Woulfe Mining's Sangdong Project Engages a Mining Contractor; Initial Blast of Main Portal Scheduled on October 8, 2012
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 09/26/12 -- Woulfe Mining Corp. ("Woulfe" or the "Company") (TSX VENTURE: WOF)(OTCQX: WFEMF)(FRANKFURT: OZ4) is pleased to announce that its 100% owned subsidiary, Sangdong Mining Corp., has signed a contract for the development of the main access portal and a commercial scale mine on the Sangdong property.
Brian Wesson, CEO and President, commented; "This is a significant milestone for Sangdong as it is the official start of mine construction and it comes at a substantially lower cost than we budgeted suggesting much escalated project economics and corporate value."
The mining contractor, appointed through a competitive bid among six qualified mining contractors in Korea, will supply all the mining equipment, labor and consumables at a cost of KRW14,130 (or US$12.63 at the prevailing exchange rate) per tonne of ore delivered to the crusher. Tetra Tech, in the Feasibility Report released on April 20, 2012, estimated the mining cost at US$33.32 per tonne of ore.
This significant reduction in the mining cost should have a very positive impact on project economics. Notable benefits include substantial saving in operating cost as the mining cost constitutes a 53.9% of the total operating costs estimated in the Feasibility Report and the lowered cut-off grade resulting in more mineable resources. The initial blast of the main access portal is scheduled to take place on October 8, 2012.
The mining contractor appointed has strong technical experience gained in underground mines as well as construction of numerous road and railway tunnels in Korea. The contractor possesses large underground mine vehicle fleets and qualified mining and civil engineers who will be deployed to the Sangdong project.
Woulfe has commissioned TetraTech (Wardrop) to assess the new mining contract and its impact on feasibility, project economics and resources for the Sangdong property. This will be done in conjunction with the update of the Sangdong resources which will take into account the additional drilling (7.195 metres) carried out since February 2012, the previous cut-off date for the feasibility drilling.
On Behalf of the Board of Directors
Brian Wesson (FAusIMM), President, CEO and Director
About Woulfe Mining Corp.
Woulfe Mining Corp is focused on 'Unearthing Global Assets' through the recognition and development of undervalued natural resource projects. Woulfe differentiates itself by boasting significant technical expertise in the design, development and operation of mining projects.
Our flagship project is the Sangdong tungsten mine in South Korea, historically the world's largest tungsten mine for over 40 years. Sangdong is expected to return to production by Q4 of 2013. Woulfe has entered into strategic agreements with International Metalworking Companies B.V. ('IMC'), part of the Berkshire Hathaway group of companies. This partnership brings strategic advantage given Woulfe's mining and processing technical abilities and IMC's downstream manufacturing skills, high level of innovation and quality of products sold into the global tungsten market. Woulfe Mining Corp. is a Canadian TSX-V listed company. Further information can be found on Woulfe's website www.woulfemining.com or on info@woulfe.com.au
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Contacts:
Woulfe Mining Corp.
Administration Office
+1 604 684 6264
+1 604 684 6242 (FAX)
info@woulfe.com.au
www.woulfemining.com
Nicola Street Capital
Nick Smith
Mobile phone +1 (415) 595-0865
nsmith@nicolastreetcapital.com