MESSAGE FROM CEO/PRESIDENT
Woulfe and Wardrop are moving rapidly forward with the feasibility study which is scheduled for completion at the end of the calendar year with the document most likely out in January. The feasibility study is important as it documents the project in detail and defines the project to the level required under National Instrument 43-101. The document will crystallize the project and would support a possible application for project finance in the form of debt early next year.
The Company has decided not to produce a prefeasibility report. The intent with the prefeasibility report was to provide the market a significant update during the 3rd quarter. However, it was decided that the expense and time required for this interim step was too high and that it would have delayed the scheduled delivery date of the full feasibility study. After meeting in London with Wardrop it was decided that we would not require Wardrop to publish a prefeasibility document but keep moving to feasibility.
With respect to Muguk, we are very pleased to be moving ahead now that Sangdong is on track for development. When it was in production, Muguk used a cut off grade of 10g/t gold. With the gold price now more than six times the price when the mine closed, we will be working to determine the resource based on a significantly lower cut-off grade. There are numerous secondary mineralised veins within the mining field which add to the potential upside. The grades at Muguk are well above the average cut-off grade for operating gold mines worldwide, recently reported to be around 2g/t gold.
The Muguk portions of this news release have been reviewed and approved in the form and context in which they appear by Woulfe's Canadian-based geological advisor, Mr. Pat Stephenson, P.Geo, of AMC Mining Consultants (Canada) Ltd. Mr. Stephenson has appropriate qualifications and sufficient relevant experience to qualify as a Qualified Person for the reporting of exploration results for the Muguk deposit.
The Sangdong portions of this news release have been reviewed and approved in the form and context in which they appear 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 mineral resources 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 is focused on the development of the Sangdong tungsten mine (one of the world's largest and most renowned tungsten mines for 40 years) a property that we believe can produce substantial value for our shareholders. The outcome of the scoping study in March 2010 determined that the project net present value (NPV) was US$467 million at a commodity price of $25,000 per tonne Ammonium Paratungstate (APT). Today, the APT price is over US$45,000 per tonne. Woulfe has accelerated the project due to the robust project and market. The Company's target is to move to production at the end of 2012. In the last 18 months the Company has focused on building the Sangdong tungsten mine team and reopening the mine. The project is well staffed with professionals and is moving forward rapidly.
Woulfe has now turned its focus to the Muguk gold project, historically Korea's largest producing gold mine. In 1998, Muguk was reported by Korea Resources Corporation (KORES) to contain a combined resource of 1,418,980 tonnes @ 13.5 g/t gold, 72.8 g/t silver (615,956 oz gold and 3,321,599 oz silver). Woulfe cautions that a Qualified Person has not done sufficient work to classify the historical estimate as current, that it is not treating the historical estimate as current and that the historical estimate should not be relied upon. A drill campaign is starting drilling the down dip extensions of the Three Brothers Vein in June 2011. Woulfe's other projects will be considered once these two projects are moving to production, in order to unlock value for shareholders and to move the company to a positive cash flow as quickly as possible. |
