🕐08.03.10 - 16:52 Uhr
Woulfe announces positive results from its Sangdong Scoping Study
=======================================================================
Re: News Releases - Monday, March 08, 2010
Woulfe announces positive results from its Sangdong Scoping Study
=======================================================================
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$462 M Net Present Value at 8% discount value
- Current operational plans envisage production rate of 2.5 Mt per
year over a 15 year mine life
The Study provides support for the companys plans for refurbishment of
a small scale, high grade underground operation in a skarn type deposit
using existing mine access, extensive underground development and other
mine infrastructural assets which include buildings to house a new
process plant, offices, mine and workshops and personnel facilities.
The Company plans the reopening of the mine and a programme of long and
short-hole diamond drilling to provide samples for metallurgical
testing and additional information for the planned feasibility study.
Mineral Resource Estimate
Skarn
The Wardrop resource estimate for the skarn mineralisation was
completed using data from 91 recent surface diamond drill holes and 788
underground diamond holes completed during the mine operations.
The
estimate is dated 4th March 2010 and at a reporting cut-off grade of
0.1% WO3, is summarised in the table below:
Jangsan Stockwork
The Wardrop resource estimate for the stockwork mineralisation was
completed using data from 32 underground diamond holes completed during
the mine operations.
The estimate is dated 4th March 2010 and at a
reporting cut-off grade of 0.16% MoS2, is summarised in the table
below:
Financial Analysis
The mining and economic aspects of the study consider only the Footwall
zone resource.
From this zone an economic evaluation of the Sangdong
Project was prepared by Wardrop based on a pre-tax financial model.
For
the 15 year mine life the following pre-tax financial parameters were
calculated:
26.4 % IRR
3.4 yrs payback on US$ 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, Woulfes 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.
For further information or to obtain a copy of the study, please
contact Ms.
Amelia Wesson, Vice President and Director of Investor
Relations (+61416027449) or Mr.
Brian Wesson, President, Woulfe Mining
Corporation, (+61414406611) , ideally please send text message and we
will get back to you.
or
408-837, West Hastings Street,
Vancouver, BC, V6C 3N6, Canada.
Tel +1 604 684 6264
Fax +1 604 684 6242
Notes:
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 Companys
business contained in the Companys 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 Companys name at www.sedar.com.
This information is available on our website at www.woulfemining.com
=======================================================================
Copyright (c) 2010 ORIENTAL MINERALS INC.
(OTL) All rights reserved.
For more information visit our website at
http://www.orientalminerals.com/ or send mailto:
Message sent on Mon Mar 8, 2010 at 7:09:27 AM Pacific Time
=======================================================================