West Red Lake Gold Mines Inc. (“company”, “RLG”) has commenced a 12 hole drill program on the NT zone, which is located approximately 800 m south of the Rowan mine located at the west-end of the Red Lake Gold District of Northwestern Ontario.
The program will follow up on an eight hole shallow drill program (1,443 m) completed in late 2018, on the NT zone, which returned encouraging results such as 18 gpt Au over 7.8 m, including 35.26 gpt Au over 3.0 m, and 6.51 gpt Au over 9.3 m.
Newmont Goldcorp (NYSE: NEM), who is a 40% owner of the project, has announced that it is selling its Red Lake assets, and therefore, has informed RLG that it does not intend to fund its pro rata share of exploration expenditures on the property going forward. This would result in an increase in RLG’s current 60% interest in the property as it solely funds exploration expenditures.
The Rowan project has a 2016 inferred resource of 4.45 Mt at 7.57 gpt for 1.09 Moz of gold.
In September 2019, the company raised $0.56 million, including $0.38 million flow through units at $0.08 per unit, and $0.18 million common share units at $0.06 per unit.
RLG’s shares are trading at $29 per oz versus the comparables’ average of $54 per oz.
