Mining Companies Flock to Stake Claims in Red Lake After Recent Gold Strikes in That Area

NEW YORK, July 28, 2020 /PRNewswire/ -- Already one of the largest and highest-grade gold producing districts, the Red Lake Mining District in northwestern Ontario has produced roughly 30 million ounces of high-grade gold. But through a series of recent discoveries in the region, it's evident that miners have still just barely scratched the surface, and that another gold rush catalytic moment is underway. The Red Lake region is still home to many mining and exploration projects making headway in 2020, including from Portofino Resources Inc. (TSX-V:POR) (OTCPK:PFFOF), Great Bear Resources (TSX-V:GBR) (OTCQX:GTBAF), Pure Gold Mining (TSX-V:PGM) (OTCPK:LRTNF), Newmont Corporation (NYSE:NEM) (TSX:NGT), and Yamana Gold (TSX:YRI) (NYSE:AUY).

The Red Lake district's ~30 million ounces of gold have come mostly from the iconic Campbell and Red Lake gold mines, as well as ten smaller mines. Now with its South of Otter and Bruce Lake projects underway, Portofino Resources Inc. (TSXV:POR) (OTC:PFFOF) (FSE:POTA) has set itself up in close proximity to the high-grade Dixie gold project being drilled and explored by Great Bear Resources (TSXV:GBR) (OTCQX:GTBAF).

All of Portofino's projects are strategically located in historical and current mining districts, with nearby infrastructure and road access at hand.

Recently, the company announced it had commenced exploration on the 1,427-hectare Bruce Lake Gold Property, consisting of prospecting, rock, soil, and glacial till sampling, and geological mapping. Portofino hasn't wasted any time, having only acquired the Bruce Lake property at the end of June.

Using a sampling method that's recently proven successful in the Red Lake area on nearby gold mineralization, Portofino plans to collect approximately 200 soil samples for conventional analysis over a 50-meter sample spacing, including up to 50 glacial till samples over a 300-meter sample interval for gold grain analysis.

Located only 10km away from Portofino's Bruce Lake is the Dixie Gold Project from Great Bear Resources - dubbed as one of Canada's largest new gold discoveries.

The Dixie project was secured by Great Bear five years ago, which now consists of 9,140 hectares of contiguous claims that extend over 22km. Earlier this July, the company made a major announcement that it had expanded its LP Fault Gold System at depth, with 10.06g/t gold over 31.25m. Great Bear has completed 120 of approximately 300 planned drill holes into the LP Fault target, as part of its 5 kilometer long by 500 meter deep grid drill program. 

Located just east of Ontario Highway 106, and only 9km east of Dixie, is Portofino's South of Otter Property, which comprises 5,207 hectares. Both Dixie and South of Otter share similar geology and structures.

The area where South of Otter resides has traditionally been known for its copper and zinc volcanogenic massive sulphide ("VMS") potential. However, the recent successes at Dixie have very seriously opened the possibility for significant gold mineralization at South of Otter.

Portofino Resources Inc. (TSXV:POR) (OTC:PFFOF) (FSE:POTA) has discovered geophysical anomalies coinciding with gold-in-soils chemical anomalies, and has applied for a trenching and drilling permit to test these targets. In June, the company announced it had mobilized a crew to follow up on sulphides discoveries made on the project.

The Changing of the Guard

Back in November of 2019, Newmont Corporation (NYSE: NEM) (TSX: NGT) made headlines when it sold its historic Red Lake mine. However, the company still maintains its Musselwhite Mine, located in the lesser explored portion of the Red Lake district known as the Birch-Uchi Greenstone Belt, in the Uchi Subprovince of the Canadian Shield.

So despite having sold the Red Lake Mine to Australia's Evolution Mining for US$375 million, Newmont's Musselwhite Mine is still an important asset for the company. Essentially a fly-in/fly-out operation located almost 500km north of Thunder Bay, the Musselwhite Mine initiated extraction in 1997. After a brief shutdown period for health reasons, in May, the company was able to restart operations as restrictions eased.

En route to starting production on another new Red Lake mine, Pure Gold Mining (TSXV: PGM) (OTC: LRTNF) recently celebrated the receipt of a "milestone" environmental permit. On what's been dubbed the Pure Gold Mine, the company still awaits the receipt of an amended industrial effluent permit for its sewage works. But after an initial regulatory review has already been completed, Pure Gold has said it's applied for an expedited approval process for this permit.

Pure Gold has also said that the underground operation will generate more than CA$470 million in direct salaries over the first phase of the mine's life, offering incentive for the jurisdiction to carry out the operation. The company is continuing its exploration drilling on the property, by following the trail of a gold system that's 7km in length, while also tapping into multiple other discoveries to help build out and prolong the mine's life.

Located to the southwest of the Red Lake Mine, Yamana Gold (TSX: YRI) (NYSE: AUY) is developing its own Red Lake project. Consisting of 542 hectares in two property positions—North Madsen and Headway—Yamana has secured significant mineral envelopes nearby Premier Gold Mines' Hasaga gold deposit and Newmont's former Red Lake Gold Mines operation. After seeing temporary suspensions at two of the company's mines earlier this year, Yamana revised its annual guidance in April, saying that its gold production is now tracking above expectations and ramping up mines that were closed faster than expected. Relief coming from revenues generated from gold production could provide exploration budgets on Red Lake, should the company allocate funds in that direction.

The ongoing trend at the moment is that Canadian interests should feature prominently during this economic shift. Most current mining mega deals involve Canadian companies, while record gold price forecasts are set to continue to boost prospects for junior mining companies. As the globe continues to struggle economically, Canadian miners are proving to be resilient, thus leading to the potential for regions such as Red Lake to continue to thrive and develop.

To get more information on Portofino Resources Inc. (TSXV: POR) (OTC: PFFOF) (FSE: POTA), please click here

Disclaimer:  Microsmallcap.com (MSC) is the source of the Article and content set forth above. MSC owns and operates StreetSignals.com.  References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. FN Media Group (FNM) is a third-party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated with MSC or any company mentioned herein. The commentary, views and opinions expressed in this release by MSC are solely those of MSC and are not shared by and do not reflect in any manner the views or opinions of FNM. Readers of this Article and content agree that they cannot and will not seek to hold liable MSC and FNM for any investment decisions by their readers or subscribers. MSC and FNM and their respective affiliated companies are a news dissemination and financial marketing solutions provider and are NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.

The Article and content related to the profiled company represent the personal and subjective views of the Author (MSC), and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author (MSC) has not independently verified or otherwise investigated all such information. None of the Author, MSC, FNM, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer's filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer's securities, including, but not limited to, the complete loss of your investment. FNM was not compensated by any public company mentioned herein to disseminate this press release but was compensated twenty five hundred dollars by MSC, a non-affiliated third party to distribute this release on behalf of Portofino Resources Inc.

FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company's annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and MSC and FNM undertake no obligation to update such statements.

 Media Contact: 
 FN Media Group, LLC 
 [email protected] 
 +1(561)325-8757

SOURCE Microsmallcap.com