Note to reader: This news release, originally dated
Note to reader: This news release, originally dated June 21, 2019, has been re-filed
to include a figure for which there was previously a hyper-link.
NEWS RELEASE
Red Pine Provides Comparison of 2015-219 Block Models and Outlines
Exploration Activity for the Remainder of 2019 at its Wawa Gold Project
Toronto, Ontario – June 21, 2019 – Red Pine Exploration Inc. (TSX-V: RPX) ("Red Pine"
or the "Company") announced last week a Mineral Resource estimate conducted by Golder
Associates Ltd. (“Golder”) for the Company’s Surluga Deposit at the Wawa Gold Project
located near Wawa, Ontario. The Mineral Resource estimate was evaluated for an
underground mining scenario, considering the requirement for reasonable prospects of
eventual economic extraction, and is reported at a 2.7 g/t cut-off within a 2 g/t envelope,
and now stands at 1,202,000 tonnes at 5.31 g/t for 205,000 ounces gold in the Indicated
category and 2,362,000 tonnes at 5.22 g/t for 396,000 ounces gold in the Inferred category.
Mechanized stripping is currently occurring on the Cooper Shear System, Grace
Deformation Zone and the southern extension of the Jubilee Shear Zone. Diamond drilling
will begin mid-July to test priority targets in the Cooper Shear System and prove the
continuation of Surluga Deposit to depth (>350 metres). Drilling is expected to continue
until the end of 2019.
To date the Company has identified an additional six (6) gold-bearing structures on the
property (Figure 1):
1. the newly discovered Cooper Shear System
2. the Grace Deformation Zone
3. the Hornblende Shear Zone
4. the southern extension of the Jubilee Shear Zone
5. the Minto B Shear Zone,
6. the Minto Lower/Parkhill #4 Shear Zone.
Figure 1. Gold-Bearing Structures of the Wawa Gold Project
Quentin Yarie, Red Pine’s President and CEO commented “We were successful in upgrading
the Surluga Deposit, considering the requirement for reasonable prospects of eventual
economic extraction, from a pit constrained model to an underground resource model that is
accessible utilizing the existing underground mining infrastructure. Our strategy moving
forward will be to continue to define shallow, high-grade deposits, on the property and prove
the extension of the Surluga and Minto Mine South deposits beyond the relatively shallow
footprints of the current mineral resources.”
Block Model Comparison – 2015-2019
Due to the significant differences in modeling and estimation parameters, a tonnage and
grade sensitivity comparison was completed to compare the 2015 block model, at a cut-off
of 2.7 g/t gold, with the current 2018 Minto Mine South and 2019 Surluga block models.
To account for the differences in volume between the 2015 and the 2019 block models, the
resource blocks classified as inferred in the 2015 block model that are located in the
resource envelopes of Golder’s 2018 and 2019 Mineral Resources were compared to the
resource blocks of the 2019 resources from the same resource envelopes. The 2015
mineral resource estimate has been superseded by the 2018/19 mineral resource
estimate.
Table 1: Comparison of the 2015 and 2019 Block Models
Resource
classification Indicated Inferred
Tonnes
(000)
Gold
(g/t)
Gold Ounces
(000)
Tonnes
(000)
Gold
(g/t)
Gold Ounces
(000)
Wawa Gold 2015
3,403 4.32 473
Minto 2018 105 7.5 25 354 6.60 75
Surluga 2019 1,231 5.26 208 2,463 5.17 409
Total Wawa Gold
2019 1,336 5.43 233 2,817 5.35 484
Difference from
2015 +1,336 +233 -586 +1.03 +11
% Differences
from 2015
∞
∞ -17% +24% +2.3%
Notes:
1) This comparison is conducted on a 2.7 g/t cut-off basis for the Surluga Deposit and on a 3.5 g/t gold cut-off basis for the Minto
Deposit and excludes the use of reporting envelopes that account for mining continuity.
2) The 2015 mineral resource estimate has been superseded by the 2018/19 mineral resource estimate.
Exploration potential of the Wawa Gold Project
Table 2 below provides a summary of the 6 exploration targets identified at the Wawa Gold
Project. All the exploration targets were estimated for geological structures that show a
strike length continuity that exceeds 500 metres. The exploration target estimation for
each structure is supported by various factors including:
adjacent mineral resource estimation
historic mining
diamond drilling and/or channel sampling.
The Reader is cautioned that the potential tonnages and grades of the Exploration Target
are conceptual in nature, that there has been insufficient exploration to define a mineral
resource and that it is uncertain if further exploration will result in any of the Exploration
Targets being delineated as a mineral resource.
Table 2. Summary of Exploration Targets at the Wawa Gold Project
Structure Tonnes
(million)
Gold
(g/t)
Gold Ounces
(000) Comments
Jubilee Shear Zone
(Surluga Deposit) 3 to 4 4.5 to 6 435 to 772
Between surface and 800 m below
surface
Adjacent to the boundary of the current
resource estimate over the same 1.7 km
strike length
Supported by adjacent mineral resource
estimation, historic mining, diamond
drilling
Cooper Shear Zone 0.35 to 0.5 5 to 8 56 to 130
Shear zone like the Minto Mine South
Deposit
In the extension of the historic Cooper
Mine
Between surface and 250 m below
surface over a 750 m strike length
Supported by adjacent historic mining in
the Cooper Mine, channel sampling, and
diamond drilling
Grace Deformation
Zone 0.3 to 0.5 5 to 8 48 to 130
Adjacent to the historic Darwin-Grace
Mine
Between surface and 250 m below
surface
Supported by adjacent historic mining in
the Grace Mine, channel sampling at
surface and diamond drilling
Hornblende Shear
Zone 0.5 to 4.0 4 to 6 64 to 750
Over a strike length of 500 to 1,000 m,
between surface and 300m below surface
Supported by diamond drilling,
underground panel sampling, channel
sampling at surface
Minto B Shear Zone 0.26 to 0.5 3 to 5 25 to 80
Between surface and 230 m below
surface at its contact with the Jubilee
Shear Zone hanging wall and over a strike
length of 400 m
Supported by diamond drilling and
channel sampling at surface
Minto Mine South and
Minto Lower/ Parkhill
#4
0.6 to 1.2 5 to 8 96 to 309
In the Minto Mine South structure,
adjacent to the boundary of the current
resource over the same 0.75 km strike
length
In the up-plunge extension of the mined
areas in the Minto Lower / Parkhill # 4
structure
Supported by historic mining, adjacent
mineral resource estimated, diamond
drilling
Jubilee Shear Zone
The Jubilee Shear Zone is the largest zone of mineralization traced so far on the Wawa Gold
Property. The known strike length of the Jubilee Shear Zone extends over at least 5.5
kilometres and the interpretation of Red Pine’s 2017 magneto-telluric survey shows that
the structure extends beyond 2 kilometres below surface.
The current resource in the Jubilee Shear Zone is entirely from surface and 350 metres
below surface over a strike length of approximately 1.7 kilometres. Channel sampling and
diamond drilling has shown that the southern extension of the Jubilee Shear Zone is gold-
bearing and has a good exploration potential.
Hornblende Shear Zone
The Hornblende Shear Zone is located below the Jubilee Shear Zone and was accessed in
the seventh level of the historic Surluga Mine. Structurally is it similar to the Jubilee Shear
Zone parallels its trace. Red Pine’s work and historic mapping indicate that the Hornblende
Shear Zone is an important structure on the property and was traced north of the Parkhill
fault over at least 2 kilometres. The thickness of the Hornblende Shear Zone varies from 4
to 40 metres.
Minto B Shear Zone
The Minto B Shear Zone is located above the Jubilee Shear Zone. This structure is currently
traced over a strike length of 1km and exhibit a variable thickness ranging from 4 to 20 m.
It is sub-vertical and intersects the Jubilee Shear Zone approximately 225 to 250m below
surface. It is locally accessible by the underground development of the historic Surluga
Mine.
Minto Shear System
The Minto Mine South Shear Zone, host of the Minto Mine South Deposit, is part of a
network of gold-bearing shear zones, named the Minto Shear system, of which two were
mined in the past - the Minto Mine South Shear Zone in the Minto Mine and the Minto
Lower/Parkhill #4 Shear Zone in the Parkhill Mine. So far, Red Pine has confirmed the
strike length of both structures over approximately 1.5 kilometres and deeper drilling
supports the extension of the Minto Mine South Shear Zone beyond 500 metres below
surface.
The Minto Lower/Parkhill #4 Shear Zone was mined in the Parkhill Mine in the 1930s and
was successfully intersected by Red Pine’s exploratory diamond drilling. Red Pine also
discovered in the summer of 2018, the surface extension of the Minto Lower/Parkhill #4
Shear Zone near Minto Lake, 1.1 kilometres north-west of the Parkhill Mine.
Cooper Shear System
The Cooper Shear System comprises two known gold-bearing structures, the Cooper Shear
Zone and the Ganley Shear Zone. The gold-bearing structures of the Cooper Shear Zone
system are structurally and mineralogically similar to the structures of the Minto Shear
System. Diamond drilling and channel sampling by previous operators of the property
show that the Cooper Shear Zone extends at depth and remains mineralized beyond the
footprint of the historic Cooper Mine.
Administration
Red Pine announces that on June 20, 2019, its Board of Directors granted an aggregate of
6,812,500 stock options (the “Options”) to officers, directors, and consultants of the
Company. Each Option is exercisable into one common share of the Company at a price of
$0.06 per common share, vests immediately upon grant and expires three years from the
date of grant. The grant of options is subject to regulatory approval, including approval of
the TSX Venture Exchange.
On-site Quality Assurance/Quality Control (“QA/QC”) Measures
Drill core samples were transported in security-sealed bags for analyses to 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 and then
shipped. The remaining coarse reject portions of the samples remain in storage if further
work or verification is needed.
Red Pine has implemented a quality-control program to comply with best practices in the
sampling and analysis of drill core. As part of its QA/QC program, Red Pine inserts external
gold standards (low to high grade) and blanks every 20 samples in addition to random
standards, blanks, and duplicates.
Qualified Person
Quentin Yarie, P Geo. is the qualified person responsible for preparing, supervising and
approving the scientific and technical content of this news release.
About Red Pine Exploration Inc.
Red Pine Exploration Inc. is a gold and base-metals exploration company headquartered in
Toronto, Ontario, Canada. The Company's common shares trade on the TSX Venture
Exchange under the symbol "RPX".
Red Pine has a 60% interest in the Wawa Gold Project with Citabar LP. holding the
remaining 40% interest. Red Pine is the Operating Manager of the Project and is focused
on expanding the existing gold resource on the property.
For more information about the Company visit www.redpineexp.com
Or contact:
Quentin Yarie, President & CEO, (416) 364-7024, [email protected]
Or Mia Boiridy, Investor Relations, (416) 364-7024, [email protected]
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This News Release contains forward-looking statements. In some cases, you can identify forward-looking
statements by terminology such as “may”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”,
“predicts”, “potential” or “continue” or the negative of these terms or other comparable terminology. These
statements are only predictions and involve known and unknown risks, uncertainties and other factors that may
cause our or our industry’s actual results, levels of activity, performance or achievements to be materially
different from any future results, levels of activity, performance or achievements expressed or implied by these
forward-looking statements.
Although the Company believes that the assumptions and factors used in preparing the forward-looking
information in this news release are reasonable, undue reliance should not be placed on such information, which
only applies as of the date of this news release. The Company disclaims any intention or obligation to update or
revise any forward-looking information, whether as a result of new information, future events or otherwise,
other than as required by law.