Aerial view of Wawa gold project. Credit: Red Pine Exploration.
After Red Pine Exploration’s (TSX-V: RPX) consolidation of its interests and 100% ownership of the Wawa Gold Project, followed with the subsequent acquisition of the War Eagle mining claims that lie adjacent to the property located in the McMurray Township, Michipicoten region of Ontario in April, the company reached a pivotal point.
With ownership streamlined after buying out its 36.7 % joint venture partner in an all cash transaction earlier this year, the company’s strategic vision of consolidating its Wawa Gold project land package was realized: a 6,804 hectare mineral rich property further strengthened with the War Eagle purchase.
The property has hosted numerous gold mines with historic production of over 120,000 ounces, and Wawa’s two mineral deposits, Surluga and Minto Mine South, current estimated NI 43-101 resource is 1,307,000 tonnes @ 5.47 g/t gold for 230,000 ounces in the indicated category and 2,716,000 tonnes @ 5.39 g/t gold for 471,000 ounces in the inferred category.
Since announcing 100% ownership of the project, Red Pine’s market capitalization has more than doubled.
“We raised over C$20 million to purchase our JV partner’s interest in the Wawa Gold Project and bolster funding for an expanded drilling campaign,” Red Pine CEO Quentin Yarie says.
“Pricing was essentially at market value at the time and a good transaction for both the Red Pine shareholders and our ex JV partner. The consolidation of the ownership in the project was greeted with approval by the market with our market capitalization having quadrupled,” says Yarie.
“We are in a great jurisdiction surrounded by arguably some of the best gold producers in Canada at the moment.”
The Tier 1 Michipicoten Greenstone Belt has experienced a vast influx of recent gold mining activity and Red Pine’s Wawa project is located in a prolific gold district surrounded by projects operated by Alamos, Barrick, Argonaut and Newmont.
The Wawa Gold project consists of 167 patents / leases and 286 mining claims within McMurray Township, 2 km southeast of the Town of Wawa, which has a rich mining history.
In the late 19th century, both gold and iron ore were mined, leading to the region’s rise as the steel industry developed in Sault Ste. Marie. From 1900-1918 the Helen Mine had the highest production of iron ore of any mine in Canada.
While the property hosted numerous historical gold mines, these were owned by different operators, and they were never geologically connected – until now.
Red Pine reports positive engagement with the community of Wawa, the local MP and MPP, and furthermore are supportive of the communities activities both through participation and funding.
Local First Nations Michipicoten, Garden River and Batchewana are all engaged, and supportive of the Wawa project, Yarie says.
After comprehensive examination of the geology, geophysics, geochemistry, alteration mineralogy and structural geology at Wawa, Red Pine has now uncovered new exploration targets.
Previous Red Pine drilling in 2017 in the Grace Shear Zone confirmed that high-grade gold mineralization extends beyond the known footprints of the Darwin Grace mine and defined the Grace Shear Zone as a significant exploration target of the Wawa gold project.
Alamos spent C$1 billion in acquisitions and exploration activities in the district over the last three years, and the Wawa project shares a similar geological structure.
While the company’s stock is currently trading at ($0.80), Haywood Securities, in a report on May 21st, set a price forecast for $1.40/ per share.
“Based on our economic analysis, we estimate a fully diluted, fully financed NAV5% of $1.36/sh. This valuation results in a P/NAV5% of 0.52x, relative to developer and explorer peers, trading at 0.48x,” Haywood wrote in a note to investors.
Red Pine Exploration is spending over C$5 million on its current ongoing 15,000 meter drill campaign – and initial results are expected in June.
The preceding Joint Venture article is PROMOTED CONTENT sponsored by Red Pine Exploration and produced in cooperation with Canadian Mining Journal. Visit Red Pine Exploration for more information.