Wednesday, 21st June 2006 (2459 views)

Wolfden Resources is to buy the Lupin gold mine from Kinross Gold.

The Canadian firm will look at the viability of re-starting the mine, for which Kinross will supply the winze and hoist it previously removed.

Lupin was closed in February 2005, and Wolfden will update previous assessments of the mine in line with current gold prices.

Wolfden's president, Ewan Downie, said of the deal: "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."

"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," he added.

More than three million ounces of gold was produced from the Lupin mine between 1982 and 2005.

Since the mine closed the price of gold has risen strongly from early 2005 levels of $420-450 an ounce to current prices in the region of £560-580 an ounce.

 

« Back to the stories

 

The news feeds on this site are independently provided by Adfero Limited © and do not represent the views or opinions of the World Gold Council.