On Monday, it confirmed that those issues are “unrelated to the integrity of its quality assurance/quality control (QA/QC) measures” with respect to the drill core samples collected from Wawa and transported to Activation Laboratories in Ancaster, Ontario.
The company added that it is confident the assay results provided by Actlabs “were correct” and accordingly, can be relied on.
Its stock rebounded in the morning hours of trading, up 26.7% to C$0.095 a share by 10:30 a.m. ET, taking its market capitalization to C$17 million. The shares had dropped from C$0.20 apiece to a 52-week low of C$0.075 since last Wednesday.
The noted issue, according to Red Pine’s management, was specific to certain inconsistencies between some of the certified assay results received from Actlabs and the corresponding assay results reported by the company in applicable press releases, other disclosure documents and the project assay database.
Red Pine has also engaged WSP Global to lead an independent data verification of all assay certificates from 2014 to the present, copies of which have now been downloaded by Actlabs.
This verification process, it says, will provide the company with a “reliable baseline” to update the mineral resource estimate for the Wawa project set out in the NI 43-101 technical report released in June 2023.
The report, which has an effective date of May 31, 2019, showed a total resource of 1.3 million indicated tonnes grading 5.47 g/t gold for 230,000 oz. and 2.7 million inferred tonnes at 5.39 g/t gold for 471,000 oz.
Red Pine has been looking to expand on this resource, with 70,000 metres of total drilling planned on the Surluga and Minto Mine South resource areas as well as several greenfield targets. The aim was to provide an updated estimate, followed by a preliminary economic assessment, this year.
