Shares Issued: 74,647,878
THUNDER BAY, ON, June 19 /CNW/ - WOLFDEN RESOURCES INC. (TSX:WLF) is
pleased to announce that it has signed a Definitive Agreement to acquire the
Lupin Gold Mine from Kinross Gold Corporation. (TSX:K). Beginning immediately,
Wolfden has commenced an assessment of the potential to re-start Lupin.
For this acquisition, Wolfden will receive from Kinross the winze and
hoist that were previously removed from the mine; Kinross will reimburse
Wolfden $1.7 Million for fuel during the next trucking season; Kinross will
deliver to Wolfden at Closing a standby letter of credit in the amount of
$3,000,000 to be draw upon at the commencement of the demolition of the Lupin
Mill - in the event that the Purchaser places the Lupin Mill back into
operation, the Letter of Credit shall be returned to Kinross; Kinross will pay
for up to $4 Million for reclamation of the site in the event that the Lupin
Mill is moved, or will pay to Wolfden $1 Million at the time of reclamation in
the event that the Lupin Mill is put back into production; Kinross will retain
a 1.0% Net Smelter Return Royalty relating to any ore mined from the Lupin
Property.
Wolfden has commenced a geological assessment of the Lupin Mine that was
closed in February 2005, when gold was in the US$400-$450 range. As part of
this assessment, the corporation intends to update the ore reserve/resource
estimate for the Lupin gold deposit using current gold prices and will review
options to re-open the mine. Between 1982 and 2005, the Lupin Mine produced
more than 3 million ounces of gold at an average grade of +9.0 g/t gold.
In conjunction with this assessment, Wolfden has commenced an underground
development program to test vein and grade continuity of the 3 largest
gold-bearing quartz veins comprising the Ulu gold deposit. The Ulu deposit has
a contained indicated/inferred mineral resource as presented in the table
below.
With the acquisition of the Lupin Gold Mine, and assuming positive
results from the Ulu underground program, Wolfden intends to complete a
feasibility study to determine if the Ulu ore can be economically processed at
the Lupin Mine, possibly as early as the first quarter of 2007. The Lupin Mine
is located approximately 155 km south of the Ulu property.
Additionally, Wolfden has retained Wardrop Engineering to complete
economic assessment studies for its Amaqqut Group of Projects that include
several high-grade gold and base metal deposits including the High Lake VMS
(Copper, Zinc, Silver, Gold) Deposit, the Ulu Gold Deposit, the Lupin Gold
Mine, the Gondor VMS Deposit, the Izok VMS Deposit and the Hood VMS Deposits.
Resources contained in these deposits are summarized in the following table:
<<
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Deposit Category Tonnes Cu Pb Zn Au Ag
------- -------- ------ -- -- -- -- --
(%) (%) (%) (g/t) (g/t)
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IZOK Indicated 14,400,000 2.52 1.28 12.94 trace 71.0
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Inferred 370,000 3.79 0.27 6.40 trace 54.2
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HIGH LAKE Indicated 14,300,000 2.34 0.32 3.53 1.01 75.7
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Inferred 1,300,000 1.17 0.28 3.36 0.78 64.6
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GONDOR Historical 13,630,000 0.2 0.5 5.1 0.6 46.7
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Incl. 4,380,000 0.1 1.2 9.7 0.9 85.7
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HOOD 10 Historical 1,800,000 3.4 0.3 4.5 0.5 27.0
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HOOD 41 Historical 900,000 1.4 n/a 3.2 n/a 12.0
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HOOD 41A Historical 1,100,000 2.4 n/a 3.3 n/a 16.0
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ULU Indicated 720,000 11.70
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Inferred 410,000 10.73
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LUPIN Resource Underway
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>>
Note - Historical resources were completed by previous operators prior to
the implementation of National Instrument 43-101. As such, the reader should
be cautioned that the historical resource estimates in this release have not
been verified by Wolfden's qualified person and should not be relied upon.
However, Wolfden considers the estimates to be relevant, reliable and
consistent with CIM definitions. The High Lake and Ulu resource estimates were
completed by G. H. Wahl, P. Geo (G H Wahl & Associates Geological Services)
and the Izok resource estimate was completed by Wardrop Engineering Inc.
"Lupin is a key acquisition in Wolfden's development plans for these
projects as it represents a fully permitted and operational milling and
tailings site that can be used for the development of several of our deposits
in the region" stated Ewan Downie, President of Wolfden. "In addition to the
ability to fast-track development, it is expected that the acquisition of
Lupin will result in a significant reduction in the capital required to
develop these projects."
Mr. John F. Cook, P Eng., and Chairman of Wolfden has reviewed the
contents of this press release and is the qualified person under National
Instrument 43-101.
WOLFDEN is a Canadian based mineral exploration and development company
with a diversified portfolio of advanced stage properties and several ongoing
exploration programs in Canada. Wolfden is debt free and has a strong
treasury.
The statements made in this Press Release may contain forward-looking
statements that may involve a number of risks and uncertainties. Actual events
or results could differ materially from the Company's expectations and
projections.
%SEDAR: 00010215E
