Woulfe Mining is also advancing the Muguk gold-silver project, which was once Korea's largest producing gold mine. The mine operated for many years, but closed in 1997 as low gold prices made mining economically unfeasible.
According to records, a total of 8.15 tonnes of gold was mined between 1934 and its 1972 closure. The mine was re-opened in 1987, producing at a rate of 200 tonnes per day from the No. 2 Vein until its most recent closure.
The previous explorers identified more than 20 separate sub parallel vein systems, with at least 6 individual vein systems traceable over 1.3 to 2.2 km strike lengths. Individual veins are 0.1 to 3.0 meters wide and are hosted in Cretaceous-age granite. Individual shoots within the No.2 Vein have been exploited down to 750 m depth, with mill recoveries historically averaging 95.7%. Mineralization at Muguk is considered to be a deep level, multi-phase low sulphidation epithermal system, comprising grey chalcedonic banded veins and stockworks. Higher gold grades are associated with electrum-bearing sulphide bands on the margins of these veins.
In 1998, Muguk was reported by Korea Resources Corporation (KORES) to contain a combined resource of 1,418,980 tonnes @ 13.5 g/t gold, 72.8 g/t silver (615,956 oz gold and 3,321,599 oz silver). Woulfe is not treating the historical resource estimate prepared by KORES as current mineral resources, but as historical estimates for information purposes only that should not be relied upon. A qualified person has not completed sufficient work to classify such historical resource estimate on the Muguk property as current mineral resources or reserves. The only current mineral resource for the Muguk property as stated in an August 10, 2012 preliminary economic assessment prepared by Edward Gleeson, BEng (Mining), MAusIMM (CO), Rod Elvish FRMIT (Primary Metallurgy) Post Grad Dip (Mineral Economics), HonFAusIMM (CP) and RL Webster BSc (Applied Geology, MAusIMM (CP) for AMC Mining Consultants (Canada) Ltd. being an Inferred Mineral Resource, at a cut-off of 4 g/t gold, of 900,000 tonnes at 10 g/t with an average vein width of 1.2 m.
Woulfe plans evaluate Muguk in order to either establish the potential for the development of a high grade gold-silver mine or a bulk tonnage low grade gold-silver mine exploitable by open pit. If established, a central milling complex at Muguk could potentially exploit additional high grade gold-silver resources from satellite deposits identified in the surrounding region.
In April 2010, Woulfe began an initial two-hole drill campaign, totaling 1,086 meters, to test the gold and silver mineralization at Muguk. Additionally, Woulfe has secured 1997 mine level plans, detailing resource blocks and grades that existed at mine closure. These will be digitized and modeled to generate drilling targets so that NI 43-101-compliant resource estimates can be determined.