Teck Cominco joins Wolfden’s pack (July 16, 2002)

Teck Cominco (TEK-T) has inked an exploration and evaluation program at Wolfden Resources‘ (YWO-V) High Lake volcanogenic massive sulphide property on Bathurst Inlet in Nunavut.

Under the agreement, Teck Cominco will subscribe to $1 million worth of Wolfden’s common shares, with the proceeds will going toward exploration and development at High Lake.

The deal also calls for Teck Cominco to provide technical support at High Lake for at least one year. The major is responsible for geological, engineering, and deposit modeling assistance. The Vancouver-based company will also test the suitability of High Lake’s ore for processing at its facilities. The support agreement can be extended at Teck Cominco’s option.

In return, Wolfden will not entertain any offers on the property and will not provide technical property data to any third party for at least six months or until $3 million has been spent.

Teck Cominco also retains a right of first refusal to form a joint venture or to acquire the property outright as long as it keeps providing technical support and participates in periodic Wolfden financings at a rate of not less than 15%.

Wolfden is currently in the midst of a $2-million drill program at High Lake, and has enjoyed some recent success. In late June, assay results form the main horizon intersected in hole 208 returned 47.8 metres grading 5.35% copper, 0.28 gram gold and 17.73 grams silver per tonne, including 10.55 metres running 14.32% copper, 0.53 gram gold and 34.47 grams silver. The hole tested the southern end of the B zone and also hit a second mineralized intercept from which assay results are pending. Results are also pending from holes 207, 210 and 211.

At last count, the B zone’s resource stood at 3.2 million tonnes running 5% copper, 1.1% zinc, 2.3 grams gold and 18.2 grams silver.

A second drill rig is testing for downdip and strike extensions on the D zone. Hole 205 cut 10.75 metres of 1.56% copper and 10.87% zinc 063 gram gold and 66.93 grams silver in the D-Zone, about 40 metres down-dip of hole 202, which returned 28.3 metres of 2.4% copper and 6.6% zinc.

The D zone hosts a drill-indicated resource of 1.6 million tonnes running 2.1% copper, 4.9% zinc, 0.6 gram gold and 59.1 grams silver.

The current drill program comprises step-out holes along strike and down-dip in the B and D zones. Both zones remain open.

Summer drilling and airborne geophysical surveying will soon resume. The work program will target most of the High Lake greenstone belt, plus a recently acquired 6.8-sq.-km adjoining property that covers the western extension of the Granite Lake magnetic anomaly, a possible kimberlite target.

Resources at High Lake tally to 5.3 million tonnes of 4.05% copper, 2.4% zinc, 1.76 grams gold and 31.7 grams silver, most of which is amenable to open-pit mining.

Meanwhile, in Ontario, Wolfden has agreed to acquire, from Sabina Resources (SBB-V), a stake in the Redaurum gold property, in the Red Lake camp.

Wolfden can gain a half-interest in Sabina’s 80%-owned Redaurum property in return for paying $75,000 and spending $2 million on exploration over four years. Wolfden can boost its interest to 60% by financing the property to production. Claude Resources (CRJ-V) holds the remaining 20%.

Redaurum is in one of the major deformation corridors north of the past-producing Madsen gold mine, which is being drilled by Claude and Placer Dome (PDG-T).

The Redaurum ground has been subjected to limited exploration, resulting in the discovery of several high-grade gold occurrences. Previous drilling intersected 38.4 grams gold over 1.5 metres, 5.8 grams over 7.6 metres, and 75.4 grams over 0.6 metre, all in the 14A zone. In another zone, known as No. 3, drill crews intersected 19.2 grams over 2.2 metres, while in the Camp zone, drilling returned 12.7 grams over 1.5 metes.

The property, which has been subjected only to limited drilling, is underlain by several ultramafic rock units and extensive quartz carbonate veining. Both these features are evident at the producing Campbell and Red Lake gold mines, operated by Placer Dome and Goldcorp, respectively.

Wolfden will also participate in a $250,000 private placement financing and have the right to nominate two members to Sabina’s board of directors.

Wolfden has three other exploration properties in Canada: Monument Bay, Skinner and Argosy. Bema Gold (BGO-T) is exploring Wolfden’s Monument Bay property, northeast of Winnipeg, Newmont (NEM-N) has performed initial exploration on the Skinner property, near Red Lake, and First Au Strategies (FAV-V) has started exploring the Argosy property, also near Red Lake.