Another Great #GOLD Opportunity at Red Lake
The most likely place to find our favourite yellow metal is wherever it has been identified previously; Red Lake, Ontario, has a long and famous history as a gold-rich region, and numerous mines, over many decades, have so far extracted a cumulative total of more than twenty-eight-million ounces of gold. Goldcorp’s Red Lake Mine, which sits on the highest-grade gold zone in the world, boasts areas containing a massive 2 oz/t Au. The High-Grade Zone was first discovered in 1995, culminating in the development of the richest gold mine in history, and sparking an entirely new Red Lake gold rush that has attracted some very high-profile people indeed.
Thomas Meredith, CEO of West Red Lake Gold Mines Inc. (CSE: RLG | OTCQB: RLGMF) (“West Red Lake”), has considerable experience, not to mention success, in delivering proven resources to willing buyers, and creating phenomenal shareholder value in the process. The standard story for a gold deposit is for it to be acquired by an existing producer as soon as it becomes attractive enough. For the explorer, this means providing credible resource estimates as well as fully mapping the geology of the area; the overall effect is to increase trust in a project and reduce risk as far as it will go.
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This year, Meredith aims to prove that his three existing mines at Red Lake have the potential to produce vastly more gold in the future, and recent drill results have added credence to his theories. Although exploration is expected to continue throughout 2017, results from the latest drill produced a staggering grade of over 2.5 oz/t Au over 3 meters, and the full results suggest that there is considerable additional gold mineralisation at depth. Further drilling should drive the resource estimate up even more and add massive value to the operation, creating a fully feasible potential mining setup which, given the history of the area, should be snapped up in no time.
The latest drill target is known as the Rowan mine, but east of there lies a geological intersection which will be the company’s most revealing target. These structures are renowned for containing large quantities of valuable material since they are the result of volcanic activity that folds and creases the rocks together, potentially creating contiguous pockets of collected gold. Red Lake has already produced world-class deposits based around these very geological features, and we are expecting a very similar story from the team at West Red Lake.
The project is a joint venture between West Red Lake and Goldcorp, but West Red Lake are the operators with 60% ownership. In a relatively short time, the mine should be suitable for acquisition, and considering the CEO’s previous endeavour resulted in a sixty-six-fold increase in value, stocks in RLG will almost certainly be flying off the shelves this summer. An investor who went in with only a thousand dollars, say, would come out pretty quickly with nigh-on seventy grand should Mr Meredith repeat his previous skilful turnaround.
Providing the knowledge that a deep mine guarantees successful extraction at Red Lake is all the peace-of-mind a company needs to build one. This year’s exploration should see that proof take shape, with the possibility of record-breaking grades being discovered at the promising structural intersection. Shares in RLG are currently trading at around C$0.18, and as word spreads about the emerging evidence of the presence of high-grade paydirt, investors should keep in mind that maximum gains are made by the earliest birds. The track record of the area and the people, combined with the recent exciting results, should be enough to motivate the growth-hungry to get in on the new Canadian gold rush.
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