A relatively new junior mining explorer has discovered “high-grade gold mineralization” in one of Canada’s most historic and prolific mining regions. And the drill results announced earlier this year at their cornerstone property in Northern Ontario speak louder than words leading the company to conduct a follow-up drill program currently underway.
Rockridge Resources Ltd. (ROCK) (
TSX-V.ROCK,
OTCQB: RRRLF, Frankfurt: RR0,
Forum) is a mineral exploration company focused on the acquisition, exploration and development of mineral resource properties in Canada, specifically gold and copper. The company's projects include the Knife Lake Copper Project located in Saskatchewan and its core Raney Gold Project – strategically located about 110 kilometres southwest of the prolific gold district of Timmins Ontario. And it’s here where Rockridge is carrying out a 3,000 metre diamond drill program to follow-up on drilling success earlier this year that yielded a highlight drill intercept of 28 g/t Au over 6 metres.
Stockhouse Editorial recently caught up with Company CEO, Grant Ewing, to update us on the Company’s latest drill results and intercepts from its drill programs at the high-grade Raney Gold Project, the Company’s general strategy and business model, and all things Rockridge Resources.
SH: So, Grant, can we start off with a little background info about yourself and the history of Rockridge Resources?
GE: Sure, no problem. I am a geologist by profession with over 25 years of experience in the mineral industry with the last 10+ years occupying senior executive roles. I was the President and CEO of Kiska Metals (2014 to 2017) until it was acquired by AuRico Metals, After which I stayed on as Vice President Exploration of AuRico Metals until it was acquired by Centerra Gold for ~$300 million. Prior to that I was President and CEO of Acadian Mining (2010 to 2014) until its sale to an international mining company. Atlantic Gold later acquired and further developed the assets that Acadian advanced through the discovery and resource development stages and was acquired by St. Barbara in 2019 for ~$700 million. My knowledge base covers the entire mine development cycle, from early stage exploration through to production, for several different commodities. My mineral industry experience has also included mergers and acquisitions, corporate development, and capital markets knowledge.
Rockridge was founded in early 2018 and the team set out to advance its two projects including the Knife Lake Project in Saskatchewan and the Raney Gold Project in Ontario. I came on as CEO in May of 2019 to initially advance the Knife Lake Project at the time, and the Raney Gold Project once we received the exploration permit in December. After we began looking closer at Raney it became the main focus of the company on the back of a new geological model. We think the project has lots of potential and were rewarded with promising drill results earlier this year and look forward to getting the current drill program results back.
Overall, the company is focused on the acquisition, exploration and development of mineral resource properties in Canada and other mining-friendly jurisdictions. The company's Raney gold project is a high-grade gold exploration project located in the same greenstone belt that hosts the world-class Timmins and Kirkland Lake lode gold mining camps. The company's Knife Lake project is in Saskatchewan, which is ranked as the No. 3 mining jurisdiction in the world by the Fraser Institute. The project hosts the Knife Lake deposit, which is a VMS, near-surface copper-cobalt-gold-silver-zinc deposit open along strike and at depth. Rockridge's goal is to maximize shareholder value through new mineral discoveries, committed long-term partnerships and the advancement of exploration projects in geopolitically favourable jurisdictions.
SH: As briefly mentioned in the introduction, you’re completing about 3,000 metres of drilling extending along strike and at depth at your Raney Gold Project. Can you give us some specific details about the results? They look very exciting!
GE: The majority of the holes drilled so far have successfully intersected alteration similar to what we saw in the high-grade drill hole RN-06 from the Spring 2020 program. The diamond drill core recovered thus far has been sent to the lab for assaying and we are on the last couple holes at the moment. We originally planned for 10 but have decided to extend the drill program due to what we have seen so far.
SH: And with only 5,600 metres of historical drilling carried out at the property prior to your program, there appears to be plenty of quality intersections remaining…correct?
GE: Yes, we believe so. The quartz systems that hold the gold mineralization in the area are quite plentiful and we are testing the down-plunge extension of the high-grade intercept we encountered during the last drill program. We are assessing the continuity of the gold mineralization during this testing process. In addition, our team is testing a promising porphyry target that could potentially identify a new zone.
SH: What makes the geology in this part of the Abitibi Greenstone Belt so special?
GE: The Abitibi is interesting because it is host to many world class mineral discoveries throughout the Timmins and Kirkland Lake districts. Gold mineralization at Raney is associated with broad intervals of higher concentrations of narrow quartz veins; the quartz veins are hosted in a steeply dipping alteration zone dominated by intermediate volcanic rocks consisting of lapilli tuffs and bedded argillites, with lamprophyre dikes.
SH: Can you tell us about some of the project highlights to date and what should shareholders and would-be investors be looking for moving forward?
GE: We recently completed the 100% earn in at the Raney Gold Project where we are finishing up the current 3000m drill program. The targets we are testing are to the west of the high-grade results from the spring drill program of this year. Our team has staked as far west as possible to concentrate on delineating/testing those targets between Raney and Newmont’s Borden Gold Mine. Investors should be paying close attention to the drill results which are currently being assayed. Additionally, the company is well capitalized for more exploration at the project.
SH: You recently commented that, “This program will be an important catalyst for Rockridge in the coming months as we continue to see momentum building in the gold market.” Can you elaborate?
GE: The current drill program is important because it provides the opportunity for us to substantiate the gold mineralization found in the drill program earlier this year. The current gold market is being fuelled by several factors that indicate a long duration, the most important of which is the devaluation of currency we are seeing due to massive stimulus from central banks. The more gold we can prove we have the better, especially in a market like this.
SH: Grant, can you also walk us through the recent completion of your 100% earn-in at Raney?
GE: We’re pleased to have completed the earn-in at Raney in October as we now own 100% of the project. Due to the successful findings on the project so far, we were able to complete the earn-in ahead of schedule. This was one of our goals as a company and I’m pleased with the result as we now own 100% of any future success at Raney.
SH: You’ve also recently amended your Knife Lake Option Agreement at your deposit in Saskatchewan. Can you update us on what’s happening there?
GE: Well the amendment was to extend a deadline on working the project from January 2021 to July 2021. Our current plans are to maintain this project and continue to meet the work obligations to earn a 100% interest.
Knife Lake would be a flagship project for most companies as it is an advanced stage copper exploration property in Saskatchewan. The deposit lies within the Flin Flon–Snow Lake mining district, one of the most prolific greenstone belts in Canada. Originally this property was considered as a development asset by the previous owners - the mineral rights were converted to mining claims in the late 1990’s. In August 2019, we completed our maiden NI 43-101 resource estimate noting indicated resources of 3.8 million tonnes @ 1.02% copper equivalent and an inferred resource of 7.9 million tonnes @ 0.67% copper equivalent. We believe that with continued spot price increases in copper and further discovery on the highly prospective landholding, that this project could become economic to mine. Our goal is to continue to delineate the resource and build a larger deposit.
SH: What sets Rockridge Resources apart from other junior mining companies in this space and what makes your business model attractive to investors?
GE: The company has been carefully maintaining a tight capital structure and has ~52 Million shares issued and outstanding. Rockridge is also currently well capitalized which makes it positioned to develop and increase its portfolio of assets. Furthermore, we are going into historical, prolific mining districts in favourable jurisdictions with modern exploration techniques/methodologies to test new ideas. Utilizing modern exploration techniques and rethinking certain geological models, we are confident we will make new mineral discoveries on our project base.
I also believe we are ideally situated to benefit from the M&A activity involving the major mining companies that typically follows a strong uptrend in the price of gold given the strategic locations of our projects. With the gold price performing well, and on a trajectory to continue doing so, major gold mining companies have a much stronger bottom line which they can use to buy junior companies to strengthen their land package and resource base.
Location is also a highlight talking point for the Raney Gold Project, which is situated in one of the most favourable mining jurisdictions in the world, Timmins, Ontario. The area is famous for many high-grade gold discoveries. Due to all the past and existing mines surrounding the property, the infrastructure around our 100% owned Raney Gold Project is very conducive to affordable mining and exploration. Newmont’s Borden mine, which is ~35km west of Raney and IAMGOLD’s Cote Gold Project, which is 75km to the southeast, are a testament to the excellent exploration potential in the region.
As I mentioned earlier, the company is well capitalized - allowing us to start a follow-up drill program at the Raney Gold Project to explore additional targets. Alternatively, there are many highly prospective targets at our Knife Lake Copper Project in Saskatchewan that warrant follow up exploration. Knife Lake is interpreted to be a remobilized, shallow VMS deposit and VMS systems typically host clusters of deposits so there is strong potential to discover more deposits in the region. Like gold, copper has had an impressive run this year - rallying from ~$2.10 USD/lb to over $3.30 USD/lb.
Regardless of which direction the company chooses to deploy capital, we have some excellent options going forward that set us apart. Lastly, the value proposition is very compelling at the current $6 million valuation. Not many other junior miners with a small market cap can boast a high-grade gold project in Ontario with recent drill results including 28 g/t Au over 6m as well as a shallow copper deposit on a project with further strong discovery upside potential in Saskatchewan.
SH: ‘Value and opportunity’ are catchphrases that really get the attention of resource sector investors, especially in gold exploration. Can you tell our audience what makes your share price attractive right now?
GE: As mentioned, our market capitalization is ~$6M which is inexpensive considering several factors. Firstly, we have the Raney project, which has shown it hosts high-grade gold mineralization and we have assays from the current drill program pending. This is an important near-term catalyst for the company. We are in the early innings of this gold bull market and will continue to explore and develop our projects over the coming years. Secondly, there has been over 300 holes drilled at our shallow Knife Lake Deposit. The NI 43-101 resource estimate provides an excellent anchor for the Project with indicated resources of 3.8 MT @ 1.02% Cu Eq. and inferred resources of 7.9 MT @ 0.67% Cu Eq.
SH: From the investor’s perspective, can you tell us about the managerial and operational set-up of the Company and how Rockridge plans to position itself as an exploration industry leader?
GE: We have a great team that is set up for success in the mineral exploration industry. Our team is balanced with strong geological knowhow and focused expertise on Canadian mineral projects, and this is coupled with directors and officers with extensive experience in public company management and the capital markets. Myself, Jordan Trimble, Ron Netolitzky, Jim Pettit, and Rick Kusmirski have all separately managed exploration companies that have had discoveries leading to takeovers by senior companies. Joseph Gallucci, Mark Tommasi, and Jon Wiesblatt are all fantastic capital markets professionals with proven track records of raising capital and structuring transactions.
SH: And lastly, Grant, if there’s anything else that we’ve overlooked that you would like to add to the article, please feel free to detail.
GE: All I would add is that if anyone would like to get in touch with myself or Jordan, please feel free to contact us through our website, social media, email, or phone. We are always keen to answer any questions or comments on the Company.
For more information, visit
rockridgeresourcesltd.com
FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.