Despite tough market conditions over the last few years, West Red Lake Gold Mines Inc.’s (CSE:RLG) persistence in continuing their drill program was rewarded in 2017
Angela Harmantas | March 2, 2018 | SmallCapPower: A Canadian junior miner’s commitment to keeping the drills turning during a bear market paid off in a big way in 2017. Armed with increasingly promising drill results and some bonanza intercepts, West Red Lake Gold Mines Inc. (CSE:RLG) is zeroing in on the Rowan Mine Zone to unlock value in the prolific Red Lake district in northwestern Ontario.
Rowan is part of a 3100-hectare swath of land that the Company owns in Red Lake, home to some of the richest gold deposits in the world. The property hosts three former-producing gold mines over a 12-kilometre strike length along the Pipestone Bay St Paul Deformation Zone. The current deposit hosts a mineral resource estimate of 1.1 million Inferred ounces grading 7.57 g/t Au. Goldcorp Inc. (TSX:G), the preeminent producer in Red Lake, has a 40% interest in Rowan.
Despite tough market conditions over the last few years, West Red Lake’s persistence in continuing their drill program was rewarded in 2017. Drilling at Rowan intercepted was highlighted by 72.6 g/t over three metres, a promising result by any standard. Other highlights include intercepts grading 21.9 g/t and 16.1 g/t over one metre.
This year’s drill program, expected to begin in March 2018, puts Rowan at the centrepiece to potentially expand the resource. “Rowan is really the focus for the Company,” said John Kontak, president of West Red Lake Gold Mines. “In 2018, we’ll endeavour to expand the mineralized envelop by going to depth. One will be able to see how we’re attempting to add ounces. In the future, one may anticipate that the value per ounce could get revalued to previous levels and in time show up in our market capitalization and shareholders could see positive returns.”
The management team has a track record of creating value for shareholders. West Red Lake’s executive chairman, Tom Meredith, previously led the development of four gold projects in northwestern Ontario with VG Gold. He grew his former company from a $3 million valuation to well over $200 million, before merging with Rob McEwen’s Lexam Gold. He worked with John Kontak and West Red Lake’s exploration manager, Ken Guy, for many years.
While the 2018 drill program will focus on Rowan, there are a number of other targets on the property that could have significant upside for West Red Lake Gold Mines. To the east of Rowan is the Structural Intersection, where regional gold-bearing structures intersect the main east-west trend. There is also the past-producing Mount Jamie Mine, which historically produced grading 13.3 g/t. At Red Summit, the main focus of exploration has been gold zones situated in the area of the mine shaft.
For now, Rowan is key to unlocking the potential to develop a new mine project in Red Lake. “Our focus is to make Rowan viable within the gold producing sector in Canada over the next couple of years,” said Kontak. “We’re doing everything we can to develop another mine right there in Red Lake, Ontario.”
Ubika Research/SmallCapPower has received compensation from West Red Lake Gold Mines to provide analyst research coverage. For full disclosure please visit here >>.
To read our full disclosure, please click on the button below: