Philippines In Focus

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The Asia Miner

Asia At The Core
Philippines In Focus

July/August 2011 | Volume 8 | Issue 4 |

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  • NO TO MINING IN PALAWAN and other Key Biodiversity Areas, Natural Forests, Island Ecosystems, Critical Watersheds and Agricultural Areas!
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  • Ang yaman ng Palawan ay yaman ng Pilipinas It is known as the Philippines’ Last Ecological Frontier. It has 40% of our country’s remaining mangrove areas, 30% of our coral reefs, at least 17 Key Biodiversity Areas (KBAs), 2 UNESCO World Heritage Sites, and 8 declared Protected Areas (PAs). It is unmatched anywhere in the country
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Philippines In Focus

  1. 1. TAM Cover_Layout 1 6/17/11 4:18 PM Page 1 July/August 2011 | Volume 8 | Issue 4 | Industry Technical Information | 矿业技术信息 ASIA AT THE CORE Philippines in focus • Nickel shines • German technology goes global 亚洲为核心 聚焦菲律宾 • 镍矿闪耀光芒 • 德国技术走向全球
  2. 2. News1_Layout 1 6/17/11 4:47 PM Page 8 Philippines STRONG NICKEL ASSAYS AT BOLOBOLO TARGET rect shipping or e (DSO) laterite sour ced mainly from the Philippines, Indonesia and New Caledonia. However, there is a tr end away from DSO in these countries in favour of value added processing. “Mindoro is very well placed to take advan- tage of the continued strong demand for nik- kel products, with a focus on two stages of value-added processing, a building nickel re- source and a high-quality deposit in terms of size potential, location and outstanding me- tallurgical characteristics.” Second nickel plant on schedule CONSTRUCTION by Nickel Asia Corp of the Philippines’ second hydrometallurgical nickel processing plant, located adjacent to the company’s Taganito mining operations in Su- rigao del Norte, is pr oceeding on schedule with plant commissioning expected in mid- 2013. Nickel Asia has a 22.5% stake in the new project, while Japan’s Sumitomo Metal Sampling nickel laterite from Mindoro Resources’ Agata Nickel-Cobalt Project. Mining has a 55% stake. The new plant will use high pressure acid leach technology to THE final drillholes at Mindor o Resources’ moved to the Agata South ar ea. A previous process limonite or low grade nickel ore. Bolobolo nickel target in the Surigao nickel arrangement with a Philippines company , Taganito Mining Corp, a subsidiary of Nickel district of northeast Mindanao have returned Delta Earthmoving, has been r e-negotiated, Asia, will supply all of the r equired nickel ore strong assays of potential economic interest. allowing Mindoro to r esume control of the to the plant over an estimated 30 year pr ject o The company is now utilizing the data obtai- project in exchange for a gross 1% royalty on life. The output, a mixed nickel cobalt sul- ned from this drill pr ogram to estimate indi- future production. phide, will be bought by Sumitomo for final cated resources. Mindoro has NI 43-101 mineral r esource processing at its refinery in Japan. A total of 497 holes for 5200 metr es have estimates on its Agata Nickel-Cobalt Project The new plant is considered particularly be- been completed from the proposed 7000- in Surigao, that include a measured and in- neficial to the country because of the value 10,000 metre program systematically testing dicated resource of 32.6 million tonnes @ added created, the jobs and the for eign ex- regional nickel targets with the objective of 1.04% nickel for 340,000 tonnes contained change earnings. During construction, the converting a significant proportion of the Su- nickel. It recently released an integrated pre- project will employ 4000 workers. When ope- rigao regional exploration targets to r esour- liminary economic assessment (PEA) on rations start in 2013, ther e will be 1000 full ces. Drilling has been completed on a 50 x Agata and has started a pre-feasibility study time employees. 50 metre grid pattern at Bolobolo and Min- into an integrated on site nickel pr ocessing The country’s existing nickel pr ocessing doro says this is suf ficient drilling density to project based on the PEA. It is also asses- plant is under Coral Bay Nickel Corporation, enable estimation of indicated resources. sing the potential to develop a thermally pr - o a joint venture between Sumitomo and Rio Best results from the final 52 holes and 433 cessed (upgraded) nickel or e operation to Tuba Nickel Mining Corporation, another Nik- samples are: 13.75 metres from surface @ generate early cashflow. kel Asia subsidiary. 1.36% nickel, including 12 metres from 1.75 The company’s president and CEO Jon Nickel Asia has a majority stake in six mining metres in sapr olite @ 1.42%; 12.1 metr es Dugdale told delegates at the China Nickel operations throughout the Philippines, inclu- from surface @ 1.12%; 9.4 metres from sur- Conference that Mindor o sees very str ong ding Taganito, Cagdianao, South Dinagat, T ag- face @ 1.18%, including 5.8 metres from 3.6 growth in Chinese and other (eg Indian) stain- anaan and Rio Tuba, and ships its output to metres in saprolite @ 1.37%; and 9.95 metres less steel production. Up to 80% of nickel Japan and China. The company has a 10% from 1.3 metre @ 1.2%, including 4.7 metres consumption is in stainless steel production. equity interest in the Coral Bay HPAL facility at from 11.25 metres in saprolite @ 1.46%. “Primary nickel supply has not come on Rio Tuba. The oldest of the mine sites, Rio The company is carrying out a final topo- stream as forecast and the ‘gap’ in supply is Tuba has been operating for mor e than 30 graphic survey at Bolobolo before producing being met, just, by nickel pig iron production years. The sixth mining project on Manicani Is- a resource estimate while drilling has now in China. Nickel pig iron is produced from di- land is under care and maintenance. 8 | ASIA Miner | July/August 2011
  3. 3. News1_Layout 1 6/17/11 4:47 PM Page 10 Philippines Nickel Asia expects that a very healthy start to 2011 in terms of sales During the first quarter of 2011 Nickel Asia shipped ore worth PHP and net income will be sustained for the rest of the year owing to he- 1.97 billion, an increase of PHP 996 million on the corresponding pe- althy nickel prices and better production. President and chief execu- riod of 2010. The Rio Tuba mine shipped 396,000 wet metric tonnes tive officer Gerard Brimo says all indications point to higher nickel (wmt) of saprolite ore and 826,000 wmt of limonite or , while the Tag- e prices and a higher sales volume as well as demand for nickel or re-e anito mine shipped 203,000 wmt of sapr olite ore. The other two ope- maining strong. “While the ferronickel plant of our main buyer of sa- rating mines, Hinatuan and Cagdianao in north-easter n Mindanao, prolite ore Pacific Metals Co (Pamco) was af ected by the earthquake f started shipments of saprolite and limonite ore in April. and tsunami in Japan, the damage is not substantial and the plant is expected to restart operations in the thir d quarter. In the meantime, Acoje trial continues we agreed with Pamco to divert shipments of ore to other buyers, so THE heap leach trial at Eur opean Nickel’s Acoje project on Luzon our sales volumes for the year will not be afected by this tragic event.” f Island is continuing with the two heaps being operated in closed circuit mode in order to increase metal concentrations. By August the high concentration of pr egnant leach solution (PLS) fr om the heaps will be fed to the hydrometallurgical recovery plant which is being configured on site. This plant will test the company’ s enhanced metals r ecovery pro- cess flow-sheet and will produce separate nickel hydroxide and cobalt hydroxide products. Once the leach cycle is complete the stack will be rinsed, neutralized and rehabilitated. Irrigation of heap 1 began in April. This heap consists of about 2000 tonnes of agglomerated nickel laterite ore stacked on a 33 metre by 18 metre pad to a height of 4 metr s. Irrigation is with diluted sulphuric e acid using a network of drippers and wobblers in combination in or er d to test the best delivery method. PLS production occurred very rapidly with breakthrough occurring within 12 hours of the start of irrigation. This shows that the stacking and agglomeration of heap 1 was successful and that acid solution is able to percolate through the heap freely. The PLS, which consists of dissolved metals in acid, then flowed freely to the PLS pond. During May/June the company agglomerated and stacked heap 2, which sits adjacent to heap 1 on the heap leach pad, in order to test the combining of the primary and secondary phases of heap leaching. The trial pads are also designed to test rain mitigation techniques and have a combination of HDPE raincoats on the sides of the heap, which also improve slope stability, and a layer of r ocky saprolite ore on top to protect the heap surface. The trial results at the heap leach trial site will be used in the bank- able feasibility study (BFS) which is under way at Acoje. The ecruit- r ment of key personnel and consultants for fast-tracking of the BFS is on track with selection of the owner’s team study manager and The nickel facilities in the Rio Tuba area. project engineer completed. Irrigation of heap one at European Nickel’s heap leach trial site at the Acoje project. 10 | ASIA Miner | July/August 2011
  4. 4. News1_Layout 1 6/17/11 4:47 PM Page 12 Philippines Meanwhile, Philippine company DMCI con- Xstrata Copper’s Tampakan general mana- The processing plant will start operation at an tinues to mine and stockpile dir ect shipping ger Andrew Pickford told those attending a annual capacity of 2.5 million tonnes and will ore in pr eparation for shipments fr om their Philippines-Australia Business Council mee- ramp up to 3.5 million tonnes by the end of the port in Santa Cruz. DMCI is undertaking all ting in Sydney in mid-June that he expects to second year. Didipio will pr oduce an annual the financial risk, operations and marketing Aquino administration to resolve the issue be- average of 100,000 ounces of gold and 14,000 associated with the mining and sale of the fore the consortium makes a decision on the tonnes of copper. During the first six years of a nickel laterite ore and pays Eur opean Nickel project next year. 16-year life of mine, annual gold pr duction will o a royalty fee on each shipment. He said EIS consultations would take 3-6 remain at around 100,000 ounces, but copper months, after which Sagittarius would lodge an production will increase to about 18,000 ton- Tampakan partners confident application to get an environmental compliance nes over the same period. PARTNERS involved in the massive T ampakan certificate. It then hopes to get a declaration of Ausenco has the contract to complete the en- Copper-Gold Project are determined to main- mining feasibility from the national government. gineering design and procurement with mem- tain the schedule of beginning mine develop- Philippines trade secr etary Gregory L Do- bers of OceanaGold’s construction and project ment in 2012 and commer cial production by mingo told the Sydney forum that the Pr sident management team working alongside the Aus- e 2016 despite delays caused by a r egional re- had vowed to dir ectly tackle the dispute. He enco team in Australia to oversee the project. gulation banning open-pit mining. Local ope- also said that the gover nment is on track to Didipio is estimated to cost $185 million to rator Sagittarius Mines and its overseas start bidding out infrastructure contracts in the develop, with ar ound $12 million alr eady partners Xstrata Copper and Indophil Resour- country this month. spent to date. The project will be transforma- ces are confident that Pr esident Benigno Indophil, which holds a 37.5% stake in the tional for ASX and TSX listed OceanaGold, Aquino III will take charge of r solving the issue. mine, will r etain its stake after San Miguel e according to managing dir ector and CEO The $5.9-billion project, said to cover the Corp decided to let go of an exclusive period Mick Wilkes, and would give the company a largest undeveloped copper-gold deposit in to launch a takeover bid. The company’ vice platform to expand further into the Philippines s South East Asia, has been described as ha- president Gavan Collery says it has raised and throughout the Asia Pacific. ving the potential to be the largest mine in the funds to cover its involvement up to 2012. “During the past six months, we have been Philippines and the fifth-largest copper mine “We’re hell-bent on maintaining direct and ac- working hard to unlock significant value in the world by 2016. It is pr ojected to add tive interest in the pr oject through the com- through adjustments to the design of the 1% to Philippines’ gr oss domestic product mitment stage and on to development.” mine, process plant and infrastructure, which annually after 2016. has seen annual gold production increase by Last year, the South Cotabato regional go- Didipio construction starts 45% and annual copper production increase vernment passed a new environmental code CONSTRUCTION has started at OceanaGold’ by 69% over the life of the mine.” s banning open-pit mining, a move that has Didipio copper/gold project with commissio- Mining will be undertaken in six stages over caused consternation to the Tampakan con- ning of the process plant scheduled to start in a 14-year period, taking the open pit down sortium as well as other mining and quarry the fourth quarter of 2012. The pr oject has esti- 270 metres to the valley floor. The maximum operators in this region of Mindanao. mated gold reserves of 1.68 million ounces and planned annual mining rate is estimated at While confident of positive national go- copper reserves of 229 million tonnes. around 24-million tonnes. vernment intervention, Sagittarius has also recently started forwarding to local officials an environment impact study (EIS) which is likely to be a key to overtur ning the mining ban covering the site. Feedback fr om the consultations will be used to finalize the stu- dy’s draft before it is ultimately submitted to the national government. The study identifies the potential envir on- mental and social impacts of the pr oposed mining operation as well as the strategies of Sagittarius to mitigate such. It details the po- tential impact on water r esources such as contamination due to discharge from the pro- ject site, generation of tailings and waste r ck o and clearing of rainforests. The company pro- poses mitigation measures such as putting in place a water management system which in- volves treatment of all mine water prior to re- lease from the site as well as having storage for waste r ock and tailings, and a plan for clearing procedures. An aerial view of the proposed layout at OceanaGold’s Didipio project. 12 | ASIA Miner | July/August 2011
  5. 5. News1_Layout 1 6/17/11 4:47 PM Page 14 Philippines The access to the underground area through Another hole also continued to confirm the Johan Raadsma says, “W e have worked a decline from the side of the open pit is expec- existence of deeper ore zones with an inter- very hard on our social licence to operate in ted to start in 2016, with undergr und produc- o section of 10 metr es from 664 metr es @ the Province of Batangas and ar e excited tion planned for 2020 and ramping up to 1.2 0.28% copper, 0.06 grams/tonne gold, and about the report’s findings that r esponsible million tonnes a year by 2023. The under - 0.52 grams/tonne silver while another hole mining development will be a viable tool for ground mining is expected to take place for at continued to confirm the existence of signi- poverty alleviation, education, positive econo- least six years of the mine’ life and will run con- s ficant silver grades associated with the cop- mic impact while providing a return to share- currently with the open pit operation. per-gold resource. holders and gover nment alike. W e look OceanaGold also has the Macraes goldfield Crazy Horse’s president and CEO Johan forward to working closely with the Local Go- in Otago, in the south of New Zealand’ Souths Raadsma says, “The ongoing positive r esults vernment Units in monitoring and impr oving Island, which is made up of the Macraes further substantiate the Taysan deposit as a re- on the key indicators r elated to the socio- open pit and Frasers undergr ound mines. It liable, predictable and growing deposit. Persi- economic well being of the community.” also operates the Reefton open-pit mine on stent silver grades ar e fantastic and we will The report followed receipt of a formal r e- the west coast of the South Island and cur - further these toward a compliant resource.” solution of support to develop the pr oject rently produced around 270,000 ounces an- Taysan contains a copper -gold porphyry from the Provincial Board of Batangas and a nually from these two operations. deposit with an inferred resource, and is com- formal resolution of appreciation from the Tay- prised of two mining exploration permits and san Municipal Council. Taysan mineralization extended three mining exploration permit applications The company has also executed a binding DRILLING by Crazy Horse Resour ces conti- over five contiguous claim blocks covering a asset sale and purchase agreement with a pri- nues to extend mineralization at the T aysan total area of 11,254 hectares. Taysan is in a vate Philippines company, to acquire its 15.94 Copper-Gold Project in souther n Luzon. The well-developed mining province and readily hectare port facility in Batangas. The port is on deposit remains open and feasibility drilling con- accessible by road, being 20km east of the the southern end of Batangas Bay and adjoins tinues with six diamond drill rigs in operation. provincial capital and deep water commercial the Shell Malampayan onshore gas plant. Strong Tambis potential A DETAILED mapping program by Medusa Mi- ning’s Philippines operating company Philsaga Mining has highlighted the excellent r egional potential of the Tambis tenement, which inclu- des the Bananghilig gold deposit. Medusa be- lieves there is excellent potential for additional discoveries of breccia-hosted, epithermal veins and quartz stockwork gold mineralization wit- hin a large intrusive-breccia complex mapped over an area measuring about 7km by 3km along a well defined north-easterly tr ending structural and alteration corridor. New outcrops of porphyry and related styles of copper mineralization have also been located at the Sawahon Cr eek prospect, at the lower Bananghilig River prospect, and southwest of the Bananghilig deposit in the extensive skar n area which is associated with the fertile cop- per-bearing Supon diorite and the adjacent Kamarangan porphyry copper -molybdenum Drilling at Crazy Horse Resources’ Taysan Copper-Gold Project in southern Luzon. prospect. Drilling is continuing with six drilling rigs at Bananghilig. Medusa’s managing direc- One hole r eturned and intersection of 426 port of Batangas City. The company is con- tor Geoff Davis says, “This ongoing mapping metres from 40 metres @ 0.23% copper, 0.10 ducting a confirmatory scoping study, which has significantly enhanced the regional potential grams/tonne gold and 0.52 grams/tonne silver , remains on track and on schedule. of the Tambis District. We see strong similarities including 52 metres from 254 metres @ 0.35% A recent independent research study ana- with the Wafi Golpu Project in Papua New Gui- copper, 0.18 grams/tonne gold and 0.9 0 lysed the expected positive economic impact nea with respect to the regional setting, rock grams/tonne silver. The same hole also extends of construction and initial pr oduction from types, mineralization styles and potential. the resource to depth with 52 metres from 598 Taysan on both a regional and national level. “In addition there are many similarities to the metres @ 0.14% copper , 0.05 grams/tonne The key findings demonstrate that Taysan is richly mineralized Baguio District north of Ma- gold and 0.66 grams/tonne silver . This is 80 expected to be a major driver of employment nila which has produced about 28 million oun- metres below the previously known base of ore. and contribute about 1% to national GDP. ces of gold and 2.8 million tonnes of copper.” 14 | ASIA Miner | July/August 2011
  6. 6. News1_Layout 1 6/17/11 4:47 PM Page 16 Philippines enforce, the company earlier this year recei- ved formal notification fr om the MGB that the Dilong EPA has been cancelled. The company believes that it has not been can- celled legally and is in discussions with the MGB to resolve this matter. It has filed with the MGB central of fice the appropriate objection notice, supported by documentation already filed with the MGB re- gional office which demonstrates that the company has been actively pr ogressing its permit application and complying with all r e- quirements set by the gover nment. In addi- tion, the company notes that in its case, the MGB appears not to have observed its ‘thr e- e letter-policy’ of notification in exacting com- pliance in respect of its Dilong EPA. A schematic cross section of Medusa Mining’s Tambis tenement. The company stresses that it is supportive of the MGB’s efforts to drive r eform in the The Tambis Project is operated under a mi- cancelled legally and is confident it will be Philippines mining industry and will continue ning agreement with Philex Gold Philippines reinstated in due course. to engage with and support the gover nment over a granted mineral pr oduction sharing Since the date of local elections in T ubo, Abra, in its efforts to implement its reform program. agreement (MPSA) which covers 6262 hec- last October, the company has accelerated its Meanwhile, Craig Lindsay has agr eed to tares. In addition the company is ear ning a constructive efforts to work with the new local join the company’s Board of Directors repla- 70% interest in a joint ventur e through MRL government and community leaders to gain cing Lou Clinton who has resigned his posi- Gold Phils with Apical Mining Corporation their support for EP A at Dilong. Negotiations tion as a dir ector to pursue other inter ests. which covers an adjacent MPSA application with the rightful indigenous peoples to acquir e Craig Lindsay has mor e than 20 years’ ex- with an area of 2084 hectares. free and prior informed consent (FPIC) have perience in corporate finance, investment The Tambis district is in the regionally exten- been initiated and ar e progressing positively, banking and business development in North sive Eastern Mindanao volcano-plutonic arc, and consultation with the Local Gover nment America and Asia and is currently president an area with known pr ecious metals and Unit’s Sanggunian has been ongoing, both of and CEO of Otis Gold Corp and managing base-metals mines, deposits and occurr en- which are key aspects of the EPA process. director of Arbutus Gr ove Capital Corp, a ces. This metallogenic r egion is one of the However, as a r esult of the MGB’s ‘use it private company offering corporate finance most significant epithermal and porphyry or lose it policy’, which it has taken steps to and merchant banking services. copper districts in the Philippines, including gold and copper-gold deposits at Diwalwal, Co-O, Kingking, Amacan, Masara, Boyon- gan, Bayugo, Siana and Placer. Meanwhile, at Medusa’s operating Co-O Gold Project permitting is progressing for an expansion in annual pr oduction capacity to 200,000 ounces. The construction time for the new plant after the necessary r egulatory approvals are granted is estimated at about 21 months, and the full benefits of the expan- sion are expected to be r ealized from mid- 2013. Medusa has contracted Ar ccon (WA) for the process engineering, plant design and construction supervision. Dilong EPA cancelled PHILIPPINE Metals continues to engage with the Philippine gover nment Mines and Geosciences Bureau (MGB) regarding can- cellation of its exploration permit application (EPA) for the Dilong copper-gold project. The company believes that the EPA has not been A massive sulphide outcrop at one of Philippine Metals’ properties. 16 | ASIA Miner | July/August 2011
  7. 7. News1_Layout 1 6/17/11 4:47 PM Page 17 Philippines Masbate 10 tonnes milestone Highlights of the drilling include 6 metres @ Silver Project in a bid to expand the r esource AFTER achieving the milestone of pouring 10 1.34 grams/tonne gold fr om 149 metres, 9 envelope and to upgrade existing resource ca- tonnes of gold from its Masbate Gold Project, metres @ 1.55 grams/tonne from 169 metres, tegories. The first hole of this pr ogram has in- CGA Mining is continuing to forge ahead by 14 metres @ 2.25 grams/tonne fr om 131 tersected a number of mineralized zones and upgrading the process plant and undertaking metres, 30 metres @ 1.57 grams/tonne from one of these zones displayed visible free gold. an aggressive US$10 million exploration pro- 9 2 metres, 7 metr es @ 7.11 grams/tonne This program is advancing at the same time gram. When complete the upgrading will en- from 4 metr es, 32 metr es @ 1.9 8 grams/ as underground development of T’Boli. The able the plant to annually process 6.5 million tonne from 74 metres and 17 metres @ 1.90 south crosscut from the advancing east decline tonnes while the exploration program is focu- grams/tonne from 167 metres. has partially penetrated the 40 metr e-wide sed on the conversion of additional r esources The proposed Libra East pit forms the north- South Vein alteration system with an initial 8.6 to reserves and delineating new reserve and western end of the Main V ein Pit. The current metre section assaying 8.2 grams/tonne gold. resource ounces. design is limited by drill data and not minerali- Other development drive sampling returns in- Masbate is the largest gold pr oject in the zation extents. Results point to the potential for clude 1.25 metres @ 134.0 grams/tonne gold, Philippines and was successfully developed adding additional resources at Libra East. 2.1 metres @ 6.1 grams/tonne, 1.7 metr es @ with first gold poured in May 2009. The pro- The Grandview pit forms the northern part of 28.1 grams/tonne, 1.6 metr es @ 12.7 ject has a total indicated r esource base of the main Colorado pit. Recent exploration dril- grams/tonne, 1.0 metres @ 21.5 grams/tonne 153.41 million tonnes @ 0.92 grams/tonne ling 300 metres to the NNW of Grandview has and 1.85 metres @ 14.5 grams/tonne. for 4.55 million ounces, total inferr ed re- intersected a mineralized quartz vein-stock- Old records show that further individual veins source base of 127.15 million tonnes @ 0.79 work system which appears to be an exten- will be intersected as the cr osscut completely grams/tonne for 3.22 million ounces and a sion of the mineralization curr ently being exposes the 40 metre width of the South Vein alteration system. A poorly documented but prospective alteration system is known to exist some 70 metres further south. This system will be tested with the underground drilling. Resource definition drilling at the T agpura porphyry skarn on Cadan’s Comval project continues to produce strong assays, inclu- ding 77 metres from 2 metres @ 1.26% cop- per and 0.42 grams/tonne gold. This drilling is within the zone which has a potential tonnage of 10 to 15 million tonnes. The completion of this drilling program, toget- her with previous drilling and open pit bench sampling, provide a database of suf ficient density to allow the upgrading of the potential tonnage to a measured resource. Other recent results include 21 metres from 4 metres @ 1.59% copper and 0.4 grams/tonne gold, 106 metres from surface @ 0.65% cop- per, 98 metres from 2 metres @ 0.32% copper, A view over the processing facilities at CGA Mining’s Masbate project on Masbate Island. 69 metres from 2 metres @ 0.30% copper, and probable reserve of 9 2.2 million tonnes @ mined. Further drilling, including scissor holes, 34 metres from 4 metres @ 0.41% copper. 1.0 grams/tonne for 3.03 million ounces. is planned for this area. Drilling completed to date, combined with In its first year of operation the project produ- A 41-hole program of resource infill drilling open pit bench sampling has defined a mas- ced more than 150,000 ounces and is on track is also being conducted in the planned Main sive magnetite - chalcopyrite/chalcocite skarn to produce at an annual rate of mor e than Vein Pit targeting the inferr ed section of 4 strike length of 350 metres. Surface mapping 200,000 ounces. The existing 4 million tonne major veins within the Binstar zone as well as of magnetite has extended the strike length plant was constructed by Leighton Contractors the Main Vein zone itself. some 300 metres to the south while r ecent Asia without one lost time injury . The mining CGA has recently spun out its African assets drill site preparation has uncovered minerali- contract for Masbate was awarded to Leighton, in Ratel Group and also holds a 23% interest in zation 100 metres to the north. the largest mining contractor in the world. St Augustine Gold and Copper which is earning , A number of other skar ns have been map- Recent drilling has returned high grade in- a 60% interest in the world class King-king Cop- ped and new discoveries ar e ongoing. The tercepts at Libra East, which is immediately per-Gold Porphyry Project in the Philippines. total skarn potential associated with the large adjacent to the Main V ein Pit. An extension tonnage porphyry copper deposits is yet to be of highly mineralized quartz veining has also Major drilling at T’Boli determined. Multiples of announced skarn po- been identified immediately to the north of A MAJOR undergr ound drilling pr ogram is tential is a r ealistic expectation. Drilling of the the planned Colorado pit. under way at Cadan Resour ces’ T’Boli Gold- large tonnage porphyry potential is ongoing. July/August 2011 | ASIA Miner | 17

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