Newmont can initially earn a 65% interest in the property by spending $700,000 on exploration by the end of 2006 and making annual cash payments to the property vendor. Newmont can up its stake by 10% by spending an additional $400,000 by the end of 2007.
In late 2001, Wolfden signed an agreement to acquire the 20.3-sq.-km property by paying $95,000 in cash and issuing 100,000 shares over three years. The property is subject to a 2% net smelter return royalty.
Skinner covers the Balmer assemblage of volcanic rocks, which also hosts the Campbell mine of
Basal till sampling by the Geological Survey of Canada (GSC) in the early 1990s located a significant gold anomaly extending down-ice from the Skinner property. Six samples taken 1 km apart contained 13-60 grains of visible gold and graded 1.2-2.7 grams per tonne. Individual till samples up-ice of the GSC samples returned up to 81 grains of visible gold from samples weighing 7-10 kg. Assay results ran as high as 79.8 grams gold per tonne.
Also, sampling up-ice, toward magnetic anomalies at or near the Balmer/Confederation assemblage boundary, turned up delicately shaped gold grains, indicating a local source. The best sample — 81 mostly pristine gold grains — was taken in an area just 400 metres south of a 5-km-long magnetic anomaly coincident with a swamp. The area has not been subjected to any geophysical surveying or drilling.
Wolfden recently staked an additional 4.9-sq.-km claim block south of the Skinner property.
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