Wolfden Resources (WLF) - Big Silver Breccia Adds to High-Grade Zinc Story

February 10 2021, 19:24 GMT

Wolfden Resources

  • TSX-V: WLF
  • Shares Outstanding: 130.49M
  • Share price C$0.32 (05.02.2021)
  • Market Cap: C$42M

Wolfden Resources is a Canadian exploration and development company with a track record of polymetallic deposit discoveries and mine development experience. The Company owns a 100% interest in the Pickett Mountain Project in Maine, USA, one of the highest grade undeveloped VMS deposits in North America. The deposit is situated 85km west of the Canadian border proximal to excellent infrastructure that includes a state highway, power line and railway siding. 

We last spoke with the CEO Ron Little back in October where we heard their story, the business plan, strategy, and the team. 

Company & Progress Overview

When we last spoke in October, Wolfden Resources was busy with a drill programme and were successful in discovering the makings of 2 new lenses. They are currently waiting for those results to come in over the next couple of weeks, which includes a massive sulphide and a stringer zone, which could potentially add a lot of tonnage. The company has also picked up the Big Silver project in Maine but they are still consolidating ground around the project. This and their Pickett Mountain project is the reason they are getting more support from Altius and Kinross. The company recently raised C$2M at the market financing without a warrant and announced a few days ago that they will take the opportunity to issues Flow-Through Share for gross proceeds of up to $600,000.

Hunting for Lenses in Pickett Mountain: Understanding the Deposits 

The company's Picket Mountain project is where they’re hunting Zinc and Lead primarily, and for more lenses. They have put out a PEA and are pre-permitting the project because it indicates a 10-year mine life already. This is a high-grade, small-footprint underground mine with a lot of potential to add more tonnage. The focus is to show that it's bigger whilst also showing that Maine is open for business. There's a lot of corporate interest in what Wolfden is doing but the big question remains, is Maine going to give them a permit?

The project is about bulk tonnage and grade. All of the historical drilling was from 1 side of this vertical plane. Wolfden Resources has stepped on the other side and are drilling the other direction. Drilling up through that pile, they're finding all kinds of sulphides, mineral endowment, and have hit a stringer zone, which is up to 30m wide, and a high-grade massive sulphide lens. Wolfden Resources expect this massive sulphide lens to be up to 1km in each direction but there's a possibility for a higher-grade chute within that's already showing 30% - 50% Zinc equivalent over narrow widths. In addition to the Lead Zinc, there is also a really good Copper and precious metal component, which is at least 30% of the ore make-up.

Wolfden Resources (WLF) - Big Silver Breccia Adds to High-Grade Zinc Story

They now think the immediate upside near the deposit is in the recently named footwall. They're moving north in an ore body that's running east-west to explore the potential of what's back there. They know that 0.5km away they have already hit mineralisation, so there could be several lenses stacked up in the footwall area which is where they will focus drilling this year.

Maine Open for Business: Raises, Focus, & Relationships with Locals

Located in remote Northern Maine, where most people are in the timber business, the company has good local support. The timber business is a difficult, unpredictable lifestyle at the moment so the more jobs that are available, the better. The project stands out to tick all the boxes because it's got a small-footprint, it's underground, will have dry stack tailings and a water treatment plant. This will be a showcase small modern, green mine.

Wolfden Resources (WLF) - Big Silver Breccia Adds to High-Grade Zinc Story  

"Doesn't Get Any Greener": The ESG Component

The number one concern, especially in Maine, is water. The question is whether the mine will use too much water or would they contaminate any ground water? Wolfden's plan at Pickett Mountain is to recirculate all the plant water. If there's any excess water, which is typically highly diluted by precipitation, it then goes through a water filtration plant. The result is the water out of the pipe is the same quality as the groundwater. It sits in a pond until it's tested and ready to go and then it filters into the ground through rock diffusers, which is like a big septic bed. The water does not come out of the pipe into a creek, it goes back into the ground. Wolfden says it's zero discharge and the entire mine will be using less than 1% of the water that's in the basin where the mine is located. In addition, they have dry stack tails, a rubber liner, there's no acid generation into the environment as drainage and precipitation are captured and goes back through the system. Because of this, Little expects this to rank very high on the ESG side of things.

Wolfden Resources (WLF) - Big Silver Breccia Adds to High-Grade Zinc Story

Speed of Development, Timing, & Potential Restrictions

The company has been spending small amounts of money over the last few years now (a self-imposed restriction) until they have an indication that they're through the rezoning process. This is effectively a mini mining permit process. They have submitted a technical study and there will be a public meeting. They will then have to do it all again with the Department of Environment Protection (DEP) in 2-years time, once they have the full Feasibility Study and the baseline study. From the public hearing they will get a snapshot of the current opposition to the project, and if they get approval based on the conceptual designs, they are sure they will get through the next phase of mining permitting.

Hopefully the public meeting will happen in late spring, early summer, after which the committee will decide whether to approve the project or not. With that green light, Little states they'll be more aggressive on exploration, on the full Feasibility  on the Baseline Study, and it still takes another 2-years after that to complete the full Feasibility Study and get through the mine permit application. The DEP is already helping the Land Use Department on all the technical issues of the rezoning petition designs. By pre-vetting the designs and science, the gives Wolfden confidence for when it's time to go to the next level of permitting.

Money Allocation: New Silver Asset, What's Known 

Wolfden raised c. CAD$2M in December which they will be spending on Pickett Mountain. They have also found themselves a new potential Silver asset with a big, hypothermal breccia pipe, meaning that there is Silver and potentially Gold in the system. It stands out as a footprint that could be one of the largest Silver deposits in North America, but most importantly, there were drill values of 10m to 50m of multi-ounce Silver, as a bulk tonnage target. 

They know that there is an untapped belt with great potential for a new deposit. These hydrothermal vents can blow up anywhere but typically follow a big structure. The big regional scale hasn't been well vetted and there's good potential for more deposits in the area, so Wolfden wants to consolidate the piece they have and then start to branch out, if can show that early results are positive.

Wolfden Resources (WLF) - Big Silver Breccia Adds to High-Grade Zinc Story

Wolfden has just under C$3M now which is more than enough to show the upside at Pickett Mountain. When the results come back, they plan to get the drill back in at Pickett Mountain as early as late- February because the roads are still accessible. 

At the Big Silver project, Wolfden is currently going through boxes of a paper data because there wasn't a complete digital database. They won't be in a position to drill there until the spring. Nonetheless, they will be able to present the data and think that it is going to add some incremental value. 

In the short-term, they're also looking at drilling a high-grade Nickel-Copper project in Manitoba. The Nickel price is on the up so if they drill and hit an extension of the keel of the feeder, this could be really big news for Wolfden. It's not a core asset so it is something they could potentially spin or sell, which would fund all of their work in Maine. 

Goals & Game Plan: Aggressive, yet Cautious

Pickett Mountain is the first priority for the company as a mine that's going to get built as long as Maine's open.  There is also a lot more exploration at Pickett Mountain. There are 2 new targets 10km away that could be similar to the Pickett Mountain deposit. Wolfden hopes to drill this year with Kinross and Altius both keen to see the exploration work. The company has a lot of assay results coming back plus the upside from the Big Silver and Nickel projects. 

In addition, base metals are really on a trend up. Wolfden is more than just a Zinc company with the high-grade Nickel-Copper project and a lot of Silver in both Pickett Mountain and the Big Silver project. This is a true poly-metallic story and Wolfden is rebranding as ‘metals for powering the grid and supporting the EV market'. The only battery metal they don't have is Lithium. The new brand is all about being a supplier for the power companies in the US. Zinc has had a good year but Copper, Nickel, and Silver have much more exciting headlines at the moment.

The new footwall lens has samples that are 2,000g/t to several thousand grams per tonne Silver and it could be a metre or less wide, but it is like a Gold vein that's multi-ounce per tonne Gold; a classic little skinny lens but very, very high-grade. 

In conclusion, Wolfden firstly has the Pickett Mountain results coming in over the next 3-weeks. Those include the stringer zone and that high-grade footwall zone that they are very excited about. Secondly, they are putting together a drill programme for Manitoba on the high-grade Nickel-Copper which is a Nickel Sulphide. Then they have the rezoning process coming along, and hope within the next 2-months they will have a date for the public meeting in June or July, which will be a huge milestone for the company. Lastly, there will be more news on Big Silver as they scrutinise the box of data and come up with a design and a drill programme in the next 2-months. They are consolidating ground around Pickett Mountain and Big Silver because of the way ground works in Maine and there will be news on that as well. 

Wolfden Resources (WLF) - Big Silver Breccia Adds to High-Grade Zinc Story

It's nice to get that update on Wolfden and to hear how things are evolving there. It sounds like they've got quite a bit of news flow over the next few weeks and months so we hope to stay in touch and follow their story going forward.

To Find out more, go to the Wolfden Resources website

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