Portofino Resources: Searching for Gold in the Red Hot, Red Lake District

https://www.linkedin.com/pulse/portofino-resources-searching-gold-red-hot-lake-district-ali-sinawi/

Published on May 12, 2020

Ali Sinawi

Capital Markets | Marketing | Financing | Connector of People, Capital & Ideas

As capital market professionals and speculative investors, we are all looking for opportunities during this exciting gold market, and the Red Lake Mining District of Ontario has been making big headlines. 

As recently as today, Great Bear Resources (GBR) announced they upsized their previously announced C$20.0 Million Bought Deal Private Placement to C$33 Million at a price of $17 per flow-through share and 725,000 common shares at a price of $11.04 per common share.

This was announced a day after GBR intersected the widest high-grade gold interval in the Dixie Limb zone to-date, assaying 10.19 g/t gold over 19.00 metres, which included 68.59 g/t gold over 2.65 metres, which in turn included 133.50 g/t gold over 1.00 metre.

GBR has been one of the best gold stories of the past decade, up ~6,600% from $0.165 in 4Q 2016 to over $11.00 today, with a market cap of $500+M.

Additionally in the area, Pure Gold announced that it is on track to open Red Lake mine this year which produced 2.5 million ounces of gold between 1938 and 1976. The asset was briefly put back into production in the late 1990s before the collapse in the gold price.

It’s clear the Red Lake District still has a lot of gold to be found and investors continue to place their bets there.

So when the opportunity to make an early investment in this great gold district arises, investors tend to not shy away leaving junior exploration companies with oversubscribed private placements.

Portofino Resources (TSX-V: POR) is one of those oversubscribed junior exploration companies. In fact, they ran two separate private placements to meet the demand.

On May 5, 2020, TSX-V: POR announced the close of back-to-back oversubscribed financings for a total proceeds of $882,500, with insiders subscribing for 2 million units on the second round. 

With approx. 40 million shares outstanding and with a market cap of approx. $2.4 million, the company plans to advance its Red Lake gold project as well as aggressively pursue additional potential “company maker” acquisitions.

Last September, Portofino Resources (TSX-V: POR) announced a binding agreement for the right to acquire a 100% interest in mining claims in the famous Red Lake mining district of Ontario, Canada. 

Portofino joins both majors & juniors including Australian-listed; Evolution Mining and Canadian-listed; Yamana, Great Bear Resources, Premier Gold Mines, Pure Gold, Rubicon Minerals, Pacton Gold, BTU Metals and GoldOn Resources.

Portofino’s block comprises 14 mining claims covering ~5,120 hectares. The claims are near the investment crowd favorite Dixie project, being drilled out by Great Bear Resources (GBR). 

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The South of Otter project is situated north of a major regional fault, wherein numerous gold prospects including the Dixie Project (less than 10 km east of South of Otter) have been discovered. 

The project is also located along trend of historically development mineral deposits such as Inmet’s South Bay Mine (1.6Mt @ 2.3% Cu, 14.7% Zn, 3.5 opt Ag.), WMC International‘s CopperLode (425,000t @ 1.56% Cu, 0.98 opt Ag), and Noranda‘s Copperlode East (160,000t @ 1.02 % Cu, 8.28% Zn, 0.39 opt Ag)

With Portofino commencing its exploration program on the property, a strong gold market, and continued activity in the Red Lake district, I believe this is a story you should watch unfold over the coming months. 

If you have any questions about Portofino Resources (TSX-V: POR), please don't hesitate to leave a comment or send me a Direct Message. I look forward to hearing from you.

Regards, 

Ali