Drilling suggests potential at Ulu (August 23, 2004)

Drilling by Wolfden Resources (WLF-T) at the Ulu gold deposit in western Nunavut has indicated the mineralization could extend updip and downdip from known mineralized zones.

Wolfden’s work has centred on the Flood zone, the largest of nine mineralized areas identified on the property. Feasibility work by Echo Bay Mines in 1998 identified a “geological resource” of 1.4 million tonnes grading 12.9 grams gold per tonne. The resource, which extended to a vertical depth of 360 metres, had a cutoff grade of 0.5 gram gold per tonne and a minimum mining width of 1.5 metres.

The mineralized zones consist of steeply southwest-dipping veins that strike southeast, in volcanic rocks. The veins are typically surrounded by an envelope of quartz-albite alteration.

The current drilling tested areas updip and downdip from known mineralization. Hole 32 intersected two known veins, 2 and 6, cutting 1 metre grading 10.2 grams gold on vein 2 and 19.1 metres grading 10.2 grams on vein 6.

Areas between mineralized zones, tested in infill drilling, have demonstrated continuity of mineralization between the zones. The earlier resource calculation had not included the areas tested in the new drill program.

BHP Billiton (BHP-N) retains a 5% net proceeds royalty on metal production and the right to explore for and mine diamonds at Ulu.