NUNAVUT - WOLFDEN RESOURCES of Thunder Bay, Ont., has agreed to purchase 100% interest in the suspended Lupin underground gold mine and mill. The property belongs to Toronto-based KINROSS GOLD, which acquired it with the takeover of ECHO BAY MINES in 2003. Terms of the agreement were not disclosed.
Mining began at Lupin on Contwoyto Lake in 1982, and it had an on-again-off-again production history due to high costs. It did recover more than 3.0 million oz of gold from ore with an average grade of 9.0 g/t Au. Wolfden will consider reopening the mine, but primarily the company is interested in the potential of the mill for treating ore from its Izok, Hood and Gondor base metal deposits (in which it is acquiring a 70% interest from INMET MINING) within 100 km of Lupin. The Lupin mill may also treat ore from the Ulu gold deposit.
The purchase of the Lupin property is advantageous for Wolfden. Owning a functional mill and permitted tailings area will reduce Wolfden's development costs for its three new base metal deposits. The site is close to TAHERA DIAMOND CORP.'s new Jericho and two other diamond mines. Thus there is a great deal of activity in the area, which offers cost-share opportunities for keeping the winter road and other infrastructure operational.
Wolfden has yet to add photos of its latest acquisitions to its gallery, but they will undoubtedly be posted soon at www.WolfdenResources.com. In the meantime, enjoy professional pictures from the company's other projects.
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