Red Pine Exploration Inc. [RPX-TSXV] said Wednesday it plans to significantly expand its exploration program this year at the Wawa Gold project in northern Ontario.
On January 4, 2022, Red Pine jumped 11.5% or $0.06 to 58 cents and now trade in a 52-week range of 95 cents and 35 cents.
The rally came after the company said 8.3 million warrants to purchase shares of the company that expired on December 31, 2021 with a strike price of 50 cents, have been exercised, generating a further $4.04 million to fund exploration at Wawa.
Alamos Gold Inc. [AGI-TSX, NYSE], currently Red Pine’s largest shareholder with a 19.4% interest, exercised 100% of their warrants, Red Pine said in a press release.
The Wawa project covers over 5,500 hectares and hosts several former mines with combined historic production of 120,000 ounces of gold.
Two mineral deposits (Surluga and Minto Mine South) contain an estimated NI 43-101-compliant resource of 1.3 million tonnes of grade 5.47 g/t gold or 230,000 ounces in the indicated category and 2.7 million tonnes at 5.39 g/t gold or 471,000 ounces in the inferred category.
The decision to step up exploration at Wawa follows a successful exploration program last year and the completion in November, 2021, of a flow-through financing that raised $8.4 million.
Red Pine recently said the 2021 drilling program in the Surluga South discovery area the Wawa Gold Project returned 2.08 g/t gold over 55.66 metres (estimated true width) in the Jubilee Shear Zone.
This is an indication that thick zones of mineralization exist in our Surluga South discovery, and that these zones can reach an overall grade and thickness comparable to those forming the core of the current mineral resource of the Surlaga Deposit, the company has said.
The company is planning a Phase 1 drill program that is expected to be complete by the third quarter of 2022. It will consist of 25,000 metres of anticipated drilling.
Red Pine said it wants to expand the contractor drill fleet from two to four on-site operators. It also said 60% of the 2022 Phase 1 program will focus on areas which have the potential to expand the current Surlaga and Minto South resources.
Approximately 40% of the program will focus on priority greenfield targets which were not tested in 2021. Those include Grace-Darwin, Hornblende Shear Zone and the Sadowski Zone.
Red Pine CEO Quentin Yarie said he expects this program, and the expected follow-on Phase 2 program, should put the company in a position to consider an update of the existing resource in the future. “As always, we take a holistic approach to our exploration programs and results will dictate and adjust this dynamic program,” he said.