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WPC Resources closes $1.5 million to advance Lupin mine acquisition

by Greg Klein | April 19, 2016

With a $1.5-million private placement in hand, WPC Resources TSXV:WPQ continues to work towards the acquisition of the historic Lupin gold mine and Ulu gold project in Nunavut, the company announced April 18. WPC signed a non-binding letter of intent with Mandalay Resources TSX:MND last year to acquire the mine and mill, along with the Ulu property farther north. WPC intends to conduct engineering studies, resource reviews and a 2016 program of exploration and development.

WPC Resources closes $1.5 million to advance Lupin mine acquisition

Located about 400 kilometres from Yellowknife, the Lupin
mine and mill underwent refurbishment in 2013 and 2014.

Lupin came to Mandalay along with the Bjorkdal gold mine in Sweden when the company took over Elgin Mining in 2014. The 6,758-hectare Lupin mine and mill have turned out 3.4 million gold ounces at an average recovered grade of nine grams per tonne. Lupin produced gold from October 1982 to January 1998, resumed operations between April 2000 and August 2003, and again from March 2004 to February 2005. Since then it’s been on care and maintenance.

Last year WPC updated Ulu’s 2011 resource, following a reinterpretation by independent consultants who used a 4 g/t cutoff based partly on a gold price of $1,500 in Canadian funds. The project’s Flood zone now shows:

  • measured: 1 million tonnes averaging 8.48 g/t for 272,000 ounces gold

  • indicated: 1.5 million tonnes averaging 6.9 g/t for 333,000 ounces

  • inferred: 891,000 tonnes averaging 5.57 g/t for 160,000 ounces

Ulu’s Gun zone shows:

  • inferred: 370,000 tonnes averaging 5.57 g/t for 66,000 ounces

Both zones total 605,000 ounces measured and indicated, with another 226,000 ounces inferred.

Following “significant refurbishment” in 2013 and 2014, Mandalay declared the mine and 2,086-tonne-per-day mill to be in excellent condition. Infrastructure also includes the powerhouse and workshop, with winter road access.

WPC has also entered into agreements to acquire Inukshuk Exploration and its 8,000-hectare Hood River property contiguous to Ulu.

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