Tuesday 25th October 2016

Resource Clips

Red Lake reports

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Confederation’s stock opened April 8 on its previous close of $0.16, then reached and held $0.185 for the rest of the day. With 55.28 million shares outstanding, the company’s market cap came to $10.23 million. The 52-week high and low were $0.45 and $0.135.

“It’s clear we have a great deal of gold in this system,” Bapty says. “To fit that into economic ounces will be pretty exciting and we’re hoping to do that this calendar year.”

One of the problems of having a strike length of 1.8 kilometres by at least a kilometre deep is that it would take us years and cost millions to drill the entire thing out. So we want to focus our business plan on the most economic ounces, on what’s the best way forward—a starter pit or direct to underground.—Brian Bapty, president/director of
Confederation Minerals

Redstar’s chart stayed flat on April 8 at its previous close of $0.105. The company had 73.44 million shares outstanding for a $7.71-million market cap. Over 52 weeks the stock ranged from $0.39 to $0.09.

In other April 8 news from Red Lake, Rubicon Minerals TSX:RMX announced it will update the July 2011 PEA for its Phoenix project’s F2 gold system. Scheduled for late May or early June, the revised study will be based on a new resource scheduled for this month, a reconsidered mine plan and updated economics. Mine and mill construction continues, however, with the company hoping to start production in the latter part of 2014.

Although Phoenix is fully permitted, the Wabauskang first nation has requested a judicial review to challenge Ontario’s authority to approve the mine. Last month Rubicon stated that the Ontario Court of Appeal decision concerning another case, Keewatin vs. Minister of Natural Resources, upholds the province’s jurisdiction.

Rubicon opened April 8 at $2.29, two cents below its previous close. The stock then reached $2.33 before falling to a $2.20 close. With 288.47 million shares outstanding, the market cap came to $634.63 million. The 52-week high was $3.80, exactly double its 52-week low.


Some other recent Red Lake reports …


On April 2 West Red Lake Gold Mines CNSX:RLG wrapped up an eight-hole winter campaign on its Rowan Lake property with an announcement of visible gold finds. The company holds a 60% interest in the joint venture with Goldcorp TSX:G affiliate Red Lake Gold Mines.

Goldcorp dominates the camp. Not satisfied with the 507,700 ounces the company pulled out of its Red Lake complex last year, the giant keeps busy with exploration, acquisitions and partnerships.

Last February Premier Gold Mines TSX:PG reported its acquisition of another Red Lake project, Broulan Reef. Just two days later the company announced that Goldcorp would exercise its right to acquire a 51% interest. Other Premier/Goldcorp JVs include the 49%/51% Rahill Bonanza project, adjacent to Broulan Reef, and the 35%/65% East Bay project, adjacent to Rubicon’s Phoenix property.

In other regional news, Gold Canyon Resources TSXV:GCU released a PEA on March 25 for its Springpole gold project, 110 kilometres from the town of Red Lake. Using a 5% discount rate, the study forecast a pre-tax net present value of US$579 million and a pre-tax internal rate of return of 25.4%. Initial capital costs came to $438 million with payback in 1.7 years.

With an 11-year lifespan for the open pit, full production would average 217,000 gold ounces and 1.2 million silver ounces annually.

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