Discovery Watch is a weekly 15-30 minute audio show produced by HoweStreet.com where Jim Goddard interviews John Kaiser about resource juniors with projects that have caught John's attention. The projects will not be limited to companies he has covered through the Spec Value Rating System. Jim and John will periodically circle back to review the projects and if necessary close them out as no longer worth watching. Check out the catalog of KRO Free Stuff. We currently have a USD $275 Membership Special which grants full access to the end of 2020. Discovery Watch is available via YouTube or Podcast..
Wolfden Resources Corp was introduced to DW in August 2018 based on the intriguing story of Maine reforming its mining code and re-opening itsef to exploration after more than a decade of no trespassing signs. Wolfden was a first mover to do a deal on the Pickett Mtn VMS system which Getty found and explored during the 1980's. Since then we have been watching to see if Wolfden can expand the existing resource. This was accomplished with the January 2019 resource estimate for the West-East lenses after drilling pushed the West Lens deeper. 2019 was supposed to be the year Wolfden discovered new lenses in the Footwall Zone and in fold limbs parallel to the West-East lens limb. But technical drilling problems turned the campaign into a bust except for a teaser stringer zone in which the last hole was lost. But during 2019 Wolfden flew geophysical surveys, not just on the property, but also on a 30 km by 10 km grid covering geology similar to that which hosts the Bathurst Camp in New Brunswick and Buchans in Newfoundland. To avoid equity dilution Wolfden raised USD $3.5 million January 2020 by selling timber rights. It also filed for land use rezoning from logging to industrial for a 500 acre parcel that would be the site for mining infrastructure. This rezoning is necesaary for a mining permit application and they hope to get it by Q1 of 2021. In early Q3 2020 Wolfden will publish a PEA for a 1,000 tpd UG mine which was the basis for the rezoning application. I created a SC 1,000 tpd scenario OV in the ShareCollective which yields a USD $135 million after-tax NPV that implies a future CAD $1.24 stock price, but that is a worst case scenario. Much more interesting is the exploration potential to boost the existing resource to 10 million tonnes at the same grade so as to support a 2,000 tpd scenario with a 10 year mine life. The SC 2,000 tpd scenario is much more interesting at USD $464 million NPV with a corresponding CAD $4.26 stock price. Wolfden began a 5,000 m drill program in July 2020 designed to test multiple new targets at Pickett Mtn whose EM conductors represent potential tonnage footprints of 15-20 million tonnes. The DW hope is that Wolfen turns one or more of these targets into satellite massive sulphide zones that boost the resource towards 10 million tonnes. Failing that, Wolfden is negotiating with landowners for deals on some of the sourrounding area it flew in 2019. If successful, the play turns into a regional quest for Buchans scale VMS clusters. On July 13, 2020 John Kaiser conducted a Zoom Interview with CEO Ron Little and Expl VP Don Dudeck. (Jul 15, 2020)