Business
Wolfden signs agreement to acquire Lupin Gold Mine from Kinross
Wolfden signs agreement to acquire Lupin Gold Mine from Kinross.
About this update from Kinross Gold Corporation
[{"type":"text","content":"\n\n\n\n\nShares Issued: 74,647,878\n\nTHUNDER BAY, ON, June 19 /CNW/ - WOLFDEN RESOURCES INC. (TSX:WLF) is\npleased to announce that it has signed a Definitive Agreement to acquire the\nLupin Gold Mine from Kinross Gold Corporation. (TSX:K). Beginning immediately,\nWolfden has commenced an assessment of the potential to re-start Lupin.\nFor this acquisition, Wolfden will receive from Kinross the winze and\nhoist that were previously removed from the mine; Kinross will reimburse\nWolfden $1.7 Million for fuel during the next trucking season; Kinross will\ndeliver to Wolfden at Closing a standby letter of credit in the amount of\n$3,000,000 to be draw upon at the commencement of the demolition of the Lupin\nMill - in the event that the Purchaser places the Lupin Mill back into\noperation, the Letter of Credit shall be returned to Kinross; Kinross will pay\nfor up to $4 Million for reclamation of the site in the event that the Lupin\nMill is moved, or will pay to Wolfden $1 Million at the time of reclamation in\nthe event that the Lupin Mill is put back into production; Kinross will retain\na 1.0% Net Smelter Return Royalty relating to any ore mined from the Lupin\nProperty.\nWolfden has commenced a geological assessment of the Lupin Mine that was\nclosed in February 2005, when gold was in the US$400-$450 range. As part of\nthis assessment, the corporation intends to update the ore reserve/resource\nestimate for the Lupin gold deposit using current gold prices and will review\noptions to re-open the mine. Between 1982 and 2005, the Lupin Mine produced\nmore than 3 million ounces of gold at an average grade of +9.0 g/t gold.\nIn conjunction with this assessment, Wolfden has commenced an underground\ndevelopment program to test vein and grade continuity of the 3 largest\ngold-bearing quartz veins comprising the Ulu gold deposit. The Ulu deposit has\na contained indicated/inferred mineral resource as presented in the table\nbelow.\nWith the acquisition of the Lupin Gold Mine, and assuming positive\nresults from the Ulu underground program, Wolfden intends to complete a\nfeasibility study to determine if the Ulu ore can be economically processed at\nthe Lupin Mine, possibly as early as the first quarter of 2007. The Lupin Mine\nis located approximately 155 km south of the Ulu property.\nAdditionally, Wolfden has retained Wardrop Engin...