Comanus Rising & The
Stateside Report presents...
“ A Unique Report Service for the Intelligent Resource Investor”
Vince “Stateside” Marciano
MBA, CPA
Email: [email protected]
Website: http://www.comanusrising.com
West Red Lake Gold
(RLG in CAD, HYLKF in US, HYK in Germany)
“An undervalued million ounce high grade gold play in Red Lake with
significant exploration upside”
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1.1 million oz inferred gold project in Red
Lake at a robust 7.7 g/t gold
Tiny $12 million market cap
$11/oz in the ground – in a bull market
companies in Red Lake valued at $100/oz
Significant exploration upside
Strong partner in Goldcorp
Assays from late 2015 drill program (6
holes) due any day
2016 drill program to target converging
structures and build ounces in the ground
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Strong management team
Executive Chairman took his prior company
from under $10 a million market cap to over
a $100 million market cap
Increased marketing exposure in 2016
Gold at the beginning stages of a significant
move higher as the bull market resumes
Stabilized CAD to bring interest back to the
Canadian junior resource stocks
Contact information:
◦ President: [email protected] (John)
◦ Exec Chair: [email protected] (Tom)
Summary
After 4 long years of a gold bear market where the average resource stock on the TSX Venture exchange lost 90% of its
value it appears the bottom is now in and a significant bull market about to emerge. After bottoming in the $1,050/oz
range in December 2015, gold has climbed nearly 20% so far through March 2016 and with it the TSX Venture exchange
has gained over 20% since mid-January. Investors are now looking for companies that are positioned to take advantage of
this emerging bull market in the junior resource sector. West Red Lake Gold has caught the attention of investors by
announcing a new resource at it's West Red Lake project in the Red Lake gold district of Ontario, Canada that is home to
some of the highest grade gold producing mines in the world. On February 18, 2016 West Red Lake announced an
inferred resource of nearly 1.1 million ounces of gold at a high grade of 7.7 g/t. Since then, West Red Lake has seen it's
stock trade at volumes at the highest levels in its history and the share price has gone from $.03/share to $.14/share as
investors start to re-rate the company's market cap. In a gold bull market it's not uncommon for companies to trade at $50$100/gold oz in the ground in the Red Lake area. With a current market cap of about $11/gold oz in the ground (at
$.14/share), there is significant upside potential as the company continues to execute on its 2016 plans and increase its
exposure to the Canadian junior resource investor.
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The History
The story of West Red Lake's Rowan Mine
property goes back to the mid-1930's about 10
years after gold was discovered at Red Lake by
L.B. Howey. The area was so active at the time
that in 1936 the Howey Bay airport was the
busiest airport in the world. Fast forward to the
1990's and it was Rob McEwen's Goldcorp that
dominated the area making several high grade
gold discoveries and eventually putting a few into
production as some of the highest grade gold
mines in the world.
Share price at 03/11/16 - $.14/share
60-40 JV with Goldcorp on the Rowan Mine Property
Shares issued and outstanding: 82.6 million shares
Market Cap: approximately $12 million
Executive Chairman – Tom Meredith made early
investors 10 times their investment in prior company
Website: http://www.westredlakegold.com
Phone: 416-203-9181
In 2007 Hy Lake Gold (predecessor to West Red Lake) and Goldcorp entered into a JV with Goldcorp to explore the
Rowan Mine property. West Red Lake gold is the operator with both companies funding their percentage ownership.
Goldcorp has a back-in right to increase their percentage ownership to 60 % (an additional 11%) by paying West Red Lake
$7 million. West Red Lake Gold owns 100% of the Mount Jamie Mine and the Red Summit Mine.
Prior to 2015, several exploration programs were conducted on the property since the JV was formed in 2007. Significant
assays from the prior drill programs include 3 meters of 39 g/t gold, 17 meters of 6.8 g/t gold, 3 meters of 31 g/t gold, 4
meters of 27 g/t gold, 2 meters of 96 g/t gold and 1.5 meters of 162 g/t gold all within 310 meters of surface. As you can
see, West Red Lake Gold's Rowan Mine project exhibits the same high grade gold intercepts found at many of the high
grade gold producing mines in the area. Significant exploration potential exists below the 300 meter level.
Recent Activity
In late 2015, a 6 hole drill program was conducted on the Rowan Mine property. Most of the holes were 100 meter stepouts going east from the current resource area to test the mineralized structure east of the main zone and towards the
intersection of the two regional gold enriched structures, the Pipestone Bay – St Paul deformation zone and the Golden
Arm structure. This intersection has drawn interest from Goldcorp as an enticing exploration target and a few holes
targeted this intersection. Many gold systems have been discovered at the intersection of such structures. Assays from the
2015 drill program are expected to be released at any time.
On February 18, 2016 West Red Lake Gold issued a press release announcing their maiden 43-101 inferred resource at
their Rowan Mine property of nearly 1.1 million ounces at 7.7 g/t gold. The share price stayed in the $.03 range for the
next week as investors still haven't embraced the sector and news flow for the most part gets ignored. However, as
management began to tell their story to investors both before, during and after PDAC the share price has reacted positively
and increased marketing over the coming months should bring new investors to the company. As the stock chart for West
Red Lake Gold below shows, the share price is still 90% below that of 2007 when the original JV with Goldcorp was
consummated.
Next Steps
Assays from the late 2015 drill program are due at any time. If assays from the holes that were drilled near the
intersection of the two structures show high grade gold levels then it is likely that Goldcorp will want to expand the drill
program in 2016. Goldcorp's new management team have expressed an interest in recent news releases to get back to
exploration efforts and with West Red Lake's Rowan Mine property situated less than 15 km west of Goldcorp's high grade
gold producing mines the JV presents an enticing exploration target for Goldcorp.
To fund an expected 2016 drill program West Red Lake will need financing for their share of the costs but a very
supportive investor group who has funded exploration programs in the past is likely to play a significant role in any
private placement. Plans for later in 2016 and 2017 will include additional drilling and preliminary permitting.
Management has also expressed a willingness to expand their investor awareness initiatives through meetings with
analysts, doing public videos and other investor outreach programs. West Red Lake Gold has been mentioned on several
occasions at the popular CEO.CA website and app (http://www.ceo.ca) and also on the Comanus Rising podcast
(http://www.comanusrising.com and available via free subscription on Itunes)
Management
Tom Meredith, Executive Chairman
Mr. Meredith has 30 years experience in the junior mining industry. Previously he was the President & CEO of Lexam VG
Gold from 1995 to 2011 where he led the development of four gold projects in Timmins, Ontario. During the early 1990's
he served as the Vice President of Operations for Northfield Minerals where he was responsible for initiating production at
the Cheminis Gold Mine near Kirkland Lake, Ontario.
John Kontak, President, Director and acting CFO
Mr. Kontak was previously the President of Victory Gold Mines from 2010 to 2013 where he managed the publicly listed
company and the exploration and development of its former producing Gold Pike Mine until the company was acquired
following a takeover offer made by Northern Gold Mining. From 2007 to 2010 he was the President of a junior
exploration and development company Batavia Energy until the company sold its resource assets pursuant to a proposed
acquisition by CBM Asia Development Corp. Mr. Kontak has also been a director of several junior resource companies
with projects both in Canada and internationally. He has an MBA from Suffolk University in Boston and a LL.B. from
Dalhousie Law School.
Ken Guy, Exploration Manager
Mr. Guy, P.Geo. and a Qualified Person according to NI 43-101, has over 25 years of experience in exploration and
development projects in Northern Ontario. Previous to West Red Lake Gold Mines, Mr. Guy was associated with Lexam
VG Gold, Cyprus Amax, BP Selco, and Getty Metals.
Disclaimer
Vince Marciano owns shares in West Red Lake Gold Corp. Vince Marciano, Comanus Rising and the Stateside Report are not
registered as a securities broker-dealer or investment adviser with the U.S. Securities and Exchange Commission or any state
securities regulatory authority. Specifically, the Stateside Report relies upon an exemption from the registration requirements under
the Investment Advisers Act of 1940, as amended (the "Advisers Act") provided for in Section 202(a)(11)(D).
This exemption is available for the publisher of any "bona fide financial publication of general and regular circulation." Vince
Marciano, Comanus Rising and the Stateside Report are not responsible for trades executed by subscribers to the service based on the
information included in this report.
The information contained herein do not represent individual investment advice or a recommendation to buy or sell securities or any
financial instrument nor are they intended as an endorsement of any security or other investment. Furthermore, Comanus Rising and
the Stateside Report does not constitute an offer or solicitation to buy or sell any securities or individualized investment advice.
Any information contained in the Comanus Rising and Stateside Report represents Vince Marciano's opinions, and should not be
construed as personalized investment advice. Vince Marciano, Comanus Rising and the Stateside Report cannot assess, verify or
guarantee the suitability of any particular investment to any particular situation and the reader and listener of Comanus Rising and
the Stateside Report bears complete responsibility for its own investment research and should seek the advice of a qualified investment
professional that provides individualized advice prior to making any investment decisions.
All opinions expressed and information and data provided therein are subject to change without notice. Vince Marciano may have
positions in, and may, from time-to-time make purchases or sales of the securities discussed or mentioned in the Stateside Report or on
the Comanus Rising podcast.
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Vince Marciano does not make any representations as to the accuracy, timeliness, suitability, completeness, or relevance of any
information prepared by any unaffiliated third party, whether linked to the Stateside Report web site or incorporated herein, and takes
no responsibility therefore.
The foregoing discussion contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of
1995 (the "Act"). In particular, when used in the preceding discussion, the words "plan," "confident that," "believe," "scheduled,"
"expect," or "intend to," and similar conditional expressions are intended to identify forward-looking statements subject to the safe
harbor created by the Act. Such statements are subject to certain risks and uncertainties and actual results could differ materially from
those expressed in any of the forward-looking statements. Such risks and uncertainties include, but are not limited to, future events and
the financial performance of the Company which are inherently uncertain and actual events and/or results may differ materially.