EDITOR: | May 8th, 2019

A good time to pick up junior gold stocks with potential

| May 08, 2019 | No Comments

Canada’s Red Lake gold district of Northwest Ontario is host to some of the richest gold deposits in the world, having produced 30 million ounces of gold from high grade zones. 18 million ounces of gold production has come from the nearby Newmont Goldcorp mines (Campbell and Red Lake Mines). Newmont Goldcorp’s Red Lake mines produced 209,000 ounces of gold in 2017.

Red Lake Gold district and projects

Red Lake Gold district and projects

West Red Lake Gold Mines Inc. (CSE: RLG | OTCQB: RLGMF) is a Toronto-based minerals exploration company focused on high grade gold exploration and development in the prolific gold district of Red Lake. West Red Lake’s 3,100 hectare property has a 12 km strike length and 3 former gold mines, and contains 1.1 million inferred ounces of high grade gold (7.57g/t) which is open at depth.

The chart below shows the three former gold mines on the property – The Mount Jamie Mine (100% owned), the Red Summit Mine (100% owned), and the Rowan Mine (60%-owned, 40% Newmont Goldcorp).

Recent strong drill results at the Rowan Mine property

Surface exploration work on the Rowan Mine property was undertaken during the fall of 2018 to identify several areas of exploration. The drilling exploration results were announced earlier this year that included intersecting 14.18 grams per tonne gold (“gpt Au”) over 7.8 meters and 35.26 gpt Au over 3.0 meters. The Company also intersected 6.51 gpt Au over 9.3 meters plus several additional positive gold intersections from shallow drilling.

Drill Highlights Include:

  • 14.18 gpt Au over 7.8 m, including 35.26 gpt Au over 3.0 m.
  • 6.51 gpt Au over 9.3 m.
  • 3.76 gpt Au over 5.6 m.
  • 13.80 gpt Au over 1.8 m.

The next drill program on the property is planned to follow the NT Zone further along strike to the northeast. The NT Zone trends northeast on to the property approximately 1 km east of the Rowan Mine.

Mr. John Kontak, President and Director of West Red Lake Gold stated: “We believe these results demonstrate that the 2 km long NT Zone holds significant exploration potential and we plan to focus exploration drilling at the NT Zone.”

In a recent interview with InvestorIntel’s Tracy Weslosky, Tom Meredith, Executive Chairman of West Red Lake Gold Mines Inc. said: “We trade based on the value of ounces in the ground. Right now, our market value is about $10 an ounce in the ground and in strong market north of a $100 an ounce in the ground. So, you will see a significant appreciation in our share price when capital flows into the sector.”

On the question of, is it time now to buy gold stocks? Tom Meredith replied: “It’s time to be watching them closely because the time is coming fairly soon I think. In the next quarter or two shareholders can expect continued drilling and looking forward to the market getting better.”

The Company’s long term strategy is to realize the greater potential of the West Red Lake Project as it sits within the prolific gold producing Red Lake Gold District. The aim is to develop a gold property asset that is attractive to the mining industry and the investment community.

Certainly given the good grades, the 1.1 million inferred resource and growing, West Red Lake Gold Mines would be on the radar on larger gold companies looking to acquires gold ounces. It should also be on investor’s radar.


Matthew Bohlsen is a Senior Editor for InvestorIntel.com. With a Graduate Diploma in Applied Finance and Investment, and a Graduate Diploma in Financial Planning. He ... <Read more about Matthew Bohlsen>

Copyright © 2020 InvestorIntel Corp. All rights reserved. More & Disclaimer »

Leave a Reply

Your email address will not be published. Required fields are marked *