Woulfe Mining Corp announces completion of the final update to the feasibility study and de-risking of the Tetra Tech 2012 Feasibility Study on the Sangdong Tungsten-Molybdenum Project. The update required further diamond drilling to increase the mineral resources confidence.
The mine is anticipated to produce 450,000 tonnes of ore in year 1 of production and reach the final 12-year life of mine capacity of 640,000 tonnes per year, in year 2.
Phase 4 and 5 drilling programs totalling approximately 7200 metres of diamond drilling have increased the mineral resources confidence. This infill drilling was on 20 metre centres instead of on the previous 40 metre centres.
The Tetra Tech calculated probable reserve of 13.3 million tonnes at a grade of 0.425% WO3 was for the whole deposit (all 20 levels). In addition, Tetra Tech included inferred resources in the HW Zone of 23.1 million tonnes @ 0.66% WO3. A new NI 43-101 compliant resource block model and resource estimate for a section of the deposit above -3 level, was prepared to feasibility study accuracy for purposes of NI 43-101 by AMC Mining Consultants of Australia. This resource estimate included phases 4 and 5 drilling results. AMC’s resource estimate included 3.81 million tonnes @ 0.56% WO3 measured and indicated resources, and inferred resources in the HW Zone of 7.93 million tonnes @ 0.68% WO3.
Drilling of the HW Zone above -1 level in a phase 6 drilling program outlined indicated resources of 419,000 tonnes @ 0.95% WO3 undiluted, representing 6% of the Hangingwall total volume associated with the inferred resources above -3 level. The drill tested contained metal content therefore is substantially higher than predicted.
Drilling continues with the aim of converting a further 3 million tonnes of inferred resources, above -3 level, to the indicated category, early this year.
The revised study also outlines a smaller processing plant using the same flowsheet as the Tetra Tech study and substantially reduced capital expenditures from $US151 million to $US74.4 million.
The final feasibility study has been delivered to IMC in fulfilment of closing procedures for the agreements, with conditions of the original and amended and restated strategic arrangement agreements between Woulfe and IMC remaining in place, including, subject to the terms and conditions of the agreements, IMC acquiring a 25% interest in Sangdong Mining Corporation for total consideration of Can$35 million.