Resource World Magazine

42 www.resourceworld.com D E C E M B E R / J A N U A R Y 2 0 2 0 lion upon new gold discoveries at the mine over the next 15 years at the rate of US $20 million per 1 million ounces added. In 2018, the Red Lake gold mine pro- duced 276,000 ounces of gold in 2018 at an all-in sustaining cost of $988/oz. Ore from Red Lake Gold Mines is hoisted up either the Balmer or Campbell shaft and processed at the Campbell mill. The Red Lake Mine employs about 1,100 people at three complexes: Balmer, Red Lake and the Campbell Complex. As of June 2017, Proven and Probable Reserves stood at 8.84 million tonnes grading 6.50 g/t gold, for 1.85 million ounces. In 2000, the mine was producing only 50,000 ounces of gold per year. Goldcorp President Rob McEwen made the compa- ny's geological data available to the public, and offered an incentive prize of $575,000 to anyone who could locate more gold deposits. Over 1,000 submissions arrived from all over the world. The winning sub- mission was a collaborative effort from Australia, between Fractal Graphics from West Perth and Taylor Wall and Associates from Queensland. They created a 3-D map of the mine which Goldcorp used to iden- tify 110 deposit sites in the mine, 50% of which were previously unknown and worth more than $6 billion. Nexus Gold Corp. [NXS-TSXV; NXXGF-OTCQB] has been assembling ear- lier geological reports on its 100%-owned McKenzie Project in the Red Lake area to help design a follow-up exploration pro- gram to verify and prioritize anomalous areas deemed suitable for drilling. The company previously disclosed high-grade historical grab sample results, including 331.14 g/t gold, 18.02 g/t, 212.8 g/t, 313 g/t and 9.37 g/t. A ground reconnaissance program this past summer returned notable sample assays, including 135.4 g/t gold and 9.3 g/t gold. Recently, more high-grade historical grab samples, previously unknown to the company, came to light in the Rimini sum- mary and include 142.49 g/t gold, 115.2 g/t, 114.57 g/t and 93.71 g/t from areas located on McKenzie Island (north block). "Determining drill targets is a priority," said Alex Klenman, President and CEO. Pacton Gold Inc. [PAC-TSXV] has com- pleted a field reconnaissance and mapping program and is conducting a 10,000-metre drilling program at the southwestern part of its 100%-optioned main Red Lake claim package. The program will focus on high-priority targets at the Boyden and Carricona prospects and possible extensions of known mineralization from adjacent projects within the Madsen-Dixie fault corridor. Recent surface channel sam- pling at Boyden returned values 101.3 g/t gold and 33.9 g/t gold. Pacton also has an option to earn a 100% interest in the 2,700-hectare Gullrock claims, subject to royalties. The property increases Pacton's land position in the Red Lake district for a total of 23,110 hectares. The Gullrock property adjoins the existing northern Pacton block and is an eastern extension of the producing Red Lake Mine Trend. Portofino Resources Inc. [POR-TSXV; PFFOF-OTC] has an option to earn a 100% interest in the 5,120-hectare South of Otter property 40 km south of the Town of Red Lake and 12 km east of Great Bear's Dixie Project for cash and shares, subject to a royalty. Historical work on the claims included prospecting, sampling and limited diamond drilling. Old data is being compiled to aid in planning a first pass exploration program. Premier Gold Mines Limited [PG-TSX] is in a joint venture (44%) on The Rahill- Bonanza property with Newmont Goldcorp, 56%. Uniquely situated with local and regional infrastructure, it includes active gold mining operations located immediately east and west of its property boundary that are linked by a 1.6-km deep, high capacity railway system (the 'tram') which traverses the joint venture property and is used to transport mined material. Rahill-Bonanza is along the main Red Lake Mine Trend and is the only remaining property on the trend that is not 100%- owned by Newmont Goldcorp. Known deposits include the West Granodiorite Zone, Wilmar Deposit, PG70 Zone and Bonanza deposit, all open at depth. Prime Meridian Resources Corp. [PMR-TSXV] has an option to acquire two sets of claims, subject to a royalty, from prospector Perry English covering 4,250 acres in the Bruce Lake area and 6,250 acres in the Camping Lake area. The Bruce Lake Project is southeast of the Great Bear Dixie Project and the Camping Lake Project ties directly on to the southeast of the Great Bear Pakwash Project. Pure Gold Mining Inc. [PGM-TSXV; LRTNF-OTC] has been advancing its construction stage, 100%-owned, past- producing, underground Madsen Red Lake Mine located 10 km southwest of Red Lake. The fully financed project is on track to deliver near-term first gold production in late 2020 utilizing its mill and permitted tailings facility at 800 tonnes per day. The orebody is situated within a six-kilometre- long gold system that is wide open for expansion at depth and along strike and multiple discoveries by the company sug- gest potential opportunities for near-term growth. Probable Mineral Reserves are pegged at 3.5 million tonnes at 9.0 g/t containing 1.0 million ounces of gold included in a Mineral Resource of 7,196,000 Indicated tonnes grading 8.9 g/t gold for 2,063,000 ounces of gold and 1,880,000 Inferred tonnes grading 7.7 g/t gold for 467,000 ounces of gold. A Feasibility Study stated that the Madsen Project has an After-tax NPV of $247 million and an IRR of 36% at base case metal price of US $1,275/oz for a 12-year mine life. However, at $1,500/oz gold, the After-tax NPV (5%) increases to $390 mil- lion with an After-tax IRR of 51%. The company recently reported that drilling intersected gold mineralization in a widespread gap midway between the high-grade 8 Zone at depth and near surface Russet South mineral resources, clearly establishing the prospectivity of this setting and opening up a brand new target area for discovery. The company has expanded the 2019 surface drill program to 20,000 metres, with two surface rigs currently active. Red Lake Gold Inc. [RGLD-CSE], for- RED LAKE

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