Woulfe Mining Corp has completed a resource update and feasibility study for the Sangdong Tungsten Project. The NI 43-101 compliant study enhances the economic and technical viability of the project and increases the confidence that the mine will be one of the most robust and competitive tungsten mines outside of China.

The 2015 updated resource estimate was prepared by Tetra Tech with an effective date of June 1, 2015. The 2015 feasibility study components were prepared by a number of consultants co-ordinated by A-Z Mining Professionals of Canada.

There are now 9.3 million tonnes in the indicated category @ 0.53% WO3 at a 0.15% WO3 cut-off including 2.14 million tonnes in the F2 zone, 2.04 million tonnes in the F3 zone and 5.12 million tonnes in the Main zone. There are total inferred resources of 34.7 million tonnes @ 0.39% WO3, including 900,000 tonnes in F2, 800,000 tonnes in F3, 8.3 million tonnes in the Halo zone and 24.7 million tonnes in the Hangingwall zone.

The resource estimate includes results from the 2013 phase 4 drilling program with subsequently performed phase 5 detailed drilling results to be included in a mining model used for detailed mine planning.

Woulfe and A-Z Mining have not retained the AMC Consultants' resource model, referred to in past announcements, based on a review of their technical methodology and such resource model should no longer be relied upon. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

The resource is only reported above -3 level (600mrl). From the -3 level to the bottom of the mine is flooded and there is no current plan to de-water to this depth.

The 2015 feasibility study is based on F2 and F3 reserves of 3.9 million tonnes @ 0.61% WO3 and Main reserves of 2.0 million tonnes @ 0.492% WO3. Based on the June 2015 spot price of approximately $US13,000 per tonne of 65% WO3 concentrate, the Sangdong project pre-tax IRR and NPV (8% discount rate) are 36% and $US81 million respectively. Revenue is based on an existing offtake agreement with IMC based on Asian Metal China Pricing.

The Sangdong project has a projected low tier operating cost of $107/mtu. A comparative analysis of worldwide tungsten projects, by Edison Investment Research, places Sangdong with the highest ratio of WO3 reserve of mtu’s per $US invested (of projects outside China).

The project designs and costs presented in the 2015 Feasibility Study are premised on the Tetra Tech 2015 resource block model.

The project will be an underground mine employing mechanized selective mining methods using mobile diesel powered mining equipment; a conventional crushing-grinding-flotation tungsten recovery processing plant; and surface support facilities and services (offices, warehouse, power, etc.) distributed between site and where ever possible from local communities. The vast majority of the workforce will be Korean.

The project capital expenditures (not including working capital) total approximately $US62.7 million, spent over 20 months. Average operating costs are forecast to be $US49.56 per tonne of ore over a project life of approximately 9.5 years.

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