THE RICE ISLAND TIE-ON PROPERTY:
The RITOP potentially contains the southwest extension of the Rice Island nickel-copper-cobalt deposit, as evidenced by the presence of a series of conductors coincident with a magnetic high on the RITOP, defined by Wolfden’s VTEM airborne geophysical survey. On Wolfden’s RIP, the Rice Island deposit is located on the same geophysical trend (see Figure 1). Additionally, Wolfden drill holes located at the southwest end of Rice Island on the RIP, returned significant results including 2.57% Ni, 1.07% Cu, 0.08% Co over 17.4 metres (RI-15-13), 1.14% Ni, 0.70% Cu, 0.06% Co over 14.1 metres (RI-15-13), 1.07% Ni, 0.83% Cu, 0.10% Co over 6.3 metres (Ri-15-14) as well as 1.23% Ni, 0.80% Cu, 0.13% Co over 2.6 metres (see Wolfden website for complete drill results; www.wolfdenresources.com). The magnetic high and associated conductors delineated over a minimum 500-metre long trend on the RITOP have never been drilled and will be given top priority in future diamond drilling programs.
In addition to the first priority drill target located immediately to the southwest of the Rice Island deposit, the RITOP contains several other compelling geophysical anomalies. A parallel geophysical trend located to the west of the Rice Island deposit contains a series of strong discrete anomalies that have a similar geophysical signature with that of the Rice Island deposit; these anomalies do not appear to have been drilled (see Figure 2).
Under the terms of an option agreement with Peter Dunlop (the “Vendor”), to earn a 100% interest in the RITOP, the Company must make cash payments totaling C$250,000 and issue 500,000 shares of Wolfden (subject to regulatory approval) over a fiveyear period (C$25,000 and 100,000 shares of Wolfden on signing). In addition, the Company must incur C$1.000.000 in exploration expenditures over the same five-year period (C$100,000 in year one). Upon earning a 100% interest in the RITOP, the Vendor retains a 2.5% Net Smelter Return Royalty on the RITOP as well as on the RIP: of which Wolfden can purchase 1.5% of the Net Smelter Return Royalty for the sum of C$1,500,000 (0.5% increments at C$500,00 per each increment) for each of the properties. Wolfden also retains the right of first refusal on the remaining 1.0% Net Smelter Return Royalty held by the Vendor for each of the RITOP and RIP.
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