Woulfe Mining has achieved several major milestones at its Sangdong tungsten-molybdenum property in South Korea, with the company’s subsidiary signing on to develop the commercial-scale mine and scheduling the initial blast at the main access portal this week. Sangdong Mining was appointed after a competitive tendering process of six contractors.
Woulfe’s chief executive officer Brian Wesson says it’s an exciting time for the company. “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.”
Sangdong’s quote will supply all mining equipment, labour and consumables for US$12.63 per tonne of ore delivered to the crusher, a major cost reduction from the estimated mining cost of US$33.32 per tonne announced in the April 2012 feasibility report.
Brian Wesson says the contractor has strong technical experience in underground mines as well as construction of numerous road and railway tunnels in Korea. Sangdong Mining owns large underground mine vehicle fleets and qualified mining and civil engineers who will be deployed to the Sangdong project.
Woulfe has also reported pleasing assay results from 14 recent drill holes targeting the footwall zones of the site, which will be used to update the resource estimate. Significant intersections include 4.7 metres @ 1.13% tungsten and 8.4 metres @ 0.56% molybdenum including 5.5 metres @ 1.02% tungsten.
Sangdong’s resource estimate is currently at an indicated 16.4 million tonnes @ 0.45% tungsten and 0.04% molybdenum and an inferred 19.4 million tonnes @ 0.44% tungsten and 0.05% molybdenum.
Meantime, Woulfe is also moving forward with its proposed US$150 million debt financing with Shinhan Bank with a binding agreement expected to be finalized by late November. International Metal Working Companies BV (IMC) has also confirmed its satisfaction with the due diligence completed on Sangdong and will invest $35 million in equity to help finance the mine and process plant.
“Woulfe is now focused on moving the project development forward and finalizing the financing as quick as possible,” said Brian Wesson.