FSC / Press Release
Woulfe Mining is Underground at Sangdong Mine With Opportunity for Early Production
Vancouver, British Columbia CANADA, July 28, 2010 /FSC/ - Woulfe Mining Corp. (WOF - TSX Venture), ("Woulfe" or the "Company") advises that it proposes to fast-track the development of its world class Sangdong tungsten-molybdenum project in South Korea with a staged development approach. This is a significant change in approach and is the result of information gathered following the approval of the mine development license in June (see Company announcement dated 7 June 2010).
The Company has been able to gain access to the upper levels of the deposit and this has contributed to an improved understanding of the ore body, in particular the potential for the early exploitation of life-of-mine pillars around haulage and ventilation workings. These pillars lie within the historically highest grade portion of the deposit.
Woulfe has prepared a drilling program to delineate a block lying above the valley floor that has the potential to contain 3 million to 5 million tonnes of relatively high grade resources. This is an exploration target as it is uncertain if further delineation drilling will result in defining a grade distribution that will support this tonnage of mineral resource. The program consists of 38 holes for a total of 3,530 metres and will be carried out from the Sangdong Level. Drilling is scheduled to commence as soon as rehabilitation of the level is sufficiently advanced.
The Sangdong Level was used as a haulage level and provides access to the vertical and inclined shafts on the eastern flank of the deposit and to the main ventilation incline some 1.2 kilometres along strike on the western flank. Much of the level was reportedly maintained to a high standard during mining operations as it was an important component of the haulage and ventilation system. A haulage drive connects the two inclines and a secondary footwall drive lies some 150 metres to the south of the main drive. Drilling will be carried out from cross-cuts connecting the drives.
The aim of the drilling program is to define a measured and indicated resource in excess of 3 million tonnes at a cut off grade of 0.5% WO3 within a block extending from 50 metres above the Sangdong Level down 25-30 metres below. The drilling program utilises information from recent surface drilling (2007-2008), historical underground drilling and mine plans, mine closure reports to the Korean government that have recently been located, and from information gained from senior members of the mine technical team who were responsible for Sangdong at the time of closure.
The drilling program will target the three parallel zones of mineralisation present within the deposit, the upper or Hangingwall Zone, the Main Zone and the lower or Footwall Zone. The mineralisation dips at 25-30 degrees to the north-northeast.
The Hangingwall Zone has been accessed by mine development but only modest mine production has been undertaken. It has the potential to contain 1-2 million tonnes of resource grading 0.5-1.5% WO3 based on historical evidence. This is supported by recent surface drilling with hole SD-01 drilled in 2007 intersecting 18 metres @ 1.05% WO3 and 0.15% MoS2 at a distance of 38 metres above the Sangdong Level.
The Main Zone is 18-20 metres below the upper zone. This zone has been the focus of intense mine production, however the mine closure plans show a life-of-mine pillar above the Sangdong Level hangingwall drive. This pillar is shown as 6-8 metres in thickness, extending down dip for 55-60 metres and 1.0-1.2 kilometres in length. It has the potential to host 0.9-1.0 million tonnes of resource with a grade in the order of 1.5% WO3 based on historical production records, although there is no drilling evidence to support these grades.
The Footwall Zone lies 25-35 metres below the Main Zone and it has not been exploited. The mineralisation within this zone is more variable than the overlying zones, however it has the potential to host 1.5-2.5 million tonnes grading 0.3-0.9% WO3, based on historical and recent drilling data.
A Woulfe representative is currently in South East Asia sourcing second hand mining equipment from an underground mine that was decommissioned in 2009. Equipment available includes underground vehicles and drilling machines, pumps, fans and compressors, and assorted consumables. It is anticipated that the equipment will be onsite at Sangdong by early September 2010.
Woulfe has obtained the necessary approvals from the regional mine safety office for the rehabilitation of the Sangdong workings and is in the process of appointing an experienced site manager. Detailed geology, survey, mine planning and project design activities are being advanced by consultants so that the Company is in a position to commence the first stage of development later this year subject to finance. This work will support the bankable feasibility study for the full scale project being undertaken by Wardrop Engineers UK.
In anticipation of early start-up, the Company has renovated an old office building located adjacent to the main Sangdong access adit and this will be used for offices, change house and mine control facilities. The Company has also acquired freehold title to the building that has been used as the exploration office and this will be used for site accommodation.
Colin Lutherborrow MAusIMM a geologist with 30 years experience in underground mines and the delineation of resources and reserves is a Qualified Person as defined by National Instrument standards has read and approved this release.
Brian Wesson FAusIMM President/ CEO
Woulfe Mining
brian.w@woulfe.com.au
Woulfe launches new web site www.woulfemining.com
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, uranium and 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 producing mine, as well as a number of other properties with significant known mineralization and excellent regional 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.
On Behalf of the Board of Directors
Woulfe Mining Corp.
"Brian Wesson"
Brian Wesson
President, CEO and Director
"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."
For Further Information please contact:
Kevin Kartun VP Business development IR
Mobile phone +61413806353/ e mail Kevin.k@woulfe.com.au
Barbara Komorowski Renmark Montreal
Mobil phone +1 (514) 826-0157/ e mail bkomorowski@renmarkfinancial.com
Nick Smith Nicola Street Capital
Mobile +1 (415) 595-0865, e mail nsmith@nicolastreetcapital.com
Woulfe Administration Office
408-837, West Hastings Street,
Vancouver, BC, V6C 3N6, Canada.
Tel +1 604 684 6264, Fax +1 604 684 6242,
Or
info@woulfe.com.au
www.woulfemining.com
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.
Source: Woulfe Mining Corp. (TSXV WOF)
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