News
Globe says Pure Gold, others join Red Lake revival
2021-02-16 07:45 ET - In the News
Also In the News (C-BNAU) Battle North Gold Corp
Also In the News (C-GBR) Great Bear Resources Ltd (3)
The Globe and Mail reports in its Tuesday edition that once one of the world's most prolific mining districts, Red Lake had petered out over the past decade and fallen victim to more than its fair share of mining catastrophes. The Globe's Nialle McGee writes, however, that amid a dearth of new gold discoveries worldwide, investor wariness of risky mining jurisdictions such as West Africa -- not to mention a surge in the price of gold -- miners are doubling down on some of the most promising prospects in Canada. At Red Lake, Pure Gold Mining, Battle North, Great Bear Resources and Australia's Evolution are investing big and putting people to back to work. While the rewards are clear, the risks are high. With its erratically dispersed gold deposits, Red Lake has historically been tricky to mine. Investors have been burned in the past and are far more wary now. Red Lake operators know they need to do better. "The boards and management want to do it right this time around so they don't screw it all up," said Doug Groh, precious metals portfolio manager with Sprott Asset Management. Prospectors descended on Red Lake as early as the 1880s. By the early 1980s, though, many mines in Red Lake were starting to run dry.