Woulfe Mining Corp.

Woulfe Mining Corp.

March 08, 2010 10:08 ET

Woulfe Announces Positive Results from Its Sangdong Scoping Study

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 8, 2010) - Woulfe Mining Corp. (TSX VENTURE:WOF)

Woulfe Mining Corporation ('WOF' – the Company) of Vancouver Canada announces the completion and release of its Scoping Study for the Sangdong Property re-establishment project in Gangwon Do province, South Korea. The Study has been prepared by Wardrop Engineering Inc., a Tetra Tech Company (Wardrop) in their UK office to provide details of the scope and preliminary economic estimates for the company to reopen and redevelop the de-commissioned underground Sangdong Tungsten/Molybdenum mine. Sangdong was operated as an underground mine from 1947 until 1992.

Highlights of the study include:

  • 26.4% Internal Rate of Return
  • 3.4 Years payback on US$289m Capital
  • Direct Operating Costs of US$32.50/t processed
  • US$462 M Net Present Value at 8% discount value
  • Current operational plans envisage production rate of 2.5 Mt per year over a 15 year mine life

The Study provides support for the company's plans for refurbishment of a small scale, high grade underground operation in a skarn type deposit using existing mine access, extensive underground development and other mine infrastructural assets which include buildings to house a new process plant, offices, mine and workshops and personnel facilities. The Company plans the reopening of the mine and a programme of long and short-hole diamond drilling to provide samples for metallurgical testing and additional information for the planned feasibility study.

Mineral Resource Estimate


The Wardrop resource estimate for the skarn mineralisation was completed using data from 91 recent surface diamond drill holes and 788 underground diamond holes completed during the mine operations. The estimate is dated 4th March 2010 and at a reporting cut-off grade of 0.1% WO3, is summarised in the table below: 

Category Zone Tonnes WO MoS
    (Mt) 3 2
      (%) (%)
Inferred Hangingwa ll 45.8 0.32 0.05
Inferred Footwall 57.4 0.37 0.04
Notes: MoS2 is reported in terms of WO3 cut-off; the resource category of Inferred has been assigned due to the age of the underground drill holes  

Jangsan Stockwork

The Wardrop resource estimate for the stockwork mineralisation was completed using data from 32 underground diamond holes completed during the mine operations. The estimate is dated 4th March 2010 and at a reporting cut-off grade of 0.16% MoS2, is summarised in the table below:

Category Zone Tonnes MoS2
    (Mt) (%)
Inferred Stockwork 7.1 0.18

Financial Analysis

The mining and economic aspects of the study consider only the Footwall zone resource. From this zone an economic evaluation of the Sangdong Project was prepared by Wardrop based on a pre-tax financial model. For the 15 year mine life the following pre-tax financial parameters were calculated:

26.4 % IRR
3.4 yrs payback on US$ 289 million capital
US$ 462 million NPV at 8% discount value.

The base case commodity prices were as follows:

Ammonium Paratungstate (APT) – US$250 /mtu
Molybdenum – US$15.00 /lb Mo

The overall processing recovery for WO3 was 69%.

Additional potential at the project includes the Hangingwall Zone and the Jangsan Molybdenum Stockwork underlying the Footwall zone. Both the Hangingwall and Footwall zones and Stockwork are open along strike and down dip. A possible Main Zone resource and remnant pillars are undefined. None of the above are considered in this study but will be evaluated in future studies.

Completion of the Study also triggers the completion of the deal which the Company made with Se Woo mining whereby, Woulfe will now receive a further 19% interest in the Sangdong property lifting its share to 70%. The company has the right to secure 100% ownership on completion of a full feasibility study. Its remaining obligation to Se Woo is a 2% net smelter royalty once production restarts.

Brian Wesson, Woulfe's President, has said today "I am delighted with the results of this study which confirms the results of our own research into the potential of the Sangdong mine. We will now move forward quickly to finance our drilling programme at Sangdong, which will enable us to prepare a full feasibility study when completed."

Woulfe Mining Focus

Woulfe Mining (formerly Oriental Minerals) is focused on a portfolio of mining leases in South Korea consisting of mines closed during the downturn in metal prices, followed by Asian financial crisis. The flagship Sangdong Mine was a significant producer of tungsten and molybdenum up to its closure in 1992. Woulfe is building up momentum in moving the project forward since the restructuring and financing of the company in December 09. The focus is on an underground bulk mining operation to produce ammonium paratungstate ("APT") that is in demand in Korean and markets in China and Japan. As the company is operating in Korea that is a large manufacturing country, we are considering opportunities to value add the products.


A Technical Report summarising the scoping study will be filed within 45 days of the date of this release. This report will then be also available at www.sedar.com.

The persons listed below from Wardrop Engineering Inc. are independent Qualified Persons as defined by NI 43-101 and have reviewed and approved the contents of this news release.

Eur. Ing. Andrew J. Carter C. Eng., MIMMM, MSAIMM, SME (Processing)
Mr. Scott Cowie, BE (Mining), LLB, MAusIMM (Mining and Financial Analysis)
Mr. Paul Gribble, C. Eng., FIMMM (Resource Estimate)

Forward-looking statements and forward-looking information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. We have made certain assumptions about the forward-looking statements and information and even though our management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that the forward-looking statement or information will prove to be accurate. Furthermore, should one or more of the risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information. These risks, uncertainties and other factors include, among others, the following: commodity price volatility; discrepancies between actual and estimated production, mineral reserves and resources and metallurgical recoveries; mining operational and development risk; litigation risks; regulatory restrictions, including environmental regulatory restrictions and liability; risks of sovereign investment; currency fluctuations; speculative nature of mineral exploration; global economic climate; dilution; share price volatility; competition; loss of key employees; additional funding requirements.

There can be no assurance that forward-looking statements or information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, you should not place undue reliance on the forward-looking statements or information contained herein. Except as required by law, we do not expect to update forward-looking statements and information continually as conditions change and you are referred to the full discussion of the Company's business contained in the Company's reports filed with the appropriate regulatory authorities.

Cautionary Note Regarding Mineral Reserves and Mineral Resources

The terms "Mineral Resource", "Measured Mineral Resource", "Indicated Mineral Resource", "Inferred Mineral Resource" and "Mineral Reserve", "Proven Mineral Reserve" and "Probable Mineral Reserve" used in this release are Canadian mining terms as defined in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council on August 20, 2000 as may be amended from time to time by the CIM. These definitions differ from the definitions in the United States Securities & Exchange Commission ("SEC") Guide 7. In the United States, a mineral reserve is defined as a part of a mineral deposit which could be economically and legally extracted or produced at the time the mineral reserve determination is made. These terms are recognized and required by Canadian regulations, they are not defined terms under standards in the United States and normally are not permitted to be used in reports and registration statements filed with the SEC. As such, information contained in this report concerning descriptions of mineralization and resources under Canadian standards may not be comparable to similar information made public by U.S companies in SEC filings.
With respect to "indicated mineral resource" and "inferred mineral resource" there is an amount of uncertainty as to their existence and uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an "indicated mineral resource" or "inferred mineral resource" will ever be upgraded to a higher category.
Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. Mineral reserves are not estimated at scoping level. The Canadian National Instrument 43-101 (NI 43-101) defines a mineral reserve as "the economically mineable part of a Measured or Indicated Mineral Resource demonstrated by at least a Preliminary Feasibility Study". A scoping study is based on measured, indicated, and inferred mineral resources. All levels of resources have been included in this study. This scoping study is preliminary in nature, it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorised as mineral reserves, and there is no certainty that the preliminary assessment will be realised. The Potentially Extractable Resource is the resource planned for extraction and processing.

For a detailed discussion of the study and related matters refer to the technical reports filed under the Company's name at www.sedar.com.

This information is available on our website at www.woulfemining.com

Contact Information

  • For further information or to obtain a copy of the study,
    please contact: Woulfe Mining Corporation
    Ms. Amelia Wesson
    Vice President and Director of Investor Relations
    Woulfe Mining Corporation
    Mr. Brian Wesson
    Ideally please send text message and we will get back to you
    Woulfe Mining Corporation
    408-837, West Hastings Street,
    Vancouver, BC, V6C 3N6, Canada.
    +1 604 684 6264
    +1 604 684 6242 (FAX)