Investor Interest in the Red Lake Mining District Continues to Rise Following C$15 Million Investment in Pure Gold
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New York, NY – October 28, 2020 – Market experts believe a second rally in gold prices is on the horizon, making now an ideal time to get into the market. The falling US dollar, the upcoming US presidential election, and stagnant interest rates are just a few factors that could affect gold prices. Add to that the ongoing economic uncertainty caused by the health crisis and it’s clear why gold has maintained its purchasing power and safe-haven status. With gold prices remaining close to 2011’s peak, the prolific Red Lake Mining District in northern Ontario has become a hotbed for investments, including a recent C$15 million investment from gold guru Eric Sprott into near-term gold producer Pure Gold (TSXV:PGM) (OTCPK:LRTNF). Of course, Pure Gold isn’t the only gold stock generating excitement in Red Lake. Thanks to elevated gold prices, gold miners like Yamana Gold (TSX:YRI) (NYSE:AUY), Great Bear Resources (TSXV:GBR) (OTCQX:GTBAF), Premier Gold Mines (TSX:PG) (OTCPK:PIRGF), and GoldON Resources (TSXV:GLD) (NCMBF) have also continued to uncover the vast potential of the prolific gold region.
GoldON Resources (TSX-V:GLD) (NCMBF) may be the most recent addition to the prolific Red Lake region, but the company has already made serious headway at its West Madsen project, an option/joint venture with Great Bear Resources. Since acquiring an option on the West Madsen property in May 2019, the company has completed a phase I diamond drilling program and acquired additional claims in 2020, and received permits for phase II drilling in 2020.
Mr. Red Lake, Perry English, also joined GoldON Resources during that time as a strategic advisor. English, who has been referred to as a one-man project generator, has staked thousands of claims and sold hundreds of properties in the region over the last 35 years, including the West Madsen project and Great Bear’s Dixie Gold Project.
With the addition of the new claims, GoldON Resources’ West Madsen project now covers 4,722 hectares of prime gold exploration real estate in the heart of the Red Lake Gold District. The property also adjoins the highest-grade underground gold project in Canada, the Pure Gold Red Lake Mine, which is set to begin production before the end of 2020.
Finding High-Grade Gold in the Shadow of Headframes
“Finding gold in the shadow of headframes” may be an old mining adage, but it evidently still rings true today. GoldON Resources’ West Madsen property meets this criteria thanks to its close proximity to the high-grade Pure Gold Red Lake Mine, which is just a few hundred meters from the property’s boundary.
In July, GoldON completed the initial, wide-spaced reconnaissance diamond drilling program at West Madsen, which included the discovery of 14.4 grams per tonne (g/t) gold over 0.5 meters (m). The company has since received drill permits and is prioritizing targets for Phase II drilling on the expanded West Madsen project later this quarter.
Gold Miners Continue to Advance Projects in Red Lake
As mentioned, Pure Gold Mining (TSXV:PGM) (OTC:LRTNF), who’s market cap is approaching C$1 Billion, is expecting their first pour at its Pure Gold Red Lake Mine before the end of 2020. The robust economics of the project, bolstered by the rising gold price, have attracted serious investors including a C$15 million investment from Eric Sprott. In February 2019, the feasibility study on the property outlined a 12-year, high-grade mining operation with a production rate of 800 tonnes per day.
The Pure Gold Red Lake Mine has probable mineral reserves of 3.5 million tonnes (Mt) at 9.0 g/t containing 1 million ounces of gold included in a mineral resource of 7.19 million indicated tonnes grading 8.9 g/t gold for 2.06 million ounces of gold and 1.88 million inferred tonnes grading 7.7 g/t gold for 467,000 ounces of gold, making it the highest grade development-stage gold deposit in Canada.
Great Bear Resources (TSXV:GBR) (OTC:GTBAF) has also experienced success in the Red Lake region. Since acquiring 100% interest in their flagship Dixie property in 2017, the company has made numerous high-grade gold discoveries. On October 7, the company announced they had reached 100,000 meters drilled in 180 holes and reported additional results, including 18.58 g/t gold over 19.25m.
Southwest of the Red Lake Mining District, Yamana Gold (TSX:YRI) (NYSE:AUY) is developing its own Red Lake project, which consists of 543 hectares of land in two properties: North Madsen and Headway. The North Madsen property covers a significant mineral envelope defined by 280 drill holes that are immediately west of the Hasaga gold deposit owned by Premier Gold Mines (TSX:PG) (OTC:PIRGF), which has a measured and indicated resource of 42 Mt at 0.83 g/t gold containing 1.12 million ounces of gold. The Headway property consists of 127 hectares south and adjacent to Newmont Corp’s Red Lake Gold Mines operation.
Yamana Gold is currently prioritizing its most advanced exploration projects, but said that a key element of the generative exploration program is to build in the flexibility to shift focus quickly if a Tier Two or Tier Three project, like Red Lake, shows the greatest potential to meet the company’s objectives.
It’s clear that the Red Lake Mining District has been rejuvenated thanks to the gold bull run and has become a hotspot for high-grade gold discoveries. It’s likely that this trend will continue as gold prices remain at record highs, creating an exciting opportunity for the region’s most recent addition, GoldON Resources.
For more information on GoldON Resources, please visit this link.
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