Wolfden looks to Red Lake for more property

Vancouver — Wolfden Resources (YWO-V) has inked a deal with Sabina Resources (SBB-V) to acquire an interest in the Redaurum gold property situated in the Red Lake greenstone belt.

Wolfden will have the right to acquire an initial 50% interest in Sabina’s 80%-owned Redaurum Property by paying Sabina $75,000 and spending $2,000,000 in exploration over the next four years. Wolfden can increase its interest to 60% by financing the property to production. Claude Resources (CRJ-V) holds the remaining 20% interest.

The Redaurum property is located within one of the major deformation corridors just north of the past producing Madsen gold mine. Claude Resources and Placer Dome are currently drilling the Madsen property. Wolfden reports that the Redaurum ground only been subjected to a very limited exploration. This resulted in the discovery of several high grade gold occurrences. Previous drilling intersected values such as 1.12 oz gold per ton over 5 ft; 0.17 oz gold over 25 ft and 2.20 oz gold over 2 ft in a zone dubbed 14A. In another zone, dubbed No. 3, drills cut 0.56 oz. over 7.2 ft. and in the Camp zone drills cut 0.37 oz. gold over 5 ft.

The majority of the property has not been drill tested nor has any deep drilling been carried out on the property. Wolfden also states that the property is underlain by several ultramafic rock units and extensive quartz carbonate veining. Both of these features are important at the producing Campbell and Red Lake gold mines, operated by Placer Dome and Gold Corp, respectively.

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

Wolfden currently has four other active exploration properties in Canada; High Lake, Monument Bay, Skinner and Argosy. Wolfden is currently involved in a major exploration program budgeted at $2 million on its 100%-owned High Lake VMS property, located in the Kitikmeot region of Nunavut, approximately 550 km north-northeast of Yellowknife. Bema Gold has performed and is expanding exploration and drilling on Wolfden’s Monument Bay Gold property, located 570 km northeast of Winnipeg. Newmont has performed initial exploration on Wolfden’s Skinner gold property, in the Red Lake area of Ontario and First Au Strategies has begun initial exploration on Wolfden’s Argosy Gold Mine property, also in the Red Lake region.