Benguet Corporation: Balatoc Gold Tailings Project Sta. Cruz Nickel Project

1. Balatoc Gold Tailings Project
Sta. Cruz Nickel Project

2. The Company
 Benguet Corporation, with 107 years of history, has
pioneered modern mining in the Philippines:
1903 - rich gold lodes of the underground Antamok Mines
in the famous Baguio Mineral District
1927 - rich gold lodes of Acupan Mines also in the Baguio
Mineral District
1934 - Masinloc Refractory Chromite Mine in Zambales,
Western Luzon
1971 - gold-rich Dizon Porphyry Copper Mine in Zambales

3. BenguetCorp Mineral Properties
1. ACUPAN GOLD MINE 6. LIMESTONE PROSPECTS
2. ANTAMOK GOLD MINE 7. PANTINGAN GOLD
PROSPECT
3. AMPUCAO COPPER PORPHYRY
PROSPECT 8. SURIGAO COAL PROJECT
4. BALATOC GOLD TAILINGS 9. KINGKING COPPER-GOLD
PROJECT PROJECT
5. ILOCOS AND APAYAO FTAA 10. KINGKING EPITHERMAL
GOLD PROJECT

4. Ilocos Norte FTAA
Kalinga Apayao
FTAA
Sta. Cruz Nickel
Project
Acupan Gold Mine
Antamok Gold Mine
Surigao Coal
Balatoc Tailings
Project
Project

5. BALATOC GOLD
RESOURCES CORP. (BGRC)
BALATOC GOLD TAILINGS PROJECT
“THE RECOVERY OF RESIDUAL
GOLD FROM TAILINGS”

6. Incompliance with NPCC directive –
BenguetCorp built three (3) tailings
dams which up to 1992 had
accumulated some 16.7 Million
tonnes of mill tailings.

7. PROJECT LOCATION
Tailings Pond # 3
Tailings Pond # 1
Tailings Pond # 2
Benguet Province
Barangay Virac

8. TAILINGS RESOURCE
TONNAGE
TAILINGS POND GRADE (gAu/MT)
(MT)
I 4,649,483 0.87
II 6,266,130 0.56
III 5,787,142 0.56
TOTAL/AVE. 16,702,755 0.65
MINEABLE RESERVE
TONNAGE
TAILINGS POND GRADE (gAu/MT)
(MT)
I 3,952,061 0.87
II 5,326,210 0.56
III 4,919,071 0.56
TOTAL/AVE. 14,197,342 0.65

9. MineralProcessing Permit
(MPP) No. 13-2010-CAR
Environmental Compliance Certificate
(ECC) 0811-033-2721 issued June 11, 2009
Board of Investment Incentives with 6
years BOI exempted tax holiday issued
December 16, 2009

10. Reclamation of Tailings
 Reclamation by SMALL HYDRAULIC SUCTION DREDGE.
 Reclamation rate of 3,000 TPD on the first 3 years
and 5,000 TPD on years 4 to 10.
 Pre-production dredging of about 2 million DMT from
the downstream of Tailings Pond #1 and to be
stockpiled in Tailings Pond #2 and upstream of
Tailings Pond #1.
 During production, dredging of tailings material
starts at Pond #1 and material conveyance via slurry
pumping.

11. Dredging facilities will be installed in the
tailings pond for mining.

12. Metallurgical Process
 Metallurgical researches were done in the
laboratories of BenguetCorp, MGB and Beijing
General Research Institute of Mining and
Metallurgy (BGRIMM) of China.
 The planned mill capacity is 3,000 TPD for the
first 3-years and expanded to 5,000 TPD on years
4 to 10.
 The selected metallurgical process is a
combination of concentration by flotation,
ultrafine grinding and CIP/CIL.

13. Metallurgical Process
 Test results showed about 84.3% & 70% gold
recoveries from flotation and CIP/CIL,
respectively. Combined gold recovery is about
60%.
 Option: roasting will improve gold recovery to
70% and production of about 90,000 tons of
sulfuric acid per year.
 By-product: Pyrite concentrate will be sold in the
market.
 The mill plant will be constructed at the old
Acupan mill site overlooking Tailings Pond #1.

14. ANNUAL MILL PRODUCTION SCHEDULE
TONNAGE GRADE
YEAR TAILINGS POND Oz. Au
(MT) (gAu/MT)
1 I & III 985,500 0.96 18,250.29
2 I & III 985,500 0.96 18,250.29
3 I & III 985,500 0.81 15,398.69
4 I 1,215,450 0.70 16,412.59
5 I 1,642,500 0.73 23,129.71
6 I & II 1,642,500 0.75 23,763.40
7 II 1,642,500 0.56 17,775.03
8 II 1,642,500 0.56 17,775.03
9 II 1,642,500 0.56 17,775.03
10 II 1,642,500 0.56 17,775.03
TOTAL/AVE. 14,026,950 0.69 186,305.08

15. EQUITY
Approximately P333 million ($7.24M), equivalent to an
Issue size
economic ownership stake to be negotiated with BGRC
Instrument Common Equity Shares with a par value of P1.00
DEBT
Instrument Philippine Peso-denominated Term Loan
Issue Size P600 million ($13M)
Seven years inclusive of a three- year grace period
Maturity
on principal repayments
Principal In equal quarterly or semi-annual principal payments
Amortizations commencing on the third year after initial drawdown

16. - This pioneering approach by BenguetCorp
will open up similar ventures for other gold
mill tailings in the country with BenguetCorp
obtaining an edge technically and
commercially.
- Conducted Pre-Feasibility Study on the same
approach for Antamok Tailings.

17. “ENHANCING RESOURCE
UTILIZATION, UPGRADING VALUE
OF PRODUCT”

18. • MPSA No. 226-2005-III
• Environmental Compliance Certificate
(ECC) 0806-015-2140
• The Sta. Cruz deposit consists of two claim
groups covered by:
Insular Chromite Reservation #3 (ZMCR-3) 1,317.7653 hectares
Guisguis Claim Group (ZR 1-10) 88.9709 hectares
Total 1,406.7362 hectares

19. Exploration Work Performed
No. of Test Pits sunk 1,355 TPs
Total Length of Test Pits Sunk 9,023m
Test Pit Grid 100m x 100m
Test Pit Average Depth 8m
No. of Auger Holes Drilled 101 holes
Total Length of Auger Holes Drilled 817m
No. of Drillholes 975 holes
Total Length of Drillholes 10,355 m
Total Length of Test Pits and
19,378 m
Drillholes
Vertical Channel cut on two (2) opposite sides
Test Pit Sampling Method
sampled @1m interval

20. Drilling Program
The drilling program from
2008 up to mid 2010 had
completed a total of 975
holes with an aggregate
depth of 10,355 meters.

21. Preliminary Resource Estimate
Grade Group Tonnage % %Ni
1.0 – 1.3% Ni 7,486,663 47.9 1.14
1.3 – 1.5% Ni 3,227,309 20.7 1.40
1.5 – 1.8% Ni 4,000,248 25.6 1.62
>1.8% Ni 904,197 5.8 1.96
TOTAL 15,618,417 100 1.37

22. Ore:
Grade = 1.55% Ni
Moisture Content = 35%
Crystal Water = 14%
DRY (105 °C)
At assaying condition, the crystal water (14%) is
Assaying Condition: NOT measured.
Grade = 1.55% Ni Ni Metal = 1.55 g
Moisture Content = 0% Total Wt. = 100 g
% Ni = 1.55%
PELLETIZATION PROCESS
(±900 °C)
Ni Metal = 1.55 g In 100 g, Ni metal is 1.55 g and 14 g crystal water.
Crystal Water = 0 g During pelletization, crystal water is removed decreasing
Other Elements = 84.45 g the total weight to 86 g.
Total Wt. = 86 g Thus Ni pellet grade = [(1.55/86) * 100] = 1.80% Ni
Ni Metal = 1.55 g
Total Wt. = 86 g
% Ni = 1.80%
± 1.80% Ni

23. Comparative Advantage of Upgrading
the Ore to Pellets
ORE PELLET
LME (US$/MT) 15,000 15,000
% Ni 1.55 1.8
% Moisture 35 5
% Discount Factor 15.5 18
% Combined Water 14 0
Selling Price (US$/MT, FOB) 23.42 46.17
Market Situation No Buyer Sellable
BUYER’S SAVINGS
Freight Cost (US$/Shipment of 50K MT) 500,000 350,000
Savings (US$/Shipment) 150,000
SELLER’S SAVINGS
Hauling Cost (US$0.14/t/km, 23km) 161,000 112,700
Savings (US$/Shipment of 50K MT) 48,300

24. DEBT OR EQUITY
1 SINTERING PLANT P706M ($15.35M)
2 INFRASTRUCTURE DEVELOPMENT P340M ($7.39M)
3 EXPLORATION P554M ($12.04M)
4 TOTAL P1600M ($34.78M)