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Woulfe Mining Corp. (TSXV:WOF,OTCQX:WFEMF,FWB:OZ4) announced that, based on results of a National Instrument 43-101 compliant feasibility study for its 100% owned Sangdong Mining Project in South Korea, Net Present Value (NPV) at 8% is $400.3 million, pre-tax, with an Internal Rate of Return (IRR) is 46.0%.
As quoted in the press release:
Highlights of the Feasibility Study (all amounts in US$ unless otherwise stated):
Probable Tungsten Reserves @ 0.425% WO3 Mt13.3
Life of Mine @ 1.2MTPA11.5 years
Annualised MTU’s of WO3 produced400,000
Initial capital expenditure US$ millions151.3
Capitalized pre-development for mining operations (including stockpiling) US$ millions or per tonne15.8
Operating Cost per tonne Ore61.84First ore accepted to the process plant is targeted for 2013 following a 15 month construction phase beginning in 2012. Probable Mineral Reserves of 13.3 Mt of ore grading 0.425% WO3 results in an 11.5 year mine life. Initial capital costs are estimated to be $151.3 M including a pre-development cost of $8.2 M and including a contingency of $7.8 M.
Financial Analysis
Based upon the foregoing and long term tungsten price provided by Roskill, the following economic parameters are indicated, including contingency:
• Net Present Value (NPV) at 8% is $400.3 million, pre-tax
• Internal Rate of Return (IRR) is 46.0%
• Payback is 2.2 years
Woulfe CEO/President Brian Wesson said:
“This robust feasibility study marks a significant milestone in the development of the Sangdong tungsten project and sets in motion our strategic partnership with IMC and the finalising of the funding for the entire project, moving to production 2013.”
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