Haywood Capital Markets has repeated a 'Buy' rating on junior explorer Red Pine Exploration Inc (TSX-V:RPX, OTCQB:RDEXF) after the company reported 2021 drill results from its Wawa gold project in Ontario.
"We expect 2022 to be significantly more productive than 2021, now that four drill rigs are turning. Cash of approximately $10.5 million is sufficient to fund the program for now," Haywood analysts said in a note.
The broker targets C$1.40 a share, which is a long way from Red Pine's current price of C$0.47 each.
As reported by Red Pine on January 21, 2022, one hole hit a mineralized envelope covering 27.26 meters (m) 140m down-dip from the resource boundary in the northern part of the Surluga deposit in the Jubilee Shear zone, potentially expanding the current resource of the deposit.
READ: Red Pine Exploration hits new gold zone at Surluga deposit at Wawa project, which could expand current resource
The latest results included assays from three holes at Surluga North and two from Surluga South, noted the broker's analysts.
At the southern end of the Surluga deposit, the results were generally more modest, but two holes did intersect the Jubilee shear zone 500m away from the boundary of the existing Surluga resource, the Haywood analysts said.
Visible gold has been observed in four holes with assays pending, in veins and shear zones next to the Jubilee Shear zone, they added.
As part of ongoing drilling at Wawa, Red Pine is testing the northern and southern extensions of the Surluga deposit, and the extension of the Minto mine deposit beyond the footprints of their respective resources.
One drill rig is active at the northern end of the Surluga deposit and two are turning at the southern end. The southern drill rigs are also concurrently testing the Minto Mine shear zone. A fourth rig is currently testing the Grace-Nyman shear system near the historic Darwin-Grace mine.
Toronto-headquartered Red Pine Exploration is focused on its wholly-owned Wawa gold asset in the Michipicoten greenstone belt of Ontario, a Tier 1 region. Its land package covers over 6,900 hectares (Ha) and hosts numerous historic gold mines.
Contact the author at giles@proactiveinvestors.com