West Red Lake Gold Mines eagerly awaits drill assay results
West Red Lake Gold Mines Inc. (CSE: RLG | OTCQB: RLGMF) is a Canadian company focused on gold exploration and development in the prolific Red Lake Gold District of Northwestern Ontario, Canada.
The Red Lake Gold District
The Red Lake Gold District is host to some of the richest gold deposits in the world and has produced nearly 30 million ounces of gold from high grade zones, including 18 million ounces from the nearby Red Lake Mine and Campbell Mine operated by Goldcorp. In 1995 Goldcorp, owner of the Red Lake Mine, discovered that it contains the world’s richest grade gold ore (two troy ounces of gold per metric ton). Goldcorp’s Red Lake Mine produced 325,000 ounces of gold in 2016.
West Red Lake Gold project
West Red Lake Gold Mines has assembled a 3,100 hectare property in the Red Lakes Gold District, which has a 12 kilometre strike length and 3 former gold mines (Rowan Mine, Red Summit Mine, Mount Jamie Mine). The Mount Jamie Mine and Red Summit Mine properties are 100% owned by the Company, and the Rowan Mine property is held in a 60%-owned joint venture with Goldcorp Inc. (40%).
The Company’s mineral resource estimate is 1.1 million Inferred ounces of gold grading 7.57 g/t Au, with exploration upside. Note that West Red Lake Gold Mines has a 60% interest in the NI 43-101 resource estimate.
On May 18 the Company announced: “A deep hole has been drilled on the Rowan Mine property as part of ongoing exploration work on the 3,100 hectare West Red Lake Project. The hole was located 450m east of the Rowan Mine shaft, and was drilled to the north at -74 degrees over a length of 1,272m. Due to spring breakup conditions drilling operations were stopped and further drilling is planned to commence in the second half of 2018. The drill core has been logged and samples have been sent out for assay.”
John Kontak, President and Director of West Red Lake Gold Mines states: “In 2018 our focus is just to go to depth right under the resource area and endeavor to expand the mineralized zones down to about 1,000 meters, which is still relatively shallow in the Red Lake Gold District.”
The Company is working to explore and develop a significant high grade gold resource at the Rowan Mine. The long term Company strategy is to realize the greater potential of the West Red Lake Project including the Mount Jamie and Red Summit Mines and the structural intersection drill target. The overall strategy is to develop a gold property asset that is attractive to the mining industry and the investment community.
Access and infrastructure are good as the township of Red Lake acts as a cargo, passenger and tourism hub for Northwestern Ontario and is located at the northern terminus of Highway 105. It is the northernmost town in Ontario.
Near term catalysts include drill assay results, a scoping study to look at the economics of the deposit, and baseline environmental studies.
Current market cap is C$ 11m. Given the regions gold prospects, the Rowan properties 12 km mineralised strike length, and the 60% share of the 1.1 million inferred resource at reasonable grade, the Company represents excellent value for investors.
Looking at the history and the activity of the region plus having backing at Rowan by Goldcorp (market cap C$ 16b ), puts the Company in a great position to succeed.
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>