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Exploration|Gold|Resources|Underground|Drilling
exploration|gold|resources|underground|drilling

Kinross acquires 9.7% of Wolfden Resources

20th March 2019

By: Marleny Arnoldi

Deputy Editor Online

     

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TSX-V-listed Wolfden Resources’ share price shot up 5% to C$0.18 apiece, following its announcement that Kinross Gold would take a 9.7% stake in the junior miner.

The subscription agreement entails a nonbrokered private placement of about 12.5-million common shares of Wolfden at a price of C$0.20 apiece for gross proceeds of C$2.5-million.

The majority of proceeds from the offering will be used to explore the company’s wholly-owned Pickett Mountain high-grade polymetallic deposit, in Maine, US.

Wolfden anticipated the transaction to be complete on, or around, March 29, but no later than May 1, subject to TSX-V approval.

As part of Kinross’ subscription, it has agreed to form an exploration committee with Wolfden.

Wolfden has been working on metallurgical studies, which includes follow-up of the footwall zone, which it discovered earlier this year, in a drill hole that intersected 4.1 m of 38.2% zinc equivalent, including 612 g/t gold and 0.5 g/t gold. One of the deeper holes hit 19.5 m of 33.1% zinc equivalent, including 269 g/t gold and 1.1 g/t gold.

Pickett Mountain is home to a zinc and other base and precious metals-rich volganogenic massive sulphide deposit. The mineral resource currently stands at 2.05-million tonnes grading 19.3% zinc equivalent of indicated resources.

Wolfden will continue definition drilling and technical studies to demonstrate the economic potential for an underground mine.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

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