Recently, I started coverage for the second time on Wolfden. Years ago, the original Wolfden was a junior I covered that was taken over, and not long ago the same team started a new Wolfden Resources (WLF: TSX.V). I started coverage around 6 weeks ago when they announced their drill results from the phase 1 drilling, and also did an interview with Don Hoy, President, Wolfden, before they started the phase 2 drilling.
Earlier today, Wolfden announced results from the second phase of drilling and hit even better results than in the first phase. This team is very strong, it is the same key people running Wolfden and Premier Gold (PG: TSX). They know how to pick great projects and what to do with them when they have them.
I was very confident they would have good success from their phase 2 drilling, mainly because they had learned a lot from the first phase and were using that to guide them. It actually came out better than I had hoped.
I initially got pumped up about the company from the first phase drilling when they tagged a lower zone a few times with high-grade nickel-copper. In the results announced today, they hit a New Lower Zone (NLZ), over 12.4 metres with 3.29% nickel and 1.32% copper.
Equally exciting is that the hole ended in the high-grade and it is at the edge of a 500-metre geophysical anomaly. This leaves the high-grade open at depth and plenty of the anomaly open for drilling.
I’m starting to gain confidence that they are looking at something special on this property. It is located in a place where the drilling dollar goes a long way. They still have plenty of funding for drilling and are in an area they can drill year-round.
Wolfden delivered for me and subscribers in the past and the new version looks to have the chance to hit one out of the park. The mining industry needs a big winner, Wolfden is a contender to be one of the companies that takes the sector out of the doldrums.
As always, my commentary is for information purposes only, it is important for you to do your homework and speak with your financial advisors before making any investment decisions.
Wolfden still has a ridiculously low valuation relative to the cash on hand, the team involved, their ability to raise funding and most importantly the drill rig returning high-grade. I’m a shareholder, and I don’t think this cheap valuation will be around for long.
All the best,
Allan Barry Laboucan