I launched a new website sponsorship program a couple months ago, I’m happy to announce West Red Lake Gold Mines (CSE: RLG) has joined the program.
At the beginning of the year, I reported that gold had bottomed in December 2015 and the next gold bull market had started. I also wrote other reports on why I think things will be different this time. After a multiple-year bear market that had companies beaten down to lows in valuations I have only seen a couple times in my career. In the new bull market, I’ve argued that fewer companies will participate and they will have to have strong projects.
Exploration suffered the worst in the last bear market, but in the new gold bull market, I’m expecting a renaissance of exploration for the gold mining sector. Especially in well-known camps, in mining-friendly jurisdictions. Red Lake, Ontario is one of the best high-grade gold camps in the world. The big mines are on the east side of Red Lake, but RLG has an exciting target emerging on their ground on the west side of Red Lake. We are only talking about a distance of 25 km from the mines on the east side to RLG’s ground.
I’ve been following the project for a long time and wrote about why I took a flyer on the stock in a recent post. Yesterday, I interviewed Tom Meredith and John Kontak to help my audience better understand, as well as myself, the recent drilling they completed. Earlier this morning, RLG announced the assay results from the recent drilling hit 1.5 metres of 69.5 g/t gold, on the hole closest hole to the main target.
Originally, I started following this project around a decade ago. Back then, I was a consultant to a company that owned a portion of the Newman Todd Structure (NTS) that also extends onto RLG’s ground. When I was with this company, we must have drilled around 50 holes into the NTS and hit gold on all the holes and over half of them hit high-grade gold. But the big difference was that we never had a big hinge zone, like on the RLG ground. We also didn’t have an east-west structure (that runs from the east to the west sides of Red Lake) intersecting the NTS, but that is what RLG has at their Hinge Zone.
A key attribute for the mines in Red Lake are the intersections of geological structures, this is where you can have the rock prepared for the gold bearing fluids to form deposits. In RLG’s case, the east-west structure has an historical mine on either side of the intersection with the NTS. In the past, RLG also drilled a few holes on the NTS and found the same thing as the company I worked with, gold in all the holes and some with high-grade. None of the holes announced today reached the Hinge Zone, I’m delighted that they hit high-grade gold on the closest hole to the Hinge Zone.
This undrilled Hinge Zone has been a target I wanted to see drilled ever since I first saw it. RLG has a 60% interest in the project and Goldcorp owns the remaining 40% interest. Goldcorp also wants that target as a focus of drilling. Another market commentator, Eric Coffin of the Hard Rock Advisory put out a report last week and he likes their chances and wants to see them drill the Hinge Zone. There is a growing fan club of folks that see that Hinge Zone as a key to unlock this project. I’m sure the fan club will continue to grow with this latest high-grade gold hit right beside the Hinge Zone.
Of course, it is important to note that we are in the early stages of an emerging target in Red Lake with the hallmarks of the big gold mines in Red Lake, but it needs a lot more drilling. I have a lot of confidence in the Hinge Zone, based on my past experience with a company that drilled a lot of holes on the NTS. There was a lot of gold in our drilling, but we would have loved to have a shot at a target like the Hinge Zone, now it will get drilled. I’m very excited to see what the truth machine says once the drilling gets into that Hinge Zone.
The Business Part
My reports are made possible through website sponsorships and consulting work. I’ve been changing my reporting lately, I used to cover many companies at a time. In the next bullish phase that I see has already started, I expect fewer companies will participate than during the last bullish phase. In this kind of a scenario, investors will need to be better stock pickers, and understand the stocks they own, my website sponsorship is a great service for sponsors and my audience.
This is why I not only want to cover fewer companies, the ones I cover, I will cover more extensively. In order for me to cover companies more extensively takes more time and is more costly to produce. This is why I put together the new website sponsorship program, with the sponsorships I cover the costs of the added coverage for them and to produce my other reports for my readers and viewers at no cost.
As more companies learn what the program delivers in coverage and reach, more will come as they learn how I use digital tools to promote my work and highlight my sponsors in the reports. I’m pleased that West Red Lake Gold Mines has given me the chance to showcase them and my new website sponsorship program.
I’ve made it public that my fee is $12,000.00 per year, as my service is just getting off the ground, I was pleased to give West Red Lake Gold Mines a rate of $13,000.00 ($3,000 cash and $10,000 I will use to participate in their next private placement) to join my new website sponsorship program for one year. My company is small, so I charged a slight premium as the stock in a private placement has a four month hold period, but so is RLG and I thought this was a good way to help out that works for all.
West Red Lake Gold Mines has a very good high-grade gold project in Red Lake, it’s early days on an exploration project, but based on my past experience I like the chances of being with this one for the long haul and exciting times are ahead for their drilling.
I’m not the only commentator that has website sponsors. What makes mine different, is that website sponsors don’t get to review or edit my written or video reports, they see the reports when everybody else does. This way, you will know that it is my opinion of what is happening, I read their news and present my views when there is significant news out. I think this takes confidence from the sponsor company in my reporting and their project.
I would like to thank the management of West Red Lake Gold Mines for joining my new website sponsorship program. Sponsors and consulting clients make my work possible. On behalf of my audience, thank you.
Gold has shaped up just like I had discussed in my Outlook 2016 report. The bear market for gold ended in December 2015 and then had the strongest January Effect readings of all assets I follow, which signals a strong year for gold and gold stocks.
As the market is improving for gold this year, some gold mining companies are making a commitment to exploration, Goldcorp is a leader with a budget of $135 million and their new CEO has made sure to highlight this fact to investors. They have a partnership with West Red Lake Gold Mines on a project with all the hallmarks of a Red Lake target, I bet they are excited to see the Hinge Zone drilled, I know I am.
My reports are for information purposes only, before making any investment decisions it is important to do your homework and speak with your financial advisors.
All the best,
Allan Barry Laboucan
Website Sponsor Messages
My work is made possible through website sponsorship and consulting; I invite you to check out my sponsors.
Premier Gold Mines (PG.T)
Gold focused, with strong projects from exploration to mining in Ontario and Nevada. Visit their website at www.premiergoldmines.com to do your homework.
West Red Lake Gold Mines (CSE: RLG)
Gold focused, drilling high-grade gold, targeting Hinge Zone in Red Lake, with Goldcorp as their partner. Visit their website at www.westredlakegold.com to do your homework.
Wolfden Resources (WLF.V)
Base metals focused, with a discovery of high-grade nickel-copper near Snow Lake, Manitoba. Visit their website at www.wolfdenresources.com to do your homework.