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Red Pine Commences Focused Surface Drilling Program to Assess Potential for Near-Term, Open Pit Production

Red Pine Exploration Inc. is pleased to announce that it is evaluating the potential of developing an early-stage open pit operation at its Wawa Gold Project, Ontario.

Management has initiated a review to assess the viability of near-term, open pit production in the current high-gold price environment, in parallel with its exploration program testing the Jubilee Shear at depth beyond the 2024 Mineral Resource Estimate (the “2024 MRE”). The Wawa Gold Project offers the opportunity to capitalize on the gold mineralization which extends to the surface, on a historic mining property and within a region having considerable infrastructure including excess mill capacity. The concepts under consideration include contract open pit mining with an off-site toll milling arrangement at one of the existing plants within the greater Michipicoten mining camp, allowing the Company to potentially benefit from early-stage cash flow to advance the long-term vision of developing a larger, open pit and underground operation.

Highlights:

  • Red Pine is refocusing a component of its drilling program to evaluate a potential open pit operation in two areas of the Jubilee Shear with approximately 8,500 m of drilling planned over a 3-month period (Figure 1). Scope for this shallow drilling is within the 2025 exploration budget.
  • Drilling also continues to test the Jubilee Shear at depth beyond the 2024 MRE.
  • Red Pine will initiate Indigenous community engagement, technical studies and environmental baseline work to allow for the future permitting and environmental approvals through the Ontario provincial processes.
  • Internal assessments guiding the change in strategy were made based on a gold price of US$2,200/oz, which supports an open-pit operation and potentially allows for a faster ramp-up to production to enable the Company to self-fund the assessment of the project’s larger open pit and underground potential.
  • The early open pits scenario would potentially generate free cash with a very small need for initial capital for future development of the larger mine.
  • The region hosts excellent infrastructure and excess mill capacity; all within trucking distance.
  • The Company intends to update the 2024 MRE with the completion of the 8,500 m surface drilling program as well as this review, with the objective to concurrently work towards a preliminary economic assessment (“PEA”), anticipated for completion in H1 2026.

Michael Michaud, President and CEO of Red Pine commented: “In this environment of record gold prices, our vision is to outline a path to near-term production for the shallower parts of the Jubilee Shear as we continue to delineate a larger open-pit and underground resource. This initiative represents an important opportunity to generate near-term cash flow while simultaneously advancing the long-term vision of developing a larger open pit and underground operation.

By integrating additional shallow drilling to outline a path to potential near-term production and progressing through the provincial permitting process alongside Indigenous engagement, we are positioning the Company for future growth. We believe this approach will unlock significant value for our shareholders while reinforcing Red Pine’s commitment to responsible and sustainable long-term resource development.

This phased approach could allow us to capitalize on the extensive on-site infrastructure, including 13,000 metres of underground development and close proximity to road, power and other mining operations necessary to support toll milling.”

Ongoing Drilling Program

Red Pine is currently drilling with 2 rigs and has completed approximately 65% of the fully funded 25,000 m exploration program. Approximately 8,000 – 9,000 metres of drilling is allocated to evaluate the near-term, open-pit potential and is expected to take 3 months to complete. The near-surface drilling program will consist of closely spaced drill holes aiming to increase confidence in the 2024 MRE and extend gold mineralization within the crown pillars of the former Surluga and Jubilee mines where historic drilling was limited. Additional drill testing of the deeper extension of the Jubilee Shear is planned to continue in parallel with the drill testing of the near-surface extension of the Jubilee Shear.

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