day 1 – Session 1: Strategic metals and the clean-tech revolution ? <br />Outlook for TungstenBrian Wesson – CEO, Woulfe M...
GLOBAL MININGINVESTMENT CONFERENCE 2010<br />Lead sponsors:<br />Media partners:<br />Other sponsors & participating organ...
REBIRTH OF THE KOREAN<br /> MINING INDUSTRY<br />Brian Wesson, CEO and President<br />September 2010<br />
	Disclaimer <br />Statements in this presentation other than purely historical information, including statements relating ...
	Korea ..... Open for investment<br />World’s 11th largest economy, low credit risk rated by Moody as A1, IMF forecast eco...
Safe destination with daily flights from most capital cities around the word.
Advanced financial and legal system.
Security of title
100% foreign ownership and directors
10 year write down of capital
No government royalties
Corporate tax rate 20%
Strong banking sector with moderate rates.
Located in heart of economic Asia</li></li></ul><li>Woulfe Mining.... Near term diversified miner<br />Core Projects<br />...
Sangdong molybdenum stock-work, virgin lodes identified to have high grade veins at 5 to 10 times the molybdenum grade in ...
Muguk gold-silver mine, historically South Korea's largest gold mine mines at 11 grams.</li></ul>Growth Projects <br /><ul...
Lead, zinc founding mine Korea Zinc developed
Tungsten project, historical u/g mine </li></li></ul><li>7<br />Tungsten.... Driven by world expansion<br />High tech appl...
8<br />	Why invest in Tungsten?<br />Supply Tightening with changes in China<br /><ul><li>Traditionally produced 80% of th...
Strategic metal under quota.
Buying on the open market forcing prices up.
Taxing export and wages rising
Buying projects and refineries</li></ul>Source Roskill/ Wolfram<br />Moly has been over $40/lb <br />30% price increase<br...
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Brian Wesson: Outlook for Tungsten (Day 1 - Session 1: Strategic metals and the clean-tech revolution)

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Day 1 - Session 1: Strategic metals and the clean-tech revolution

Outlook for Tungsten

Objective Capital Global Mining Investment Conference 2010
Stationers' Hall, City of London
28-29 September 2010
Speaker:
Brian Wesson - Woulfe Mining

Published in: Investor Relations
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  • Strong project economics and long asset life – NPV @8% US$463, 26.5% IRR and 3.4 years to return capital expenditure. Asset life 15 years assumed in scoping, inferred resource suggests 40 years.Low technical risk – 40 years of mining and producing a salable commodity and scoping assumed historical recoveries. Upside in new technology not considered.Capital – US$289 million – opportunity to reduce capital as none of the existing shafts and 25km of development has been considered in scoping and western development costs have been applied.Short time to production – We are reopening the existing mine, which is in a mining town, with services and underground development which will reduce time to production.Ease of build – The site is level as the plant was in place and some buildings exist. In Korea there are an abundance of highly skilled people and equipment available to move the project forward quickly.Supportive modern government – Korea is a sophisticated country with a strong economy and GDP and the regional government is actively assisting in moving the project forward.Market on our doorstep – Asia-Pacific including Japan and China represents the worlds largest and fastest growing tungsten and molybdenum market
  • 2,200 metre strike of veins of which most of the mining was on two veins from 1913 to 1997.Produced 250 tonnes of gold at an average grade of 11.5 g/ t at a 10 g/t cut off gradeAs a 10 g/t cut off grade was applied, the plans indicate there are many minable blocks left in the mine when we apply today&apos;s economic cut off of 3 g/t apart from what KORES believes remains at depth and on strike.The project has underground development down to 700 metres and associated lateral development and engaged the last mine manager of Muguk which is moving our knowledge base forward quickly.Review of over 1,000 face samples taken by KORES prior to mine closure gives a mean grade of 30 g/t over an average width of 1.15 metres which is a significant targetCurrently drilling the 5, 6,7 and 8 veins to understand the dip and strike extent of the southern structures. Drill rig moving on site to drill the KORES “reserve areas” to verify the historical sampling
  • Brian Wesson CEO/ President –Engineer with 30 years’ experience, has an MBA and FAusIMM and Fellow of Australian Institute of Company Directors. Mark Gelmon CFO Chartered Accountant and a member of the Institute of Chartered Accountants of B.C. He has served as an auditor, director, chief financial officer, corporate controller and accountant for several public and private companies. Amelia Wesson Director/ VP Admin and Corporate- Principal of Westech was instrumental in working with government and staff to restructure the Vatukoula Mine from 2,200 staff to 700 and induct and retrain the staff. Amelia previously worked in companies servicing the large mines in South Africa giving her an excellent understanding of personnel and administration.Bill Kable VP Technicalis an economic geologist with over 30 years experience in the minerals, oil and gas and broking industries. His specialisation is valuation and due diligence studies for public reports, corporate mergers, acquisitions and company floats. He has wide experience of projects throughout Australasia, Africa and South AmericaColin Lutherborrow Resource geologist MAusIMM with 30 year experience in exploration and mine geology mainly with Pasminco.Colin has extensive experience dealing with mineralisation and delineating resources as laid down by the Canadian and Australian rules and guidelines for the reporting of ore resource. Mr Shin Chief Operating Officer Korea – 25 year career in Korean Tungsten Corporation rising to an executive position in domestic and international marketing of Tungsten, based out of Europe. Mr Shin knows the mine, market and Tungsten business.Advisor Dr Moon Phd in Geology from University of Tasmania on Sangdong Tungsten Project, with extensive career history with Korean TungstenAdvisor Mr B.G. Kim Ex General Manager Mining of Sangdong mine when it closed. Mr Kim had 25 years service with Korea Tungsten and is qualified in mining and metallurgy and has extensive experience of the mine workings, production and processing of ore at Sangdong.Advisor Mr K. Y. Jung  Ex General Manager of Muguk Gold and Yeonwha Base metals when it closed, highly respected mining engineer in Korea and advisor to large companies.
  • Brian Wesson CEO/ President FAusIMM–Engineer with MBA and 30 years’ experience in managing, designing and developing resource and energy projects in Africa, Australia and Asia across most commodities. Last turn around was the purchase and reopening of the Emperor mine in Fiji now Vatukoula gold. Kevin Kartun Phd Geologist 30 years&apos; experience of exploration and mining in Australia and Southern Africa as an investor relations specialist, minerals economist, equities analyst and geologist. He has specialised in investor relations since 2000 and has helped many ASX-listed resources companies gain market re-rating. Earlier he was general manager of Delta Gold, and a rated resources analyst at BZWAmelia Wesson Director/ VP Admin and Corporate- Principal of Westech who was instrumental in working with governments and staff to restructure the Vatukoula Mine from 2,200 staff to 700 and induct and retrain the staff. Amelia previously worked in companies servicing the large mines in South Africa giving her an excellent understanding of personnel and Administration.John Icke President and Chief Executive officer of Resinco Capital Partners since with 25 years global management experience in both the private and public sector. Prior to joining Resinco, he was a principal of JRI Strategy Consultants Inc. and, prior to that, president of Accenture Business Services for Utilities.Hubert Marleau is President and Director of Palos Capital Corporation. With over 30 years of experience in the business and financial community raising funds privately and publicly for hundreds of emerging and mature companies, structured many mergers and acquisitions as well as designed and created numerous financial deals in Canada. He has worked at the executive level of several large investment banks notably, Nesbitt Thomson Inc., and Levesque Beaubien Inc.Marion McGrath Company Secretary has many years experience and is the principal of iO Corporate Services who manages corporate governance and secretarial work for many companies.
  • Brian Wesson: Outlook for Tungsten (Day 1 - Session 1: Strategic metals and the clean-tech revolution)

    1. 1. day 1 – Session 1: Strategic metals and the clean-tech revolution ? <br />Outlook for TungstenBrian Wesson – CEO, Woulfe Mining<br />
    2. 2. GLOBAL MININGINVESTMENT CONFERENCE 2010<br />Lead sponsors:<br />Media partners:<br />Other sponsors & participating organisations:<br />
    3. 3. REBIRTH OF THE KOREAN<br /> MINING INDUSTRY<br />Brian Wesson, CEO and President<br />September 2010<br />
    4. 4. Disclaimer <br />Statements in this presentation other than purely historical information, including statements relating to Woulfe Mining’s future plans, objectives or expected results, constitute forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to the risks and uncertainties inherent in Woulfe Mining’s business, including risks inherent in mineral exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements. Note that Woulfe Mining refers to historical resource estimates in this presentation. Source, date, relevance, reliability and explanations on categories are presented with the historical estimates.<br />A qualified person has not done sufficient work to classify the historical resources as current mineral resources. The issuer is not treating the historical estimates as current mineral resources and the historical estimates should not be relied upon.<br />This PowerPoint presentation was prepared to assist interested parties in making their own assessment of Woulfe Mining and its mineral properties, and does not purport to contain all of the information that a prospective investor may desire. In all cases, interested parties should conduct their own investigation and analysis of the Company, its assets and the information provided in this presentation. Any and all statements, forecasts, projections and estimates contained in this presentation are based on management’s current knowledge and no representation or warranty is made as to their accuracy and/or reliability. <br />Unless otherwise stated, all resource and reserve estimates in the document are historical in nature and do not comply with the current NI 43-101 reporting standards.<br />
    5. 5. Korea ..... Open for investment<br />World’s 11th largest economy, low credit risk rated by Moody as A1, IMF forecast economic growth 6.1% <br /><ul><li>Developed economy
    6. 6. Safe destination with daily flights from most capital cities around the word.
    7. 7. Advanced financial and legal system.
    8. 8. Security of title
    9. 9. 100% foreign ownership and directors
    10. 10. 10 year write down of capital
    11. 11. No government royalties
    12. 12. Corporate tax rate 20%
    13. 13. Strong banking sector with moderate rates.
    14. 14. Located in heart of economic Asia</li></li></ul><li>Woulfe Mining.... Near term diversified miner<br />Core Projects<br /><ul><li>Sangdong tungsten-molybdenum mine, historically, one of the largest tungsten mines in the world.Focus of Scoping study March 2009
    15. 15. Sangdong molybdenum stock-work, virgin lodes identified to have high grade veins at 5 to 10 times the molybdenum grade in main lode.
    16. 16. Muguk gold-silver mine, historically South Korea's largest gold mine mines at 11 grams.</li></ul>Growth Projects <br /><ul><li>Uranium, vanadium exploration
    17. 17. Lead, zinc founding mine Korea Zinc developed
    18. 18. Tungsten project, historical u/g mine </li></li></ul><li>7<br />Tungsten.... Driven by world expansion<br />High tech applications in nuclear and fusion applications<br />60% demand for tool tips used in manufacture<br />Wear resistant materials<br />7<br />
    19. 19. 8<br /> Why invest in Tungsten?<br />Supply Tightening with changes in China<br /><ul><li>Traditionally produced 80% of the world’s tungsten products.
    20. 20. Strategic metal under quota.
    21. 21. Buying on the open market forcing prices up.
    22. 22. Taxing export and wages rising
    23. 23. Buying projects and refineries</li></ul>Source Roskill/ Wolfram<br />Moly has been over $40/lb <br />30% price increase<br />APT has been to US$600 mtu in 2010 terms<br />8<br />
    24. 24. 9<br /> Why ..Woulfe (TSX-V WOF)?<br />Strong Institutional Shareholders: <br /><ul><li> Colonial First State 16%
    25. 25. Resinco Capital Partners 12%
    26. 26. US Global 9.9%
    27. 27. Se Woo Mining Korea 9.9% (Vendor)</li></ul>Issued Shares : 214,292,250<br />Warrants : 60,638,000<br />Options : 7,525,000<br />Fully Diluted : 282,455,250<br />Liquidity – Ave Vol (3M) 540K<br />Current share price : C$ 0.11 cents<br />Current Cash position: C$3.5 million<br />Debt: none <br />Management – holds warrants and options <br />Company valued : C$23 million market cap. vs Sangdong scoping NPV C$480 million, IRR 26.6% DCF 8%. Objective Capital values Woulfe C$0.90 to C$1.90/share<br />Strategically placed in market with no affiliation giving large optionality<br />
    28. 28. 10<br />Key Results March Scoping Study Wardrop Eng<br />Base case assumptions<br /><ul><li>Tungsten - Ammonium Paratungstate (APT) Price US$250 /mtu – Current price US$243/mtu (US$24,300/tonne)
    29. 29. Molybdenum – US$15.00 per pound
    30. 30. 2.5 million tonnes milled per annum
    31. 31. Production APT 6000 tonnes per annum: (Gross US$146 million/annum)
    32. 32. Mine life 15 years mining with resources base sufficient for 40 years.
    33. 33. Resource based on foot wall vein, dilution 15% and 95% extraction factor
    34. 34. Assumes all new infrastructure</li></ul>Scoping results<br /><ul><li>C$480 million Net Present Value (NPV) at 8% discount rate.
    35. 35. 26.4% Internal Rate of Return (IRR)
    36. 36. 3.4 years payback on US$ 289 M capital
    37. 37. Scoping study break even at an APT price US$167/mtu
    38. 38. Direct operating costs of $ 32.50 /t processed</li></li></ul><li>11<br /> Woulfe’s Advantage in Market<br /><ul><li>China, becoming net importer and Woulfe has a strategic position, price rising.
    39. 39. Woulfe is the most feasible project our only large competitor of similar size is North American Tungsten in the ice with high build cost
    40. 40. Large skarn deposits are more economic than vein deposits.
    41. 41. Short development cycle due to extensive existing infrastructure ( mine development ,roads, water, power and established mine town.
    42. 42. Known mineralization, mine-ability and metallurgy
    43. 43. Woulfe has a Mine Development License and has reopened the mine.</li></ul>11<br />
    44. 44. 12<br /> Sangdong is the world’s No. 1 tungsten deposit outside of China<br />Focus of scoping study<br />1,000 m strike each vein about 7 metres thick<br />Close on 900 drill holes in the project with 40 years of underground mining of main vein<br />900 drill holes<br />40 drill holes<br />
    45. 45. 13<br />Sangdong Mine Crossection<br /><ul><li> Site offices established
    46. 46. Site accommodation secured
    47. 47. Re-establish Sangdong level progressing well
    48. 48. Drilling machine to be on site next month for definitive mine planning</li></li></ul><li>14<br />Sangdong Project Development Time Table<br />TO PRODUCTION<br />First half - delivery of full bankable feasibility study or go to build<br />Evaluation of full development 2013 or Phase 1 in 2011<br />September – Development plan focusing of mining 600,000 tonnes at a target grade of 0.6% W03 and 0.04% MoS2 and expanding to 1.25 million in year 3<br />September – Reserve drilling areas above valley floor approx 3600m<br />August – re-opening Sangdong mine main level and prepare for drilling<br />July – setup site facilities offices accommodation and secured mine equipment<br />June – Underground mine reopened and first access for 18 years<br />June - Mine Development Licence approved by state government<br />June - appointment of Wardrop engineers for full phase 2 bankable feasibility<br />January-April deliver positive independent scoping study C$480 million NPV<br />December took control, secured assets and cleaned company<br />2010<br />
    49. 49. 15<br /> Sangdong=Long Term Value <br />The scoping study by Wardrop proved that this is a long life economic project that has robust economics and is approaching development.<br /><ul><li>Strong project economics and long life asset
    50. 50. Low technical risk
    51. 51. Low capital requirements
    52. 52. Short time to production
    53. 53. Ease of build
    54. 54. Supportive modern government
    55. 55. Market on our doorstep</li></li></ul><li>16<br /> Muguk Gold Project <br />Korea’s largest historical gold deposit. In 1994 KORES calculated a historical non NI 43-101 compliant *620,000 oz at a gold grade of 13.5 g/t and 3.3 Moz at a silver grade 78.6 g/t.(historical resource non compliant JORC and NI43-101)<br />What makes this an exciting project?<br /><ul><li>Life-of-mine head grade 11 g/t producing 250 t of gold at a cut off of 10g/t leaving sub 10 g/t in situ
    56. 56. Historical target below 400 m in developed mine and open down dip.
    57. 57. Large goldfield over 2 km strike with 9 veins.
    58. 58. Over 1,000 historic face grades were sampled in 1994 at better than an ounce.
    59. 59. Current mine plans have been located and are being modeled.
    60. 60. Recent drilling located the No 7 Vein, substantiating the old data at grades consistent with what was expected. Historical grades vary from zero to 384 g/t.
    61. 61. Sample 1327 414.3m to 415.3m-3.3 g/t gold, 14 g/t silver
    62. 62. Sample 1328 415.3m to 416.3m-7.8g/t gold , 38g/t silver</li></ul>*non NI43-101 compliant and cannot be relied on <br />
    63. 63. 17<br /> Muguk Gold ...Korea’s largest gold mine<br />Historical resource area being modelled<br />600 metre depth<br />Current drill site collar drilling Vein 7 & Vein 8 <br />Lodes open at depth <br />Projected vein being drilled<br />Yuil operating small mine<br />
    64. 64. 18<br /> Woulfe’s Experienced Team <br /><ul><li>Brian Wesson CEO/ President FAusIMM, FAICD, MBA
    65. 65. Mark Gelmon CFO
    66. 66. Amelia Wesson Director/ VP Admin. Corporate
    67. 67. Bill Kable VP Technical
    68. 68. Dr Kevin Kartun VP Business Development IR
    69. 69. Mr Wan Shin Chief Operating Officer Korea ex Marketing Manager</li></ul> who was based in Zurich<br /><ul><li>Advisor Dr Kun-Joo Moon, PhD from Tasmania on the Sangdong deposit
    70. 70. Advisor Mr Bog-Gon Kim 30 years service Korean Tungsten at Sangdong, becoming GM
    71. 71. Advisor Kwan-Yi Jeong 5 years as GM Muguk Gold to closure 1997.
    72. 72. Colin Lutherborrow MAusIMM Resource geologist
    73. 73. Alind Nand Geologist MSc Tasmania 15 years Emperor Mines Tech. Service Manager</li></li></ul><li>19<br /> Value Creating Board Members<br /><ul><li>Brian Wesson CEO/ President, Representative Director Korea –Engineer with 30 years’ experience South Africa and Asia Pacific managing and building mines. Westech International took over the Emperor mine assets in Fiji restarting the mine and listing London. Brian has an MBA, Fellow of the Australian Institute of Mining and Metallurgy and Fellow of Australian Institute of Company Directors.
    74. 74. Amelia Wesson Vice President Administration and Director Korea- Principal of Westech who was instrumental in working with governments and staff to restructure the Vatukoula Mine from 2,200 staff to 700 and induct and retrain the staff. Amelia previously worked in companies servicing the large mines in South Africa giving her an excellent understanding of personnel and administration.
    75. 75. John Icke Director over 12% shareholder , John has over 25 years’ global management experience in both the private and public sector. Currently CEO of Resinco Capital Partners Woulfe’s second largest shareholder.
    76. 76. Hubert Marleau, Director is Chairman, Co-Founder and Director of Palos Capital Corporation. With over 30 years of experience in the business and financial community, Hubert has been Governor of the Toronto, Montreal and Vancouver Stock Exchanges, and a director of the Investment Dealer Association of Canada.
    77. 77. Dr Kevin Kartun, Director and now to VP Business Development IR. Kevin holds a PhD in geology and has 30 years experience in the mining industry and extensive experience as a broker and in investor relations.</li></li></ul><li>20<br /> What makes Sangdong so attractive?<br />Undervalued M cap C$23 million @ C$0.11 per share, against Scoping NPV C$480 million or C$2 per share<br />Robust long life project > 15 years life. <br />Low risk as mineralisation known, mined and metal recovered.<br />Scoping study is considered conservative .<br />Mining Licence approved, underground was accessed in reasonable condition<br />Opportunity to accelerate development<br />Feasibility underway<br />Tungsten market resilient and tightening<br /> APT prices , 30% in last 12 months.<br />Sangdong is well positioned to return as the world’s largest low cost tungsten mine <br />Sangdong has potential to be commissioned in 2012<br />Upside in Molybdenum and by products bismuth, gold and potential for fluorite.<br />Value <br />Growth<br />20<br />
    78. 78. 21<br /> Investment Case.. <br /><ul><li>Undervalued – C$23 million market cap vs NPV C$480 million on skarn project, with near term development opportunities in tungsten, molybdenum, bismuth and gold.
    79. 79. Low Ownership Risk-Security of title, 100% owned projects/ foreign ownership/ foreign directors, sophisticated country which outgrew China last year
    80. 80. Experienced Management Team in mine development and operation complimented by experienced professionals from former Korean Tungsten team
    81. 81. Aggressive Development schedule to optimise return
    82. 82. Low Project Risk mine was mined and metals recovered
    83. 83. Strong pipeline of diversified advanced projects with known mineralisation
    84. 84. Close to markets and in heart of world’s economic power house
    85. 85. Strategic play with institutional shareholders and no off take or affiliation
    86. 86. Strong market fundamentals across all of target metals, tungsten, gold and molybdenum</li></li></ul><li>22<br />Brian Wesson President /CEO<br />brian.w@woulfe.com.auMob +61414406611<br />For more information <br />Kevin Kartun VP Business Development IR<br />kevin.k@woulfe.com.au<br />Mob +61413806353<br />www.woulfemining.com<br />Corporate office Canada<br />Marion McGrath Corporate Secretary<br />408-837, West Hastings Street,<br />Vancouver, BC, V6C 3N6, Canada.<br />Tel +1 604 684 6264<br />Fax +1 604 684 6242<br /> Contact details<br />BOOTH 7 <br />
    87. 87. GLOBAL MININGINVESTMENT CONFERENCE 2010<br />Lead sponsors:<br />Media partners:<br />Other sponsors & participating organisations:<br />

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