Woulfe Mining (WOF-V), pleased with an initial resource at the Muguk gold-silver project in South Korea, has started a scoping study at the past-producing mine.
Brian Wesson, Woulfe’s CEO and president, says in a Jan. 10 press release that Muguk is a “very exciting” project with a resource grading above 10 grams gold per tonne.
The deposit now hosts a National Instrument 43-101 inferred resource of 520,000 tonnes with 11 grams gold using a 3-gram gold cut-off. AMC Consultants based the estimate on a 3-D geological model of the main Three Brothers vein and historic data. The average vein width is 1 metre.
Woulfe says a silver grade for the resource wasn’t calculated because of insufficient data.
The company has commissioned a scoping study to examine whether the Three Brothers vein can support a 150,000-tonne-per-year operation to produce 34,000 oz. gold a year, assuming a 7.5-gram gold grade and 93% gold recovery.
Muguk, Korea’s largest past-producing gold mine, operated between 1934-1972 and 1987-1997, and closed amidst low commodity prices.
According to reports, Muguk produced 262,031 oz. gold during its first operating stint. When it reopened in 1987, miners produced a throughput of 200 tonnes a day from the No. 2 vein.
In 1994, Korea Resources outlined a National Instrument 43-101 non-compliant resource at Muguk of 1.4 million tonnes grading 13.5 grams gold and 72.8 grams silver, for 615,956 oz. gold and 3.3 million oz. silver using a 10-gram gold cut-off. After the resource was completed, the deposit was mined for another three years. Woulfe is working to delineate a compliant resource.
Mineralization at the deposit occurs within several parallel, steeply dipping quartz veins. Muguk has more than 20 separate vein systems, with at least six being traced over 1.3-km to 2.2-km strike lengths.
Most of the mineralized veins run discontinuously for 400 metres to 2,000 metres along strike to an 800-metre depth. The veins average less than a metre in width, but swell up to 2 metres in some areas.
Also in South Korea, Woulfe’s flagship Sangdong tungsten-molybdenum project is on track for development with feasibility work underway at the past-producing mine.
The company expects commercial production at Sangdong by early next year.
Be the first to comment on "Woulfe scopes Muguk’s charm"