WOLF MINERALS LIMITED ASX Code: WLF
Tel: +61 8 6364 3776 E: admin@wolfminerals.com.au
Level 1, 350 Hay Street, PO Box 935, Western Australia, 6008
www.wolfminerals.com.au
For the Three Months Ended 31 December 2015
Specialty metals producer, Wolf Minerals Limited (ASX: WLF, AIM: WLFE) ("Wolf" or "the Company") is pleased to provide the following update on its recently developed Drakelands open pit mine ("Drakelands") at the Company's world class Hemerdon tungsten and tin project in Devon, southwest England, for the three month period to 31 December 2015 (the "Quarter").
Ramp-up of the processing plant at Drakelands underway following handover from GR Engineering Services ("GRES") late in September 2015 quarter.
Commenced site works for a replacement public road to facilitate future development.
Submission made to Devon County Council to extend the term of the Drakelands planning permission to 2036.
Total cash expenditure of A$18.2 million for the quarter.
Commenting on the Quarter performance, Wolf's Managing Director, Russell Clark said:
"The handover of the processing plant in the latter part of the previous quarter was a major milestone in the development of Drakelands. The focus in the December Quarter was on understanding the plant in an operating environment and building plant run times.
"The Company is looking towards the longer term and to this end has made an application to extend the life of the Drakelands planning permission as well as undertaking a number of geological projects to further improve understanding of the orebody."
Wolf Minerals Limited ASX: WLF AIM: WLFE
Capital Structure809.7 M ordinary shares
M unlisted options
Mkt Cap @ 16.5c: ~A$133.6M Mkt Cap @ 8.0p: ~ £64.8M
Board of DirectorsJohn Hopkins OAM
Non-Executive Chairman
Russell Clark Managing Director
Ronnie Beevor
Non-Executive Director
Nick Clarke
Non-Executive Director
Chris Corbett
Non-Executive Director
Don Newport
Non-Executive Director
Michael Wolley
Non-Executive Director
Richard Lucas
Chief Financial Officer
Pauline Carr and Richard Lucas Joint Company Secretaries Contact: www.wolfminerals.com.au
Russell Clark Managing Director Wolf Minerals Limited
Level 3, 22 Railway Road
Subiaco WA 6008
Ph: +61 (0) 8 6364 3776
E: managingdirector@wolfminerals.com.au
James Moses
Media & Investor Relations Ph: +61 (0) 420 991 574
E: james@mandatecorporate.com.au
Helena Bogle, Newgate Ph: +44 (0) 20 7653 9850
E: helena.bogle@newgatecomms.com
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ASX Code: WLF
Tel: +61 8 6364 3776 E: admin@wolfminerals.com.au
Level 1, 350 Hay Street, PO Box 935, Western Australia, 6008
www.wolfminerals.com.au
Drakelands OperationsOverview
The weather during the Quarter was variable, with good progress made in the mine and Mining Waste Facility ("MWF").
Wolf took control of the Drakelands processing plant from GRES in late September 2015 and during the Quarter the Company focused on its personnel gaining experience in operating and maintaining the plant.
The trial of 24 hour operations, seven days a week, in the processing plant is continuing. The Company is keen to maintain this arrangement and remains engaged with the Devon County Council and the local community to achieve this objective.
An application was submitted to the Devon County Council during the Quarter to extend the duration of the planning permission at Drakelands. The planning permission was granted in 1986, with a 35 year life, and an extension is being sought until 2036.
There was one lost time injury during the Quarter when an employee on night shift slipped on steps within the processing plant hurting his leg. Safety is a core value of Wolf and extra inspections of all handrails and lights within the processing plant have since been undertaken as part of the Company's safety effort.
The total cash expenditure for the Quarter was A$18.2 million, including A$11.3 million on development and A$3.4 million on production, as the Company transitioned into the ramp-up of the processing plant.
Mining Activities
A total of 471,229 bank cubic metres ("BCM") of material was mined during the Quarter with activities predominantly focused on the extraction of ore from benches on the western side of the pit.
A series of trial blasts were successfully completed in October with ground vibration and noise data collected. Blasting on a regular basis is anticipated to commence in the March quarter.
The future development plan for the MWF requires Wolf to construct a replacement public road and site works for this road commenced during the Quarter. Additional site works were also undertaken on storage ponds, surface water management and reinforcement of haul roads.
The Company has commenced a number of geological projects to further improve understanding of the Drakelands orebody including 3D modelling, structural mapping of the pit and a small diamond drilling program to gather additional data on particle size and the distribution of mineralisation.
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ASX Code: WLF
Tel: +61 8 6364 3776 E: admin@wolfminerals.com.au
Level 1, 350 Hay Street, PO Box 935, Western Australia, 6008
www.wolfminerals.com.au
On 11 January 2016, after the Quarter end, it was announced that CA Blackwell Group Limited ("Blackwell"), the mining services contractor at Drakelands, was being acquired by Hargreaves Services plc ("Hargreaves"). Hargreaves is an AIM listed leading supplier of solid fuels and bulk material logistics and operates nine open pit mines across the UK. Initial positive meetings have been held between senior representatives from Wolf and Hargreaves.
Processing Plant
Wolf took full operational control of the Drakelands processing plant from GRES in the latter part of the September 2015 quarter. Wolf continues to work with GRES on the punch list of items that were outstanding at hand over and this work is expected to be completed in the March 2016 quarter.
During the Quarter the Company concentrated on building understanding of the plant in an operational environment and increasing overall run times.
Plant run times increased steadily before manufacturing faults in a number of pieces of equipment in late December 2015 resulted in unplanned down time. The faults are covered under warranty and are being rectified in conjunction with the manufacturers and GRES.
£75M Senior Debt FinanceNo repayments of the £75 million senior debt finance facilities were due during the Quarter.
The senior debt finance facilities, comprising of a £70 million term loan facility and a £5 million bond facility, have been provided by a consortium of leading, global mining financiers; UniCredit Bank AG, London Branch, ING Bank N.V. and Caterpillar Financial SARL.
Mining TenementsAs at 31 December 2015, the Company has an interest in the following projects:
Tenement
Location
Interest
Status
Grant Date
Hemerdon
United Kingdom
100%
Leased
10/02/2014
All tenements are held by Wolf Minerals (UK) Limited, a wholly owned subsidiary of the Company. No farm-in or farm-out agreements are applicable. No mining or exploration tenements were acquired or disposed of during the quarter.
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ASX Code: WLF
Tel: +61 8 6364 3776 E: admin@wolfminerals.com.au
Level 1, 350 Hay Street, PO Box 935, Western Australia, 6008
www.wolfminerals.com.au
Planned Upcoming ActivitiesIn the quarter to March 2016, Wolf will continue to progress the operations at Drakelands, with a focus on ramping up the processing plant.
Details of proposed activities include:
Continuing the trial of seven days a week, 24 hour operations of the processing plant.
Increasing overall plant run times and building throughput tonnages.
Commencement of regular blasting as part of the mining activities.
Continuing to build the MWF.
Photograph 1: Tungsten concentrate loaded into container ready for shipment.
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Wolf Minerals Limited issued this content on 29 January 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 28 January 2016 21:43:17 UTC
Original Document: http://www.wolfminerals.com.au/IRM/PDF/1922/QuarterlyReportforthe3MonthsEnded31Dec2015
