VANCOUVER – Red Pine Exploration Inc. [RPX-TSXV] shares rallied Monday after the company released new and notable results from drilling at its 100%-owned Wawa Gold Project, located two kilometres southeast of Wawa, Ontario.
Exploration highlights include the discovery of a high-grade gold mineralization in the Jubilee shear zone more than 400 metres downdip of the current boundary of the Surluga deposit inferred resources.
Visible gold has also been observed in two different veins in the Jubilee shear zone and Surluga South discovery, the company said.
Red Pine shares advanced 9.25% or $0.05 to 59 cents on volume of 353,080. The shares are currently trading in a 52-week range of 95 cents and 30 cents.
The Wawa project covers over 5,500 hectares and hosts several former mines with combined historic production of 120,000 ounces of gold. Currently the largest gold discovery on the property is the Surluga deposit.
Two mineral deposits (Surluga and Minto Mine South) contain an estimated NI 43-101-compliant resource of 1.3 million tonnes of grade 5.47 g/t gold or 230,000 ounces in the indicated category and 2.7 million tonnes at 5.39 g/t gold or 471,000 ounces in the inferred category.
Over 95% of the contained ounces at both deposits are located between surface and a depth of 350 metres. Both deposits remain open at depth.
The company has previously said it planned to complete an estimated 15,000 metres of diamond drilling this year, with the program continuing into 2022. It said the aim will be to expand Surlaga at depth and test other targets.
On Monday, the company said results from 2021 drilling continue to illustrate the untapped potential of the Wawa Gold Project. Drill hole SD-21-298A returned 25.73 g/t gold over 4.78 metres true width in the Jubilee Shear Zone, including 41.73 g/t gold over 1.93 metres (true width) and 45.80 g/t gold over 0.92 metres (TW), more than 400 metres down dip from the current boundary of the Surluga Deposit inferred resource.
“Hole SD-21-298A confirms the presence of zones of high-grade mineralization in the Surluga South exploration target and represents an exciting development in the discovery made by Red Pine in 2020,’’ the company said in a press release, Monday.
“In the northern end of the Jubilee Shear Zone, [over] 400 metres down-dip of the inferred resource of the Surluga deposit, step-out drilling results suggest that higher-grade gold mineralization extends into previously unexplored areas,’’ the company said. “These results are beginning to define a zone that could expand the resource at the northern end of the deposit.’’
Meanwhile, Red Pine said its production has significantly improved with two operating drills on site. It said the contractor’s recent ability to operate the third drill will significantly improve drilling production at the site. A third drill, which will target the Darwin-Grace greenfield target, is on schedule to start this month.