Wolf upgrades Hemerdon tungsten resource by 20%

ON THE back of continued drilling during the year and resource estimations by independent consultants, Wolf Minerals has announced a significant upgrade to the Hemerdon Ball tungsten and tin mine in Devon, England.
 
The latest upgrade brings the resource estimate to 97.4 million tonnes at 0.22% tungsten trioxide and 0.023% tin at a 0.12% tungsten cut-off. This represents a total of 21.3 million metric tonne units of tungsten trioxide.

This equates to a 20% increase in tonnage and a 2% increase in grade over the March 2008 estimate.

The company said its confidence of resource estimation was further boosted with most of the resource obtaining indicated category according to JORC guidelines.

Wolf said the increased geological understanding and confidence in the project was allowing the company to examine larger-scale mining options and block sizes based on increased tonnage and grade in bulk mining scenarios with reduced operating costs, compared to more selective mining methods.

Wolf said now that the resource has been classified as indicated, the company anticipates that based on positive results of scoping studies as part of the review and audit of previous explorer AMAX's feasibility study, a JORC reserve statement will be delivered in the December quarter.

In order to review and update the feasibility study completed by AMAX, Wolf has completed the majority of work required, with ongoing work prior to completion of the feasibility study now limited to metallurgical work and completion of the 12-month period of environmental baseline study, due in the second quarter of 2009.

Wolf said preliminary results have given confidence there is potential to improve the already acceptable metallurgical recoveries.

Wolf Mineral shares were unchanged at 60c in mid-morning trade.