Wolfden’s Red Lake shopping spree continues

A pair of recently inked deals pave the way for Wolfden Resources (YWO-V) to boosts its landholdings in the Red Lake mining camp in northwestern Ontario.

The company has acquired a 100% in the Bonanza property by paying $25,000 to Pure Gold Minerals (PUG-T) and $5,000 to Eugenic Corp. (BRLE-C). Pure Gold will retain a 1.7% NSR and Eugenic a 0.3% NSR.

The property covers Cable Island and Cable Peninsula near the Campbell and Red Lake mines. Limited underground development on the property’s Sanshaw prospect returned a reported reserve of about 159,000 tonnes averaging 6.9 gram gold per tonne, above the 114-metre level. Surface and underground work in the mid-1970s indicated some cut-grade material running 7.2 grams across 3.35 metres.

Wolfden has also penned a deal to pick up the Newman-Heyson property on the Madsen mine trend outright from Newmont Mining (NEM-N) in return for $60,000 in cash plus the issuance of 150,000 units> One unit comprises a share plus a purchase warrant exercisable at $1.15 for a two years. Under the deal, Newmont will retain a 1.5% net smelter return royalty (NSR) on production of up to 1 million oz. of gold equivalent; the royalty is boosted to 2% thereafter.

Wolfden plans to immediately focus its efforts on the previously untested folded ultramafic rock units. Such units are seen as the controlling factor of the main high-grade zones at Placer Dome‘s Goldcorp‘s (G-T) Red Lake gold mine.

The Newman-Heyson property adjoins the Nova-Co and My-Ritt properties acquired in early September.

To gain a 100% stake at Nova-Co, Wolfden must pay the vendor $80,000 over three years, plus advance royalty payments of $7,500 per year, beginning on the deal’s fifth anniversary. The vendor will retain a 3 NSR, half of which can be bought back for $750,000.

The property contains to previously identified areas of significant gold mineralization.

At the time Wolfden inked a deal to take a 70% interest in the My-Ritt property from Explorers Alliance Corp. (YXPPF-O) by paying $50,000 cash and 50,000 shares. The company is also responsible for $1 million worth of exploration on the property over four years.

My-Ritt host an untested hinge fold in ultramafic rocks. This ultramafics are believed to be on the northern extension of the ultramafic unit that hosts the recent discovery of a high-grade gold system by Placer Dome (PDG-T) and Claude Resources (CRJ-T).

Wolfden plans a program of linecutting, ground magnetics, soil geochemical sampling, prospecting and drilling on the properties’ ultramafic trends.