From: Dave [tech2@nwb.nunavut.ca]
Sent: Tuesday, June 20, 2006 2:59 PM
To: (no recipient name)
Subject: Wolfden: News Releases Request
Date: Tue Jun 20, 2006 at 2:59:25 PM Pacific Time
From: Dave (tech2@nwb.nunavut.ca)
To:   (no recipient name) (licensing@nwb.nunavut.ca)

Notes and comments from Dave:
:
:  FYI, Wolfden release 19June06
:


Re:        News Releases - Monday, June 19, 2006
Title:     WOLFDEN SIGNS AGREEMENT TO ACQUIRE LUPIN GOLD MINE FROM KINROSS
Shares Issued:   74,647,878

WOLFDEN RESOURCES INC. (TSX:WLF) is pleased to announce that it has signed a Definitive Agreement to acquire the Lupin Gold Mine from Kinross Gold Corporation. (TSX:K).  Beginning immediately, Wolfden has commenced an assessment of the potential to re-start Lupin. 
 
For this acquisition, Wolfden will receive from Kinross the winze and hoist that were previously removed from the mine; Kinross will reimburse Wolfden $1.7 Million for fuel during the next trucking season; Kinross will deliver to Wolfden at Closing a standby letter of credit in the amount of $3,000,000 to be draw upon at the commencement of the demolition of the Lupin Mill - in the event that the Purchaser places the Lupin Mill back into operation, the Letter of Credit shall be returned to Kinross; Kinross will pay for up to $4 Million for reclamation of the site in the event that the Lupin Mill is moved, or will pay to Wolfden $1 Million at the time of reclamation in the event that the Lupin Mill is put back into production; Kinross will retain a 1.0% Net Smelter Return Royalty relating to any ore mined from the Lupin Property.
 
Wolfden has commenced a geological assessment of the Lupin Mine that was closed in February 2005, when gold was in the US$400-$450 range.  As part of this assessment, the corporation intends to update the ore reserve/resource estimate for the Lupin gold deposit using current gold prices and will review options to re-open the mine.  Between 1982 and 2005, the Lupin Mine produced more than 3 million ounces of gold at an average grade of +9.0 g/t gold. 
 
In conjunction with this assessment, Wolfden has commenced an underground development program to test vein and grade continuity of the 3 largest gold-bearing quartz veins comprising the Ulu gold deposit.  The Ulu deposit has a contained indicated/inferred mineral resource as presented in the table below.         
 
With the acquisition of the Lupin Gold Mine, and assuming positive results from the Ulu underground program, Wolfden intends to complete a feasibility study to determine if the Ulu ore can be economically processed at the Lupin Mine, possibly as early as the first quarter of 2007.  The Lupin Mine is located approximately 155 km south of the Ulu property.
 
Additionally, Wolfden has retained Wardrop Engineering to complete economic assessment studies for its Amaqqut Group of Projects that include several high-grade gold and base metal deposits including the High Lake VMS (Copper, Zinc, Silver, Gold) Deposit, the Ulu Gold Deposit, the Lupin Gold Mine, the Gondor VMS Deposit, the Izok VMS Deposit and the Hood VMS Deposits.  Resources contained in these deposits are summarized in the following table:
 

Deposit

Category

Tonnes

Cu
(%)

Pb
(%)

Zn
(%)

Au
(g/t)

Ag
(g/t)

IZOK

Indicated

14,400,000

2.52

1.28

12.94

trace

71.0

Inferred

370,000

3.79

0.27

6.40

trace

54.2

HIGH LAKE

Indicated

14,300,000

2.34

0.32

3.53

1.01

75.7

Inferred

1,300,000

1.17

0.28

3.36

0.78

64.6

GONDOR

Historical

13,630,000

0.2

0.5

5.1

0.6

46.7

Incl.

4,380,000

0.1

1.2

9.7

0.9

85.7

HOOD 10

Historical

1,800,000

3.4

0.3

4.5

0.5

27.0

HOOD 41

Historical

900,000

1.4

n/a

3.2

n/a

12.0

HOOD 41A

Historical

1,100,000

2.4

n/a

3.3

n/a

16.0

ULU

Indicated

720,000

11.70

Inferred

410,000

10.73

LUPIN

Resource

Underway

Note – Historical resources were completed by previous operators prior to the implementation of National Instrument 43-101.  As such, the reader should be cautioned that the historical resource estimates in this release have not been verified by Wolfden's qualified person and should not be relied upon. However, Wolfden considers the estimates to be relevant, reliable and consistent with CIM definitions.  The High Lake and Ulu resource estimates were completed by G. H. Wahl, P. Geo (G H Wahl & Associates Geological Services) and the Izok resource estimate was completed by Wardrop Engineering Inc. 

“Lupin is a key acquisition in Wolfden’s development plans for these projects as it represents a fully permitted and operational milling and tailings site that can be used for the development of several of our deposits in the region” stated Ewan Downie, President of Wolfden.  “In addition to the ability to fast-track development, it is expected that the acquisition of Lupin will result in a significant reduction in the capital required to develop these projects.”
 
Mr. John F. Cook, P Eng., and Chairman of Wolfden has reviewed the contents of this press release and is the qualified person under National Instrument 43-101.
 
WOLFDEN is a Canadian based mineral exploration and development company with a diversified portfolio of advanced stage properties and several ongoing exploration programs in Canada.  Wolfden is debt free and has a strong treasury.
 
For further information, please contact:
Ewan Downie, President                       Phone: 807-346-1668              Fax: 807-345-0284
e-mail: Info@wolfdenresources.com         Web Site:  www.wolfdenresources.com
The statements made in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties.  Actual events or results could differ materially from the Company’s expectations and projections.
 

Copyright © 2006 WOLFDEN RESOURCES INC. (WLF) All rights reserved. For more information visit our website at http://www.wolfdenresources.com/ or send email to info@wolfdenresources.com .
Message sent on Tue Jun 20, 2006 at 2:59:25 PM Pacific Time
'Dave' sent this 'News Releases' item to you from the Wolfden Resources Inc. interactive web site.  I hope that this News Releases item is of use to you.  [the requester was connected from a machine named dsl-wsted-66-18-217-157-edm.nucleus.com with the IP address of 66.18.217.157 and ISP located at Canada / Alberta / Calgary / Nucleus Inc / nucleus.com]

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