Canaccord Recommendation-
SPECULATIVE BUY
YWO : CDNX : $0.89
JUNIOR MINING
Wolfden Resources Inc.
Providing enormous exploration leverage to a high-grade gold deposit in Manitoba and to a copper-rich, potentially large, VMS prospect in Nunavut
Monument Bay, Manitoba: a high-grade gold project currently being drilled by
partner Bema Gold
Wolfden has optioned a 70% interest in the Monument Bay gold project located in northeast Manitoba to
Bema Gold. Most recent figures for the three separate zones on the project show resource estimates of
over 600,000 ounces. The B and C zones contain high-grade average values of 15.97 and 10.85
grams/tonne Au, respectively. Bema has initiated a drill campaign on these zones with the objective of
targeting the extensions of previous high-grade holes, and to increase the resource base outlined.
High Lake, Nunavut: an established copper-rich VMS deposit that Wolfden has re-interpreted
as being open to substantial development potential
Wolfden is expected to resume drilling on its 100% held High Lake copper-rich VMS project located in
the Coronation Gulf region of Nunavut in mid Q2/02. Current resources of 5.3 million tonnes confirm a
plus 4% copper deposit with good gold, silver and zinc by-product credits. Within this estimate, the A/B
zone contains 3.2 million tonnes of 5.0% Cu, 1.1% Zn, 2.3 grams/tonne Au and 18.2 grams/tonne Ag.
Drilling in the summer of 2001 tested this horizon to depth. Although the zone was previously interpreted
as being truncated, holes with up to 29.5 metres of 5.3% Cu and 1.3 grams/tonne Au demonstrated that
significant exploration upside exists to depth.
Wolfden provides near-term exploration leverage to two highly prospective
Canadian exploration plays
We consider both the Monument Bay and High Lake prospects as providing exploration potential to
materially expand known resources. We initiated coverage on March 15, 2002 at $0.53/share and rated
Wolfden a SPECULATIVE BUY for risk accounts. We maintain this recommendation and have placed
Wolfden as a Top Pick within the junior mining sector.
Graeme Currie (604) 643-7405 March 28, 2002
graeme_currie@canaccord.com 2002-025 |
