Doug Casey Newsletter-
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Wolfden Resources (YWO.V:C$1.55)
Ever since Goldcorp gave away the geological secrets of its Red Lake mine over the Internet, a staking rush and exploration boom has ensued that has made Red Lake, Ontario one of the most active exploration areas in North America, if not the world.
The prize is huge. Goldcorp’s Red Lake mine and Placer Dome’s Campbell mine are actually both mining the same orebody that, including past production plus current reserves and resources, exceeds 23 million ounces. And the grades are spectacular. Current reserves at the Red Lake mine are 5.1 million ounces at 1.5 ounces per tonne, which is why Goldcorp can produce gold for $65 an ounce.
It’s no surprise that the competition to find another Red Lake or Campbell is so intense. But one company stands head-and-shoulders above the rest, given the quality of its projects and the dominant land position it has in the Red Lake area: Wolfden Resources.
The quality of Wolfden’s projects can be judged by the fact that Teck-Cominco is earning an interest in 3 projects and Kinross is earning an interest in 2. In addition, both Teck-Cominco and Goldcorp are shareholders of Wolfden.
Kinross is currently on hole #5 of a 10 hole drill program and Teck should commence drilling in two weeks. While you never know who is going to hit paydirt it helps to own the stocks before a discovery is made. Given the total number of Wolfden’s projects, its dominant position in Red Lake, their advanced High Lake project in Nunavut and the potential of the Monument Bay project (Bema JV) in Manitoba, I think it is an excellent speculation.
The company was recommended to Alert subscribers on November 6th last year at C$0.80 per share. While I don’t like chasing stocks any more than you do, I do believe in buying quality. And at C$1.55 Wolfden still represents very good speculative value.
Paul van Eeden
The Casey Investment Alert is published by Douglas Casey, © 2003. Information herein is obtained from sources believed to be reliable, but its accuracy cannot be guaranteed. The publisher, editors and officers, including Douglas Casey and Paul van Eeden, may from time to time have positions in securities or commodities recommended by or referred to in this broadcast. |
