WOLFDEN RESOURCES INC. WOLFDEN TO ACQUIRE NEWMONT & BONANZA RED LAKE GOLD PROPERTIES
IMMEDIATE PRESS RELEASE
THUNDER BAY, ONT. OCTOBER 1, 2002
Shares Issued: 23,788,493
WOLFDEN RESOURCES INC. (TSX-V:YWO) is pleased to announce that it has signed
an agreement to acquire, subject to regulatory approval, a 100% interest in
the Newman-Heyson Property, from NEWMONT CANADA LIMITED (a subsidiary of
Newmont Mining Corporation: NYSE & ASX: NEM; TSX: NMC), and a 100% interest
in the Bonanza Red Lake Property from EUGENIC CORP. and PURE GOLD MINERALS
INC. The Newman-Heyson Property is located in the heart of the Red Lake
greenstone belt in close proximity to the Madsen Property, where an ongoing
drill program by Placer Dome/Claude Resources has discovered significant
gold mineralization (see Sept. 3, 2002 press release - Claude Resources).
The property also adjoins the Nova-Co and My-Ritt properties that were
recently acquired by Wolfden (see Sept. 5, 2002 press release). The Bonanza
Property encompasses Cable Island and Cable Peninsula, in close proximity to
the Campbell (Placer Dome), and Red Lake and Cochenour Mines(Goldcorp).
Wolfden will acquire a 100% interest in the Newman-Heyson Property by paying
Newmont $60,000 cash and issuing 150,000 Units of Wolfden. Each Unit will
consist of one common share and one share purchase warrant exercisable at a
price of $1.15 for a period of two years. Newmont will retain a 1.5% Net
Smelter Return Royalty ("NSR") on production of up to one million ounces of
gold equivalent, increasing to a 2.0% NSR thereafter. To acquire a 100%
interest in the Bonanza Property, Wolfden paid $25,000 to Pure Gold and
$5,000 to Eugenic. Pure Gold will retain a 1.7% NSR and Eugenic a 0.3% NSR.
The Newman-Heyson 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 Newman-Heyson Property did not focus on testing the
favourable ultramafic trends. Folded ultramafic rock units will be the
target of an exploration program on the Property that will begin
immediately.
Folded ultramafic rock units are the key controlling factor of the main
high-grade zones at Placer Dome's Campbell and Goldcorp's Red Lake gold
mines in the Red Lake greenstone belt that have produced nearly 15 million
ounces of gold to date and are two of the highest grade gold mines in the
world.
The Bonanza Property is host to a portion of the Sanshaw 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.
These acquisitions solidify Wolfden's position as an emerging player in the
Red Lake greenstone belt with a significant core land position within one of
the main mine trends (please see attached map).
The current exploration program will consist of linecutting, ground
magnetics, soil geochem sampling, prospecting and drilling.
Property location map - Red Lake Mining District
Wolfden is a Canadian based mineral exploration and development company
engaged in the exploration of economic mineral deposits.
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 |
