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Wolfden warns permit won’t be approved, stock drops

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(Kitco News) - Wolfden Resources Corporation (WLF.V) warned Thursday that its rezoning application for its Pickett Mt. Project in Northern Maine won't be approved.

"[The company] has been informed by the staff of the Maine Land Use Planning Commission, that it will be recommending to the nine Commissioners to decline the approval of its current updated application to rezone a 646 acre portion of its 7,145 acre Pickett Mt. Project in Northern Maine, to allow for the development of an underground mining and processing operation," said the company in a news release.

The stock was down 23% to 17 cents as of 1:45 p.m. ET.

Wolfden describes Pickett Mountain's VMS deposit as one of the highest-grade undeveloped polymetallic massive sulphide deposits in North America. Highlights from a preliminary economic assessment showed an after-tax IRR of 37%; and an after-tax NPV 8% of US$198 million for an underground mine. The initial capital expenditure was forecast at $147.4 million, including 20% contingency and closure costs.

The reason for the disapproval is pending.

On its website, Wolfden said its interest in Pickett was piqued when Maine updated its mining rules in 2017 to provide "…clarity on the process to permit the mining of metallic minerals."

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