Woulfe Mining (WOF.V) - new assays from Phase 1 drilling programme

Comment by Objective Capital , Jun 27, 2011
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Woulfe Mining Corp has new assays from several samples collected during its now completed Phase 1 drilling programme at its Sangdong tungsten-molybdenum project in South Korea. The assays derive from all three mineralised zones: Main, Hangingwall and Footwall.

The results include an intersection averaging 0.88 percent WO3 and 0.09 percent MoS2 over a true width of 17.3 metres in the Hangingwall zone. Included within this intercept are two intervals with true widths of 7.7 metres and 4.3 metres, which averaged 1.19 percent and 1.14 percent WO3 respectively.

Within the Main zone, one hole returned an interval with a true width of 8.0 metres that averaged 0.99 percent WO3 and 0.05 percent MoS2. A 5.0-metre portion of this interval averaged 1.46 percent WO3 and 0.07 percent MoS2.

Within the Footwall zone, one hole returned an interval with a true width of 8.2 metres that averaged 0.68 percent WO3. A 3.8-metre portion of this interval averaged 0.86 percent WO3.

The Phase 1 drilling programme targeted the remaining mineralisation in the upper section of the deposit above the current water level for mine planning and feasibility reserve estimation purposes. In March 2010, Wardrop Engineering calculated an inferred resource of 103.6 million tonnes averaging 0.35 percent WO3 and 0.04 percent MoS2, based on a cut-off of 0.1 percent WO3.

Objective's view:

We remain encouraged by these latest assays, which, combined with earlier assays from the Phase 1 drilling programme, provide added comfort that the mineral resource at Sangdong can be substantially upgraded to higher classifications, and to a formal mining reserve.

The drilling results support plans for a second phase of drilling as part of the continuing feasibility study of Sangdong, which remains scheduled for completion late this year. This schedule continues to support an aggressive timetable that calls for production commencing in 2013.

The assays provide additional support for our base-case and optimistic valuations of Sangdong and Woulfe Mining, contained in our recent initiation report.