Wolfden Resources has released some news that seems to have put an end to its disagreement with Peter Dunlop over the Rice Lake claims – and this could bring further prosperity to the Snow Lake area.
Wolfden announced last month it has acquired some key Dunlop property contiguous with its Rice Island nickel-copper-cobalt deposit; with the acquisition of the Rice Island Tie-On property (RITOP) adjacent to the Rice Island property (RIP).
The deposit has seen Wolfden drills turning during 2015 and 2016, and they have returned high-grade nickel, copper and cobalt values over mineable widths during these campaigns. Collectively, the 100-per-cent-owned RITOP and RIP encompass 2,611 hectares and are located 10 km southeast of Snow Lake; both on and near Wekusko Lake’s Rice Island.
Wolfden says RITOP conceivably contains the southwest extension of the deposit, as shown by the presence of a series of conductors corresponding with a magnetic high on the RITOP, which was distinguished by a VTEM airborne geophysical survey.
The Rice Island deposit is located on the same geophysical trend. The area in question has never been drilled and will be given top priority in the company’s future diamond drilling programs.
In addition to this drill target, RITOP contains several other geophysical anomalies of interest. A parallel geophysical trend located to the west of the Rice Island deposit contains a series of strong anomalies that have a similar geophysical signature with that of the Rice Island deposit; these anomalies do not appear to have been drilled.
Under the terms of an option agreement with Dunlop, in order to earn a 100 per cent interest in RITOP, the company must make cash payments totaling $250,000 and issue 500,000 shares of Wolfden over a five-year period ($25,000 and 100,000 shares of Wolfden on signing).
In addition, the company must incur $1 million in exploration expenditures over the same five-year period ($100,000 in year one). Upon earning a 100 per cent interest in RITOP, Dunlop retains a 2.5 per cent Net Smelter Return Royalty on RITOP as well as on RIP; of which Wolfden can purchase 1.5 per cent of the Net Smelter Return Royalty for the sum of $1.5 million (0.5 per cent increments at $500,000 per each increment) for each of the properties.
Wolfden also retains the right of first refusal on the remaining 1 per cent Net Smelter Return Royalty held by the vendor for each of RITOP and RIP.
A Manitoba Mines Branch publication on the Rice Island deposit notes that Kathleen Rice originally staked the property between 1922 and 1928.
Rice and partner Richard (Dick) Woosey wanted to diamond drill the deposit and agreed to form a company to explore and develop the claims, notes the publication.
Originally, Rice was to control 30 per cent of the company, Woosey 25 per cent and the remaining
60 per cent by CE Herman, who obtained controlling interest in return for financing a drilling program, according to the publication.
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