Red Pine Exploration (TSXV: RPX), in continuation of its recent press releases, provided an update on its ongoing investigations into reporting inconsistencies regarding certain assay results from the Wawa gold project.
The company has uncovered evidence suggesting that unauthorized manipulation of assay results occurred, particularly between spring 2015 and January 30, 2024. These manipulations were allegedly orchestrated by the company’s former chief executive. Key findings indicate that manipulated assay results were transmitted directly to the ex-CEO by Activation Laboratories, bypassing standard company channels.
Out of approximately 98,000 drill core assay results since Red Pine’s acquisition of the Wawa gold project in 2014, 532 are believed to have been tampered with.
The discovery of an assay reporting inconsistency on April 29, 2024, prompted an immediate internal review. Subsequent investigations revealed multiple instances of inconsistencies between certified assay results from Actlabs and corresponding results in the company’s database.
Red Pine promptly alerted its board upon discovering these inconsistencies. The board initiated a thorough review to assess the impact on the Wawa gold project and the company’s public disclosures.
To address the issue, Red Pine engaged consulting firm WSP Global to conduct an independent verification of all assay certificates dating back to 2014. The investigations were divided into two periods: 2014-2019 and 2019-2024. For the 2014-2019 period, estimated reductions in mineral resources have been calculated for the Surluga and Minto deposits, outlined below:
- Surluga indicated mineral resource: No material losses anticipated.
- Surluga inferred mineral resource: Estimated loss of 39,500 to 54,000 ounces.
- Minto indicated mineral resource: Estimated loss of 8,000 to 12,000 ounces.
- Minto inferred mineral resource: Estimated loss of 16,000 to 20,000 ounces.
For the Surluga deposit, 22 out of approximately 1,812 intersections were found to have manipulated results. These manipulations are expected to have varying impacts on the mineral resource, with some areas experiencing moderate to low losses in metal factor, while others are anticipated to have significant negative impacts on inferred mineral resources. Despite this, the majority of the Surluga deposit mineral resource is deemed unaffected, with less than 10% of the total surface area impacted.
Similarly, for the Minto mine, 13 out of approximately 276 intersections were identified with manipulated results. The impact is more substantial here, with 25% to 35% of the indicated mineral resource and 20% to 30% of the inferred mineral resource negatively affected. Significant to moderate losses in metal factors are anticipated in some areas, contributing to the overall impact on mineral resources.
Red Pine emphasizes that these estimates are internal and subject to change pending further investigation. The impact of manipulated results on mineral resources was assessed based on the number and location of manipulated intersections within each zone. Capping thresholds were applied to approximate metal losses.
Looking ahead, Red Pine aims to provide an overview of the manipulation implications on drilling results disclosed between 2019 and 2024 by May 15, 2024.
The mining firm is in the process of reporting these findings to the Ontario Securities Commission and exploring legal remedies.
Red Pine last traded at $0.085 on the TSX Venture, then dropped more than 34% as of press time.
Information for this briefing was found via Sedar and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
