Wolfden adds to Red Lake portfolio

Wolfden Resources (YWO-V) has added to its land position in the rejuvenated Red Lake mining district of northwestern Ontario by agreeing to take over the Skinner gold project.

To acquire the 20.3-sq.-km property, Wolfden must pay $95,000 in cash and issue 100,000 shares over three years. The property is subject to a 2% net smelter return royalty (NSR).

Skinner covers the Balmer assemblage of volcanic rocks — the same assemblage that hosts the Campbell mine of Placer Dome (PDG-T) and the adjacent Red Lake mine of Goldcorp (G-T).

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 gold 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.

Wolfden also notes that sampling up-ice, toward magnetic anomalies at or near the Balmer/Confederation assemblage boundary, turned up delicately shaped gold grains, reflecting a local source. The best sample (81 mostly pristine gold grains) was taken from an area just 400 metres south of a 5-km-long magnetic anomaly coincident with a swamp. The area has not seen any geophysical surveying or drilling.

Wolfden recently signed a letter of intent to buy the past-producing Argosy gold property, also in the Red Lake district. To do so, it must spend $10,000 in cash and issue 200,000 shares. The property is subject to a 2% NSR, half of which can be bought back for $500,000.

The mine operated intermittently between 1934 and 1952, during which time it produced 250,000 tonnes at an average grade of 12.6 grams gold per tonne and to a maximum depth of 275 metres. The three mined zones are open at depth. A drill hole 37 metres below the bottom level of the workings on Argosy’s No.1 vein cut 1 metre grading 23.3 grams gold per tonne.

In early November, Wolfden optioned out a 51% stake in the property to First Au Strategies (FAV-V), which can earn its interest by paying $40,000 in cash and issuing 200,000 shares. The company is also responsible for financing $650,000 of exploration work on the property over two years. Upon exercising the option, the parties will form a joint venture.

Since 1952, the property has seen little exploration. In addition to the three mined zones, it hosts several significant veins, including No. 8, where a raise assayed 42.9 grams gold over 0.67 metre. A surface hole was drilled to intersect the vein updip and returned 295 grams gold per tonne over 0.3 metre at a depth of 60 metres.