West Red Lake Gold Mines (CSE: RLG) is a junior explorer, located in the prolific Red Lake gold camp, as its name implies. The company currently has assembled a 3100 hectare property that encompasses three former gold mines on property just west of Evolution Mining.
The key objective of the company is to expand on a 1.1 million ounce resource, as identified in a 43-101 inferred resource estimate. The estimate consists of 4.47 million tonnes of rock, at an average grade of 7.57 grams per tonne gold consisting of a total 1.1 million ounces of gold at the Rowan Mine deposit – and there is great potential for expansion of the resource.
The Red Lake Gold District
The prolific Red Lake Gold District is found in Northwestern Ontario, Canada. The 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, including 18 million ounces from the Red Lake Mine and Campbell Mine, operated by Evolution Mining.
The West Red Lake Gold Project
West Red Lake Gold Mines has assembled a 3100 hectare property, with a 12 kilometre strike length. The West Red Lake Project is situated on two key regional geological structures known as the Pipestone Bay St Paul Deformation Zone (PBS Zone) and NT Zone, and encompasses three former gold mines.
- Rowan Mine
- Red Summit Mine
- Mount Jamie Mine
The three former gold mines are located 20 km west of Evolution Mining on a key geological structure. The Red Lake Mine and Campbell Mine, operated by Evolution Mining, are the closest nearby, both of which are underground operations with a combined strike length of 7 kilometres.
The Mount Jamie Mine and Red Summit Mine properties are 100% owned by the Company, while the Rowan Mine property is held in a 62%-owned joint venture with Evolution Mining.
Rowan Gold Deposit
“NI 43-101 inferred resource estimate of 4,468,900 tonnes at an average grade of 7.57 grams gold per tonne containing 1,087,700 ounces of gold at the Rowan Mine deposit dated February 16 2016 NI 43-101.” There is great potential to expand the 43-101.
- High grade, with exploration potential open at depth.
- As stated, Evolution Mining is a funding partner at the Rowan Mine property, owning 38% of it.
- “The Rowan Mine property hosts significant regional gold bearing structures which intersect near the former producing Rowan Mine. The Rowan Mine was in development from the late 1930s to the 1950s with mine workings consisting of a vertical shaft, three levels including an adit on the first level, and underground exploration of drifting and raising along several gold zones.”
- “The Rowan Deposit Gold Zones have an established strike length of 1200m and remain open at depth. The Rowan Mine Gold Zones have been explored to a depth of less than 500m and contain several high grade gold zones which are a primary target of exploration for expansion to depth.”
- The goldbearing NT Zone is 2km in length and hosts several high grade gold zones.
- The intersection of the Pipestone Bay St Paul Deformation Zone and the NT Zone occurs between 1km and 2km east of the Rowan Mine Shaft and presents a highly prospective exploration opportunity.
In a nutshell, the Rowan Deposit is 1.2 km long and 500m deep – and you can mine specific zones within the deposit’s 4 primary zones. There is the potential to expand at depth, and one needs to keep in mind that most of these deposits are mined at a depth of 2 km.
Red Lake’s properties are all part of one land position. The Company is now exploring the nearby NT Zone, which appears to have similar potential to Rowan Mine Deposit. Two recent drill programs here have returned good results.
The Rowan Gold Deposit Drill Program
On May 19, West Red Lake announced a 3000 metre exploration drill program on the NT zone during mid-June. This is intended to follow up on the positive results announced on Jan. 15, 2020.
Several holes will be drilled below the drill holes of the previous drill program, with the purpose of extending gold mineralization to greater depths.
Additional exploration drill holes are also planned to extend the NT Zone gold mineralization 150m to 250m further along strike to the north-east.
West Red Lake Gold plans to focus exploration drilling on the southern 1 kilometer (“km”) portion of the 2 km long NT Zone, initially between surface and 200 metres depth. Exploration work on the northern portion of the NT Zone will also take place.
Note: The drill program is paid for, as a $842k Private Placement was closed on March 17th of this year.
|Stock Symbol||CSE: RLG|
|Issued & Outstanding||166,725,343|
What the Stock Charts Tells Us
- RLG’s stock price has historically gone up when the price of gold is high.
- RLG’s stock price is not, right now, corresponding with the historically high, and rising, price of gold.
Note: Ounces of gold at West Red Lake are now worth 10 dollars an ounce in the ground. In the last three gold cycles (see above), the market gave RLG somewhere around 100 to 200 dollars an ounce in the ground – i.e. 10 to 20 times what it is now receiving.
Management and Directors:
West Red Lake has very strong people involved. This writer is most impressed with Executive Chairman, Tom Meredith and Director, Michael Dehn. Meredith is a junior mining veteran, who as President & CEO of Lexam VG Gold from 1995 to 2011 led the development of four gold projects in Timmins Ontario. He did very well by shareholders, leading the company into an extremely lucrative merger with a Rob McEwen company. From a $3M valuation when he took the helm, eventually the entity was worth a hefty $250M, at north of a buck a share.
Dehn, for his part, is an experienced exploration geo – and a former Senior Geologist at Goldcorp. Why he is key to this play is his reputation as an expert with extensive technical knowledge of the Red Lake Gold District.
West Red Lake has a 1.1M Oz 43-101 deposit that should be able to be expanded upon. And it has a historically low stock vis a vis the price of gold. Those two things, combined with experienced and accomplished business and geological minds running the company, lead to a very intriguing opportunity.
FULL DISCLOSURE: West Red Lake Gold Mines Inc is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover West Red Lake Gold Mines Inc on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.