Glanville is of the opinion that the after-tax value of Sangdong, after paying the 2% net smelter return royalty, is approximately US$300 million, within a reasonable range from US$200 million to US$400 million. This Valuation Opinion takes into account a 50% reduction from the calculated net present value, as the project Prefeasibility and Feasibility Studies are yet to be completed. Woulfe is on target to publish the Prefeasibility Study and the full Feasibility Study later this year.
Woulfe Mining Corp. is a TSX-V listed company with a diversified portfolio of mining licenses for tungsten, molybdenum, gold, base metals and uranium-vanadium in South Korea. In China, Henan Hongxing is titled as 'China Famous Machinery Brand', there are series of machines, jaw crusher,impact crusher, ball press, ball mill, Raymond mill, limestone jaw crusher. As previously announced, the Company commissioned PricewaterhouseCoopers ('PwC') to undertake a valuation of Sangdong, and this valuation has been completed. However, due to the confidential nature of some of the information contained in the report by PwC, it will not be submitted to SEDAR. The conclusions of the PwC report are consistent with this Valuation Opinion.
Brian Wesson, CEO and President of Woulfe, commented, 'The Valuation Opinion is within the range we were expecting. We undertook this valuation to assist the Woulfe Board in evaluating potential transactions that may eventuate. With this document in hand, the Board will be in a better position to make decisions in the best interest of Woulfe shareholders.'
The company is focused on the development of the Sangdong tungsten mine (one of the World's largest and most renowned tungsten mine's for 40 years) a property that we believe has substantial value for our shareholders. The outcome of the scoping study in March 2010 determined that the project NPV was US$467 million at a commodity price of $25,000 per tonne Ammonium Paratungstate (APT). Today, the APT price is over US$45,000 per tonne. Woulfe has accelerated the project due to the robust project and market.
As the information provided in the Valuation Opinion does not contain an economic analysis which conforms with National Instrument 43-101, the economic viability of Sangdong will remain uncertain until completion of at least the Prefeasibility Study, which is expected in a couple of months.