Epstein Research - Portofino Resources; gold in Ontario, Canada + lithium brines in Argentina http://epsteinresearch.com/2020/06/...n-ontario-canada-lithium-brines-in-argentina/ Portofino Resources; gold in Ontario, Canada + lithium brines in Argentina by Peter Epstein, MBA | posted in: Argentina, Gold, Lithium Brine, Portofino Resources, Red Lake mining district | 0 “Au” = Gold, “Cu” = Copper, “Zn” = Zinc [“Cu Eq.” = Copper Equiv. @ spot prices] It has been a busy six weeks for Portofino Resources (TSX-V: POR), six press releases have been issued. I will reiterate the key takeaways, but first an update on Portofino’s South of Otter (“SOT“) property in the Red Lake mining district. Although SOT is a priority, all four properties in northwestern Ontario will likely see exploration this year. South of Otter, ~9 km from Great Bear’s Dixie project The 5,207-hectare SOT project is 40 km southeast of Red Lake, Ontario and about nine km east of Great Bear Resources’ (“GBR“) very high-grade Dixie project. In the past, SOT was the subject of large-scale geophysical surveys designed to target base metals. However, in 2001 Goldcorp completed a property-wide compilation & interpretation of prior ground & airborne magnetic data to assess the potential for gold. Due to a lack of outcrop rocks, minimal follow-up work was done. Management just completed a field program of prospecting & geological mapping along strong conductors identified in the Company’s winter electromagnetic (“EM”) ground survey. A total of 32 samples were collected to test various styles of mineralization, lithologies & alteration. The work program included prospecting, detailed structural mapping & outcrop channel sampling based on conductors found in the geophysical survey announced on May 14th. A lack of detailed historical work enables Portofino to undertake meaningful programs, guided in part by successes of neighboring exploration companies. In addition to the collection of 32 samples, significant semi-massive to massive sulphide mineralization was discovered along a newly identified, 1.6-km long fault zone. This zone is located ~500 m south of previously identified gold soil sample anomalies & EM conductors. A total of 12 samples were collected along this (deformation) zone to test for the presence of Au, Ag, Cu & Zn. Notice in the image below drill holes (“DH“) / historical resources including; DH: 1.5% Cu + 6.3% Zn (3.7% Cu Eq.) over 3.4 m; 110,000 tonnes @ 0.5% Cu + 12.5% Zn (4.9% Cu Eq.); DH: 1.4% Cu + 7.3% Zn (4.0% Cu Eq.) over 9.5 m; 100,000 tonnes @ 1.0% Cu + 10% Zn (4.5% Cu Eq.). Further prospecting & geological mapping on the margins of this fault zone identified alteration in the volcanic wall rock. Many gold deposits in Ontario are either directly hosted in this mineralization or exist in close relationship to it and a fault zone. Other projects containing this type of mineralization along similar deformation zones include GBR’s Dixie and the Uchi Lake gold mine. Once additional permits are received, Portofino will proceed to trenching / drilling. Three new gold properties secured in past month These are exciting times for Portofino. Management had an opportunity to pick up additional low-cost properties with gold showings, so they did. All three properties are located in historical & current mining districts with ample infrastructure & easy access. In addition to Red Lake, management expects the Atikokan area to heat up this summer. A number of companies are increasing their exploration activities there. Portofino began negotiating & planning to lock up gold properties in Ontario when gold was around US$1,400/oz. Today, [June 24th], August gold futures are at US$1,786/oz., a gain of ~28%. Therefore, without a single new drill hole on any of its four controlled properties, the value the Company’s assets has meaningfully increased. On June 11th, Portofino announced the execution of a binding agreement to acquire six claims (869 hectares) in the Atikokan area of northwestern Ontario. The Melema West property is located 28 km northeast of the town of Atikokan, and 5 km north of the Quetico Fault. Agnico Eagle Mines’s Hammond Reef gold deposit is ~19 km northwest of Melma West. Hammond Reef hosts a large, near-surface Measured & Indicated resource of 4.5 million ounces gold. Grab samples taken in 2019 assayed as high as 10 g/t gold. The Young-Corrigan vein-system ranges in width from 1 to 15 m and was mapped over a strike of at least 170 m. Positive gold values demonstrate that an additional undocumented gold-bearing structure potentially exists on the Melema West property. CEO David Tafel of Portofino commented on the Melema West property, “The gold-bearing structures in this area are extensive, well documented and traceable for > 30 km. Recent land acquisitions by Agnico Eagle contiguous to Melema West supports the idea that Portofino is well strategically placed. The undocumented & unexplored Young-Corrigan Shear Zone is a compelling exploration target.” On May 27th, Portofino executed a binding agreement to acquire three claims totaling 1,147 hectares in the northwestern Ontario. The Sapawe West property is nine km northeast of Atikokan, just north of the Quetico Fault, and 2.5 km west along strike of the past producing Sapawe Gold mine. Portofino has initiated the compilation & reinterpretation of all available historic data on the property and is proceeding to develop exploration targets for a summer field program. Hammond Reef, located ~13 km north of the Sapawe West property, is in a structurally active portion of the Steep Rock Greenstone Belt. Similar to the structure associated with Hammond Reef, Sapawe West hosts a possible northeast trending splay from the Quetico Fault. CEO Tafel commented on the Sapawe West property, “We are excited to acquire this strategically located property. The nearby past-producing Sapawe Gold mine, the visual results from Falcon Gold’s drill program along the same geological corridor, and the lack of drilling on the Property, makes for a compelling exploration target. We look forward to commencing initial field work.” This news came just a week after executing a binding option agreement for the right to acquire a 100% interest in the Gold Creek property, also in northwestern Ontario. The block comprises three mining claims, is easily accessible by road, and covers ~1,010 hectares. Historical activity at Gold Creek included: From 1967 to 1973, prospecting, mechanical stripping / trenching & rock sampling of quartz vein occurrences in the district. In 1983, geological mapping, magnetic & VLF-EM surveys further assessed the area. In 1985 & 1987 to 1989, Noranda Exploration conducted extensive work, they explored the area with an airborne magnetic & electromagnetic survey, ground magnetic & electromagnetic surveys, selective radiometric & gravity surveys, geochemical sampling, geological mapping / overburden stripping, & rock sampling. Inco Gold conducted an exploration program in 1989-90 which consisted of grid line cutting, magnetic, VLF-EM & geological mapping surveys, trenching, rock sampling & two diamond drill holes. Two grab samples assayed 13.2 g/t & 64.2 g/t gold. Significant gold mineralization has been traced along a 1.5-km strike length with grab samples returning values up to [759 g/t = 24.4 ounces / tonne] (from an OGS property visit) and diamond drill intersections in 2008 of up to 2.3 g/t over 8.3 m. CEO Tafel commented on the Gold Creek property, “This transaction allows us to continue to build our gold portfolio within the easily accessible, active & historic gold mining area of northwestern Ontario. Multiple visible gold occurrences reported by previous operators is very encouraging, and gives our technical crew a head start in planning initial exploration activities.” Gold Creek is characterized by geology similar to that documented in the Kirkland Lake area, where numerous gold showings occur in a broad range of lithologies. Visible gold sometimes occurs within the mineralized veins. Management has initiated the compilation & re-interpretation of all available historic geochemical & geophysical data at Gold Creek to develop exploration targets for summer field work. Portofino Resources (TSX-V: POR) is up 225% from its 3-yr. low, but its market cap is only C$3.2M. In addition to the four properties described above, the Company has lithium brine assets in Argentina that could be worth C$ millions once energy metals regain popularity. If management could farm out one or more gold / lithium properties, it could reduce already low cash burn to virtually zero. Shareholders would have a free option on the remaining controlled properties. In looking at peer Red Lake properties (and companies with nearby Atikokan area properties), the average gain from 3-yr. lows is 1,640%. Even excluding GBR’s staggering performance, the average gain is 2.5 times that of Portofino. Perhaps not Great Bear, but others on the above chart could be interested in acquiring companies like Portofino to gain additional regional gold exposure. Disclosures / Disclaimers: The content of this article is for information only. Readers fully understand and agree that nothing contained herein, written by Peter Epstein of Epstein Research [ER], (together, [ER]) about Portofino Resources, including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is not to be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy or sell any security. [ER] is not responsible under any circumstances for investment actions taken by the reader. [ER] has never been, and is not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and does not perform market making activities. [ER] is not directly employed by any company, group, organization, party or person. The shares of Portofino Resources are highly speculative, not suitable for all investors. Readers understand and agree that investments in small cap stocks can result in a 100% loss of invested funds. It is assumed and agreed upon by readers that they will consult with their own licensed or registered financial advisors before making any investment decisions. At the time this article was posted, Portofino Resources was an advertiser on [ER] and Peter Epstein owned shares and warrants in the Company. Readers understand and agree that they must conduct their own due diligence above and beyond reading this article. While the author believes he’s diligent in screening out companies that, for any reasons whatsoever, are unattractive investment opportunities, he cannot guarantee that his efforts will (or have been) successful. [ER] is not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts & financial calculations, or for the completeness of this article or future content. 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Portofino signs option deal to acquire Bruce Lake 2020-06-29 07:12 MT - News Release Mr. David Tafel reports PORTOFINO INCREASES RED LAKE, ONTARIO PROPERTY INTERESTS; ACQUIRES BRUCE LAKE PROPERTY Portofino Resources Inc. has entered into an option assignment agreement with Falcon Gold Corp. to acquire a 100-per-cent interest in the 1,428-hectare Bruce Lake property in the Red Lake, Ont., gold district. The property is located only 1.5 kilometres northeast of Great Bear Resources Pakwash property and about 11 km southeast of Great Bear's famous Dixie project boundary. David Tafel, CEO of Portofino Resources, states: "The success of Great Bear (Dixie project) and BTU Metals Corp. (Dixie Halo project) drilling northwest of Bruce lake, combined with our current South of Otter property to the northeast, gives Portofino a well placed land package in a very active and expanding exploration area of Red Lake. Additionally, we believe the Bruce Lake property compliments our regionally focused gold strategy and largely completes our property portfolio." Like the Dixie Project, the Bruce lake claims are entirely underlain by the Archean-age metamorphosed sedimentary and volcanic rocks of the Uchi-Confederation Lake greenstone belt. The Red Lake gold district is hosted within this same belt and is recognized as one of the world's highest-grade mining camps having produced approximately 30 million ounces of gold from 29 gold mines. Within the mining district, the Red Lake gold mine, that was recently purchased by Evolution Mining Ltd., is an underground gold mining complex, which is reported to have been in production since 1949, producing 25 million ounces of gold at an average grade of 20 grams per tonne. In addition to the well-known gold deposits, the greenstone belt hosts several ferrous and non-ferrous mineral occurrences and mines. The historic Griffith iron mine property is located immediately north-west of Portofino's Property. The Griffith Mine reportedly operated from 1968 to 1986 and produced 22.85 million tons of iron ore pellets with average grading of 66.7 per cent Fe from 78.8 million tons of crude ore with average grading of 23.9 per cent magnetic iron. The Bruce Lake Property contains gold-in-soil anomalies discovered as part of a reconnaissance soil sampling program completed by Laurentian Goldfields Ltd in 2010. Portofino has recognized the existence of regional magnetic high anomalies coincident with the gold-in-soils anomalies that it believes are significant. Gold associated with banded iron formations are excellent exploration targets especially when the property has gold in soils associated with a magnetic anomaly. Portofino intends to follow-up on these exploration targets. Next Steps Portofino has initiated the compilation and reinterpretation of all available historic data on the project and is proceeding to define exploration targets for an initial field program. Acquisition Terms Portofino will issue 650,000 shares to Falcon for the right to acquire a 100 per cent in the Bruce lake claims. In addition, Portofino will assume the underlying claim holder payments which total $52,000 over a 4-year option period. The Claims are the subject to a 1.5 per cent Net Smelter Return ("NSR") royalty pursuant to the Underlying Agreement. In addition, Portofino has agreed to grant Falcon a 0.5 per cent NSR. The transaction is subject to TSXV exchange approval. Qualified Person Mr. Mike Kilbourne, P. Geo, an independent qualified person as defined in National Instrument 43-101, has reviewed, and approved the technical contents of this news release on behalf of the Company. About Portofino Resources Inc. Portofino is a Vancouver-based Canadian company focused on acquiring, exploring, and developing mineral resource projects in the Americas. Its South of Otter gold/base metal project is located in the historic gold mining district of Red Lake, Ontario proximal to the high-grade Dixie gold project owned by Great Bear Resources Ltd. In addition, Portofino holds three northwestern Ontario gold projects; the Gold Creek property located immediately south of the historic Shebandowan Ni-Cu mine, as well as the Sapawe West and Melema West properties located near Atikokan. The Company also maintains an interest in prospective lithium salar properties located within the world-renowned "Lithium Triangle" in Argentina. We seek Safe Harbor. © 2020 Canjex Publishing Ltd. All rights reserved.
this has had a nice move to the mid teens and churned cheaper stock. Looking forward to seeing more drilling.
Up over 200% in just 90 days! As I mentioned with my thorough due diligence reports in the past, POR was bound to run. Sold almost 70% of my position and holding the rest for results. Used the profits to pick up NDR.V and MTH.V which should also reciprocate a 3-4 bagger potential in the next 2-3 months. The difference with these new companies is they are already working with large cap gold producers on already high grade gold assets. Have a look at them both.
