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Nov 06, 2012
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Woulfe Sangdong project NPV increases 34% to US$535.2M
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November 6th, 2012 -- Vancouver, Canada -- Woulfe Mining
Corp. ("Woulfe" or the "Company")
(TSX-V: WOF, OTCQX: WFEMF, Frankfurt: OZ4)
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is pleased to announce that it has awarded a mining
development and production contract to Youngin Industries
Corporation ("Youngin") for the underground
development and extraction of 1.2 million tonnes per
annum from the Sangdong mine. The contract encompasses
all mine civil works, mine development and production of
Tungsten/Molybdenum ores, to be delivered from
underground to the primary crusher. The contract pricing
will result in the lowering of mine production costs by
49% and will increase the project NPV8 from US$400.3
million to US$535.2 million, taking IRR from 46.0% to
65.6%.
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Woulfe awarded the contract to Youngin after extensive
negotiations with six Korean mining, civil and tunneling
contractors. The contract was awarded based on
Youngin's extensive experience and expertise in
underground mining and civil construction.
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The Youngin mine production plus pastefill costs totals
$25.64 per tonne of ore mined compared with $38.30 per
tonne mined estimated in the Feasibility Study. This
improvement in costs came as a result of replacing
projected Canadian mine costs in the Feasibility to firm
Korean costs. Other benefits include reduced capital
allocation (US$20 million) for the mine fleet and
subsequent reduction in pre-production ore mining and
mine development costs.
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Tetra Tech is working on updating the mineral resources
to include the last five months of drilling. With this
update an updated addendum of the feasibility will be
released that will include the revenue from byproducts
and the benefits resulting from the lower mining cost.
Reducing the mining cost will have a significant impact
on mine cut-off grade which will be expected to increase
the resource base.
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The CEO Brian Wesson stated "the lower mining cost
results in a NPV in line with the company's
expectations and prior valuation. The project is robust
and low risk as Korea is an OECD developed country."
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Youngin boasts extensive experience in both mining and
civil engineering in Korea. Youngin provides a
significant level of experience and brings with it an
extensive modern mine fleet Mr Wesson went on to state
"Woulfe is confident in the highly skilled staff at
Youngin. Their management have over 20 years of
experience in mining and tunneling and this expertise
will be a valuable contribution to the mine."
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Youngin began the civil construction of the mine portal
in October 2012, after which the mine development will
proceed. The six metre square cross section development
is expected to hit the main ore zone in November 2012
with trial mechanized mining to begin in December 2012.
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The scientific and technical information in this release
has been reviewed and approved by Jon Gliddon C.Eng,
General Manager UK for Tetra Tech, and overall manager
for the Sangdong feasibility study announced on April 23,
2012.Mr. Gliddon is an Independent Qualified Person
within the meaning of NI 43-101.
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On Behalf of the Board of Directors
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Woulfe Mining Corp.
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"Brian Wesson"
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Brian Wesson (FAusIMM)
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President, CEO and Director
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About Woulfe Mining Corp "Unearthing Global
Assets"
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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.
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Our flag ship 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
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Woulfe Mining Corp.
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Administration Office
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+1 604 684 6264
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+1 604 684 6242 (FAX)
| www.woulfemining.com |
or
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Nicola Street Capital
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Nick Smith
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Mobile phone +1 (415) 595-0865
| 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. |
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; failure to
complete the strategic arrangement described in this
release, including because of the failure to satisfy the
conditions to closing of the transaction, 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. |
WOULFE MINING CORP. 
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