Woulfe Mining Corp.
TSX VENTURE : WOF

Woulfe Mining Corp.

June 01, 2011 09:00 ET

Woulfe Mining's Sangdong Tungsten Project Drill Results Offer Significant Encouragement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 1, 2011) -Woulfe Mining Corp. ("Woulfe" or the "Company") (TSX VENTURE:WOF) is pleased to announce assay results for the fourth batch of nine batches of samples associated with the now completed drill program. As previously announced, the drilling program targeted the unmined mineralisation in the upper section of the mine above the current water level for mine planning and feasibility reserve estimation purposes.

The tungsten-molybdenum mineralisation at Sangdong is hosted within three parallel, shallow-dipping skarn zones (Main, Hangingwall and Footwall) with a lateral extent of up to 1,200 metres along strike and 1,500 metres down dip.

The work programme is focused on upgrading part of the current NI 43-101 compliant Inferred Resource to an Indicated Resource that in turn has sufficient confidence to be converted to a mineral reserve as part of the feasibility study to be completed later in the year. The four batches reported today have returned very encouraging grades of tungsten (WO3) and MoS2. The updated NI 43-101 resource estimate is targeted for release at the end of June 2011. Woulfe has commissioned Wardrop Engineering to produce the new resource estimate and complete the feasibility study, and has also engaged AMC Mining Consultants (Canada) Ltd as geological advisors.

The 2010 March Wardrop Engineering Scoping Study produced an Inferred Resource of 103.6 million tonnes at 0.35% WO3, 0.04% MoS2 at a cut-off of 0.1% WO3. This resource modelled the group of Footwall mineralised zones as a combined unit and the Hangingwall Zone as another unit. Any remaining mineralisation from the Main Zone was not included. This resource was classified as Inferred primarily because of reliance on the historical underground drilling. The current surface and underground drilling programmes will improve confidence in the estimate, potentially allowing it to be classified as Indicated Resources.

The recent drilling results are summarised as below:

Main Zone
(The Main Zone was not included in NI43-101 resources March 2010)
Hole Number WSDD0014
Hole IDInterval
(m)
Length
(m)
True Width
(m)
Grade
(%WO3)
Grade
(%MoS2)
Zone
Intersection4.5-50.045.541.20.610.06Main
Includes4.5-11.06.55.91.890.05Main
Includes13.0-18.05.04.50.460.03Main
Includes21.0-28.07.06.30.880.06Main
Includes42.5-48.05.55.00.380.10Main
Location- collar 4111548N, 485123E, Azimuth 48, Dip +40, Depth 87m, Target Main, H/W
Hole WSDD0024
Hole IDInterval
(m)
Length
(m)
True Width
(m)
Grade
(%WO3)
Grade
(%MoS2)
Zone
Intersection0.0-10.010.09.40.650.06Main
includes4.0-10.06.05.60.860.08Main
Location WSDD0024 - Collar 4111510N, 485320E, Azimuth 350, Dip +45, Depth 69m, Target Main,H/W
Hole WSDD0020
Hole IDInterval
(m)
Length
(m)
True Width
(m)
Grade
(%WO3)
Grade
(%MoS2)
Zone
Intersection16.5-23.06.52.90.410.12Main
Location Collar 4111491N, 485296E, Azimuth 162, Dip+51, Depth 80m, Target Main, H/W
Hangingwall Zone
Hole WSDD0024
Hole IDInterval
(m)
Length
(m)
True Width
(m)
Grade
(%WO3)
Grade
(%MoS2)
Zone
Second intersection39.0-50.011.010.30.230.10Hangingwall
Location Collar 4111510N, 485320E, Azimuth 350, Dip +45, Depth 69m, Target Main, H/W
Hole WSDD0035
Hole IDInterval
(m)
Length
(m)
True Width
(m)
Grade
(%WO3)
Grade
(%MoS2)
Zone
Intersection157.5-163.05.54.50.650.14Hangingwall
Location 4111716N, 484911E, Azimuth 43, Dip -80, Depth 220m, Target All
Footwall Zones
Hole Number WSDD0007
Hole IDInterval
(m)
Length
(m)
True Width
(m)
Grade
(%WO3)
Grade
(%MoS2)
Zone
Intersection41.5-74.533.025.30.260.01Footwall
includes41.5-46.04.53.40.520.01Footwall
includes54.5-58.03.52.70.470.00Footwall
includes66.0-74.58.56.50.320.03Footwall
Location WSDD0007 - Collar 4111502N, 485221E, Azimuth 134, Dip -25, Depth 85m, Target F/W

Significant drill intercepts, defined as any mineralisation of 1 metre lengths or longer, are presented in the tables above. A cut-off of 0.15% WO3 was used for the intersection calculations.

To date the two best intersections in the Main Zone are WSDD0014, 45.5 metres (true width 41.2 metres) at an average grade of 0.61% WO3 and WSDD0015, with an intersection of 39.0 metres (true width 18.3 metres) at an average grade of 0.91% WO3.

The initial drilling program has been completed. The reopening of the levels above One Level, that is the area targeted for initial mine production, has identified large areas that have not been drilled in the Main and Hangingwall Zones. A second drilling program is now planned to explore the potential of these areas. These holes may be used for the updated NI 43-101 resource estimate planned for completion at the end of June if the results are available in time.

The samples are prepared on-site in Korea to appropriate industry standards and sent to SGS Perth, Australia for analysis. Samples are analysed by Inductively Coupled Plasma Mass Spectrometry (ICP) and for ore-grade quantities of specific elements by aqua regia or 4-acid digestion followed by ICP analysis. Molybdenum is analysed by X-ray fluorescence. The QA/QC protocol comprises insertion of one standard, one blank (crushed glass) and one pulp duplicate in every batch of 20 samples. No QA/QC results are available as yet.

This news release has been reviewed and approved in the form and context in which it appears by Mr Paul Gribble FIMMM, C.Eng, of Wardrop, who is working with Woulfe on the Sangdong studies. Mr Gribble has appropriate qualifications and sufficient relevant experience to qualify as a Qualified Person for the reporting of exploration results for the Sangdong deposit.

On Behalf of the Board of Directors

Woulfe Mining Corp.

Brian Wesson (FAusIMM), President, CEO and Director

About Woulfe Mining Corp.

Woulfe Mining Corp. is a TSX-V listed company with a diversified portfolio of mining licenses for tungsten, molybdenum, gold, base metals and uranium-vanadium in South Korea.

The company's current projects include the Sangdong tungsten-molybdenum mine, historically, one of the largest tungsten mines in the world; the Muguk gold-silver mine, formerly South Korea's largest gold mine, as well as a number of other properties with significant known mineralization and excellent regional exploration potential.

Woulfe has high expectations for near-term, low-cost production. The company has assembled a highly skilled, in-country, bilingual technical team and a board of directors with an outstanding track record of success.

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.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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