Vancouver —
The 17-sq.-km property is being explored by Wolfden under a co-operative arrangement with
“We definitely ended the season on a high note,” said Wolfden President Ewan Downie. “The B zone has excellent expansion at depth, and several of the airborne conductors are proximal to base metal mineralization and boulders discovered along the extension of the High Lake stratigraphy. All our top anomalies remain untested and represent exciting targets for the next exploration program.”
Drilling in 2002 intersected semi-massive and massive sulphide mineralization in the B zone at a depth of 350 metres, more than 100 metres below the limits of last year’s drilling campaign. The deposit remains open at depth.
Highlights of the three last deep holes drilled into the B zone are as follows:
q Hole 17 cut 5.7 metres averaging 0.6% copper and 5.7% zinc, plus 25 grams silver per tonne, starting at a down-hole depth of 299.3 metres. This was followed by a 2.3-metre interval of 0.5% copper, 6.6% zinc and 11.5 grams silver starting at 310.3 metres down-hole. Both intervals intersected the Hangingwall zone. Farther down-hole, at a depth of 322.6 metres in the B Main zone, the hole intersected 17.45 metres grading 5.6% copper, 0.5 gram gold and 47.5 grams silver. Included was a 10.35-metre interval of 7.7% copper, 0.5 gram gold and 66.3 grams silver.
q Hole 19 intersected the Hangingwall zone at a depth of 353.1 metres down-hole and cut 8.5 metres averaging 2% copper, 1.4% zinc, 0.2 gram gold and 29.2 grams silver. At a depth of 365.25 metres down-hole, the B Main zone was again intersected, averaging 3% copper, 0.2 gram gold and 12.8 grams silver over 27.85 metres. The intersection included a 11.95-metre interval of 4.2% copper, 0.2 gram gold and 15 grams silver.
q Hole 21 cut the B Main zone at a depth of 365.75 metres and returned 23.25 metres of 2.8% copper, 0.1 gram gold and 15.9 grams silver. This included an 8.5-metre interval of 4.5% copper, 0.2 gram gold and 23.8 grams silver.
Results from additional drilling in the D zone would seem to indicate limited potential for expansion. The highest-grade intersections averaged 1.9% copper, 0.1% zinc, 25.9 grams silver and 0.9 gram gold across 4.9 metres, as well as 1.2% copper, 1.2% zinc, 58 grams silver and 12.4 grams gold across 1.2 metres.
In addition to drilling, a regional airborne survey was performed over the High Lake area. Numerous anomalies were identified, and several had geophysical signatures that were similar to those at the High Lake deposits. Ground geophysical follow-up and drilling will follow in early 2003.
All core was split, and half of it was sent to Accurassay Laboratories in Thunder Bay, Ont., for preparation and analysis.
Geology
The property lies in the High Lake greenstone belt, in the northern part of the Slave structural province, which consists of basement gneisses overlain by sedimentary and volcanic rocks. The High Lake greenstone belt measures 5-30 km in width and extends 140 km south from Coronation Gulf. Felsic volcanic rocks dominate over mafic rocks throughout the belt.
The central portion of the High Lake property consists of north-trending Archean-aged basaltic-to-rhyolitic volcanic flows and fragmental volcanics. The eastern margin of the property hosts argillites and greywacke sedimentary rocks that are cut by the Kennarctic River. Archean-aged plutonic rocks intrude the volcanics in the western part of the property, and north-trending Proterozoic-aged diabase dykes intrude all units.
The High Lake deposits represent discrete, north- and northeast-trending stratiform and stringer sulphide mineralization typical of volcanogenic massive sulphide deposits. To date, nine zones have been identified: A/B, C, D, E, G, H, West, North and South. The C and G zones are untested sulphide-rich horizons.
At last count, the B zone had a resource estimated at 3.2 million tonnes grading 5% copper and 1.1% zinc, plus 2.3 grams gold and 18.2 grams silver per tonne. 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.
History
The property was discovered in the mid 1950s though airborne reconnaissance prospecting by Kennarctic Explorations. A total of 52 diamond drill holes, or 7,149 metres, were drilled in 1956-57. This work led to an initial resource estimate of 1.16 million tonnes grading 5.37% copper and 1.04 grams gold per tonne in the A zone, 580,000 tonnes grading 6.09% copper in the B zone, and 1.83 million tonnes grading 2.51% copper, 4.2% zinc and 29.6 grams silver in the D zone.
The property was dormant until 1991, when Kennecott Canada and Aber Resources (now
Wolfden purchased the property from Kennecott and Aber in April 2001 for cash and share purchase warrants and a 1.5% net smelter royalty. That summer, Wolfden performed a 16-hole drill program designed to fill gaps in the mineralized A/B zone, as well as increase confidence in the grades.
In July 2002, Wolfden inked a deal with Teck Cominco. According to the agreement, Teck Cominco subscribed to $1 million worth of Wolfden’s shares, with the proceeds earmarked for work at High Lake. The deal also calls for the major to provide technical support at High Lake for at least one year. Teck Cominco is responsible for geological, engineering and deposit-modeling assistance, and will 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 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 acquire the property outright, as long as it keeps providing technical support and participates in periodic Wolfden financings at the rate of not less than 15%.
Last year, Wolfden collected samples for metallurgical testing since nothing had been done by previous operators. Wolfden took two samples from each of the two main zones, and combined them with quarter-split core drill holes through the deposits.
For the A/B zone, this resulted in a sample grading 6.21% copper, 1.49% zinc, 0.64 gram gold and 47.1 grams silver. For the D zone, the sample graded 3.15% copper, 6.21% zinc, 0.33 gram gold and 103 grams silver. The results indicated that in the A/B zone, where copper is dominant, 95% of the copper will report to a 30% copper concentrate, together with 90% of the gold and 70% of the silver. In this zone, zinc recoveries were determined to be 70% into a 50% concentrate. In the D zone, where zinc is the dominant metal, results indicated that 80% of the zinc reports to a 50% zinc concentrate. In this zone, copper recoveries were pegged at 90%, with 90% for the gold and 70% for the silver. Lakefield Research determined that both types of ore can be treated via a standard flotation plant with standard reagents, and no contaminants are associated with the ore.
In addition to High Lake, Wolfden has several ongoing gold exploration programs in Canada.
On Oct. 23, Wolfden granted its directors and officers a total of 720,000 stock options exercisable at 75 per share expiring on Oct. 11, 2007. Previous options dated Oct. 11, exercisable at 60, were cancelled and reset higher than the closing price of Oct. 22.
Wolfden’s $6.7-million share issue, including $5.5-million in flow-through shares, will largely go to fund work on High Lake. About $2.3 million had been spent by late September, when the share issue’s final prospectus was filed, and a further $1.7 million is budgeted. Another $1.5 million will go into exploration on other Wolfden properties.
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