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Muguk


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, Korea Resources Corporation (KORES) reported that Muguk contained 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). Although this historical resource estimate does not meet with NI 43-101 standards, Woulfe Mining is actively working to delineate a compliant resource estimate. A NI-43-101 technical report on Muguk is being prepared by Watts, Griffis McOuat.

Woulfe will evaluate the potential at Muguk in order to either establish 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.

In July 2011, Woulfe commenced a third-hole drill campaign targeting the depth extension of the Three Brothers Vein. This hole is currently at a depth of around 600 meters and is expected to intersect mineralization at around 735 meters. The objective of the current drilling program is to confirm the down dip extension of the mineralization below the historic workings and to substantiate the grades that were reported in the lower levels.

Woulfe has appointed AMC Consultants ("AMC") of Melbourne as technical advisor to the project. AMC's initial brief is to:

• prepare a 3D digital model of the Muguk mine workings using the
available level plans and long sections (completed)

• update the extensive database comprising final survey of underground
workings prior to closure, face grades, drill data, ore extraction
data and process data (work in progress), and

• prepare an NI 43-101-compliant resource estimate for the main mineral
structures.