West Red Lake Gold continues to drill for high grade gold in the prolific Red Lake Gold district
With so much news in recent weeks on the price of gold any gold juniors having exploration success have seen significant price appreciation. The following company could well be next if they can drill further high-grade gold intercepts in the next few months.
Canada’s West Red Lake Gold Mines Inc. (CSE: RLG | OTCQB: RLGMF) near term strategy is to explore and develop a high-grade gold resource at the NT zone and develop the Rowan Mine to depth, along with scoping studies and baseline environmental studies. The Company has recently announced exploration plans on their West Red Lake Project property located in the prolific Red Lake Gold District, Northwestern Ontario.
The prolific high-grade Red Lake Gold District
Twenty kilometers to the east of the West Red Lake Gold’s property is the world-class Red Lake Mine and Campbell Mine. The Red Lake Gold District is host to some of the richest gold deposits in the world and has produced 30 million ounces of gold from high-grade zones. The Company’s West Red Lake Project, which hosts three former producing gold mines on a 3,100-hectare property, is illustrating a similar geologically setting showing the exploration potential for high-grade gold zones.
Red Lake Gold District and West Red Lake Gold Mine’s tenements
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Drilling to soon begin at the NT Zone (on the Rowan Property)
Starting in October 2019, the Company plans to initiate a drill program on the NT Zone (on the Rowan Property). This will consist of approximately 12 drill holes that will be designed to follow up and expand on the positive results from the 8 holes drilled into gold mineralization and reported on January 30, 2019.
The NT Zone is located on the Rowan Property joint venture portion of the West Red Lake Project. It trends north-east from the south property boundary for a distance of 2 kms. The Company plans its focus on exploration drilling on the southern 1 km portion of the 2 km long NT Zone. This will initially be from surface to 200 meters depth. Exploration work on the northern portion of the NT Zone will also take place.
Mr. John Kontak, President of West Red Lake Gold Mines, stated: “The upcoming exploration drilling at the gold-bearing NT Zone provides a good opportunity for expansion of property gold mineralization. We are looking forward to exploration drilling starting soon in 2019 and continuing in 2020 on this attractive gold exploration property.”
Beginning in 2020, and subject to future financing, the Company plans to continue exploration on the property. Ongoing drilling to expand the NT Zone gold mineralization is expected, with drill programs throughout the year.
Joint Venture update (West Red Lake Gold 60%, Newmont Goldcorp 40%)
In a joint venture update, West Red Lake has been advised by its joint venture partner on the Rowan Mine property, that it does not intend to fund its pro-rata share of proposed exploration expenditures on the property during 2019 and 2020. According to the joint venture agreement terms covering exploration expenditures, this will result in an increase in West Red Lake Gold’s ownership interest in the Rowan Mine property. West Red Lake currently holds a 60% interest in the Rowan Mine property and will continue to have regular joint venture management meetings with the Newmont Goldcorp Red Lake exploration team. Subsequent to the combined exploration expenditures by the two partners having exceeded $5 million, Newmont Goldcorp’s back in right on the Rowan Mine property has expired.
The Rowan Mine
As a reminder for investors, the Rowan Mine (JV with Newmont Goldcorp) has about 1.1 million inferred ounces of high-grade gold (7.57g/t).
The Rowan Mine Resource
West Red Lake Gold Mines offers investors an inferred 1 million ounce high-grade gold resource (60% in current JV), excellent exploration upside in a high-grade gold region, and a near term drilling program designed to hopefully expand the current resource. West Red Lake Gold Mines Inc. is based in Toronto Canada; and has a market cap of C$ 10.5 million.
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>