Haywood Capital Markets has repeated a 'Buy' rating on Red Pine Exploration Inc (TSX-V:RPX, OTCQB:RDEXF) following the release of encouraging drill results from the Darwin-Grace mine area at its flagship Wawa property in Ontario, Canada.
As reported, one hole hit a high-grade of 11.47 grams per ton (g/t) gold over a length of 2.73 metres (m) starting from a depth of 76.67m at the edge of drilling in the Nyman Shear Zone area.
"This hole opens an exploration target in the structure between surface and the lower levels of the Darwin-Grace Mine," said the Haywood analysts. "The intersection in this hole is at the edge of drilling in the Nyman area and suggests that gold mined in the lower levels of the Darwin-Grace mine could extend close to surface, and that this intersection could be an up-plunge extension of Darwin-Grace mineralization."
"The potential of the Darwin-Grace area to host additional gold mineralization is strong, with historical operations averaging over 11 g/t in 1934 (40tpd). We believe that with further success, mineralization around Darwin Grace could provide satellite zones to the existing resource at Surluga and Minto," they added.
READ: Red Pine Exploration says drilling at Darwin-Grace area at Wawa property underlines the former mine's gold potential
The analysts also noted that the company's 2022 Phase 1 drill program was "progressing much faster and more efficiently than in 2021" and that work was focused on resource expansion targets in the Surluga North and South area (three rigs), while one rig has started turning at Grace-Darwin - the firm's first 'blue-sky' target within the defined program.
"Now that drilling is making progress, we are optimistic that future results will add definition and help to better understand the mineralized system, ultimately leading to a resource increase at the property," the analysts concluded.
Haywood has a target price of C$1.40 on Red Pine shares, which are currently changing hands at C$0.42 each, up 2.44% on the day.
Contact the author at giles@proactiveinvestors.com