NEW YORK, Aug. 26, 2020
NEW YORK, Aug. 26, 2020 /PRNewswire/ -- The Red Lake Mining District in Ontario is best known for its high-grade gold deposits and producing roughly 30 million ounces of high-grade gold, but a series of high-grade discoveries in the region reveal that gold miners have still just barely scratched the surface. Up until recently, most of the gold in the region came from four mines: Newmont Corp.'s (NYSE: NEM) (TSX: NGT) Red Lake, Campbell, and Cochenour mines, which the company recently sold to Evolution Mining, and the past-producing Madsen Mine. Now, gold miners like Great Bear Resources (TSXV: GBR) (OTCQX: GTBAF), Pure Gold Mining (TSXV: PGM) (OTCPK: LRTNF), Yamana Gold (TSX: YRI) (NYSE: AUY), and Portofino Resources Inc. (TSXV: POR) (OTCPK: PFFOF) have staked their claim in the prolific high-grade Red Lake region.
Renewed interest in Red Lake came after Great Bear Resources made multiple discoveries of high-grade gold at its Dixie Project, which is being dubbed one of Canada's largest new gold discoveries. Now, Portofino Resources Inc. (TSXV: POR) (OTC: PFFOF) (FSE: POTA) is developing two promising gold projects that are right next door to Dixie and so far, the results have been exceptional.
Red Lake District on the Verge of Another Major Discovery
Located only 9 kilometers east of the Dixie Project is Portofino Resources' (POR.V) (PFFOF.PK) (FSE: POTA) South of Otter Property, which comprises 5,363 hectares and shares similar geology and structures to its neighbor. The company has recently acquired the 1,428-hectare Bruce lake property, which is located 11 km southeast of Dixie and just 1.5 km northeast of Great Bear's Pakwash Property.
In the last few weeks, Portofino Resources Inc. received its drilling permits for the South of Otter property, which will allow for trenching, diamond drilling, and line cutting, and commenced a mechanical trenching and soil anomaly testing program. On August 5, the company announced the discovery of two gold-bearing quartz veins sampling 18.0 grams per tonne (g/t) gold and 8.19 g/t gold.
On August 26, Portofino Resources Inc. revealed that a re-assaying of the initial 12 samples from South of Otter resulted in the first 2 samples assaying 16.0 g/t gold and 12.0 g/t gold, respectively. In addition, a third sample was identified as returning 1.6 g/t gold along an east-west trending low-magnetic geophysical anomaly 260 meters south of the original discovery.
With the limited number of outcrops on the South of Otter property, Portofino Resources Inc. (POR.V) (PFFOF.PK) (FSE: POTA) implemented an overburden trenching program and was able to expand the surface trace of the new gold discovery zone. Multiple channel samples were taken from two outcrop areas and select chip samples and grab samples were taken from three soil anomalies including gold and silver targets that were identified by Goldcorp in 2001.
The company also announced that it has commenced an airborne magnetic survey, comprising approximately 1,600 line kilometers of airborne geophysical surveys with GPS controlled, 50 meter line separations to achieve quality definition of geological units and their structures. Once the airborne survey is complete, Portofino Resources Incexpects to use the results to identify drill targets, then immediately move forward with the next phase of exploration and implement an initial drilling program.
Apart from its work at South of Otter, Portofino also recently completed initial exploration work at Bruce Lake, including prospecting, rock, soil and glacial till sampling, and geological mapping.
Red Lake District Ripe With Junior Miners
Up until recently, the Red Lake Mining District was dominated by gold giant Newmont Corporation (NYSE: NEM) (TSX: NGT), which owned three of the four producing mines in the region. In 2015, Great Bear Resources (TSXV: GBR) (OTC: GTBAF) moved into the region by acquiring 67% ownership of the Dixie Lake gold project, while Newmont Corporation held a participatory 33% interest in the property. In 2017, Great Bear Resources acquired Newmont's 33% for 100% ownership interest in the Dixie project and has continued to turn out high-grade results ever since.
In July, Great Bear Resources announced that it had expanded the LP Fault Gold System at depth, with 10.06 g/t gold over 31.25 meters. The company has completed 120 of roughly 300 planned drill holes into the LP Fault target, which is part of its 5-kilometer long by 500-meter deep grid drill program.
Another company making serious headway in the Red Lake Mining District is Pure Gold Mining (TSXV: PGM) (OTC: LRTNF). Despite facing a minor setback this month due to a forest fire, the company has resumed underground exploration drilling at its PureGold Red Lake Mine and is on track to deliver first production in late 2020
In July 28, Pure Gold announced that the exploration drilling intersected high-grade gold mineralization from step-out drill holes including 12.8 g/t over 10 meters, 9.3 g/t over 2.4 meters, and 10.6 g/t over 2 meters. According to the release, the drilling has extended gold mineralization out from current design stopes, discovered new gold zones that will be integrated into the mine planning, and confirmed stopes scheduled for near-term production.
Located southwest of the Red Lake Mining District, Yamana Gold (TSX:YRI) (NYSE:AUY) is developing its own Red Lake project. With two properties consisting of 542 hectares, Yamana has secured significant mineral envelopes close to Newmont's former Red Lake Gold Mines operation and Premier Gold Mines' Hasaga gold deposit.
After experiencing temporary suspensions at two of its mines earlier this year, Yamana revised its annual guidance in April after ramping up mines faster than expected and expects gold production to be above expectations.
Indeed, the Red Lake Mining District has become a hot spot for high-grade gold discoveries and the trend will likely continue as gold prices remain at record highs. With two promising land packages under its belt, Portofino Resources Inc. could be on the edge of Canada's next big high-grade gold discovery in Ontario.
For more information about Portofino Resources Inc. (TSXV: POR) (OTC: PFFOF) (FSE: POTA), click here.
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