Sangdong Mining Project

Woulfe Mining announced Feasibility Study for Sandong Mining Project

04/27/2012 | Editor: Marcel Dröttboom

Woulfe Mining has announce the results of a feasibility study for its 100 per cent owned Sangdong Mining Project located in South Korea.
Woulfe Mining has announce the results of a feasibility study for its 100 per cent owned Sangdong Mining Project located in South Korea.

Woulfe Mining has announce the results of a National Instrument 43-101 compliant feasibility study for its 100 per cent owned Sangdong Mining Project located in South Korea. Initial Capital investment for the project is USD 151.3 million, first ore accepted to the process plant is targeted for 2013.

Vancouver (BC), Canada – The feasibility study, prepared under the direction of Tetra Tech, is based on mining 1.2 million tonnes from the main and footwall ore bodies above the valley floor (probable tungsten reserve 13.3 million tonnes at 0.425 per cent WO3 with a cut-off of 0.24 per cent WO3). The feasibility considers a window of 11.5 year mine life based on reserves. Infill drilling is ongoing in the eastern hanging wall and western extensions of all three mineralised zones above the valley floor with a view to further upgrading the 53.9 million tonnes of inferred resources and extending the mine life.

The ore will be mined by mechanised drift and fill methods and trucked to surface, crushed through a two stage crushing circuit and delivered to a fine ore bin. Comminution is via a primary rod and secondary ball mill that grinds and feeds the ore to a sulphide molybdenum/bismuth flotation circuit. The tail of the sulphide float is then processed through a tungsten (WO3) oxide float at a recovery of 85 per cent of the tungsten in concentrate. The concentrate is then processed through an APT refining plant to produce approximately 400,000 mtu (metric tonne units (10 kilogram) equivalent to 4000 tonnes) of Tungsten (WO3) per year in the form of Ammonia Para Tungstate (APT) which is then sold for the manufacture of hard metal tooling.

The feasibility study further makes provision for the extraction of by-product molybdenum and bismuth in a sulphide concentrate circuit. However no value has been attributed to the recovered metal as the downstream process for the concentrate is still in a design stage. Further it was believed prudent to include the capital and mining costs for owner mining; however, it is likely that one of the many tunneling contract companies in Korea will be used to develop the mine at a substantially lower unit cost. This has not been considered as tenders were not available at the closing date for the feasibility study inputs.

The feasibility study builds upon the technical and economic criteria established during the pre-feasibility stage undertaken by Tetra Tech and confirms the technical and financial viability of constructing and operating a 1.2 million tonnes per year underground tungsten mine including a process plant and an APT plant to produce an Ammonium Para-Tungstate final product.

First 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 million tonnes of ore grading 0.425 per cent WO3 results in an 11.5 year mine life. Initial capital costs are estimated to be USD 151.3 million including a pre-development cost of USD 8.2 million and including a contingency of USD 7.8 million.

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