A Junior In The Red Lake Gold Camp
With gold prices climbing to new record highs in Canadian dollars, we are starting to see a lot more interest in exploration in Canada and especially in Ontario. After investors have watched how Great Bear Resources has gone from around 50 cents a couple years ago to 10 dollars today, investors are looking for the next junior in the area to climb on and if the junior has a depressed stock price, all the better. I can say personally that I had shares in Great Bear back when it was 50 cents. However I didn't hold onto those shares as I sold out somewhere under a dollar. They say hind sight is 20/20. If only I knew back then what I know now.
The last year or so I've focused most of my investing attention towards the Golden Triangle in BC as it's a bit closer to home and is a lot more familiar and in doing so I wasn't really aware of what was going on elsewhere in the country. Then a few days back I got an email from a gentleman who had some hard rock properties in the Red Lake area he was wanting to option and after posting those properties in our classified ads on the website it got me thinking about this area again and maybe try to find a junior or two to put on a watch list and follow along. There are actually quite a few juniors in this area and after a bit of searching I came across a junior that has multiple properties in the area along with a property that was in the close vicinity of Great Bear's Dixie project. The junior miner I came across is Falcon Gold. TSX-V: FG and we'll take a quick look at it.
As I mentioned Falcon Gold has multiple properties in Ontario as you can see by the image below. There is the Central Canada Gold & Polymetalic Project which covers more than 10 km of highly prospective Quetico Fault Zone and has a history of gold production. The Wabunk Bay Copper and Nickel is located within the Birch-Uchi-Confederation Lakes greenstone belt. This is the same mineral belt that host the Dixie deposit that Great Bear is working.
With the two additional properties, one property, the Burton Gold Property is optioned out to IamGold and the last property is the Bruce & Camping Lake property. This property is about 20 KM south of the Dixie property of Great Bear.
The company just issued news at the time of this writing. In the news release the company stated that they have completed three drill holes totalling 468 metres along the Central Canada mineralized zone. A summary of Falcon's examination is:
- CC20-01 intersected the gold-bearing zone from 33.46 to 79.83 metres (46.39 m width), which was designed to intersect the zone 20 metres west along strike of the historic producing shaft at the 100-foot (30 metres) production level.
- CC20-02 intersected the gold-bearing zone an additional 70 metres west along strike of the shaft from 26.9 to 62.23 metres (35.33 m width). Falcon's geologist identified several sections of greater than 2 per cent pyrite, arsenopyrite and lead telluride mineralization. This zone includes a 3.91-metre interval (31.61 to 35.52 m depth), which hosts significant visible gold mineralization associated with arsenopyrite and late-stage fractures within the felsic unit.
- CC20-03 intersected the gold-bearing zone 155 metres west along strike of the shaft from 26.8 to 59.83 metres (32.98 m width) and exhibits strong chlorite, fuchsite and ankerite alteration along with greater-than-2-per-cent arsenopyrite mineralization.
The company is currently preparing an additional six drill pads along strike of the mineralized zone to further test the extents of mineralization and that a total of 344 samples have been collected for gold assay from the drill core. Earlier in the week the company also issued news that they had acquired two additional patented claims blocks that lie along strike of Falcon's Central Canada claims. These claims cover 8,400 metres of strike length of mineralized magnetite-sulphide lenses varying from less than 10 to greater than 40 metres in width.
With an ongoing drilling program investors can expect a good amount of news releases in regards to assays over the next while. The company seems to have a lot of news going out lately keeping shareholders updated as to what the company is doing and that is a very good sign. I also see that the company is advertising on Stockhouse so they are getting the word out to potential investors. Being updated on regular basis is something investors look for in a company.
Falcon Gold has 60 million shares O/S and about 30 million warrants. Insiders own quite a bit of the stock. The CEO owns 18% of the stock alone and a quick check on Insider shows that insiders have been buying stock in the open market on a regular basis. It's not often you'll see management buying their own stock in the open market and that is something I also check on. That to me is always a good sign.
So if you're looking for junior in the red hot Red Lake area, this just might be a junior that could interest. If you are not interested in the stock remember there are some claim blocks for option in this area as well. You can view those by clicking this link. On an added note, I do own shares of Falcon Gold at this time but I am not in any way compensated for this article.
If you enjoyed this article, please feel free to share. When seeking out mining stocks always use Due Diligence and see our Disclaimer and be sure to sign up for our free news letter located on the right hand side of this page.