Gold pioneer Thomas Meredith targets Red Lake for another touchdown?
West Red Lake Gold Mines Inc. (CSE: RLG | OTCQB: RLGMF) (”RLG”) has long sought to prove the existence of further high-grade deposits by targeting an area believed to hold compelling exploration potential.
The presence of intersecting structures provides a geological environment for the occurrence of significant gold zones. Recent drill results from this particular area demonstrated a grading of over 26 g/t, which continues to provide us with increased confidence in the overall zone. As such, it seems that sampling will continue into the new year and that Red Lake will continue to defend its reputation as one of the greatest gold producing regions this planet has to offer.
People have been pouring into Ontario´s Red Lake area since gold was first observed there in 1925; within ten years, Howey Bay had the world´s busiest airport, and yet even more prospectors continued to arrive by dog team and foot. To date, the Red Lake Mining District has produced over 22 million ounces of gold and ranks among the top 10 most desirable gold jurisdictions in the world.
In 1995, the high-grade zone was first discovered and is the backbone of modern day Red Lake operations. Recent investments in infrastructure and development have positioned these renowned mines for many more years of long-term sustainable production.
The three historic mines on RLG’s property sit along the east-west trending Pipestone Bay-St. Paul deformation zone, a regional structure that continues eastward off the property. A second gold bearing volcanic structure, the NT Zone, trends northeast on to the property and intersects with the Pipestone Bay-St Paul deformation zone approximately 1km east of the former Rowan Mine. Most of RLG’s efforts to date have focused around the Rowan Mine, where drilling and historic data support an inferred resource of 1.1 million oz, within 4.5 million tonnes grading 7.57 g/t gold. The Mount Jamie Mine and the Red Summit Mine are owned 100% by RLG. The Rowan Mine is owned 60% by RLG and 40% by Goldcorp, a major funding partner with a long history at Red Lake.
Thomas Meredith is a successful entrepreneur and gold pioneer in the resource industry. He now heads up RLG after transforming his former company, VG Gold, in what is becoming a very similar story. He took the then broken VG with a $3 million market capitalization, cleaned up the management and board, focused on advancing and de-risking the company’s four historic mines in the Timmins gold camp, culminating in a resource base increase from 60,000 oz to 2 million oz. He oversaw the completion of two PEAs, a joint venture with Goldcorp, got permitting underway, and attracted Rob McEwen in as an investor, who took a 40% stake in VG through his company Lexam Exploration. By the time Lexam and VG merged eighteen months later, VG Gold had a market cap of $200 million.
Meredith is clearly aiming to repeat his past successes at Red Lake and is relying on future drill results to prove him correct. Crucially, there are producing mines only 20 km away and the area is already world-famous for its historic grades. Continuing to produce positive drill results could rapidly turn the site into an acquisition target; with 50.41 grams of gold per tonne over 1.50 metres and 22.72 grams of gold per tonne over 1.50 metres confirmed at the end of last year, the recent results may be enough to convince most investors of the project’s merits.