Claude and Wolfden Resources-Neighbours in Red Lake-
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Wolfden to obtain interest in Red Lake properties
Wolfden Resources Inc
YWO
Shares issued 15,504,421
Sep 4 2002 close $ 1.00
Thursday September 5 2002
News Release
Mr. Ewan Downie reports
WOLFDEN TO ACQUIRE RED LAKE AREA GOLD PROPERTIES
Wolfden has entered into agreements to acquire a 100-per-cent interest in the
Nova-Co property, and a 70-per-cent interest in the My-Ritt property from
arm's-length parties. Both properties are located in close proximity to the Madsen
property, where a drill program by Placer Dome/Claude Resources has
discovered significant gold mineralization. This new discovery was made at a
folded mafic-ultramafic contact, a similar geological setting to that found at the
prolific Campbell (Placer Dome) and Red Lake (Goldcorp) mines in Red Lake
that have produced nearly 15 million ounces of gold and are two of the
highest-grade gold mines in the world.
Nova-Co property
Wolfden can acquire a 100-per-cent interest in the mining rights of the Nova-Co
property by making the following payments to the vendor: i) $15,000 on signing;
ii) $15,000 on the first anniversary; iii) $50,000 on the third anniversary; and iv)
making advance royalty payments of $7,500 per year commencing on the fifth
anniversary. The vendor will retain a 3.0-per-cent net smelter return royalty
(NSR), of which half (namely a 1.5-per-cent NSR) can be purchased for
$250,000 per 0.5-per-cent of NSR.
The Nova-Co property is located on the Madsen mine (2.6 million ounces of gold
produced) trend and in close proximity to the recently announced gold discovery
made by Claude Resources and Placer Dome. Previous exploration on the
Nova-Co property did not focus on testing the favourable ultramafic trends on the
property, however did identify two areas of significant gold mineralization.
My-Ritt property
Wolfden can acquire a 70-per-cent interest in the My-Ritt property from
Explorers Alliance Corporation by paying $50,000 cash and 50,000 shares of
Wolfden on signing, and performing $1-million in exploration on the property over
a four-year period.
The My-Ritt property is host to one of the most significant, untested, hinge folds in
ultramafic rocks in the Red Lake area. This ultramafic unit is believed to be on the
northern extension of the ultramafic unit that hosts the Claude/Placer discovery.
Folded ultramafic rock units are the key controlling factor of the main high-grade
zones in Red Lake gold mines.
These acquisitions position Wolfden as an emerging player in the Red Lake
greenstone belt with a significant core land position within one of the main mine
trends.
Exploration consisting of linecutting, ground magnetics, soil geochem sampling,
prospecting and drilling, will begin immediately, focusing on the ultramafic trends
on the properties.
WARNING: The company relies upon litigation protection for "forward-looking"
statements. |
