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Philex Mining Corporation |
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Padcal and Vicinity
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Exploration in Padcal and vicinity was pursued in three areas in 2009: the Sto. Tomas II orebody at 773 ML and 908 ML, the underground tunnels covered by MPSA-276-2009-CAR, the Butan prospect within MPSA-156-2000-CAR, and the Tapaya prospect within MPSA-157-2000-CAR.
Within the Sto. Tomas II orebody, diamond drilling continued underground at two mining levels to find possible extensions of the orebody below the lowest existing mining level, 782 ML. Twelve holes were completed for an aggregate distance of 6,066 meters. Eleven holes were drilled at 773 ML; these holes delineated zones of copper and gold mineralization with grades ranging from 0.08% to 0.29% copper and 0.32 grams per tonne to 0.92 grams per tonne gold just below 782 ML.
One drill hole located in the northeast block of 773 ML intersected 117 meters of mineralization with average grade of 1.63 grams per tonne gold and 0.04% copper between 450m and 325m elevation. This zone will be further explored in 2010 to understand the changes in mineralization and alteration patterns.
In Butan, the lateral and vertical extent of the northeast trending gold-bearing Bell vein was explored through diamond drilling on the surface. The two holes were drilled with an aggregate depth of 801 meters. Both were terminated short of the projected depth of the vein due to technical problems in drilling. Results showed very narrow intercepts of the vein with low gold content. Once the consent from the surface claimants is obtained, drilling will be done to test the vein on its southwest and northeast portion. Underground drilling at 745 ML in Butan will also be pursued in 2010.
The exploration of Tapaya was concluded with the completion of the last two holes in 2009 for an additional drilling distance of 1,929.80 meters. The diamond drilling campaign in Tapaya started middle of 2007 and continued in 2008. The drilling campaign delineated a mineralized zone with marginal copper grade and nil gold values. At present conditions, the prospect area does not warrant immediate follow-up investigation.
Other prospect areas lined-up for exploration within the vicinity of Padcal were not pursued on account of the opposition from surface claimants.
For 2010, exploration in Padcal and vicinity will be vigorously pursued to look into the other areas not yet fully evaluated like Bumolo, Clifton and Bumolo-2.
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Bulog Prospect, Negros Island
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Scout drilling in the Bulog Prospect located a few kilometers southwest of the non-operating Maricalum Copper Mine commenced in March 2009. As of December 2009, the total drilling advance was 4,608 meters from 11 scout holes. Three drillholes west of the Bulog Ridge, roughly 300 meters apart, have intercepted low grade epithermal gold mineralization. The intercepts averaged 12 meters and had an average gold grade of 1.0 grams per tonne. Two scout drill holes also intersected low grade porphyry Cu-Au style of mineralization. Further exploration activities for 2010 will include (a) verification of the large soil gold anomaly field east of the Bulog Ridge, and (b) a search for the richer potassic zone of the Bulog porphyry copper system.
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| SILANGAN PROJECT |
| Bayugo |
The Bayugo orebody was discovered in 2003 by Anglo during the definition drilling of the Boyongan orebody. Its subsequent definition drilling was pursued only in 2007 but was stopped in late 2008 when Anglo decided to relinquish its rights over its property. After the acquisition of the 50% interest of Anglo by Philex, through its subsidiary SMMCI, the exploration program for the Bayugo Project was resumed to continue delineating the orebody.
Drilling by Philex in Bayugo started in February 2009 with infill and definition holes using eleven drill rigs. A total of 66 drill holes have been completed with total meterage of 45,611 meters as of December 31, 2009.
In November 16 2009, external consultant Independent Resource Estimations (IRES) submitted an initial estimate of indicated and inferred mineral resources using a cut-off grade of 0.4% copper as follows:
| Resource Category |
Tonnes |
Cu (%) |
Au (g/t) |
| Indicated |
86 million |
0.88 |
0.73 |
| Inferred |
33 million |
0.75 |
0.63 |
In accordance with the “reasonable prospects for economic extraction” provision in the Philippine Mineral Reporting Code (“PMRC”) and the CIM Standards on Mineral Resource and Reserves, only the resources at an economic cut-off grade of 0.4% copper are reported. The resource estimate is National Instrument 43-101 (NI 43-101) compliant and based on IRES’ verified drill results from 43 drill holes up to September 30, 2009.
Copper and gold mineralization at Bayugo, similar to Boyongan, was developed in association with discrete phases of the diorite complex interpreted as progenitor intrusive rocks. The supergene processes however are different. The Bayugo deposit experienced only locally significant supergene copper sulfide enrichment with restricted oxidation. In contrast, the Boyongan deposit experienced a vertically extensive zone of sulfide oxidation with minimal enrichment. The supergene profile at Bayugo, based on new drill holes, consists of oxide, enriched mixed oxide-sulfide and enriched sulfide above the hypogene or clean sulfide zone. The Bayugo deposit is further subdivided into West Bayugo and East Bayugo representing two progenitor intrusive stocks having different vertical extent of the supergene processes. West Bayugo experienced thicker supergene copper sulfide enrichment below a thin oxide zone. In contrast, East Bayugo is dominated by hypogene sulfides with minimal sulfide enrichment and a very limited oxide zone.
Fourteen drill holes in Bayugo were sampled for metallurgical tests. Samples were taken from each of the mineralized zones and were sent to KDE & Metcon Research in USA and 100 kilograms for parallel test at Padcal Mine. Based on initial Metcon results, the enriched sulfide zone showed the highest copper recovery of 95% but showed a low recovery for gold, 73%. The clean sulfide zone yielded a 93% recovery for copper and 83% for gold.
The infill drill hole results to date at the Bayugo deposit confirm the occurrence of high grade porphyry copper-gold mineralization. Step-out drill hole results have been confirming the extensions of the deposit to the south and to the west. Drilling has continued to intensify through 2010 with a total of 14 drill rigs now at the site. This will accelerate the drilling program to attain resource estimates at Indicated and Measured categories by July 2010 which are necessary to advance the project to pre-feasibility and feasibility study stages.
Assay laboratory audits were conducted on the two main commercial laboratories that provide assaying services to Silangan samples and to all the other company exploration projects. This resulted in the establishment of analytical protocols for gold, copper and other base metals that should enable comparable measurements of the geochemical characteristics of the different ore types. In addition, a full analytical laboratory is now being put together in Silangan to service the needs of the exploration team. The QA-QC (quality assurance-quality control) aspects of the exploration results are further refined with the assistance of company consultants in order to conform to reportorial requirements for exploration results and resource estimates. The Philippine Mineral Reporting Code is now in place to guide reporting of exploration results.
Technical Report On The Bayugo Deposit
Pre-Feasibility Study on Boyongan Project
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