Philex Gold Announces the Result of Anglo American's Pre-Feasibility Study of the Boyongan Project
February 22 2008 - 8:26AM
Marketwired
TORONTO, ONTARIO reports that in a joint venture meeting on
February 20, 2008 with Philex Gold Philippines, Inc. (PGPI), PGI's
wholly-owned subsidiary in the Philippines, Anglo American
Exploration (Philippines), B.V. ("Anglo") presented the results of
its pre-feasibility study of the Boyongan copper-gold porphyry
deposit within the Mineral Production Sharing Agreement No.
149-99-XIII.
The principal conclusion of the pre-feasibility study is that a
mining operation based on the currently defined resources, proposed
mining and processing methods, assumed long-term copper and gold
prices, and estimated capital and operating costs would not provide
an acceptable rate of return on the project investment.
The Anglo study stated that out of the current resource
inventory at Boyongan of some 218 million tonnes grading 0.51%
copper and 0.77 grams per tonne gold (above a cut-off of 0.5%
copper equivalent), only about 87 million tonnes at 0.68% copper
and 1.06 grams per tonne gold can be publicly reported as a mineral
resource by virtue of having "reasonable prospects of eventual
economic extraction". (Please refer to Tables 1 and 2 below) The
study cited as principal reasons the complexity of the oxide
mineralogy, the high stripping ratio and the relatively small size
(and hence short mine life) of the defined resource included in the
mine plan.
Anglo claims that other mineralized centers have been discovered
in the vicinity and are currently the subject of intensive
exploration and delineation drilling program which Anglo wants to
continue throughout 2008. Anglo also reported that there is
geologic evidence for two additional porphyry copper-gold targets
within two kilometers of Boyongan which Anglo plans to test over
the next six months. These recent discoveries and their impact are
not included in the current pre-feasibility study.
PGPI has differing points of view from Anglo on a number of
assumptions and conclusions made in the pre-feasibility study. PGPI
has thus asserted its position that given the results of the study,
as provided for under the terms of the joint venture agreement,
Anglo should return the Boyongan property to PGPI, which Anglo has
contested. Both parties are continuing discussions to resolve this
issue.
Table 1. Total Boyongan Resource, Base, greater than 0.5%Cu equivalent
at $1.15/lb Copper and $475/oz Gold
---------------------------------------------------------
Indicated 151 MMT 0.56% Cu 0.88 gr/t Au
---------------------------------------------------------
Inferred 66 0.40 0.49
---------------------------------------------------------
Total 218 0.51 0.77
---------------------------------------------------------
Table 2. Total Boyongan Resource, Anglo Model, greater than 0.5% Cu
Equivalent at $1.75/lb Cu and $700/oz Au
---------------------------------------------------------
Indicated 83 MMT 0.68% Cu 1.10 gr/t Au
---------------------------------------------------------
Inferred 4 0.53 0.28
---------------------------------------------------------
Total 87 0.68 1.06
---------------------------------------------------------
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
Contacts: Philex Gold, Inc. Rogelio G. Laraya (632) 746-8756
(632) 634-4441 (FAX) Email: rglaraya@yahoo.com.ph
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