Woulfe Mining is fast-tracking the evaluation of its Muguk gold project in South Korea. Muguk was the largest gold mine in South Korea until its premature closure in 1997 due to low gold prices. 1

Woulfe has appointed AMC Consultants of Melbourne as technical advisor to the project. AMC’s initial brief is to prepare a three dimensional digital model of the Muguk mine workings utilizing the available level plans and long sections, and update the extensive database comprising final survey of underground workings prior to closure, face grades, drill data, ore extraction data and process data.

It has completed the first task and is working on the second before it prepares an NI 43-101-compliant resource estimate for the main mineralized structures.

Woulfe management can now turn its attention to Muguk as its flagship Sangdong tungsten-molybdenum project in South Korea is progressing at a rapid rate. The Sangdong feasibility study is well advanced and construction is scheduled to commence in early 2012.

The two most significant veins are the No 2 vein and the Three Brothers Vein, or Samhyungje Vein. The No 2 Vein was exploited between 1944 and 1972, and was developed to a depth of 755 metres along a strike length of 1800-2000 metres. The grades reportedly varied from 7 grams/tonne to 50 grams/tonne gold. Reported production during this period was about 260,000 ounces of gold.

The Three Brothers Vein was exploited between 1984 and 1997, and was developed to a depth of 600 metres. Reported production during this period was about 328,000 ounces. There has been minor exploitation of a number of other veins, including Baksan, Geumyong, and No 1 and 7-11 Veins.

In 1994, Korea Resources Corporation completed a resource update on Muguk, resulting in a total reserve/resource estimate of 1,418,980 tonnes grading 13.5 grams/tonne gold and 72.8 grams/tonne silver, and containing 615,956 ounces of gold and 3,321,599 ounces of silver. Woulfe cautions that a Qualified Person has not done sufficient work to classify the historical estimate as current. The mine operated for a further three years after this estimate was undertaken.

Woulfe’s CEO and president Brian Wesson says, “We are very pleased to be moving ahead with Muguk now that Sangdong is on track for development. Muguk is a very exciting gold project as it has a significant residual resource above 10 grams/tonne gold.

“With the gold price now more than six times the price when the mine closed, there is potential to increase this resource significantly using a lower cut-off grade. There are numerous secondary mineralized veins within the mining field which add to the potential upside.”

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