Philex has 80.94 M tons of ore in Padcal mine for development

TUBA, Benguet – The Padcal mine of the Philex Mining Corporation has over 80.94 million tons of remaining ore capable of producing over 1.073 pounds of copper and 2.939 million ounces of gold which will sustain its mine life until year 2020 and largely contributing to local and national development that could be instrumental in uplifting the living condition of people in the countryside.

            

“We will be able to sustain our operation until the end of mine life because of our convincing ore reserves which we were able to discover during the conduct of our various studies on how to continuously extend our mine life for the benefit of our host and neighboring communities that continue to benefit from our operations over the past several decades,” said Eulalio Austin, Jr., Philex president.

       

Austin, an engineer said, parameters that were used in the estimation of the proved reserves are the metal prices of copper at $3 per pound at a foreign exchange rate of P45:$1 and gold at $1,000 per ounce with the cash operating cost per ton pegged at P601.22.

       

He said in a recent interview metal recoveries at the mill is 82 percent for copper and 72 percent for gold.

       

These have been predicted to help sustain large-scale operations until the projected mine life in early 2020 where over 2,000 workers continue to benefit from and various host communities will enjoy the benefits of the company’s revitalized operations due to world market price of metals that could even continue to increase.

            

“We hope that the prevailing high metal prices will remain at current level so that we will be able to sustain our operation,” Austin said, adding that preparatory drives for the development of draw points at 798-meter level will start this year while commissioning of draw points will start by 2014 and scheduled to be completed by 2018.

            

He said production in the aforesaid mining level is projected to start by the second half of 2014 up to the end of mine life.

            

The estimate of the proved reserves of the mining company was prepared by Austin and Noel C. Oliveros, exploration division manager of Philex Mining Corporation,    Both individuals have sufficient experience relevant to the style of mineralization of the company’s Sto. Tomas II porphyry copper deposit.

            

Philex Mining Corporation was incorporated in the Philippines in 1955 and is listed in the Philippine Stock Exchange.  

       

The Company, Philex Gold Philippines, Inc. (PGPI, a wholly-owned subsidiary through a holding company and incorporated in the Philippines), and Silangan Mindanao Exploration Co., Inc. (SMECI, a wholly-owned subsidiary through a holding company and PGPI, and incorporated in the Philippines) and its subsidiary, Silangan Mindanao Mining Co., Inc. (SMMCI) are primarily engaged in large-scale exploration, development and utilization of mineral resources.  

       

The Company operates the Padcal Mine in Benguet. PGPI operated the Bulawan mine in Negros Occidental until the second quarter of 2002.  SMECI, through SMMCI, owns the Silangan Project covering the Boyongan and Bayugo deposits which are currently under the prefeasibility stage.