Woulfe Mining has increased its indicated mineral resource by 275% after completing the second phase of drilling at its Sangdong tungsten-molybdenum mine in South Korea. The new estimate represents mineralization within the upper section of the mine or 25% of the known dip length.1

Woulfe says 5.95 million tonnes of skarn mineralization is confirmed by the drill results and further compilation of historical geological and mining data. The work focused on developing more detailed models of the three main skarn zones from both drill data and additional historical geological mapping. An additional intermediate alteration mineralization was also defined between the two thinner skarn zones that go to make up the footwall zone.

The company’s president Brian Wesson says, “The drilling programs have been successful and produced a significant upgrade in the indicated resource. The proving up of more than 10 years of mining resources to accommodate annual mining of 1.2 million tonnes from above the valley floor takes the project forward a large step as it provides sufficient ore for the feasibility.”

The feasibility study is three months behind schedule due to the drilling and the metallurgical test work being moved to China. It is now due for release by April 2011.

Sangdong is about 187km southeast of Seoul and was one of the world’s largest and most renowned tungsten mines for 40 years, before Korea Tungsten closed down operations in 1993 due to falling commodity prices.

Woulfe has spent the last 18 months building the Sangdong team to reopen the mine. The company is now focusing on reconfirming the recoveries and looking to optimize the flow sheet using new Chinese technology as the world’s largest APT (ammonium paratungstate) supplier.

Woulfe will continue to drill, explore and sample within the upper section of the old mine and plans to dewater down to -4 level to allow these efforts to be expanded. Definition and refinement of the Sangdong models will continue as more underground drilling is completed.

Meantime, Woulfe has also announced a NI 43-101 compliant resource estimate at its South Korean Muguk gold project. The inferred resource for two separate unmined sections of the ore body within the Three Brothers vein is 520,000 tonnes @ 11 grams/tonne gold with an average width of 1.2 metres at a cut off grade of 3 grams/tonne gold.

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.”

www.woulfemining.com

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