just found. Three weeks ago the IR guy for West Red Lake Gold Mines Inc. (RLG:CSE; RLGMF:OTCBB) contacted me and pitched me on the company. It was compelling. They are a 62% owner of a joint venture in the Red Lake District with significant drill results. My comment to the West Red Lake guy was that they needed to start telling their story. With intercepts last year of 14.18 g/t Au over 7.8 meters and 12.14 g/t Au over 13.5 meters and others almost as nice, their biggest problem was visibility.
I also was convinced enough that they had a good story that I went out and bought some shares at $0.08 a month ago. The price of the shares went up and down as lots of companies do but volume increased. Then the shares doubled in the last eight days. I realized then that I was a genius. Actually a lot of other stocks have woken up in the last month and doubled so maybe I'm not that big a genius.
Investors should look at the presentation. At blocks greater than a 1-gram cutoff, the actually inferred resource is 1.352 million ounces at an average grade of 4.48 grams. RLG would own 62% of that or 838,000 ounces. The outstanding drill results from last year in the NT Zone are not figured into the 43-101 so West Red Lake is sitting on more gold than the numbers show.
West Red Lake recently completed a private placement and has just started a planned 3000-meter drill program for this year. The NT Zone is the primary focus. There will be a flow of news starting in about six weeks and continuing for months.
West Red Lake Gold has about 20 million warrants expiring over time exercisable at $0.10. With the shares solidly in the money people selling shares to exercise warrants will both provide great liquidity and $2 million in cash for more follow up exploration.
RLG isn't as good a deal as it was a couple of weeks ago but probably it's a lot better deal than what prices will be when hyperinflation hits. This is a time to get prepared for the disaster we know is coming.
To the extent that everyone that owns shares is somewhat biased, I am biased so you should do your own due diligence. West Red Lake Gold is an advertiser. Do your own due diligence
West Red Lake Gold Mines
RLG-C $0.17 (Jul 07, 2020)
RLGMF OTCBB 163.8 million shares
West Red Lake website
Bob Moriarty
President: 321gold
Archives
321gold
Bob Moriarty founded 321gold.com, with his late wife, Barbara Moriarty, more than 16 years ago. They later added 321energy.com to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than 832 missions in Vietnam. He holds 14 international aviation records.