Red Pine Exploration Inc.
TSX VENTURE : RPX

Red Pine Exploration Inc.

August 18, 2010 08:00 ET

Red Pine Exploration Identifies Three Immediate Gold Targets on Dome Mines Property; Ready to Commence Drilling Along DZ3 in the Swayze Greenstone Belt

TORONTO, ONTARIO--(Marketwire - Aug. 18, 2010) - Red Pine Exploration Inc. ("Red Pine" or the "Company") (TSX VENTURE:RPX) announces it will commence drilling next week on the Company's recently acquired Dome Mines property as well as its optioned Algoma Talisman (ATM) property, located in the Abitibi West region of the Swayze Greenstone Belt. An initial 1,500 metre drill program will investigate the gold-bearing structures on the "Michelle" Zone which is to be completed this month. Additional drilling is planned for the "Krista" Zone and the Charlie Mortimer Property ("CMP") once the current drill program is completed.

Three Immediate Gold Targets Identified Based on New Compilation of Geophysical Data

Given the volume of data and its antiquated style of presentation, the Company reconstructed, reinterpreted and compiled the available data during the period from March 2010 to July 2010. The magnetic and IP data collected over the Michelle and Krista zones from 2001 were modeled (in 3-D) and the information was combined with the existing borehole data (geology and assay results). This data was then combined in GoCad™ and as a result, a new interpretation of the gold-bearing structures on the Michelle and Krista zones has been completed.

This new interpretation of data assisted in gaining a better control and insight on the previously identified gold zones. Red Pine has identified three immediate gold targets of interest based on details of this compilation and new geophysical data;

1. The Michelle Zone (Dome's West Zone and West Zone Extension), straddles a parallel shear structure also associated with the Orofino Mine (746,946 tonnes of 5.34 grams per tonne gold; 128,151 ounces). Four drill holes are planned for this area with a targeted start date of August 20, 2010.

2. The Michelle Zone also includes Greenshield Resources "L23" area, discovered during a regional reconnaissance grab sampling program located approximately 500 metres west of the initial Dome zone of interest. The grab samples from this area had anomalous gold values up to 34.29 g/t Au. Greenshields follow-up drilling in 2004 of the area reported 2.35 g/t Au over 13.35 metres in hole G-04-26 which included 3.02 g/t Au over 9.75 metres. One drill hole is planned in this area as part of Red Pines initial intrusive program.

3. The Krista Zone was also explored by Greenshield Resources and is located on a similar parallel shear structure to the Michelle Zone, approximately 2 kilometres north and has to date produced the most significant gold values in grab samples. The Krista Zone is currently being mapped in detail.

New Interpretation

As part of the compilation work done by Red Pine, all geophysical, geological, and geochemical data was re-interpreted by geological staff. In addition, Red Pine conducted its own airborne, ground IP surveys, surface mapping and sampling. The culmination of this information has further highlighted the three areas of interest noted above and the drilling program to commence later this month will drill-test some of the more promising mineralization in the Michelle Zone.

Based on the historical data compilation, a new grid was established over the Michelle and Krista zones and a detailed IP survey was completed by Abitibi Geophysics. A detailed airborne magnetic gradient survey was also conducted by Aeroquest Limited at 50m and 100m line spacing. The results of the new IP survey have identified numerous IP anomalies associated with structures resolved from the airborne magnetic survey. The Michelle and Krista Zones are easily identifiable in the geophysical data as well as a number of other anomalous areas that will require follow up.

Charlie Mortimer Property

Red Pine recently completed an IP survey (Abitibi Geophysics) and airborne magnetic (Aeroquest Limited) over the Charlie Mortimer Property (CMP). The CMP bounds the Kenty Mine (250,000 t of 8 g/t Au) to the west, north and east. The Kenty Mine exists at a geological contact trending east/west and this contact extends onto the CMP in both directions.

The IP survey has identified a number of IP anomalies associated with this contact to the east of the Kenty Mine. The anomalous IP responses are trending approximately at 75 degrees NE and cross the main East – West contact identified by the airborne magnetic. These anomalies are highly prospective given they match the trend of Kenty Mine deposits. Further prospecting and surface sampling is planned over these IP anomalies.

Area Focus

Both the Dome Mines and ATM properties are part of Red Pine's regional land package of contiguous, high-potential gold properties, totaling approximately 28,000 hectares of patented and unpatented mining lands. Located in and along the newly defined DZ3 gold trend, the area holds a series of deformation zones and regional fault branches that host abundant gold showings and join the Destor-Porcupine Deformation Zone to the northeast, and join to the western extension of the Larder Lake Deformation Zone fault that branches to the southwest. The Destor-Porcupine Fault Zone is spatially associated with gold deposits in the Porcupine Gold Camp that have produced more than 65 million ounces gold to date.

Consulting geologist Hadyn Butler, P.Geo. comments, "In the past 35 years, gold exploration by companies in the western Abitibi has been scattered and unfocused. New geophysical evidence on the origin of mesothermal gold deposits have greatly improved over time. The two-plus decades of field work done to date by prospectors in this area and the results exhibited thus far certainly confirms the gold mineralization potential of the Properties. The gold-bearing veins discovered so far all feature the typical characteristics of significant mesothermal gold vein systems."

Red Pine to Raise Capital Through Private Placement

The Company has initiated a brokered and non-brokered private placement offering for the issuance of up to 15,000,000 Flow-Through units at $0.08 per unit resulting in gross proceeds of $1,200,000. Each Flow-Through Unit entitles the subscriber to receive one Flow-Through Common Share of the Company plus one-half of one Non-Flow-Through Purchase Warrant. Each full Non-Flow-Through Purchase Warrant is exercisable for one common share of the Company at an exercise price of $0.15 for 24 months from the date of issue. The Company intends to use the proceeds of the offering for exploration on its gold properties located in the Timmins Region of Ontario.

The Company intends to close this offering during August 2010. All securities to be issued in connection with this offering will be subject to a statutory four-month hold period from the date of issue. Completion of the offering remains subject to approval of the TSX Venture Exchange.

Myles Johnson is the Exploration Manager and is overseeing the field exploration program on behalf of Red Pine. Quentin Yarie, P.Geo., Vice President of Exploration is the qualified person for the technical information contained in this press release.

Forward-looking statements include, receipt of regulatory approval, statements on the proposed use of proceeds; completion of financing on terms proposed; the ability to raise additional funds as required; the development potential and timetable of the Company's properties and minerals; the current and future price of minerals the Company explores; the estimated size of mineral deposits on the Company's properties; the realization of those mineral deposit estimates; the timing and amount of estimated future exploration, development and production; costs of future exploration, development and production activities; success of exploration activities; government regulatory matters; discussion of political and environmental risks.

Forward-looking statements are based on the opinions and estimates of management of the Company. Forward-looking statements are subject to known and unknown risks that may cause actual results to be materially different from stated opinions and estimates of management. Some of the Company's more material risks are: availability and timing of external financing; unexpected events and delays during exploration; receipt of government and stock exchange approvals; results of current exploration activities; future price of minerals; political risks in the locations of the Company's properties; appreciation/depreciation of foreign currencies relative to the United States Dollar (the Company's functional currency) and other risks inherent in the mining and exploration industry.

While Company's management has attempted to determine the factors that could cause actual results to differ materially from estimated results contained in forward-looking statements, there may be other factors that cause results not to be as anticipated. The Company provides no assurance that such forward-looking statements will prove accurate or not materially different than projected. Therefore readers of this and other press releases issued by the Company should not place unreasonable reliance on stated forward-looking statements.

Contact Information

  • Red Pine Exploration Inc.
    Brent Nykoliation
    Vice President of Business Development
    (416) 364-7024
    (416) 364-2753 (FAX)
    or
    Red Pine Exploration Inc.
    Quentin Yarie, P.Geo.
    Vice President of Exploration
    (416) 364-7024
    (416) 364-2753 (FAX)
    or
    Red Pine Exploration Inc.
    Richard Schler
    CFO and Chief Operating Officer
    (416) 364-7024
    (416) 364-2753 (FAX)
    info@redpineexp.com
    www.redpineexp.com