Feb 3 2011
Woulfe Mining Corp. (TSX VENTURE:WOF) has announced that Korea Zinc Co. Ltd. has completed its initial phase of due diligence and is satisfied with the Company's data. Korea Zinc wishes to progress the Strategic Partner transaction as announced on November 23rd 2010. Korea Zinc and Woulfe are working together to advance the project with the objective of concluding a definitive deal.
The project evaluation process has been briefly delayed at the Sangdong tungsten/molybdenum project as the drilling of the initial production area, from the unmined areas above the valley floor, has progressed more slowly than expected due to delays in obtaining spare parts and the extreme winter conditions in Korea. The weather in particular has caused the ice-over of the one level and access incline, preventing access for drilling.
Drilling Update
The drilling program of 5000 metres announced on December 6th 2010 has been redesigned to include 2000 metres of surface drilling. The underground drilling is being carried out by electric/hydraulic drills in main areas and kempe-pneumatic drills in the smaller areas.
As previously reported, power was installed and commissioned to the site over the Christmas holiday period and is currently being installed underground for the drilling. The drilling is targeting the KORES NI 43-101 non-compliant historical reserves from 1998 which suggest a target grade of above 0.4% is to be expected in un-mined areas. These areas remain un-mined as they protect the old mine infrastructure excavations that are not required in the new mine plan. A qualified person has not done sufficient work to classify historical estimates as current mineral resources or reserves and the Company is not treating the historical estimate as current mineral resources or reserves but as a historical estimate that should not be relied upon.
Brian Wesson, President, CEO and Director of Woulfe said, "We are working closely with Korea Zinc to advance the Strategic Partner deal. We are disappointed at the speed of progress of the agreed drill plan as the data is required to complete a review of our resources and mining plan for the initial years of mining. It is in the initial years that the mining plan shows the project capital will be recouped.
"However, given the redesign of the program and the appointment of Mr Don Smith, an experienced Australian Geologist on site, we are confident that we can complete the drilling by Q2 this year which will be followed by an updated resource estimate."
The information described in this news release, has been reviewed and approved by Colin Lutherborrow, a Qualified Person under National Instrument 43-101.