Wednesday, 22nd March 2006 (2745 views)

Canada-based mineral exploration and development firm Wolfsden has acquired a potentially gold-bearing plot in Northwest Ontario, neighbouring key American mines.

Wolfsden will explore its investment near the Musselwhite Gold Mine for at least four years, with preliminary exploration pointing to the likelihood of a lucrative mining yield.

The company announced in a press release that a series of quartz veins could become significant gold-mining zones, since they resemble main gold zones at nearby mines.

The Musselwhite Gold Mine, for instance, has generated more than 1.9 million ounces of gold since 1997, with resources of approximately 3.5 million ounces.

President and chief executive of Wolfsden, Ewan Dowie, commented that his company has: "acquired a strategic land position adjacent to one of North America's major gold mines.

"Based on previous drilling and surface exploration, [the plot] is believed to have excellent potential to host gold zones similar to those being mined at Musselwhite," he added.

As part of the deal, its previous owners Parker are entitled to a two per cent royalty of net smelter returns, though Wolfsden have the option of paying $1 million to retrieve one per cent.

 

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