Woulfe Mining’s fast-track strategy for bringing the Sangdong Tungsten Project back into production has successfully moved the project through each phase of development. The Wardrop-led feasibility study, which began in June 2011, is expected to be completed by the end of the year with a report out in January of 2012.

Completion of the study will allow Woulfe to begin the construction phase of development and provide support for a possible project finance application early next year.

The strategy is to fast-track the re-opening of the mine by focusing on the upper levels. Mining will exploit the Hangingwall and Footwall Zones which lie above and below the Main Zone respectively, plus remnant mining of the Main Zone.

A scoping study completed in early 2010 estimated total inferred resources of 103.2 million tonnes @ 0.35% tungsten and 0.04% molybdenum, excluding the Main Zone. The resource was based entirely on historical drilling data.

In the first half of 2011, an infill drilling program was undertaken to upgrade the resource status in the upper levels focusing on the eastern half of the deposit where the access points are located. Most of the drilling was conducted from the Sangdong Level and targeted the three parallel mineralized zones.

The resulting estimates for the upper portion only above the historic 2 Level are 6 million indicated tonnes @ 0.42% tungsten and 0.04% molybdenum, and 18.6 million inferred tonnes @ 0.45% tungsten and 0.05% molybdenum. There is also a large tonnage of target mineralization that requires further drilling to upgrade to resource status.

A second drilling program is under way to increase the total resource, and in particular upgrade the inferred resource.

The proposed annual steady state production rate is 1.2 million tonnes although the plant will have a rated capacity of around 1.6 million tonnes. First production is scheduled in early 2013.


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