In a recent poll, the vast majority of people still run to Gold as a safe haven when the markets turn. According to 7 separate analyst reviews, Junior Gold companies stand to have the largest returns in 2021 going into 2022, so now is the time to “load up” and take it for a ride.
We did some digging, and at this price point, the following company has the assets, expertise, and most importantly, the stock price margins to show investors some serious returns in the coming months.
Introducing:
West Red Lake Gold Mines Inc. (CSE:RLG) (OTC:RLGMF), operating in the region dubbed “Canada’s Fort Knox” – We see serious potential here!
The trend of countries, institutions and investors hoarding record amounts of bullion, researchers are predicting the price of gold to remain bullish in the coming years. Exchange traded funds (ETFs), which stockpiled 1,205 tonnes of gold in 2020 (3x the 2019 amount), and are set for another 1,362 tonnes in 2021—the most ever. [1]
As Governments worldwide print money endlessly, their balance sheets go way out of whack and inflation will accelerate rapidly. Gold is the only asset that can re-balance them and hedge against this inflation. The race for gold stock piling has begun and the gold rush of the 21st century is on.
“According to the Federal Reserve Bank, just over 35% of all the American dollars ever printed by the U.S. government has been printed over the last 12 months.”
And it isn’t just investors who are stockpiling, as economic superpowers began boosting their gold reserves en masse. Russia’s Central Bank increased their gold stockpile by 28% in just one year.[3] The United Arab Emirates Central Bank’s gold reserves surged by 51%, and their bullion assets more than doubled since December 2019.[4] The USA, China, France, Germany, Italy, Russia, Switzerland, to name just a few are stockpiling gold. Central Banks in 2019 accumulated over 668 tons in gold purchases—the highest amount of gold buying since the 1970s. [6]
Gold is still clearly the safe haven investment, exemplified by a statement from De Nederlandsche Bank (which holds more than 600 tonnes of gold):
Moving forward, the demand for gold is firmly in place. The price is predicted to remain high in the near future. The economics of the precious metal have indeed shifted—giving rise to a much more serious look at the mining sector that will provide tomorrow’s gold supply. In particular, coming from Canada, in particular from a region in Ontario currently being dubbed as “Canada’s Fort Knox”.[7]
“Gold is the anchor of trust for the financial system. If the system collapses, the gold stock can serve as a basis to build it up again.”
Intro to West Red Lake Gold Mines Inc.
(CSE:RLG) (OTC:RLGMF)
Meet West Red Lake Gold Mines Inc. (CSE:RLG) (OTC:RLGMF), a Canadian mining company focused on gold exploration and development in the prolific Red Lake Gold District, located in Northwestern Ontario, Canada—which is host to some of the world’s richest gold deposits, and has produced 30 million ounces of gold from high grade zones.
Strategically located only 15km away from the Red Lake Mine Complex (comprised of three mines and two mills operated by Evolution Mining), the West Red Lake Gold Mines property consists of 3,100 hectares that include a 12km strike length on the Pipestone Bay St Paul Deformation Zone (PBS Zone) and 3 former gold mines located on the PBS Zone .
The nearby mines currently operated by Evolution Mining (Campbell and Red Lake Mines), have produced to date more than 24 million ounces of gold.
Among West Red Lake Gold Mines’ assets is a joint venture with Evolution Mining on the Rowan Mine property (RLG 64% and operator; Evolution 36% partner).
What’s at stake?
West Red Lake Gold Mines Inc. (CSE:RLG) (OTC:RLGMF) has a NI 43-101, Inferred Resource of 1,087,700 ounces from 2016. With resource potential open at depth, the company is now set to not only upgrade the status of this resource, but expand upon it.
“At todays gold prices, One Million Ounces of gold bullion is worth approximately $1.85 Billion Dollars USD.”
Now the company has commenced drilling on the high-grade, near surface gold zones situated at the NT Zone structure located less than a kilometre south of the Rowan Mine gold deposit.
Nearby explorers and operators have dubbed this region Canada’s Fort Knox. Already, multiple majors have invested into another peer in the Red Lake district, and another to the southeast was one of Canada’s best performing gold stocks in 2020.
MINING GIANTS INVESTING IN RED LAKE DISTRICT
Mining magnate and billionaire investor Eric Sprott closed out 2019 on an investment spree, focusing heavily on junior gold miners that were on the verge of striking the mother-lode. He expressed his optimism to the Financial Post, stating “It’s like being at a table with a winning run.”[8] Sprott carried that enthusiasm into 2020 and 2021, with a particular focus on investing in junior miners.
Other mining companies with strong Red Lake mining interests have had a fantastic 2020*:
- GoldOn Resources Ltd. (TSX.V: GLD / OTC: NCMBF) — Up 120%
- Evolution Mining Limited (OTC: CAHPF) — Up 54%
- Yamana Gold Inc. (NYSE: AUY / TSX: YRI) — Up 76%
- Premier Gold Mines Limited (TSX: PG / OTC: PIRGF) — Up 192%
- – Prices measured between March 2020 and March 2021
Among these was a company focused in the Red Lake district called Pure Gold Mining Inc. (TSXV:PGM / OTC:LRTNF) which attracted nearly CAD$20 million of Eric Sprott’s personal investment.[9]
ROWAN MINE PROPERTY
Through an extensive drilling effort, West Red Lake Gold Mines Inc. (CSE:RLG) (OTC:RLGMF) earned a majority stake (64% and operatorship) from JV partner Evolution Mining.
The property is only 15kms to the west of the world class Red Lake Mine and Campbell Mine, which have a geologically similar setting illustrating the exploration potential for high-grade gold zones on the Company’s West Red Lake Project – which hosts three former gold mines.
The Rowan Mine property is situated in the Red Lake Archean Greenstone Belt which hosts the high-grade gold mines of the Red Lake Gold District.
Central to the project is its good potential to expand the Rowan Mine Gold Zones to depth and to upgrade upon the current 1,087,700-ounce inferred gold resource—published in 2016.
There are now preliminary studies ongoing, including drilling on the NT Zone and the Structural Intersection target 1.5km east of the Rowan Mine Shaft. These targets in particular provide significant exploration potential.
“We are increasing the amount of drilling on the West Red Lake Project to continue the expansion of property gold mineralization,” said John Kontak, President of West Red Lake Gold. “We believe the project has a potential which may be multiples of the mineral resource outlined to date. Ongoing drilling in 2021 is planned for expansion of gold zones and new discoveries.”
In addition, historic sampling on the first mine level of the Rowan Mine at surface indicate good potential for a gold-rich surface bulk sample sometime in the future.
THE NT ZONE PROPERTY
The NT Zone is to be the focus of the company’s exploration drilling over the next 12 months.
West Red Lake Gold Mines Inc. (CSE:RLG) (OTC:RLGMF) has already completed 10,866 metres of shallow drilling in 40 holes within the NT Zone over a distance of 1km intersecting several parallel gold zones containing high-grade gold mineralization from the surface down to a depth of approximately 200 metres.
Drilling results in late September were impressive, including several high-grade gold intercepts including 5.91 g/t Au over 6.0 metres[11] which followed up on previous impressive results at the NT Zone news released on January 15, 2020.
Highlights from September results included:
- 3.41 g/t Au over 13.5m, incl. 5.91 g/t over 6.0 m
- 7.92 g/t Au over 3.0m, incl. 14.71 g/t over 1.50 m
- 3.96 g/t Au over 4.50m, incl. 7.31 g/t over 1.50 m
- 7.34 g/t Au over 1.50m
Highlights from January results included:
- 12.14 g/t Au over 13.5 m
- 9.14 g/t Au over 7.5 m
- 5.38 g/t Au over 21.0 m
- 11.13 g/t Au over 3.0 m
- 4.99 g/t Au over 5.2 m
- 6.34 g/t Au over 3.0 m
The exploration program in October and November 2020 was 10 drill holes totalling 3,195m. The drill holes targeted below the positive results from the NT Zone intersected to date and further along strike to the northeast within the NT Zone structure. After a break during the month of December, West Red Lake Gold Mines Inc. (CSE:RLG) (OTC:RLGMF) started drilling again in January 2021.
MOUNT JAMIE MINE PROPERTY
Complimenting the Rowan Mine Property for West Red Lake Gold Mines Inc. (CSE:RLG) (OTC:RLGMF) is the Mount Jamie Mine property.
Unlike Rowan, the Mount Jamie Mine property is 100% owned by West Red Lake Gold Mines.
During the 1930s, the property produced gold from a 770-foot-deep shaft. The property also contains the PBS Zone, which crosses the property and hosts the former Mount Jamie Mine, the Rowan Mine, and the Red Summit Mine.
RED SUMMIT MINE PROPERTY
The Red Summit Mine Property is also 100% owned by West Red Lake Gold Mines Inc. (CSE:RLG) (OTC:RLGMF).
It consists of 2 claims within the Rowan Mine property, and also situated on the PBS Zone.
The Red Summit Mine property hosts several known gold zones and a 575 foot shaft last in production in the 1930s with an average grade of 14.6 g/t gold.
Previous drilling provided high grade results and highlighted an opportunity for expansion of gold mineralization.
ONGOING STRATEGY
In the near term, the strategy for West Red Lake Gold Mines Inc. (CSE:RLG) (OTC:RLGMF) is to explore high grade gold at the 2km long NT Zone and to explore the Rowan Mine to greater depth.
Long term, the strategy is to realize the greater potential of the West Red Lake Project including the NT Zone, Rowan Mine, Mount Jamie and Red Summit Mines, and the Structural Intersection of the PBS Zone and the NT Zone.
Overall, the strategy for the company is to explore and develop a gold property asset that is attractive to the mining industry and the investment community.
VETERAN MINING MANAGEMENT TEAM AND BOARD
Tom Meredith – Executive Chairman – Former President & CEO of Lexam VG Gold
John Heslop – Vice Chairman – Former President & CEO of Thundermin Resources, and former President of PDAC
John Kontak – President & Director – Former President of Victory Gold Mines
Ken Guy – Exploration Manager – Over 30 years’ experience in exploration and development projects in Northern Ontario
Dan Crandell – Director & Audit Committee Chair – CFO of several publicly traded resource companies
Michael Dehn – Director – Former Senior Geologist with Goldcorp and former President & CEO of Nayarit Gold
8 Key Highlights to Remember for West Red Lake Gold Mines Inc. (CSE:RLG) (OTC:RLGMF)
- Gold’s price is projected to stay high into 2021 based on investors hoarding the precious metal as a safe haven investment.
- Inferred Resource of 1,087,700 ounces of high grade gold in Ontario’s prolific Red Lake Gold District—with resource upgrade potential open at depth.
- High grade Gold results are world class: up to: 14.71 grams per ton!
- West Red Lake Project property consists of 3,100 hectares, hosts three former gold mines, and is located only 15km west of the Red Lake Mine Complex of Evolution Mining (previously owned by Goldcorp).
- Joint Venture partnered with Evolution Mining at the Rowan Mine property with RLG retaining 64%, and operator distinction with high grade gold near surface.
- Diamond drill programs and Drone MAP Geophysics in 2020/21 at the NT Zone scheduled and underway.
- Additional Red Lake District properties that are 100% owned by West Red Lake Gold Mines that share geological structures as Rowan Mine Property
- Management Team and Board built from leaders with multiple former presidents of successful mining companies.
[1] https://www.kitco.com/news/2020-10-23/Investors-will-hoard-gold-even-faster-next-year-keeping-prices-high-Refinitiv.html
[2] https://www.reuters.com/article/us-gold-wgc-idUSKBN22C0H6
[3] https://sputniknews.com/business/202007191079931373-russia-boosted-international-reserves-by-over-10-gold-stockpile-by-28-in-one-year/
[4] https://www.zawya.com/mena/en/markets/story/Yellow_metals_golden_era_UAE_Central_Banks_gold_reserves_surge_by_51-ZAWYA20201020054030/
[5] https://www.bangkokpost.com/business/1996595/central-banks-set-to-top-up-gold-holdings
[6] https://www.deccanchronicle.com/business/in-other-news/020120/central-banks-gold-buy-highest-since-1970s.html#:~:text=Gold%20purchases%20by%20central%20banks,the%20data%20from%20Metals%20Focus.
[7] https://www.moneyshow.com/video/a75fd025750940d69caed43c83584db91/welcome-to-the-heart-of-red-lake-canadas-fort-knox/
[8] https://business.financialpost.com/commodities/mining/billionaire-eric-sprott-dishes-on-his-golden-investment-spree-its-like-being-at-a-table-with-a-winning-run
[9] https://ca.proactiveinvestors.com/companies/news/224175/pure-gold-mining-shines-with-closing-of-c475-million-in-financing-led-by-billionaire-investor-eric-sprott-224175.html
[10] https://resourceworld.com/canadas-highest-grade-gold-development-launched/
[11] https://finance.yahoo.com/news/west-red-lake-gold-drilling-143000339.html
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