Red Pine Exploration Inc. has received updated drill results for holes HS-15-29 and HS-15-30 based on the analysis of an additional 13 samples as part of the Company's expanded sampling program of gold zones in the hornblende shear zone.
The original drill results were press released on December 18, 2015. The updated composites gold values for intervals over 0.45 grams per tonne ("g/t") gold are as follows:
*True width has not been calculated for each individual intercept, but true width is generally estimated at 85%-95% of drilled width.
Expanded Sampling of Gold Zones
Red Pine is currently sampling 42,000 metres of historic core that was not sampled by previous operators. The goal of the sampling program is to fill in identified gaps in the newly discovered gold-bearing structures of the hanging wall and sections of the Jubilee Shear Zone. Discrete structures appear to be associated with gold intersections in the historic core and may lead to the definition of additional gold resources. To date, Red Pine has identified more than 269 individual intersections associated with discrete structures.
Quentin Yarie, President and Chief Executive Officer of Red Pine states "The work completed to date, as part of this expanded sampling program, supports the potential to define additional gold resources within the hanging wall, footwall and within the Surluga Deposit, all without drilling a single new drill hole. This approach was adopted to maximize shareholder value since it realizes significant cost savings compared to a drill program."
The most recent drilling program was completed in 2015. Highlights within the Wawa Gold Corridor (see Figure 1) include:
- Holes HS-15-27 to HS-15-30 all discovered shallow gold zones within the Hornblende Shear Zone in an area previously considered sterile. This included:
- HS-15-27: 3.11 g/t gold over 8.1 metres including 5.9 g/t gold over 2.4 metres
- Discovery of two new gold zones in the Wawa Gold Corridor between the Jubilee Shear Zone and Hornblende Shear Zone:
- William Zone - HS-15-30: 1.79 g/t gold over 12.5 metres
- MHF Zone - HS-15-31: 1.01 g/t gold over 22 metres
- Intersection of gold zones in the Hornblende and Jubilee Shear Zones:
- Hornblende Shear Zone - HS-15-31: 14.28 g/t gold over 2.9 metres
- Jubilee Shear Zone - HS-15-31: 5.19 g/t gold over 12 metres
Red Pine Closes Non Brokered Private Placement
Red Pine is pleased to announce that it has closed a non-brokered private placement financing (the "Financing") pursuant to which it has received total gross proceeds of $640,000. Under TSXV regulations, following the planned merger of Red Pine and Augustine Ventures pursuant to the Letter of Intent to merge announced December 17, 2015, the combined company requires a minimum of 6 months of operating cash on hand. The funds raised through this Financing will satisfy that requirement.
Pursuant to the Financing, the Company issued 8,000,000 units ("Common Units") priced at $0.08 per Common Unit. Each Common Unit consists of one common share of the Company and one half of one common share purchase warrant (each whole warrant, a "Warrant") with each Warrant being exercisable at a price of $0.105 for a period of 36 months following the closing date of the Financing.
In connection with the Financing, Red Pine paid fees in the form of cash compensation of $44,800 and issued 560,000 non-transferable compensation warrants, with each compensation warrant being exercisable to acquire one common share of the Company at a price of $0.105 for a period of 24 months following the closing date of the Financing.
All securities issued pursuant to the Financing are subject to a restricted period of four months and one day from the date of issuance. The Financing is subject to receipt of final approval from the TSX Venture Exchange.
Quentin Yarie, P Geo. is the qualified person responsible for preparing, supervising and approving the scientific and technical content of this news release.
On-site Quality Assurance/Quality Control ("QA/QC") Measures
Drill core samples are transported in security-sealed bags for analyses at Activation Laboratories Ltd. in Timmins, Ontario. Individual samples are labeled, placed in plastic sample bags and sealed. Groups of samples are then placed into durable rice bags that are then shipped. The remaining coarse reject portions of the samples remain in storage at the Activation Laboratories Ltd. in Timmins, Ontario as required in the event that 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.