Market
Equities Research - Market Bulletin
December 11, 2019 10:38 AM ET
Red Pine Exploration growing intrinsic gold value presents
opportunity
The current known global intrinsic value at RPX.V’s Wawa Gold
Project is 700,000 oz of Gold grading > 5 g/t (~230,00 oz
Indicated & 471,000 oz Inferred) already identified on the
property in two deposit zones with over 95% of the contained
ounces located between surface and 350 m depth, open
at depth and on strike. Note: It is not uncommon in Canada
and around the world for gold deposits to typically extend to
vertical depths exceeding 2 km.
The
property hosts several former mines with a combined historic
production of 120,000 oz gold. The underground developments of
the historic Jubilee and Surluga mines provide access to the
zones of the current Surluga resource.
The
Company has numerous gold-bearing structures identified on the
property, several exploration targets at the Wawa Gold Project
combined could contain up to 3.0 million oz gold.
Entering
2020, look for management of V.RPX to make moves that will
greatly improve shareholder value.
Red Pine Exploration Inc. (TSX-V: RPX) (US listing: RDEXF)
(Frankfurt: VG31)
presents an ideal way for investors to gain exposure to precious
metals in a safe/stable mining-friendly jurisdiction, as the Company
continues to build intrinsic gold value at its flagship 5,500
hectare Wawa Gold Project in the McMurray Township, 2 km southeast
of the Town of Wawa, Ontario, Canada. Seasoned precious metal
experts agree, when the price of gold takes off the shares of mining
companies with intrinsic gold value are apt rise at multiples,
several times that of the underlying commodity.
2019 saw Red Pine update the Mineral Resource estimate on its
Surluga Deposit. The new underground resource represents a
significant increase in grade, quality and continuity of the gold
zones at Surluga, and a shift from an open-pit development plan to a
high-grade underground model; a 2.7 g/t cut-off within a 2 g/t
envelope, now stands at 1,202,000 tonnes at 5.31 g/t for 205,000
oz gold in the Indicated category and 2,362,000 tonnes at
5.22 g/t for 396,000 oz gold in the Inferred category. The
technical report, by Golder Associates Ltd., included both Mineral
Resource estimates identified, to date, on the Wawa Gold Project –
the updated Surluga Deposit noted above, and the previously reported
NI 43-101 Minto Mine South Deposit (105,000 tonnes at 7.5 g/t
gold in the Indicated category for 25,000 oz of gold and 354,000
tonnes at 6.6 g/t gold in the Inferred category for 75,000 oz of
gold).
.
Figure 1 (above) Minto Mine South and Surluga Deposits.
Over 95% of the contained ounces at both deposits are located
between surface and 350 metres depth. Both deposits remain open at
depth. The underground developments of the historic Jubilee and
Surluga mines provide access to the zones of the Surluga resource.
Most recent exploration
related news from Red Pine Exploration Inc.:
November 21, 2019 -
Red Pine Intersects Unexpected Gold Zones at the Wawa Gold Project -
Highlights Include 2 g/t over 11.28m including 6.13 g/t over 3.15m
; Quentin Yarie, Red Pine's CEO, offered the following synopsis in
the release "Our 2019 exploration results continue to
successfully extend the Wawa Gold Project resource with gold
intercepts in the Surluga Deposit, the Hornblende Shear Zone, and
the Minto B Shear Zone. The new gold zones in the hanging wall and
footwall of the Surluga Deposit indicate that new discoveries are
still possible, and continue to be uncovered, near and beyond the
footprint of the current resource. Also, results to date show that
the resource can not only be expanded at depth, but also laterally.
We now have evidence of the continuity of gold mineralization over a
strike length of 1 kilometre in the Hornblende Shear Zone and 800
metres in the Minto B Shear Zone with both zones remaining open
along strike and at depth."
Figure 2 (above) 3D rendition of new gold zones intercepts;
click to view
https://youtu.be/7d2n7s7b_uI
[running time 35 seconds]
Figure 3 (above) Shear Structures of the Wawa Gold Project
The current ownership
of the Wawa Gold Project is 64.5% Red Pine Exploration, 35.5% Citabar
LP. (see related
December 11, 2019 release), Red Pine is the operating manager of the Project.
A further consolidation of ownership in Red Pine’s favor should prove additionally
favorable for shareholders.
The 2020 exploration season should see Red Pine Exploration Inc.
advance the Wawa Gold Project toward becoming a valuable marketable
asset. Red Pine should be able to demonstrate its ability to readily
extend the gold zones at depth. It is typical of mines in the area
to line up a few years of initial quality mineralized material but
remain operational for many decades, adding as they go, several km
down over the decades.
The Company should also further demonstrate the large bigger-picture
/ districtwide new discovery potential.
Figure 4 (above)
map showing location of Wawa Gold Project along regional mineralized
trend. The best place to find a new mine is next to a past producing
one, the target-rich property is 5,500 hectares and highly
prospective for new discovery.
Figure 5 (above) – Wawa Gold
Project map. The Darwin-Grace structure is a high-grade
structure located 3 km south of the southernmost extension of the
Surluga Resource, and just one example of many exciting big-picture
targets. The historic Drawin-Grace Mine milled over 41,300 tonnes at
an average grade of 17.63 g/t Au (ended production in 1938).
Highlighted 2019 channel sampling results include: 16.49g/t Au over
0.6 m, 7.56 g/t Au over 1.05 m, and3.75 g/t Au over 1.0 m.
Figure 6 (above) District scale potential.
Wawa Gold Project gold camp comparisons of other near-surface
deposits that remain open along strike and at depth:
Magino
owned by Argonaut Gold, current depth is ~400 m, total gold resource
is ~2.137 Moz.
Island Gold
owned by Alamos Gold, current depth is ~1,500 m, total gold resource
is ~1.007 Moz.
Eagle River
owned by Wesdome Gold Mines, current depth is ~1,600 m, total gold
resource is ~0.416 Moz.
Now consider…
Surluga/Minto South
owned by Red Pine Exploration, current depth of <350 m, total gold
resource of ~700 Koz. The comparisons above are more advanced with
multiple variables (difficult to compare apples with oranges between
them), however comparatively RPX.V appears on sale and
clearly presents opportunity at its current trading price.
Look for the market to
put a bid under shares of Red Pine Exploration Inc. (TSX-V: RPX)
entering 2020. The Company is building a significant gold
asset and is poised for upside share price revaluation to better
reflect the growing intrinsic value.
The following URLs have
been identified for further DD on Red Pine Exploration Inc.:
This bulletin may contain
forward-looking statements regarding future events that involve risk and
uncertainties. Readers are cautioned that these forward-looking statements are
only predictions and may differ materially from actual events or results.
Articles, excerpts, commentary and reviews herein are for information purposes
and are not solicitations to buy or sell any of the securities mentioned.
