Wolfden adds new zone, mill and properties

Follow-up drilling by Wolfden Resources (YWO-V) on its High Lake volcanogenic massive sulphide property in Nunavut’s Bathurst Inlet, has cut a new massive sulphide zone about 1.7 km west of the existing A/B and D zones.

The drilling was designed to test an anomaly outlined by extensive airborne and ground geophysical surveying in 2002.

The first hole encountered some 18 metres of semi-massive-to-massive sulphide mineralization comprising mostly pyrrhotite, chalcopyrite, pyrite and minor sphalerite at a depth of around 85 metres. The company says the mineralization is visually similar to the copper-rich High Lake B zone.

Subsequent drilling cut the zone in both up and down-dip directions. Drilling continues and initial assay results are expected shortly.

The drilling is part of a strategic agreement inked with Teck Cominco (TEK-T) last summer (T.N.M., July 22-28/03).

Nanisivik Mill

Northward, Wolfden has inked a deal to acquire the mill, concentrate storage facility, power plant, and all ship-loading equipment from Breakwater Resources‘ (BWR-T) mothballed Nanisivik mine on Baffin Island. Nanisivik was closed in September 2002.

Under the deal, Wolfden is responsible for the dismantling of the facilities plus clean up of the mill and storage facilities. Breakwater has agreed to provide lodging for Wolfden employees during the work.

Wolfden hopes to receive permits for the reclamation program in a matter of weeks, and plans to begin the work this summer.

James River

Immediately southward, Wolfden has signed an agreement to earn a 70% stake in two adjoining mining claims held by Blackstone Ventures (BLV-V).

Wolfden paid Blackstone $6.5 million on signing, and is required to cover future cash payments to the underlying property vendors. Wolfden must also sink $2 million in to exploration on the property over four years and fork over another $50,000 in cash to Blackstone following its earn-in.

The property is subject to a 2% net smelter return royalty, which can be halved at any time for $1 million.

The property, described as geologically similar to High Lake, is host to several gossans, base metal showings, and conductors that Wolfden believes might represent the southern extension of the favourable horizon at High Lake.

Drilling is planned on targets turned up by ongoing ground geophysical surveying.

Bachelor Lake

In the Abitibi region of Quebec, Wolfden has agreed to take a half-interest in Campbell Resources‘ (CCH-T) Bachelor Lake gold property.

To do so, Wolfden must fund $3 million worth of exploration over two years, with at least half of that in the first year. The company must also issue Campbell 50,000 shares or pay $100,000 in cash on the deal’s first and second anniversaries.

The deal is subject to approval by regulators and both companies’ boards.

The 18.4-sq.-km property, in Le Sueur Twp., northwest of Val d’Or, Que., comprises 50 mining claims and two mining concessions. Underground resources are estimated at 523,075 tons averaging 0.23 oz. gold per ton. The property is also home to a 500-ton-per-day mill with a cyanidation plant and crusher room.

Between 1982 and 1989, a previous owner mined some 958,360 tons averaging 0.15 oz. per ton. The operation reached to the bottom level of the mine (1723 ft.). Mining dilution is estimated at between 34 and 55%.

Drilling from the bottom of the mine in 1990 suggested that the Main vein is richer and wider at depth. The holes also cut a parallel gold zone, dubbed the B Vein. Both zones remain open at depth and along strike.

The holes returned up to 0.504 oz. of gold per ton over 12.5 ft. from the Main vein, and up to 0.6 oz. over 10 ft. in the B vein.

The pair plan to begin dewatering the mine workings, rehabilitation, and underground drilling, this summer.

Wolfden shares were trading 17, or more than 7% higher at $2.57 in late afternoon trade in Vancouver following the news on June 18.