Earlier this year Woulfe Mining Corporation began a comprehensive review of the June 6, 2012 Feasibility Study prepared for the Sangdong Tungsten-Molybdenum Project as prepared by TetraTech WEI under the direction of previous management. This review has been completed by Woulfe with the assistance of its largest shareholder, Dundee Corporation, and has identified that considerable additional test work is necessary to bring the project to proper commercial and financing preparedness.
The new work program prescribed will include diamond drilling to better define the ore body, in particular those areas of the resource that could potentially be mined in the early years of the mine's life. Additionally, further work must be completed on mine design, mining method selection, metallurgical process design, and much de-risking of other technical aspects of the Sangdong project.
It is estimated that this work program will cost around $6 million to complete. Subject to financing, the proposed work program is expected to begin as soon as possible and will take about 12 months to complete.
In addition to the funds required for the work program, the company must also seek to raise sufficient capital to fund its working capital deficit and 2014 administrative costs. The total amount of the required financing has been determined to be about $9 million, including the costs of the work program. The company is in discussions with various parties to raise the necessary capital.
Woulfe Mining, through its wholly-owned subsidiary, Sangdong Mining Corporation, is dedicated to developing the Sangdong tungsten-molybdenum mine which was historically one of the largest tungsten mines in the world and one of the few long life, high-grade tungsten deposits located outside of China.