NUNAVUT – WOLFDEN RESOURCES of Thunder Bay, Ontario, has given the nod to development of its Izok base metal deposit, 80 km west of the former Lupin gold mine. The company points out that Izok is one of the world’s highest grade undeveloped base metal deposits. It has indicated resources of 14.40 million tonnes grading 2.52% Cu, 12.94% Zn, 1.28% Pb and 71.00 g/t Ag. There are also inferred resources of 370,000 tonnes grading 3.79% Cu, 6.40% Zn, 0.27% Pb and 52.20 g/t Ag.
Wolfden is planning an open pit mine. The existing Lupin mill, which includes a permitted tailings management area, could be used to treat ore from Izok. The cost of developing the Izok deposits will be between $504.4 million and $536.6 million. Operating costs are estimated at $0.36/lb Zn or minus-$0.38/lb Cu taking into account byproduct credits. Using mid-range metal prices (US$0.75/lb of zinc and US$1.65/lb of copper) Wolfden says the internal rate of return (IRR) would be 31.2%. The full feasibility study is expected in the second quarter of 2007.
The next work at Izok will be additional drilling, both geotechnical for mine design and exploration to further define the deposit and to firm up resources. The company is also beginning the environmental assessment process.
The Izok project is only one of several properties in Wolfden’s Amaqqut group of projects. The group also includes the High Lake, Hood and Ulu deposits (all 100%-owned by Wolfden), and the Gondor project (60%-owned). Additional information may be found at www.WolfdenResources.com.