Red Pine Exploration Inc.
TSX VENTURE : RPX

Red Pine Exploration Inc.

November 29, 2016 06:00 ET

Red Pine Exploration Discovers High-Grade Gold Bearing Tension Veins in the Hanging Wall of the Surluga Deposit

TORONTO, ONTARIO--(Marketwired - Nov. 29, 2016) - Red Pine Exploration Inc. (TSX VENTURE:RPX) ("Red Pine" or the "Company") has received results from prospecting and channel samples taken during its on-going mapping and trenching program at the Wawa Gold Project.

Highlights from the trenching and mapping program include so far:

  • The discovery of new high-grade quartz veins in the hanging wall of the Surluga Deposit which contain up to 64.9 g/t gold (Table 1 and Figure 1);

  • Confirmation that gold mineralization extends to surface in the William Gold Zone - channel samples contain over 9 metres at 0.81 g/t gold (Table 2 and Figure 1);

  • Confirmation that gold mineralization reaches surface in the Hornblende Shear Zone - channel samples contain over 6 metres at 0.8 g/t gold (Table 2 and Figure 1);

Quentin Yarie, President and Chief Executive Officer of Red Pine, states, "The identification of gold-bearing quartz veins in the hanging wall of the Surluga Deposit supports our working hypothesis that additional gold remains to be found in the immediate vicinity of the inferred resource. The measured steep dip for one of the high-grade veins also indicates that the historic surface holes, drilled vertically, had a low probability of intersecting those veins. We believe that this could be more common in the footwall and hanging wall than previously thought."

Gold mineralization in the hanging wall

The Jubilee Shear Zone currently hosts the Surluga Deposit - a 1.088 million ounces of gold inferred resource1. Following its 2015 exploration programs, Red Pine observed, in historic and recently drilled boreholes, gold intersections in the hanging wall of the Jubilee Shear Zone. Based on these observations, the Company concluded that additional exploration in the hanging wall could uncover new zones of gold mineralization un-recognized by previous operators.

The Company also identified, at three distinct locations, high-grade quartz veins next to the main drill road, historically used to drill much of the Surluga Deposit, and within tens of meters of the inferred resource. This again demonstrates that gold remains to be found in the most explored area of the property.

The steep dip of the vein containing 43.2 g/t gold (around 078°) indicates that the historic surface drill holes, drilled vertically, were inefficient at intersecting these veins. The measured strike (228°) and dip (78°) of that vein is also similar to the average strike (217°) and dip (77°) of two high-grade quartz veins intersected in the footwall of the Surluga Deposit in hole SD-15-11 (over 1 metre at 53.2 g/t gold and over 1.85 metres at 28.04 g/t gold; Figure 1). These are potential indicators of the existence of a network of steeply dipping and high-grade tension veins in the area that extends from surface to the footwall of the Surluga Deposit.

Table 1 - Medium- to high-grade gold grab* samples collected in veins of the hanging wall of the Surluga Deposit
Sample Prospect/Deposit Sample type Gold
(g/t)
1473963 Surluga HW Quartz vein in shear zone 43.2
1473964 Surluga HW Quartz vein 3.15
1473973 Surluga HW Quartz vein in shear zone 3.52
1473977 Algoma Zone Quartz vein in shear zone 64.9
* Readers are cautioned that grab samples are selective by nature. The grades and mineralization present are not necessarily representative of other mineralization that may be identified on the property.

Gold mineralization at the William Gold Zone and Hornblende Shear Zone

The observation of continuous gold mineralization in channel samples taken in the William Gold Zone confirms the intersection in borehole HS-15-30 (over 12.5 metres at 1.79 g/t gold; Figure 1). The east-west orientation of the channel samples with continuous gold mineralization also provides a better understanding of the controls on gold mineralization. This orientation indicates that gold mineralization is in part controlled by a well developed stretching lineation trending 167° and plunging 20°. This stretching lineation observed at the William Gold Zone parallels the stretching lineation of the Jubilee Shear Zone, indicating that the William Gold Zone is a probable component of the same structural system.

The gold assays in the highly strained domain of the Hornblende Shear Zone demonstrate (over 6 metres at 0.8 g/t gold including over 2 metres at 2.30 g/t gold) the extension to surface of the gold mineralization intersected in hole HS-15-28 (over 15.35 metres at 1.25 g/t gold; Figure 1). However, the complete sampling of the high-strain domain of the Hornblende Shear Zone was hindered by the remaining overburden and steepness of the rock face, which precluded the channel sampling of the entire structure.

Table 2 - Channel samples from the William and Hornblende Gold Zones
Trench Id From
(m)
To
(m)
Length*
(m)
Gold
(g/t)
Gold Zone
TR-16-4A 0 1 1 1.08 William
TR-16-4A 1 2 1 0.126 William
TR-16-4A 2 3 1 0.715 William
TR-16-4A 3 4 1 0.328 William
TR-16-4A 4 5 1 1.508 William
TR-16-4A 5 6 1 0.912 William
TR-16-4A 6 7 1 0.651 William
TR-16-4A 7 8 1 1.289 William
TR-16-4A 8 9 1 0.657 William
TR-16-4B 0 1 1 0.051 William
TR-16-4B 1 2 1 0.642 William
TR-16-4B 2 3 1 1.082 William
TR-16-2A 0 1 1 0.007 Hornblende
TR-16-2A 1 2 1 0.066 Hornblende
TR-16-2A 2 3 1 0.038 Hornblende
TR-16-2A 3 4 1 0.113 Hornblende
TR-16-2A 4 5 1 1.76 Hornblende
TR-16-2A 5 6 1 2.83 Hornblende
* True width has not been calculated for each individual channel sample that are currently reported as channel sample length.

On-going Drilling Program

The current diamond drill program is targeting the northern extension of the Surluga Deposit to define additional gold mineralization and improve the existing inferred resource. Two boreholes have been completed with assays pending for each. At one location in both drill holes, visible gold2 was conclusively observed. In SD-16-40, visible gold was observed in a quartz vein hosted in a subsidiary structure of the footwall. In SD-16-41, visible gold was observed in a quartz vein of the Jubilee Shear Zone. SD-16-40 was drilled through the Wawa Gold Corridor from the hanging wall of the Jubilee Shear Zone to the Hornblende Shear Zone, SD-16-41 was drilled just outside of the northernmost extension of the inferred resource.

Other Activities at the Wawa Gold Project

Red Pine continues to sample historic core. The Company expects additional results from its on-going exploration program in the coming weeks.

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 as required in the event that further work or verification is needed.

Grab and channel samples are transported in security-sealed bags for analyses at Activation Laboratories Ltd. in Ancaster, 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. All grab and channel samples are photographed and geo-referenced.

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.

1NI 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"

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. Overview of trenching and mapping results, please visit: http://media3.marketwire.com/docs/figure1_redpine.jpg.

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