West Red Lake Gold Mines reports high grade gold intercepts at depth and extends strike

The recent gold price pull back has many investors looking for opportunities before the next possible U.S. COVID-19 stimulus package is announced. The last time the U.S. government announced a stimulus package the price of gold reacted dramatically. Even if the U.S. House of Representatives rises next month without passing a last-minute pre-election stimulus package, uncertainty is gold’s friend, and traditionally gold and gold companies do well in uncertain times.

Gold price – 1 year price chart – Currently US$1,863 per ounce

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One junior gold exploration company that has continued to work through Covid and advance their project is West Red Lake Gold Mines Inc. (CSE: RLG | OTCQB: RLGMF | FSE: HYK) (‘West Red Lake’), which is focused on gold exploration and development in the prolific Red Lake Gold District of northwest Ontario, Canada. The Red Lake Gold District is host to some of the richest gold deposits in the world.

On September 24, West Red Lake announced further high grade drill results including 5.91g/t gold over 6.0 meters. Results from the latest news from drilling at their Rowan Mine NT Zone included:

  • 7.92 gpt Au over 3.0 m, including 14.71 gpt over 1.50 m
  • 3.41 gpt Au over 13.5 m, including 5.91 gpt over 6.0 m
  • 3.96 gpt Au over 4.50 m, including 7.31 gpt over 1.50 m
  • 7.34 gpt Au over 1.50 m
  • 2.76 gpt Au over 4.50 m
  • 1.92 gpt Au over 6.0 m, including 4.67 gpt over 1.50 m
  • 1.68 gpt Au over 9.0 m

The recent drilling confirmed the gold potential of the known mineralization and extended the mineralization to depth and 200 m further along strike to the northeast from the previous drill program reported in January. The company also reports that results indicate the presence of several parallel gold zones within the 100 m wide NT Zone structure and alteration halo.

President of West Red Lake Gold, Mr. John Kontak, said that the company is “very pleased that the drilling has further expanded the NT Zone gold mineralization to depth and along strike. The exploration work serves to demonstrate that significant exploration potential exists on this regional scale gold-bearing geological structure which is well situated in the Red Lake Gold Camp.”

West Red Lake has a 3,100 hectare property with a 12 km strike length that contains three former gold mines. In total they have an NI 43-101 reported 1.087 million inferred ounces of high grade gold (7.57 gpt) open at depth. This inferred resource on the Rowan Mine Property, which is held as a JV between Evolution Mining (36% partner) and West Red Lake Gold Mines (64% partner/operator). The NT Zone is located approximately 800 meters south-east of the Rowan Mine gold deposit and is part of the Rowan Mine Property JV.

West Red Lake Gold Mines’ 3 main projects and tenements (shown in red)

 

Future exploration drilling on the property is planned to follow NT Zone gold mineralization to greater depth below the positive drill results and also continue exploration drilling further along strike to the northeast with the intention of expanding the mineralization down and out.

The Red Lake Gold District is known for significant high grade gold

The Red Lake, Ontario, Canada, district has produced 30 million ounces of high grade gold, and the nearby Evolution Mining mines (Campbell and Red Lake Mines) have produced 18 million gold ounces.

Ontario has one of Canada’s most prolific mining districts known for gold

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It is becoming quite unusual these days to find a high grade gold junior miner with 696,000 attributable gold ounces that trades at a market cap as low as C$22m (~US$16.5m). The resource is still in the inferred category, but it is based on a February 2016 NI 43-101 estimate, which has not been updated to take into account the past several years of successful drill results.




John Kontak on West Red Lake Gold Mines and the impact of COVID-19 on Gold Market Sentiment

“The main macroeconomic factors that create a positive global environment (for gold sector) include negative real interest rates, increasing money supply and increasing budget deficits and national debts…in general, it is positive for the gold sector.” States John Kontak, President and Director of West Red Lake Gold Mines Inc. (CSE: RLG | OTCQB: RLGMF), in an interview with InvestorIntel’s Tracy Weslosky.

John went on to say that West Red Lake Gold intends to take advantage of the positive gold sentiment and be busy with their property in Red Lake Gold District of Northwest Ontario, Canada. John continued, “We have a high-grade deposit with an inferred resource of 7.57 grams per ton at the Rowan Mine deposit. It is 1.1 million ounces of gold all within 500 meters of surface…with experienced management like ourselves at West Red Lake Gold Mines in well developed mining jurisdiction and mining camp like Red Lake, Ontario – these assets are going to be outperforming over the next two to three years.”

To access the complete interview, click here

Disclaimer: West Red Lake Gold Mines Inc. is an advertorial member of InvestorIntel Corp.




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

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.




West Red Lake Gold’s Kontak on the ‘positive’ gold sector

“I think that the macro picture is in place for a positive gold sector and we think that is the case for the next extended period of time. Now on the junior level, junior developers like us, we are getting $13.00 an ounce in the ground based on our resource estimate at the Rowan Mine. These things are going to get revalued at some point. Historically they will get 10 times what they are getting right now per ounce in the ground. We think there is a positive situation ahead in the precious metal sector including gold exploration and development companies like ourselves.” States John Kontak, President and Director of West Red Lake Gold Mines Inc. (CSE: RLG | OTCQB: RLGMF), in an interview with InvestorIntel Corp. CEO Tracy Weslosky.

Tracy Weslosky: Your stock moved up 27% last week on no news. Do you think investors are looking at gold again John? 

John Kontak: Of course we are happy to see the movement in our stock. The question would become, I think to some extent, does it look like 2016 again when the gold peaked at $1,900.00 in 2011 and then we went into a bear market in the gold sector including the juniors? It kind of turned around in 2016. Let me answer that on a macro level and then relate it to the junior sector. On the macro level I think the price of gold in New York right now is being determined by the Federal Reserve policy. They have been increasing interest rates at 25 basis points. That has created a strong U.S. dollar and a weakness in the gold sector. But, there are only so many interest hikes ahead. For every 1% on the T-bill there is $220 billion dollars of interest given that the U.S. is now under $22 trillion dollars of debt at the national level alone. Regardless of what has happened last week, I think that the macro picture is in place for a positive gold sector and we think that is the case for the next extended period of time. Now on the junior level, junior developers like us, we are getting $13.00 an ounce in the ground based on our resource estimate at the Rowan Mine. These things are going to get revalued at some point. Historically they will get 10 times what they are getting right now per ounce in the ground. We think there is a positive situation ahead in the precious metal sector including gold exploration and development companies like ourselves. We are happy with what happened last week and we think there is more of that ahead.

Tracy Weslosky: InvestorIntel audience members out there, we have a bit of a buzz going on with a belief that some of the cannabis cash will be redirected into gold here shortly. We have asked John, because, of course, West Red Lake is in one of the richest gold deposit areas in the world, correct?

John Kontak: Yeah. Just to remind your listeners, we have the West Red Lake Project property. It is a 3,100 hectors on the west side of the Red Lake Gold District. We have 12 kilometers of strike length on the Pipestone Bay St Paul Deformation Zone, the regional gold bearing structure that has made the Red Lake Gold District a high-grade gold district that has produced 30 million ounces over time. On the West Red Lake project there are 3 former mines. We have the Mount Jamie Mine and the Red Summit Mine; we own 100%. On the Rowan Mine, which is the most developed portion of our property, we own 60% and operate in Goldcorp, one of the largest gold producers in the world that was founded in Red Lake, Ontario, has 40% and they fund their 40%. We have a resource estimate at the Rowan Mine property. It is 1.1 million ounces graded at 7.6 grams per ton…to access the complete interview, click here

Disclaimer: West Red Lake Gold Mines Inc. is an advertorial member of InvestorIntel Corp.




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.

Canada’s Gold District

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%).

RLG gold properties shown by red stars and tenements shown by red lines

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.




West Red Lake Gold Chairman on Goldcorp joint gold project

Tom Meredith, Chairman of West Red Lake Gold Mines Inc. (CSE: RLG | OTCQB: RLGMF) (“West Red Lake”) in an interview with InvestorIntel Senior Editor, Jeff Wareham discuss their West Red Lake gold project consisting of three former gold mines and deposits. The former gold mines and deposits on the project are the Rowan Mine, Mount Jamie Mine and Red Summit Mine. Not only is the project 20 kilometers west of Goldcorp Inc.’s (“Goldcorp”) West Red Lake Gold Mines but Goldcorp is West Red Lake’s joint venture partner for their Rowan Mine deposit. Tom states West Red Lake plans to expand their gold resource, which is currently a little over a million ounces of about 7.5 grams, and turn it into a very attractive asset for gold mining.

Jeff Wareham: We love the district West Red Lake Gold is in. Can you tell me a little bit about the project?

Tom Meredith: Our project is about 20 kilometers due west of Goldcorp’s mines in Red Lake that have been, kind of, primary big deposits in Red Lake. We actually have Goldcorp as a partner on our projects as well.

Jeff Wareham: You cannot ask for a much better partner than that. You had some great press releases lately. Can you tell me a little bit more about what you are seeing on the drill?

Tom Meredith: What we are seeing is an opportunity to continue to expand our gold resource, which is currently a little over a million ounces of about 7½ grams. We see an opportunity to make it a bigger gold resource and ultimately turn it into a very attractive asset for gold mining.

Jeff Wareham: There are three things I think investors should look for in a project, you want location, you want grade, you want a team. We have talked about grade, location. You have got good grade. Tell me about your team…to access the complete interview, click here

Disclaimer: West Red Lake Gold Mines Inc. is an advertorial member of InvestorIntel Corp.




West Red Lake on the impending “gold bull market”

Tom Meredith, Executive Chairman of West Red Lake Gold Mines Inc. (CSE: RLG | OTCQB: RLGMF) in an interview with InvestorIntel CEO Tracy Weslosky discuss gold exploration and property development. Tom tells us that West Red Lake is an exploration and development company whose goal is to make their Red Lake property an appealing purchase for mining companies. Tom also discusses their Rowan Mine joint venture (JV) partnership with gold veteran, Goldcorp.

Tracy Weslosky: We recently had an analyst do a headline story about you called, The Junior Gold Rally. Lara Smith is a big believer that we have the making of a gold bull market. She picked, out of all the companies and all the juniors on the planet, she picked West Red Lake to profile. Can you tell me why she picked you?

Tom Meredith: Well, I can tell you that we have a story that’s— First of all, I agree that we have a gold bull market in the junior mining shares. It started about a year ago and it will probably go for several years. One of the reasons that people do like our story is because we’re in Canada, we’re in Red Lake, we do have gold deposits, we have Goldcorp as our partner and we have a 43-101 resource. We tick a lot of the right boxes.

Tracy Weslosky: I believe the quote was — she believes that (during) this time period, based on looking at the market, she sees a potential buying frenzy. Lara related it to your (West Red Lake Gold Mines) recent announcement about starting a drilling program. Can you tell us more about that?

Tom Meredith: Well, we carry on drilling programs over the years and we’re drilling right now. We’ve reported some results a little while ago. Our basic plan is to expand gold resources, build gold resources and also do the odd exploration hole looking for a new area that might yield a big deposit.

Tracy Weslosky: You specifically announced earlier this month that you were going to start an exploration drilling program. Can you give us more detail?…to access the complete interview, click here

Disclaimer: West Red Lake Gold Mines Inc. is an advertorial member of InvestorIntel Corp.