La Ronge soars 150% on preliminary results from Preview

Add La Ronge Gold (LAR-V) to the list of junior gold explorers that enjoyed triple-digit percent gains this quarter. 

La Ronge share prices jumped as much as 150% in the first week of March, to a high of $1, after the company announced preliminary assays on new gold properties in northern Saskatchewan. 

It took the company five months to achieve traction after acquiring 41 historic claims covering 529 sq. km on the La Ronge gold belt.

The agreement includes full ownership of the historic Preview SW and Twin gold targets. Preview SW returned notable grades and lengths for Cameco (CCO-T, CCJ-N) in the late 1980s. 

La Ronge completed a 4.1-million-share private placement in late November worth $1.1 million. The company’s goal is to verify a historic 89-hole, 14,100-metre drill program conducted on the Preview deposit that identified a non-43-101 compliant resource equalling 494,000 tonnes grading 12.34 grams gold, or 195,192 contained oz. gold. 

Preview’s mineralization is reportedly related to diorite-gabbro sills that extend 5,200 metres northeast across the property.

In early March La Ronge released assays on the first two holes at Preview, both reaching depths of 250 metres at negative 45 degrees. 

Hole 12-120 highlights include 214 metres carrying 1.63 grams gold starting from 11 metres depth, 3 metres averaging 21.7 grams gold from 46 metres and 4 metres of 11.99 grams gold from 197 metres. 

Hole 12-121 includes notable intercepts of 197 metres carrying 1.04 grams gold starting from 8 metres depth, 23 metres grading 1.92 grams gold from 101 metres and 18 metres of 2.45 grams gold from 18 metres. 

According to La Ronge president Rasool Mohammad, the wide lower-grade mineralization surrounding the higher grades in the gold quartz veins should help the company establish a compliant resource estimate at Preview.

Gordon Davidson joined La Ronge as vice-president of exploration in November after acquiring the Preview and Twin properties. Davidson has over 30 years of field experience, with previous successes at Cumberland Resources, where he managed the exploration team that developed the Meadowbank gold deposit in Nunavut that was later put into production by Agnico-Eagle Mines (AEM-T, AEM-N). Davidson is also credited with playing a role in discovering France-based nuclear energy company Areva’s Andrew Lake uranium deposit in Nunavut’s North Thelon basin.   

La Ronge reports the Preview drill program will involve a minimum of 2,500 metres and is geared towards establishing a compliant resource estimate, as well as verifying that the gold mineralization is open in both directions along strike and downdip. 

The Twin zone is a siliceous-pyrite and pyrrhotite-rich brecciated unit located at the Wedge Lake project, 156 km northeast of La Ronge. Twin was the target of a 33-hole, 4,290-metre drill program conducted between 1982 and 1984 that identified a non-43-101 compliant historical resource equalling 675,000 tonnes of 5.4 grams gold, or 101,2500 contained oz. gold. 

La Ronge has planned a 3,500-metre drill program on the Twin target scheduled to start mid-year.  

The company has 23.2 million shares outstanding with a $20.5-million market capitalization and a $35-million, fully diluted cash position. 

La Ronge’s shares pared gains following the substantial jump on March 1, falling 9% to close at 80¢ on a 4-million trade volume at presstime.