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
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.
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.
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
