Red Pine Exploration Inc.
TSX VENTURE : RPX

Red Pine Exploration Inc.

January 10, 2017 06:00 ET

Red Pine Exploration Discovers Gold in the Hanging Wall of the Surluga Deposit: 1.30 g/t Gold Over 56.92 Metres Including 3.17 g/t Over 16.61 Metres

TORONTO, ONTARIO--(Marketwired - Jan. 10, 2017) - Red Pine Exploration Inc. (TSX VENTURE:RPX) ("Red Pine" or the "Company") has received results for holes sampled as part of its sampling program of historic core at its Wawa Gold Project. The Company has also resumed drilling as part of its on-going exploration program.

New results from the Sampling Program include:

  • 1.30 g/t gold over 56.92 metres in S247 (intersection length) and 0.83 g/t gold over 21.18 metres (intersection length) in the Minto B Shear Zone;
  • Discovery of broad zones of gold mineralization in the hanging wall of the Surluga Deposit inferred resource (Fig.1 and Table 1); and
  • 1.77 g/t gold over 51.21 metres in U0722L5 (intersection length) and 4.29 g/t gold over 14.63 metres in U0763L6 (intersection length) in the Surluga Deposit (Jubilee Shear Zone).

Quentin Yarie, President and Chief Executive Officer of Red Pine states, "We are quite pleased that the historic core sampling program continues to discover broad zones of gold mineralization in the hanging wall of the Surluga Deposit(1). This validates our hypothesis that the knowledge gaps the previous operators had on the controls of gold mineralization at Surluga resulted in numerous sampling gaps in the mineralized zones. Our newest sampling has uncovered an intersection that contains 3.29 g/t gold over 10.09 metres (intersection length) and we are optimistic that our historic core sampling program will have a positive impact on the gold zones of the hanging wall of the inferred resource(1) and improve the potential of the Wawa Gold Project."

Sampling of Historic Core

Red Pine's current sampling of 42,000 metres of historic drilling (from 318 underground and 119 surface drill holes) continues to define additional gold in many of the historic boreholes that intersected the Jubilee Shear Zone, but also in structures of the footwall and hanging wall of the Surluga Deposit inferred resource, which already contains 1.088 million ounces of gold(1). From a thorough review of the historic drilling in the Surluga Deposit, the Company concluded that many sampling gaps exist in the gold structures of the Wawa Gold Corridor identified by the Company in the course of its exploration programs.

The Company believes these sampling gaps negatively impacted the evaluation of the potential of the gold-bearing structures located outside and inside the inferred resource. The current results demonstrate that a broad zone of higher grade gold mineralization was left un-sampled in the Minto B Shear Zone (3.29 g/t gold over 10.09 metres in S247). These previously un-sampled intervals were assigned a value of 0 g/t gold and negatively impacted the inferred resource evaluation of the Surluga Deposit. The spatial distribution of the newly sampled historic boreholes with notable gold weighted average increases will positively change the current deposit model (Fig 1).

On-going Drilling Program

The on-going diamond drill program is focussed on expanding the Surluga Deposit to the north (Fig. 1). Hole SD-16-40 targeted the Wawa Gold Corridor near the shaft of the historic Surluga mine. Hole SD-16-41 and SD-16-42 targeted the Wawa Gold Corridor at the northern end of the inferred resource. Hole SD-16-43 is 525 metre step out to the north of the inferred resource in the Wawa Gold Corridor. Holes SD-16-44 and SD-16-45 targeted the area where the historic core sampling program discovered un-sampled core containing 109 g/t gold over 0.86 metre.

Drilling of hole SD-16-45, which targeted the interpreted extension of a high-grade zone in the northernmost extension of the Surluga Deposit, resumed this week as it was stopped in a network of quartz veins rich in pyrite and pyrrhotite (Fig. 1). Hole SD-16-45 successfully intersected the Jubilee Shear Zone, 40 metres up-dip of SD-16-44, along the same section. In the Jubilee Shear Zone, visible gold(2) was observed at four different locations at 148.1 metres, 153 metres, 155.88 metres and 160.72 metres.

Table 1 - Before and after(3) intersections above 0.2 g/t gold

Hole Before/After
sampling
Structure From
(m)
To
(m)
Intersection
length (m)
Gold weighted
average
(g/t x m)
Grade
(g/t gold)
% change gold
weighted average
S215 New Gold Zone FW 189.56 191.38 1.82* 0.85 0.47 Zone was historically un-sampled
S227 New Gold Zone FW 54.56 56.69 2.13* 1.3 0.61 Zone was historically un-sampled
S247 Before Minto B 96.62 142.07 45.45** 25.51 0.56 188.98
After 85.15 142.07 56.92** 73.72 1.30
Before Jubilee 243.23 295.96 52.73*** 42.43 0.80 5.33
After 243.23 295.96 52.73*** 44.69 0.85
S255 Before Jubilee 132.28 149.29 17.01*** 10.82 0.64 2.5
After 132.28 153.95 21.67*** 11.09 0.51
New Gold Zone HW* 78.33 79.89 1.56* 0.8 0.51 Zone was historically un-sampled
S272 Before Jubilee 166.88 197.78 30.90*** 32.6 1.06 6.87
After 166.88 197.78 30.90*** 34.8 1.13
S281 New Gold Zone HW* 35.69 36.69 1* 1.37 1.37 Zone was historically un-sampled
S309 Before Minto B 67.36 74.07 6.71*** 6.36 0.95 175.79
After 67.36 88.54 21.18*** 17.54 0.83
U0722L5 Before Jubilee 11.89 55.63 43.74**** 87.49 2.00 3.79
After 9.75 60.96 51.21**** 90.81 1.77
U0763L6 Before Jubilee 1.52 14.63 13.11*** 61.81 4.71 1.46
After 0 14.63 14.63*** 62.71 4.29
True width has not been calculated for each individual intercept currently reported as drilled length.
* New gold zones for which the true widths of the reported drilling intercepts have yet to be determined. Additional drilling or sampling of additional historic holes the immediate area which will enable the true width determination.
** Structures for which true width is estimated to be between 35 and 40% of drilled length
*** Structures for which true width is estimated to be between 75 and 95% of drilled length
**** Structures for which true width is estimated to be between 55 and 60% of drilled length

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 if 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.

Qualified Person

Quentin Yarie, P Geo. is the qualified person responsible for preparing, supervising and approving the scientific and technical content of this news release.

About Red Pine Exploration Inc.

Red Pine Exploration Inc. is a gold and base-metals exploration company headquartered in Toronto, Ontario, Canada. The Company's common shares trade on the TSX Venture Exchange under the symbol "RPX".

Red Pine has a 30% interest in the Wawa Gold Project and has entered into a Joint Venture Agreement with Citabar LLP and Augustine Ventures Inc. The Wawa Gold Project is now owned by Citabar/Red Pine/Augustine in the ratio of 40%, 30% and 30%, respectively. Under the terms of the JVA, Red Pine is the Operating Manager and continues to explore and advance the current gold resource on the property.

Red Pine and Augustine have entered into a definitive agreement (November 14, 2016) to consolidate their ownership of the Wawa Gold Project.

For more information about the Company visit www.redpineexp.com.

(1) NI 43-101 inferred resource of 1,088,000 ounces of gold at a 1.71 grams per tonne (g/t) using a 0.40 g/t gold cut-off grade for pit-constrained and 2.50 g/t gold cut-off grade for underground-constrained resources, contained in 19.82 million tonnes open along strike and at depth. The Cut-off grades are based on a gold price of US$1,250 per once and a gold recovery of 95 percent (Mineral Resource Statement*, Surluga-Jubilee Gold Deposit, Wawa Gold Project, Ontario, SRK Consulting (Canada) Inc (effective May 26, 2015)). The report is available on www.SEDAR.com under Red Pine's profile.

(2) Gold visible with the naked eye - "visible gold"

(3) Before results are entirely historical and are based on assay results obtained during drill programs conducted between 1961 and 1989 by previous operators of the Wawa Gold Project. After results represents the combination of the historical results with the new assay results obtained by Red Pine Exploration as part of its sampling program. Red Pine's sampling of the core involves re-measuring the historical boreholes and sampling the un-sampled core pieces left in the historical intersections. A full QA/QC program is implemented as part of Red Pine sampling program. All the sampled historical boreholes with the new sample locations are also systematically photographed as part of the sampling protocols.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This News Release contains forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "potential" or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.

Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/rpx0110fig1.pdf.

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