News Release Jan 28/03
WOLFDEN – MAJOR GOLD EXPLORATION IN 2003
WOLFDEN RESOURCES INC. (TSX-V:YWO) is pleased to announce that 2003 will be the most active in the company’s history with numerous drill programs planned. The majority of the programs will be funded by joint venture partners that include KINROSS GOLD CORPORATION, TECK-COMINCO LIMITED and BEMA GOLD CORPORATION.
RED LAKE GOLD PROPERTIES
Newman-Heyson and Nova Co Properties
The Newman-Heyson and Nova-Co Properties are currently being explored under a joint venture with KINROSS GOLD CORPORATION (TSX:K), whereby Kinross has the option to earn a 51% Interest by spending $5 Million in exploration and making cash payments to Wolfden.
The 2002, Phase I, exploration program consisted of linecutting, ground magnetics, soil sampling and six diamond drill holes. Drill hole RLK-02-05 intersected a new gold zone while testing a broad gold in soil geochem anomaly, associated with a “D2” fault (shear) structure as interpreted by the ground magnetics geophysical survey. D2 Fault structures are believed to be the main controlling factor of the high-grade zones at the Red Lake (Goldcorp) and Campbell (Placer Dome) gold mines in Red Lake. This hole, RLK-02-05, intersected a quartz-carbonate sulphide shear zone which returned 9.24g/t (0.27 oz/ton) Au across 3.55m (11.65 feet) including 14.95g/t (0.44 oz/ton) Au across 2.05m (6.73 feet).
A 2,500 meter follow-up drill program is currently underway that will test the strike continuity of this zone as well as several other geochemical and geophysical anomalies on the Property.
My-Ritt and St. Paul’s Bay Properties
The My-Ritt and St. Paul’s Bay Properties are currently being explored under a joint venture with TECK-COMINCO LIMITED (TSX:TEK.B), whereby Teck-Cominco has the option to earn up to a 55% in the My-Ritt Property by spending $4 Million and a 51% interest in the St. Paul’s Bay Property by spending $1.5 Million, and making cash payments to Wolfden. Bump-up provisions that include completing a feasibility study, as is the case with the St. Paul’s Property, and production financing, as is the case with the My-Ritt Property, allow Teck-Cominco to earn the above noted interests.
In 2002, Wolfden completed a Phase I exploration program on the property consisting of linecutting, ground magnetics and soil sampling on the My-Ritt Property. Several gold-in-soil anomalies have been identified and a folded/faulted ultramafic rock unit has been defined by the magnetics geophysical survey. The My-Ritt Property is located immediately to the north of the Newman-Heyson and Nova-Co Properties.
Phase I exploration on the St. Paul’s Bay Property will also commence immediately with drilling slated to coincide with that on the My-Ritt Property.
East Bay Property
The East Bay Gold Property is currently under option from PLACER DOME (CLA) LIMITED a subsidiary of PLACER DOME INC. (TSX:PDG), whereby Wolfden can earn a 50% interest by spending $2,000,000 in exploration over a three year period. Wolfden will be the operator during the earn-in stage.
The East Bay Property is located approximately 10km from the producing Campbell (Placer Dome) and Red Lake (Goldcorp) gold mines, and covers several kilometres of strike length along the favourable East Bay deformation zone. The Property is surrounded by claims owned by Rubicon, Rubicon/AngloGold, and Goldcorp. The East Bay deformation zone consists primarily of ultramafic rocks, similar to those that host the producing high-grade Campbell and Red Lake gold mines in Red Lake. Several significant gold prospects and mines occur along the East Bay trend including the past producing Cochenour Mine (past production 1.2 million ounces gold at 0.56 oz/ton) now owned by Goldcorp, the Abino and Chevron gold zones (Goldcorp), and Rubicon’s McFinley Gold Project.
Exploration is in progress, and drilling of up to 10,000 meters using three drill rigs will commence in the next couple of weeks.
Skinner Gold Property
The Skinner Gold Property is currently under option to TECK-COMINCO LIMITED, who can earn up to a 75% interest in two stages. The initial 65% can be earned by spending $700,000 in exploration by December 31, 2006 and making annual cash payments owing to the Vendor of the Property pursuant to the Wolfden option. An additional 10% can be earned by incurring additional expenditures of $400,000.
The Skinner Gold Property covers favourable Balmer Assemblage volcanic rocks located on the west side of the Birch-Confederation Greenstone belt. Exploration on the Property has identified basaltic and ultramafic (serpentinite) komatiite rock units similar to those that are host to the large gold mines in the Red Lake area including the prolific Campbell (Placer Dome) and Red Lake (Goldcorp) Mines. A significant gold grain in basal till anomaly outlined by the Geological Survey of Canada occurs down-ice from the Skinner Gold Property proximal to a favourable geophysical trend believed to represent komatiite rocks. No previous drilling is documented in this area.
Phase I exploration is expected to begin in the second quarter of 2003.
Argosy Gold Mine Property
The Argosy Gold Mine Property is currently under option to FIRST AU STRATEGIES CORP. (TSX-V:FAV). First Au can earn a 51% interest in the Property by making cash and share payments to Wolfden and performing $650,000 in exploration by the end of 2003.
The Argosy Gold Mine produced 101,875 ounces of gold at an average recovered grade of 0.37 oz/ton Au prior to being closed in the early 1950’s. Production came from three veins mined to a maximum depth of 900 feet. Wolfden recently completed a Phase I drill program on the Property with a highlight intersection of 14.67g/t Au across 1.7m in the unmined No.3 Vein Zone. A Phase II drill program is being planned for Q2, 2003.
MONUMENT BAY GOLD PROPERTY – MANITOBA
The Monument Bay Gold Property, located in northeastern Manitoba, is currently under option to BEMA GOLD CORPORATION (TSX, AMEX:BGO), who have the right to earn up to a 70% interest in the Property by making cash payments to Wolfden and performing $6 Million in exploration on the Property.
The Monument Bay Property is host to the Twin Lakes and Seeber River gold deposits. Following the 2002 winter drill program on the Twin Lakes B-Zone, Bema calculated a resource of approximately 300,000 ounces of gold at an average grade of 18.5g/t Au (0.53 oz/ton gold). During the past summer, Bema completed an exploration program that included an airborne geophysical survey, a soil geochemical survey, mapping, and diamond drilling. Highlights of this exploration included the identification of a parallel high-grade gold zone in the “Central” area with drill intersections up to 43.24g/t (1.26 oz/ton) Au, and significant untested gold in soil anomalies to the east and west of the main zones.
Bema has started a 10,000 meter drill program on the Twin Lakes, Twin Lakes West and Seeber River Zones, a strike length of approximately 2200 meters. It is expected that a updated resource calculation will be completed following the drill program that will include all zones at Monument Bay.
BONANZA PROPERTY
The Bonanza Property is currently under option to LATEEGRA RESOURCES CORP. (TSX-V:LEG) where Lateegra can earn a up to a 50% interest by making cash payments of $164,000 to Wolfden, issuing 250,000 common shares in the capital of Lateegra, and by performing $2 Million in exploration over a four year period.
The Bonanza Property is located in the heart of the Red Lake greenstone belt, and is located between the past producing Howey (Teck-Cominco) and Cochenour (Goldcorp) gold mines. The Property is host to the Sanshaw (Bonanza) Gold Prospect that has some limited underground development and is reported to host “reserves of 175,000 tons averaging 0.20 oz/ton gold, above the 375 foot level. Additional surface and underground work in 1974 “indicated some cut grade material of 0.21 (0.35 uncut) oz/ton Au across an average width of 11.0 feet.” (Source: National Mineral Inventory – Au10). These calculations may not comply with Policy 43-101.
Previous work on the Bonanaza Property concentrated on the area of known mineralization and did not test for potential “D2” structures, which are believed to be important in the emplacement of gold in the high-grade zones at the Campbell (Placer Dome) and Red Lake (Goldcorp) gold mines located approximately 4km to the northeast. Previous drilling on the Property has returned intersections as high as 47.3g/t (1.38 oz/ton) Au across 5.2m (17 feet).
Exploration will begin immediately with approximately 3,000 meters of drilling planned for this winter.
HIGH LAKE PROPERTY – NUNAVUT
The High Lake Property is 100% owned by Wolfden, and provides leverage to a high-grade VMS deposit. The Property is currently being explored under a strategic agreement with TECK-COMINCO LIMITED that provides for a strategic exploration and evaluation program for the Property.
The High Lake deposit was reinterpreted by Wolfden after acquisition from Aber and Kennecott; Wolfden then implemented a focused exploration program that has transformed this deposit into a high-profile project containing significant high-grade values when compared with other global VMS deposits.
2001 and 2002 drill programs have expanded both zones at High Lake with the final three drill holes from the 2002 program extending the main B-Zone by nearly 100 meters down-plunge. Prior to the Wolfden drill programs, the drill indicated resource at High Lake, as calculated by previous operators, was 5.3 million tonnes grading 4.05% copper, 2.36% zinc, 1.76g/t gold and 31.73g/t silver contained in two zones. A regional airborne geophysical survey completed in 2002 has identified a series of conductors proximal to base metal showings on the northern extension of the High Lake stratigraphy in a geological environment similar to that in the deposit area. Several conductors will be tested during the 2003 drill campaign.
Under the strategic agreement, Teck Cominco will provide technical support for Wolfden’s High Lake project for a minimum period of one year and thereafter for an extended duration at Teck Cominco’s option. This support will include geological and engineering assistance, geological and geophysical modelling, deposit modelling, and metallurgical review with ore amenability testing at Teck Cominco facilities.
Teck Cominco has certain priority rights to the High Lake Property for a minimum period of one year; and, continued thereafter, subject to Teck Cominco maintaining their present level of technical support to the High Lake Project and participating in periodic Wolfden financings at a rate of not less than 15%. Teck Cominco has a first right of refusal on a joint venture or outright property sale during this period.
SUMMARY
In summary, Wolfden expects to have a minimum of five active drill programs underway during the first quarter of 2003, increasing to seven in the second quarter. Between 40&50,000 meters of drilling is expected during the first half of 2003. Wolfden is debt free and has more than $6 Million in the treasury.
For further information, please contact:
Ewan Downie, President Phone: 807-346-1668 Fax: 807-473-1977
e-mail: wolfden@baynet.net Web Site: www.wolfdenresources.com
The statements made in this Press Release may contain forward looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company’s expectations and projections.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. |
