West Red Lake Gold Mines Inc. (CSE:RLG) released some high-grade drill results this year
SmallCapPower | March 8, 2019: West Red Lake Gold Mines Inc. (CSE:RLG) is a developer advancing its Red Lake project, comprising three former-producing gold mines called Rowan, Mount Jamie, and Red Summit, located 16km NW of Red Lake, Ontario and 25km west of the Red Lake gold mine operated by Goldcorp. In the same area, Goldcorp’s 2018 production guidance for its underground Red Lake mine was 235K oz Au at AISC of US$1,000/oz. The Red Lake mine hosts P&P mineral reserves of 8.8Mt grading 7.65 g/t Au for 2.2M oz Au. Current exploration focus is on the Rowan mine, with results so far indicating high-grade mineralization.
West Red Lake Gold Mines Inc. (CSE:RLG) – $0.08
- Market Cap: $10.4 Million
- 52 Week High: $0.12
- 52 Week Low: $0.05
- 90-Day Average Volume: 112,000
- Cash: $590,000
*Share price data as at March 6, 2019, data obtained from S&P Capital IQ
High-grade drill results from NT Zone. In late 2018, RLG completed an 8-hole diamond drilling program totaling 1,443m along a 250m portion of the 2-km long NT Zone, located ~800m south of the former-producing Rowan mine. Results were announced on January 30, 2019, highlighted by 14.18 g/t Au over 7.8m, including 35.26 g/t Au over 3.0m. Following these significant results, RLG plans to drill on additional NT Zone targets, further along strike to the northeast.
During 2018, RLG announced drill results from exploration programs on the historic Rowan mine. Drilling at the Rowan mine comprised deep drilling below the present resource and previous exploration drilling in 5 holes totaling ~3,800m. The drilling commenced in March 2018, following encouraging results from the 2,400m five-hole drill program announced in February, (highlighted by 4.2 g/t Au over 3.4m). In July, RLG announced results from a 1,272m deep diamond drill hole, intersecting altered mafic volcanics, which host Rowan mineralization at a depth of 1,122m. Importantly, assays from a 1,163.5-1,165.0m interval returned 4.39 g/t Au over 1.5m, highlighting potential for future exploration to increase the resource at depth.
Mineral Resource at Rowan is a solid starting point. West Red Lake Gold originally earned a 60% interest in the Rowan claims optioned from Goldcorp and now manages the asset through a joint-venture agreement with Goldcorp. As of 2016, using US$1,150/oz Au, Rowan hosts an Inferred mineral resource of 4.5Mt grading 7.57 g/t Au for 1.1M oz covering a 1.8km strike length drilled to a depth of ~300-350m.
Mount Jamie and Red Summit are other options. Both mines, wholly-owned by RLG, have historically produced during the 1930s. Key results of Mount Jamie’s 2,544m drill program in 2017 included 26.2 g/t Au over 1.0m, 11.8 g/t Au over 1.5m, 7.6 g/t Au over 3.0m. At Red Summit, there remain several known gold zones and a 575-foot shaft, which was last in production during the 1930s, producing at an average grade of 14.6 g/t Au.
Cashed up for near-term exploration. In January 2019, RLG closed a $440K flow-through financing at $0.07/unit. Each unit comprises one share and one-half 18-month warrant with a strike price of $0.10/share. Proceeds are expected to be used towards exploration at the Company’s West Red Lake property.
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