Woulfe Mining Corp. reports that as a result of a review by the British Columbia Securities Commission (BCSC), it is issuing the following news release to clarify, retract, restate and update certain of its previously issued investor relations presentations, reports and disclosures on its website www.woulfemining.com.
The Company's website, including a corporate presentation, a fact sheet and investor's guide (the "Materials"), contained the following information, none of which invalidates any portion of, or requires any amendment in relation to, the Company's feasibility study on the Sangdong property as published June 6, 2012:
- The Company's website and November 2012 Investor Guide (the "Guide") disclosed 2010 mineral resource estimates, completed as part of a scoping study (the "2010 Scoping Study"). The 2010 Scoping Study and mineral resource estimates have been superseded by a feasibility study on the Sangdong property having an effective date of June 6, 2012 and entitled "Sangdong Project Feasibility Study" (the "Feasibility Study"). The Feasibility Study was authored by TetraTech WEI Inc. and is available on the Company's SEDAR profile. It reports a Probable Reserve of 13.3 Mt @ 0.425% WO3 with a cut-off grade of 0.24% WO3. The Feasibility Study did not contain a complete mineral resource update, but converted a prior reported Indicated Resource of 16.4 Mt.@ 0.45% WO3 with a cut-off of 0.15% WO3 to the Probable Reserve reported above. The prior resource estimates on the Sangdong property, including the Indicated Resource referenced above, had an effective date of January 24, 2012 and were included in a report entitled "Sangdong Project Resource Estimate" authored by Wardrop, TetraTech WEI Inc (the "2012 Resource Report"). The 2012 Resource Report is available on the Company's SEDAR profile. The mineral resource estimates contained in the 2012 Resource Report are stated in the table below, noting that the Feasibility Study has converted the Indicated Resource to a Probable Reserve. It should be noted that the 2012 Resource Report states that the 2010 mineral resource estimates were made on a very different basis to the current (2012) estimates. The 2010 resource estimates largely relied on holes drilled underground by Korea Tungsten Mining Corporation and on a coarse geological interpretation of the mineralized zones. Because of doubts attaching to the location and sample quality control of these underground holes, and the limited geological understanding at the time, the 2010 mineral resources were classified in the Inferred category. The 2012 resource estimates rely entirely on modern drilling programmes with associated sample quality control. The modern data, however, covers only approximately the upper quarter of the known dip-length of the mineralized zones. For this reason, comparisons between the 2012 and 2010 mineral resource estimates should be treated with caution.
Table Sangdong, Skarn mineralisation Resource Estimate; reporting cutoff 0.15% WO3.
|Resource Category||Mineralized Zone||Tonnes (Mt)||Density||WO3 (%)*||MoS2 (%)**||MTU|
|Inferred Down Dip||Total||34.519||2.85||0.57||0.07||19,685,000|
Note: MoS2 is reported in terms of WO3 cut-off.
WO3 = Tungsten trioxide, MoS2 - Molybdenum Disulphide, MTU - metric tonne unit.
** Indicated Resources was converted to a Probable Reserve in the Feasibility Study.
The resource is split into two sections by elevation, representing the down dip potential of the deposit below current waterline.
The only current mineral resource and mineral reserve estimates that have been approved by or on behalf of the Company in relation to the Sangdong property are as stated above in the 2012 Resource Report and the Feasibility Study.
- The website and Materials contained aggregated resource numbers which added Inferred Resources to other categories of resources in respect of the Sangdong property, or which used a category of mineral resources, specifically "mineable resource", not permitted by NI 43-101 in respect of the Muguk property.
- The website and Materials discloses the results of economic analyses from the Company's feasibility study which may be misleading and/or unbalanced as the website and Material only reference pre-tax results without disclosing the comparative post-tax results. Investors are strongly encouraged to review the Feasibility Study in full.
- The Guide contained a reference to historical, non-43-101 compliant, resource estimates for the Sangdong Moly Stockwork. A non-NI 43-101 compliant historical resource estimate for molybdenum at the Sangdong property was reported by Korea Engineering Co. Ltd. in 2001 and a memo of Paul Matthews and Heywood Bates in 2008. A Qualified Person has not completed sufficient work in order to classify historical resource estimates for molybdenum on the Sangdong property as current mineral resources and the Company is not treating these historical estimates as prepared by Korea Engineering Co. Ltd. or Paul Matthews and Heywood Bates or otherwise as current mineral resources but as historical estimates. They are for informational purposes only and should not be relied upon.
- The website and Materials incorrectly references a 0.20% cut-off in relation to the 2012 resource estimates, where a 0.15% cut-off was used, as outlined above.
- The website and Materials failed to properly identify, and disclose the relationship to the Company, of the Qualified Person who approved, prepared or supervised the preparation of the technical information within. The Company has added this disclosure to its website and the Materials.
The Company retracts all non-compliant disclosures as referenced above and has amended the website and Materials to remove such disclosures, including the Guide which will be updated at a later date. The Company plans to complete a more comprehensive re-launch of the Company's website in the future.
In those instances where the Company has retracted, revised, clarified or updated previous disclosure, the Company advises readers not to rely on such statements as they may continue to be found in the public domain.
Patrick Roger Stephenson, P.Geo., of AMC Mining Consultants (Canada) Ltd., an independent consultant to the Company, is the Qualified Person under National Instrument 43-101 who has approved the technical content of this news release.
On Behalf of the Board of Directors
Woulfe Mining Corp.
Brian Wesson (FAusIMM), President, CEO and Director
About Woulfe Mining Corp.
In partnership with IMC, Woulfe is 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 outside of China. The Company has assembled a highly skilled, in-country, bilingual technical team and a board of directors with an outstanding track record of success.
Woulfe Mining Corp. is a TSX-V listed company.
Forward-looking statements and forward-looking information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. We have made certain assumptions about the forward-looking statements and information and even though our management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that the forward-looking statement or information will prove to be accurate. Furthermore, should one or more of the risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information. These risks, uncertainties and other factors include, among others, the following: commodity price volatility; discrepancies between actual and estimated production, mineral reserves and resources and metallurgical recoveries; mining operational and development risk; litigation risks; regulatory restrictions, including environmental regulatory restrictions and liability; failure to complete the strategic arrangement described in this release, including because of the failure to satisfy the conditions to closing of the transaction, risks of sovereign investment; currency fluctuations; speculative nature of mineral exploration; global economic climate; dilution; share price volatility; competition; loss of key employees; additional funding requirements.
There can be no assurance that forward-looking statements or information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, you should not place undue reliance on the forward-looking statements or information contained herein. Except as required by law, we do not expect to update forward-looking statements and information continually as conditions change and you are referred to the full discussion of the Company's business contained in the Company's reports filed with the appropriate regulatory authorities.