Red Pine Exploration Inc.
TSX VENTURE : RPX

Red Pine Exploration Inc.

June 30, 2015 06:00 ET

Red Pine Secures Funding to Satisfy Conditions for 30% Interest in Wawa Gold Project

TORONTO, ONTARIO--(Marketwired - June 30, 2015) - Red Pine Exploration Inc. (TSX VENTURE:RPX) (the "Company" or "Red Pine") announces that conditions have now been met to earn a 30% interest in the Wawa Gold Project located in McMurray Township adjacent to the Town of Wawa, Ontario. Red Pine recently filed an updated NI 43-101 Technical Report on the Wawa Gold Project produced by Ronacher McKenzie Geoscience ("Ronacher McKenzie") in collaboration with SRK Consulting (Canada) Inc. ("SRK"), which includes an updated resource estimate for the Surluga-Jubilee Deposit ("Surluga Deposit").

Red Pine Begins Summer Work Program

Technical staff have now been mobilized to reference the high grade gold mineralization historically identified at the Surluga, Parkhill, Van Sickle, Darwin and Minto/Sunrise Mines in order to better define the attributes of the gold bearing structures. This information will be used to outline and plan the next drill program which is tentatively scheduled for late July. The Company expects to have spent the balance of the necessary expenditures to fully satisfy the terms of the Option Agreement before the end of August, 2015.

Background

Red Pine entered into an Assumption Agreement on December 11, 2014 with Augustine Ventures Inc. ("Augustine") and Citabar Limited Partnership ("Citabar") whereby Augustine and Red Pine could earn up to a 75% combined interest in the Wawa Gold Project (see news release of December 11, 2014).

One condition of the Assumption Agreement was that Red Pine would spend $2.1 million on exploration work by June 30, 2015 at which time Red Pine and Augustine would each earn a 30% interest in the Wawa Gold Project with Citabar owning the remaining 40% interest.

As of May 31, 2015, Red Pine had spent more than $1.9 million on exploration work. To ensure prudent expenditure of the balance of the funds, the three parties have entered into a Funding Agreement whereby Red Pine has secured the balance of the required funds and the three parties have agreed to extend the completion date for the remaining exploration work to September 30, 2015.

Upon satisfying the option earn-in requirements, the 3 parties will begin operating under a Joint Venture Agreement (JVA) to continue advanced exploration and development of the Wawa Gold Project with Red Pine as the Operator.

Inferred Resource Highlights Include:

  • Improved Inferred Resource at the Surluga Deposit with a 14.7% increase in gold grade and 1.5% increase in gold contained in less tonnes of ore:
    • 1,088,000 ounces at 1.71 grams per tonne ("g/t") gold contained in 19.824 million tonnes (using an average 0.5 g/t gold cut off grade)

  • Pit-constrained inferred resources of 676,000 ounces at 2.05 g/t gold and outside pit-constrained inferred resources of 298,000 at 1.07 g/t gold for all gold zones located between surface and 300 meters vertical depth (using a 0.4 g/t gold cut-off grade)

  • High-grade Underground Constrained Inferred Resource:
    • 114,000 ounces gold at 3.73 g/t gold (using a 2.5 g/t gold cut-off grade)

  • 89.5% of the resource is located between surface and 300 metres vertical depth.

  • The Surluga Deposit contains discrete zones of higher-grade gold mineralisation that have a strong control on the spatial distribution of the gold.

  • The Ronacher McKenzie-SRK report states: "Further, there is gold mineralization in the hanging wall and footwall secondary structures, but its geometry remains poorly constrained." This indicates that the contained gold of the pit-constrained resource can be increased by defining (drilling and logging of historic core) the gold zones in the hanging wall and footwall of the Surluga Deposit. This can significantly improve the current Surluga resource and its economic potential.

Qualified Person

Quentin Yarie, P.Geo. is the qualified person responsible for preparing, supervising and approving the scientific and technical portions of this news release outside the scope of the Independent Technical Report and is responsible for overseeing all aspects of the company's exploration programs.

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".

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.

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