Red Pine Exploration Inc. (the "Company" or "Red Pine") completed drilling of 6 exploration holes on the Surluga Gold Deposit during the December 2014 field program to better define mineralization and alteration mineralogy on the property. A ground magnetic survey and an initial induced polarization geophysical survey were also completed over the known gold mineralization.
The Company believes that the drill results combined with a comprehensive examination of the geology, geophysics, geochemistry, alteration mineralogy and structural geology at Surluga are likely to uncover several new priority gold targets. The first three holes have been logged, sampled and submitted for assaying. The Company has mobilized its geoscientists who will be on site this week to complete logging and sampling core from the remaining three drill holes.
Quartz veins and altered rock have been intersected in each of the drill holes, and gold in the form of flakes visible with the naked eye (VG)* has so far been observed in three holes**;
- SD14-02 between 119.5 - 121.5 metres (m) within a zone of altered quartz from 117m to 134m (not true width)
- SD14-03 between 247.8 - 248.8m and 268.5-269.65m within a zone of altered quartz from 241m to 277m (not true width)
- SD14-06 VG rich intersection occurred around 321m within a zone of altered quartz from 288m to 324m (not true width)
*Although VG is considered positive the Company cautions it has not received assay results for these intersections at the time of this press release.
**Logging and sampling of SD14-04, SD14-05 and SD14-06 will be completed shortly.
Quentin Yarie, President and Chief Operating Officer commented, "These results validate our hypothesis that high-grade shoots of gold mineralization are prevalent at Surluga. Potential high gold grades present new opportunities and we will target these high-grade areas for resource delineation."
Red Pine Begins Revised Resource Assessment
The recent technical report by Watts, Griffis and McQuat, dated October 15, 2012 (Inferred resource of 1,072,335 ounces at 1.49 grams per tonne gold), describes the geology, the gold exploration, and the mineral resource estimation work undertaken by previous owners. The recent exploration work completed by Red Pine warrants the preparation of a new mineral resource technical report and the Company has retained SRK Consulting (Canada) Inc. (SRK) and Ronacher McKenzie Geoscience to complete this evaluation.
Wawa Gold Project Highlights
- Located in Wawa, Ontario, an area of significant historical and current gold exploration (since 1890's) and production (1902 to 1991);
- 172 patented and leased and unpatented mining claims within the McMurray Township, a total of 2,426 hectares;
- 182 claim units on crown land, a total of 2,912 hectares;
- Property hosted eight past producing mines with historic production of over 120,000 ounces (Watts, Griffis and McQuat, NI 43-101 technical report dated October 15, 2012 );
- Inferred resource of 1,072,335 ounces at 1.49 grams per tonne gold contained in 22.355 million tonnes, open along strike and at depth;
- Proximity to established regional infrastructure (roads, rail, regional airport, high voltage power lines, water).
- Assumption agreement in place with Augustine Ventures (CSE: WAW) and Citabar
On-site Quality Assurance/Quality Control ("QA/QC") Measures
All samples are being shipped to and analyzed by Activation Laboratories Ltd. in Ancaster, Ontario. Individual samples are labeled, placed in plastic sample bags and sealed. Groups of samples are then placed into durable rice bags that are shipped out. The remaining coarse reject portions of the samples will remain in storage at the Activation Laboratories Ltd. in Ancaster, Ontario as required in the event that further work or verification is needed.
Share Consolidation Consideration
Richard Schler, Chief Executive Officer commented, "Consideration of a possible share consolidation always causes angst among both shareholders and management. In addition to fully disclosing a proposed share consolidation in Red Pine's Management Information Circular, it is also a regulatory requirement to issue a separate press release disclosing that a share consolidation is under consideration at our upcoming annual general meeting ("AGM"). Unfortunately, some have interpreted that the issuance of a press release means the Company is asking shareholders to vote on "a done deal" share consolidation. This is definitely not the case.
Presenting a resolution in advance is part of the AGM process and is the most cost effective avenue for obtaining shareholder approval. It is important to note that similar resolutions were passed at previous AGMs without completing a share consolidation. The alternative is to conduct another special meeting if management were ever to decide a share consolidation is necessary or required during the coming year. Special meetings cost a significant amount of both money and time.
Given the current landscape in the resource sector, the Board and management feel that the resolution provides the Company with more flexibility during the upcoming year. Let me emphasize that share consolidation would only be considered under circumstances that are either favorable to shareholders or absolutely necessary for continued operation."
Qualified Person
Quentin Yarie, PGeo. is the qualified person responsible for preparing, supervising and approving the scientific and technical content of this news release and is responsible for overseeing all aspects of the company's exploration programs.