Oriental Metals, as was, had its share of problems. Have not we all, as the credit crunch hit? But the new boss Brian Wesson comes straight to the point where it rings up to describe recent progress in the now renamed and relaunched, Woulfe Mining. The wild swings in shares of the company during the last two years can be described as rather extreme, “he said. “The company had been up to C $ 3.70, then dropped to $ 0.03 CA.” The long term plan is to move the listing from the TSX Venture Exchange in place of the main board in Toronto, but with a record like that, it may be some time before markets settle enough to make a realistic proposition.
However, the Company refinanced, and the Sangdong tungsten project in the province of Gangwon Do, South Korea has a world class asset. To illustrate this point just in the short time available to him, as he rushed between meetings with various community investment in London, Brian suggested typing “Sangdong” in Google and check the result. Not opposed to some heavy lifting on the research front, Minesite duly typed “Sangdong tungsten, and was rewarded with 7750 hits, including some linked to Woulfe itself, but the most unusual for Google have been more revealing.
Sangdong has been around for years. Between 1947 and 1992 he was one of the largest producers of tungsten mines. But it was not closed because he was exhausted. Instead, Brian Wesson said. There is much ore was extracted left and 40 years. No, the reason it was closed due to low metal prices. But one way or another weakness in metal prices now look like a thing of the past. The world has changed since then, and if the tungsten has not made a particularly striking increase in price over the last two years, the signs are extremely positive in the longer term. Because the world’s largest producer, China is increasingly offered to reserve for its own economy, leading to a narrowing of potential in the not too distant. Brian believes the real strength in the market should be at around 2013, co-incidentally the only time he has Woulfe should be able to get Sangdong production.
Wardrop just completed a scoping study on Sangdong, which has a net present value of U.S. $ 468 million on Sangdong, a number which, from a standpoint of investment, compares very favorably to the current market capitalization Woulfe’s, lower by several orders of magnitude. The operation, as envisaged by Wardrop would involve processing 2.5 million tonnes per year over a mine life of 15 years. The capital costs to be approximately U.S. $ 289 million with a payback period of 3.4 years. So ask a just a market that’s still feeling its way after the credit crunch, but not an insurmountable obstacle. Brian is fairly confident that there will be enough interest out there when the time comes, but right now it only focus on immediate increase, which the company seeks $ 10 million to C $ 15 million to take to the stage where the financing of development becomes an option. At this stage, the debt of the usual equations of equity will be considered, as well as opportunities to raise funds through collection agreements with potential industrial partners.
Sangdong’s Got Going much for her. Recent drilling has enabled Wardrop table a total resource Sangdong of 45.8 million tonnes inferred grading 0.32% WO3 with moly further from the wall of the skarn mineralization there, and another 57.4 million tonnes grading 0.37% WO3 extracted from the wall, also with additional Moly. There are also more moly in what is known as stockwork Jangsan. But more than that. The wall, a wall hanging, and stockwork zones are all open laterally and at depth. Grades may also further improved with further work. Moreover, says Brian, there are many potential waste that former operators ignored. At the time, he said, “they have nothing less than 0.5%. At times, the pile of waste Sangdong short notes as high as 0.8%. It’s better than most current projects hard rock mining producer of tungsten, which are currently under development worldwide.
The next milestone will be the completion of the feasibility study next year. The company will then move to increase financing for development. Meanwhile, it is also useful looking gold project in the portfolio to keep investors interested if the latest news on Sangdong goes quiet for some reason. Farther back than there is uranium and base metal projects as the basis for the company to start work on too. For now, however, that tungsten and Sangdong, where Woulfe seems to be coming on leaps and bounds.
source:minesite
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