program have extended the Surluga Deposit by approximately 300 metres down-dip to a total depth of approximately 600 metres and discovered what could be a new higher-grade zone in the shear structure. We are confident that, with additional drilling, the mineralized zones identified beneath the Surluga Deposit could potentially increase the current mineral resource. The visual indicators and the higher-grade gold assays (> 3 g/t) intersected in SD-20-293 suggest that the intensity of alteration and quartz veining associated with gold mineralization increases with depth. This defines a new promising exploration target for Red Pine as we continue to expand the Surluga Deposit."
The Surluga Deposit sits within the Jubilee Shear Zone (“JSZ"). Gold mineralization in the deeper extension of shear contains moderate-strong to strong quartz veining and silica flooding. The quartz veins contain disseminated pyrite with local pyrrhotite, arsenopyrite, sphalerite, chalcopyrite and galena. Some of the quartz veins also contains fine specks of visible gold in association with pyrite and accessory arsenopyrite.
Hole SD-20-290 intersected the outer edges of potential zones of stronger mineralization in the JSZ. A 2.75 metre-wide domain with stronger quartz veining, white mica alteration and quartz veining is present.
Hole SD-20-291 suggests the lateral extension of the higher-grade JSZ identified in hole SD-20-289 (Figure 2). Here, the core of the JSZ grades 2.06 g/t over 11.89 m (TW). The sample containing 7.45 g/t gold was diluted over approximately 50% of its length by a crosscutting diabase dyke and a 23.45 metre-wide halo of low-grade gold mineralization, characterized by spaced quartz veins, disseminated pyrite, and weak-moderate biotite/sericite alteration, is located above the higher-grade zone.
Hole SD-20-292 intersected the JSZ, 55 metres up-plunge from the intersection in SD-20-291. The JSZ in hole SD-20-292 is characterized by moderate white mica alteration with spaced quartz veining with a localized 1metre-wide quartz vein located in the upper part of the structure. The bottom 15 metres of the JSZ is truncated by a younger diabase dyke.
Hole SD-20-293, drilled 45 metres down-dip of SD-20-291 and Red Pine's deepest hole to date, intersected the JSZ between 553.44 to 568.91 metres. The quartz veining and silica flooding here is stronger than in holes SD-20-289 and SD-20-291. Disseminated pyrite with localized pyrrhotite, arsenopyrite, sphalerite, chalcopyrite and galena are observed. One of the quartz veins also contains three (3) fine specks of visible gold in association with pyrite and accessory arsenopyrite. The core of the JSZ grades 3.38 g/t gold over 13.3 m (TW). The zone remains open in every direction and visual indicators suggest that the gold content increases with depth. This newly identified higher-grade zone in the JSZ will be a priority target when diamond drilling resumes on the property.
Figure 2. Cross-Section showing interpreted extension of high-grade gold at the Surluga Deposit
Table 1. Highlights of reported drill results
Table 2. Coordinates of reported holes
Red Pine announced the discovery of a new mineralized gold zone in May 2020, beneath the Surluga Deposit1, during its on-going exploration program at its Wawa Gold Project, located 2 kilometres southeast of Wawa, Ontario. Hole SD-20-289 successfully intersected the Jubilee Shear Zone (host of the Surluga Deposit), 350 metres down-plunge of the current resource boundaries, with a significant intercept of 5.2 g/t gold over 6.31 metres (true width) at a depth of 570 metres. Hole SD-20-287 intersected 4.1 g/t gold over 0.94 metres (true width) below 450 metres depth.
Table 1. Highlights of reported drill results
Table 2. Coordinates of reported holes
Holes SD-20-287 and SD-20-289 were targeting the down-plunge extension of the southernmost limit of the Surluga Deposit resource.
Hole SD-20-287 intersected a large diabase dyke in the upper 20 metres of the Jubilee Shear Zone. The higher-grade gold results came from a 0.7-metre quartz vein in which specks of visible gold were observed. A 10.28 metre-wide halo of low-grade gold mineralization characterized by spaced quartz veins, disseminated pyrite, and weak-moderate biotite/sericite was intersected in the Jubilee Shear Zone, further down-hole of the diabase dyke.
Hole SM-20-288 was testing the expected limits of the projected plunge of the Surluga Deposit resource. No zones of strong alteration or mineralization were observed in that hole.
Hole SD-20-289 intersected gold 40 metres away from the gold intercept in Hole SD-20-286 (Figure 2). In the Jubilee Shear Zone, it hit a 7 metres zone characterized by stronger quartz veining associated with pervasive dissemination of pyrite, locally arsenopyrite, and moderate to strong biotite/sericite alteration. The upper part of the zone is cut by a 4 metre-wide lamprophyre dyke. High-grade gold mineralization is associated with alteration assemblages variably comprised of biotite/sericite-quartz veining-pyrite and sericite-quartz veining-arsenopyrite. A 12.3 metre-wide halo of low-grade gold mineralization characterized by spaced quartz veins, disseminated pyrite, and weak-moderate biotite/sericite alteration is located below the higher-grade zone in SD-20-289. Below the Jubilee Shear Zone, a new shear zone was intersected with pyrite mineralization and spaced quartz veining. Assays are pending for that shear zone and will be released when received.
Figure 2. Hole SD-20-289 intersection relative to SD-20-286
Management Team
Quentin Yarie, PGeo - President & Chief Executive Officer
Mr. 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, Mr. 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.
Jim O'Neill - CFO and Corporate Secretary
Mr. O'Neill has over 30 years' experience as a finance executive with multi-national businesses operating in Canada, the USA, the UK, Turkey, and Kenya. His extensive public company financial management and governance experience spans junior mining exploration, development, and operations, including appointments as CFO and Corporate Secretary of Aldridge Minerals Inc. and Virtus Mining Ltd. He currently also serves as CFO and Corporate Secretary of Western Gold Exploration Ltd., and New Break Resources Inc. and as CFO of Waseco Resources Inc. Mr. O'Neill holds a Bachelor of Business Administration (Honours) from Wilfrid Laurier University and earned his CPA, CA with Ernst & Whinney (now KPMG).
Jean-François Montreuil, P. Geo. (ON, QC), Ph.D - Chief Geologist
Dr. Montreuil holds over a decade of experience in exploring complex hydrothermal systems for battery, precious, base and radioactive metals and has contributed greatly to the advancement of Red Pine's Wawa Gold project and the discovery of the Minto Mine South Deposit. Previously, Dr. Montreuil is currently the Chief Geologist of MacDonald Mine Exploration and formerly Honey Badger Exploration. With a Master degree in Earth Sciences at Laval University and Ph.D in Earth Sciences at INRS-ETE, out of Quebec City, his on-going contribution to scientific research in collaboration with the Geological Survey of Canada, the Bureau de Recherches Géologiques et Minières (France geological survey), Geological Survey of South Australia, BHP-Olympic Dam, the University of Windsor and Laurentian University will continue to add value to the Canadian mining industry. Dr. Montreuil has also contributed to the industry through numerous Publications across International peer-reviewed journals in Economic Geology.
Tara Asfour - Investor Relations Manager
As Chief Development Officer for FairGreen Capital Partners and managing director of its North American and Canadian regions, Ms. Asfour has 10+ years of management, strategy development, fundraising and capital markets experience. Previously, Ms. Asfour successfully expanded the business of TG Capital, through deal sourcing, strategy and development of successful start-ups and took a hands-on approach with companies she successfully expanded and brought to market. Ms. Asfour previously held the roles of executive consultant and business advisor to TG Consulting, Executive Vice President at Organic Medical Growth and Communications Director at Dominion Water Reserves Inc, with an expertise in corporate affairs, investor relations and strategic partnerships. Ms. Asfour is a recipient of the prestigious Fondation Montreal Inc Young Entrepreneur Award, she holds an MBA from Herzing University and an undergraduate degree in Political Sciences from Concordia University.
Rachel Goldman - Director
Ms. Goldman brings 20 years of experience in institutional sales, mining company financings and corporate transactions during her career while at several Canadian brokerage firms where she developed an extensive list of investor and mining company relationships. In February 2020, she was appointed to the role of Chief Executive Officer and Director of Paramount Gold Nevada Corp (NYSE American: PZG).
“They're all good results, we've extended the depth of the mineralization by over 50 meters, we've extended the width of the mineralization and we're getting some very significant numbers, as high as 46 grams per tonne (g/t) over 5 meters," commented Macintosh.
He further shared, “We also did some channel sampling at surface, just to confirm that the mineralization does extend to surface, and we got up to 137 g/t over about three-quarters of a meter and 54 g/t over half a meter. So the mineralization, now we've confirmed, goes from surface down to over 250 meters. This is a huge success in the Phase 3 drilling, so we're pretty excited.”
Macintosh detailed the company's exploration plans for the Baldwin project, which is located directly east of the Shakespeare gold project. “(We're planning) regional field sampling and maybe even some till sampling as there is some overburden, and then following it up with a drill program later on in the year.”
Macintosh also shared his vision for the Baldwin project: “This is the kind of project that when we decide to develop it, or sell it to a company that will develop it, it will be extremely, extremely favorable conditions.”
Graycliff Exploration released assay results from Shakespeare in May 2022, reporting that drill hole J-31 intersected 20.52 g/t gold over 2 meters, including 39 g/t gold over 1 meter.
Watch the full interview of Graycliff Exploration President James Macintosh above.
Disclaimer: This interview is sponsored by Graycliff Exploration (CSE:GRAY,FWB:GEO,OTCQB:GRYCF). This interview provides information that was sourced by the Investing News Network (INN) and approved by Graycliff Exploration in order to help investors learn more about the company. Graycliff Exploration is a client of INN. The company’s campaign fees pay for INN to create and update this interview.
INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.
The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with Graycliff Exploration and seek advice from a qualified investment advisor.
This interview may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, receipt of property titles, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The issuer relies upon litigation protection for forward-looking statements. Investing in companies comes with uncertainties as market values can fluctuate.
Constantine Metal Resources CEO Garfield MacVeigh: Kicking Off Our $18Million Program at Palmeryoutu.be
Constantine Metal Resources (TSXV:CEM) CEO Garfield MacVeigh discussed the company’s progress on its three key projects, beginning with the flagship Palmer project in Alaska, a copper-zinc-silver-gold-barite project.
"We have an US$18 million construction program this year," he said. "It will prepare us for underground exploration development next year, establish some of our hydrological system for water discharge and put a construction camp in place. Some ongoing exploration is also planned. We’re looking at five years to get us to feasibility.”
Speaking about Constantine Metal Resources’ second project, MacVeigh noted past discoveries of over 80,000 ounces of gold at the Porcupine Creek area, adjacent to its flagship Alaskan zone. "Big Nugget is in the very early stage. We've documented the historic showings, relocated them, resampled them and did a soil sampling survey that identified a really nice target — so it's ready to drill, but it's an early stage project."
Discussing the Hornet Creek property in Idaho, Macveigh noted, “It’s a (volcanogenic massive sulfide) project with a possible copper porphyry environment, very similar in age to Palmer. We have a real high comfort level — it looks like a very big zone. We're doing some compilation work right now to also put some federal permits in place. It would be nice to be able to do some of that drilling a little later in the year.”
The CEO also discussed the company as an investment opportunity. “We're a group that's made real greenfield discoveries at Palmer and built resources there that look like they have a good chance to be a mine. At the same time, we've been consistently able to identify other opportunities that have also led to value for our shareholders.”
Watch the full interview of Constantine Metal Resources CEO Garfield MacVeigh above.
Disclaimer: This interview is sponsored by Constantine Metal Resources (TSXV:CEM). This interview provides information which was sourced by the Investing News Network (INN) and approved by Constantine Metal Resources in order to help investors learn more about the company. Constantine Metal Resources is a client of INN. The company’s campaign fees pay for INN to create and update this interview.
INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.
The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with Constantine Metal Resources and seek advice from a qualified investment advisor.
This interview may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, receipt of property titles, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The issuer relies upon litigation protection for forward-looking statements. Investing in companies comes with uncertainties as market values can fluctuate.
The S&P/TSX Venture Composite Index (INDEXTSI:JX) was on the rise last Friday (May 20) morning following another volatile week that sent the junior index as low as 690.
Edging just above 700 after the morning bell on Friday, markets across North America found solace after China moved to support its economy with a cut to a key lending benchmark.
On the commodities side, values for West Texas Intermediate crude oil topped US$114 a barrel last Monday (May 16), while Brent crude touched US$115. Both types had consolidated mildly by Friday to hold in the US$112 range.
Gold spent the third week of May trending higher after slipping to a three month low of US$1,809.50 per ounce on May 13. By last Friday, the yellow metal was trading for US$1,834.
Improving investor sentiment helped the TSXV and other markets move into the green by the end of the week, despite concerns that a recession could still be around the corner.
“Even though modest, the deceleration in price pressures (in April) will come as a welcome development to policymakers,” Thomas Feltmate, senior economist at TD Economics, said in an FocusEconomics update.
Feltmate went on to highlight the precarious position that the US Federal Reserve is in as it tries to stimulate the economy while reining in inflation. “The (Federal Open Market Committee) has its work cut out ... over the remainder of the year, as they quickly move to swing the monetary pendulum from accommodative to outright restrictive in an effort to guide inflation back to target without causing a recession,” he said.
The five TSXV-listed mining stocks that saw the biggest rises last week are as follows:
Here’s a look at those companies and the factors that moved their share prices last week.
1. Tombill Mines
Gold explorer Tombill Mines owns four claims groups, three of which are situated in the Geraldton gold district of North-Central Ontario. Tombill did not release any news last week; its last announcement was at the end of March, when it commenced a Phase IIa drilling program at the Geraldton camp.
Last week, Tombill saw its shares rise 100.68 percent to end the period at C$0.09.
2. Scorpio Gold
Nevada-focused Scorpio Gold holds a 100 percent interest in the consolidated Manhattan District in Nevada. The site includes the advanced exploration-stage Goldwedge property as well.
Scorpio did not make any public announcements last week. Company shares made a 70.24 percent gain, ending the five day period at C$0.08.
3. Royal Fox Gold
Exploration company Royal Fox Gold is developing the Philibert gold project near Chibougamau, Québec. Philibert consists of 110 mineral titles covering a total area of 5,393 hectares of “highly prospective ground.”
Last Wednesday (May 18), Royal Fox shared results from 12 drill holes completed as part of a 2022 campaign at Philibert. They tested the Red Fox zone over a 650 meter strike length and up to 400 meters vertical depth.
"The results announced today include meaningful grades and widths intersected at the Red Fox Zone at surface and at depth which continue to demonstrate continuity of the mineralization system along strike and down dip,” Simon Marcotte, president and CEO of Royal Fox, said in a statement.
He continued, “93 holes from the 2022 campaign remain pending and, as we continue to receive results, special attention is paid to the continuity of the mineralisation which matters even more than grade for a deposit of this nature.” By Friday, shares of Royal Fox were up 62.62 percent, trading for C$0.06.
4. Cordoba Minerals
Cordoba Minerals is a diversified company focused on the exploration, development and acquisition of copper and gold projects. Cordoba is presently developing its San Matias copper-gold-silver project in Colombia.
The last news the company released was at the end of April, when it confirmed a short-term loan of US$6 million from Ivanhoe Electric. Last week, shares of Cordoba added 47 percent to hold in the C$0.55 range.
5. New Stratus Energy
Focused on oil and gas development in Latin America through acquisitions, New Stratus Energy is targeting a production rate of over 50,000 barrels of oil equivalent per day within a three to five year timeframe.
New Stratus gave shareholders a corporate update on May 2, reporting a cash balance of C$17,277,485 as of March 31. Shares of New Stratus spent the third week of May gaining 45.26 percent to close at C$0.93.
Data for 5 Top Weekly TSXV Performers articles is retrieved each Friday at 10:30 a.m. EST using TradingView's stock screener. Only companies with market capitalizations greater than C$10 million prior to the week's gains are included. Companies within the non-energy minerals and energy minerals are considered.
Don't forget to follow us@INN_Resource for real-time updates!
Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
The securities of Kairos Minerals Limited (‘KAI’) will be placed in trading halt at the request of KAI, pending it releasing an announcement. Unless ASX decides otherwise, the securities will remain in trading halt until the earlier of the commencement of normal trading on Wednesday, 25 May 2022 or when the announcement is released to the market.
This article includes content from Kairos Minerals , licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
We're taking a break from our usual format this week so I can give you a recap of the Vancouver Resource Investment Conference (VRIC), which ran from May 17 to 18.
This is the first time VRIC has been live since January 2020, and it was my first in-person event since all the way back in March 2020 — it was definitely exciting to be back on the show floor having face-to-face conversations, and I'm excited to share our interviews with you over the next couple of weeks.
For now, let's talk about VRIC themes. Although it was clear attendees were glad to be off Zoom and back in the real world, there was a sense of sobriety given the current state of the broader markets.
Major indexes like the S&P 500 (INDEXSP:.INX) and the Dow Jones Industrial Average (INDEXDJX:.DJI) continued to tumble this week, with the former down about 18.5 percent year-to-date and the latter down around 14.5 percent.
Experts at the show had a variety of advice about handling this volatility, which you'll see as we start publishing our videos. Well-known contrarian Rick Rule of Rule Investment Media said he's proceeding with caution, but has a shopping list ready and "absolutely" sees today's circumstances as a buying opportunity.
On the flip side, Mercenary Geologist Mickey Fulp said he's focused on taking profits in the juniors when he can, and is seeking safety in assets like physical gold and farmland.
Another key topic was the US Federal Reserve. Unsurprisingly, the consensus at VRIC was that the central bank took much too long to act on inflation — now that it's begun raising rates, with two hikes in the cards so far, opinions are split on how far the Fed will get and what the consequences will be.
For her part, Danielle DiMartino Booth of Quill Intelligence said during a panel that she's happy to see Chair Jerome Powell returning to his more hawkish roots. She mentioned bankruptcies and junk bond spreads gapping out as signs that things are breaking, and she thinks Powell will keep going until "something big" cracks.
"We're watching things like today's activity in the stock market. We're watching junk bond spreads gap out, we're watching bankruptcies increase, we're watching sales decrease … something's going to break. And we're witnessing things breaking. I would postulate that (Powell is) going to keep going until something big breaks. That means something systemic, (something) major" — Danielle DiMartino Booth, Quill Intelligence
Of course, given everything going on in the world, one of the top questions at VRIC was why the gold price isn't higher. Although it spiked above US$2,000 per ounce earlier this year as the war between Russia and Ukraine broke out, it was down around US$1,845 at the time of this writing on Friday (May 20) afternoon.
Again, diverse answers were given about this, and you'll see them all come through in our content. For now, one thing I want to point out is that very few people expressed a bearish outlook on the yellow metal — although many think a higher price will take time, there seems to be little doubt that this will emerge moving forward.
Click here to bookmark our VRIC playlist on YouTube, and stay tuned as we add interviews.
Want more YouTube content? Check out our YouTube playlist At Home With INN, which features interviews with experts in the resource space. If there's someone you'd like to see us interview, please send an email to cmcleod@investingnews.com.
And don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Rick Rule: Gold, Oil and Gas, Coal, Water — Commodities for Now and Lateryoutu.be
As the broader markets face volatility, what is investor and speculator Rick Rule doing with his money?
Speaking to the Investing News Network at the recent Vancouver Resource Investment Conference (VRIC), Rule, who is proprietor at Rule Investment Media, said he sees today's circumstances as an opportunity.
"What bear markets really are is sales, and if you think that sales are good, then these are good," he said. He has a shopping list ready and is looking for places he can scale in, but did urge listeners to proceed with caution.
"I'm no market forecaster, but part of me suggests this could get worse before it gets better," he noted.
In terms of the commodities he's focusing on right now, Rule mentioned gold as important for defensive reasons, and said that while the easy money has been made in oil and gas, "there's lots of money still to be made."
He's also interested in larger commodities companies that are out of favor at the moment, such as Glencore (LSE:GLEN,OTC Pink:GLCNF) and Vale (NYSE:VALE).
"Right now I've found in the resource space at least that the larger, better companies are relatively more attractive than the smaller companies," he explained during the conversation.
"Normally the smaller companies are cheaper because of the lack of knowledge about them, but we're still in a very narrative-driven market, and what I've found is that the higher-quality companies on a risk-to-reward basis are actually cheaper than the smaller ones," Rule added. If the current rout continues, he imagines that micro-cap stocks will become cheap again and he will return to that area of the market.
When asked where market participants should look if they can be patient, Rule made the case for coal.
"Despite the fact that (Greta Thunberg) doesn't like coal, 3 billion people on Earth want access to affordable electricity, and we aren't going to deny them that," he said, pointing out that 2021 was the highest year ever for coal demand. "That affordable electricity — whether we like it or not — comes from coal."
Watch the interview above for more from Rule on the resource sector, including his thoughts on water. You can also click here for our full VRIC playlist on YouTube.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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