Posted: Wednesday Sep 26 9:16:38AM 2012
still holding WOF.v at an avg cost of .20. Woulfe is waiting for IMC to complete their investment and for a Korean bank to close mine financing. But company has decided to go ahead and hire a mining contractor at a much lower cost than projected in the BFS. Good news for the economics of the San Dong mine. Hopefully both IMC and the Korean Bank will close their financings in October and Woulfe can reopen the mine in 2013.
Woulfe Mining's Sangdong Project Engages a Mining Contractor; Initial Blast of Main Portal Scheduled on October 8, 2012
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
Woulfe Mining Corp.
Brian Wesson (FAusIMM), President, CEO and Director