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Brian Wesson: Outlook for Tungsten (Day 1 - Session 1: Strategic metals and the clean-tech revolution)
- 1. day 1 – Session 1: Strategic metals and the clean-tech revolution ? Outlook for TungstenBrian Wesson – CEO, Woulfe Mining
- 2. GLOBAL MININGINVESTMENT CONFERENCE 2010 Lead sponsors: Media partners: Other sponsors & participating organisations:
- 3. REBIRTH OF THE KOREAN MINING INDUSTRY Brian Wesson, CEO and President September 2010
- 4. Disclaimer 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. 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. 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. 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.
- 6. Safe destination with daily flights from most capital cities around the word.
- 7. Advanced financial and legal system.
- 9. 100% foreign ownership and directors
- 10. 10 year write down of capital
- 12. Corporate tax rate 20%
- 13. Strong banking sector with moderate rates.
- 15. Sangdong molybdenum stock-work, virgin lodes identified to have high grade veins at 5 to 10 times the molybdenum grade in main lode.
- 17. Lead, zinc founding mine Korea Zinc developed
- 20. Strategic metal under quota.
- 21. Buying on the open market forcing prices up.
- 22. Taxing export and wages rising
- 23. Buying projects and refineriesSource Roskill/ Wolfram Moly has been over $40/lb 30% price increase APT has been to US$600 mtu in 2010 terms 8
- 27. Se Woo Mining Korea 9.9% (Vendor)Issued Shares : 214,292,250 Warrants : 60,638,000 Options : 7,525,000 Fully Diluted : 282,455,250 Liquidity – Ave Vol (3M) 540K Current share price : C$ 0.11 cents Current Cash position: C$3.5 million Debt: none Management – holds warrants and options 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 Strategically placed in market with no affiliation giving large optionality
- 29. Molybdenum – US$15.00 per pound
- 30. 2.5 million tonnes milled per annum
- 31. Production APT 6000 tonnes per annum: (Gross US$146 million/annum)
- 32. Mine life 15 years mining with resources base sufficient for 40 years.
- 33. Resource based on foot wall vein, dilution 15% and 95% extraction factor
- 35. 26.4% Internal Rate of Return (IRR)
- 36. 3.4 years payback on US$ 289 M capital
- 37. Scoping study break even at an APT price US$167/mtu
- 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. Large skarn deposits are more economic than vein deposits.
- 41. Short development cycle due to extensive existing infrastructure ( mine development ,roads, water, power and established mine town.
- 42. Known mineralization, mine-ability and metallurgy
- 43. Woulfe has a Mine Development License and has reopened the mine.11
- 44. 12 Sangdong is the world’s No. 1 tungsten deposit outside of China Focus of scoping study 1,000 m strike each vein about 7 metres thick Close on 900 drill holes in the project with 40 years of underground mining of main vein 900 drill holes 40 drill holes
- 47. Re-establish Sangdong level progressing well
- 52. Short time to production
- 53. Ease of build
- 56. Historical target below 400 m in developed mine and open down dip.
- 57. Large goldfield over 2 km strike with 9 veins.
- 58. Over 1,000 historic face grades were sampled in 1994 at better than an ounce.
- 59. Current mine plans have been located and are being modeled.
- 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. Sample 1327 414.3m to 415.3m-3.3 g/t gold, 14 g/t silver
- 62. Sample 1328 415.3m to 416.3m-7.8g/t gold , 38g/t silver*non NI43-101 compliant and cannot be relied on
- 63. 17 Muguk Gold ...Korea’s largest gold mine Historical resource area being modelled 600 metre depth Current drill site collar drilling Vein 7 & Vein 8 Lodes open at depth Projected vein being drilled Yuil operating small mine
- 65. Mark Gelmon CFO
- 66. Amelia Wesson Director/ VP Admin. Corporate
- 67. Bill Kable VP Technical
- 68. Dr Kevin Kartun VP Business Development IR
- 70. Advisor Mr Bog-Gon Kim 30 years service Korean Tungsten at Sangdong, becoming GM
- 71. Advisor Kwan-Yi Jeong 5 years as GM Muguk Gold to closure 1997.
- 72. Colin Lutherborrow MAusIMM Resource geologist
- 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. 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. 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.
- 79. Low Ownership Risk-Security of title, 100% owned projects/ foreign ownership/ foreign directors, sophisticated country which outgrew China last year
- 80. Experienced Management Team in mine development and operation complimented by experienced professionals from former Korean Tungsten team
- 81. Aggressive Development schedule to optimise return
- 82. Low Project Risk mine was mined and metals recovered
- 83. Strong pipeline of diversified advanced projects with known mineralisation
- 84. Close to markets and in heart of world’s economic power house
- 85. Strategic play with institutional shareholders and no off take or affiliation
- 87. GLOBAL MININGINVESTMENT CONFERENCE 2010 Lead sponsors: Media partners: Other sponsors & participating organisations:
Editor's Notes
- 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'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' 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.