S Africa's Gold Fields inks deal with Crescent Mining

MANILA, Philippines - South African miner Gold Fields is consolidating its Mankayan mining project, as it signed a one-year option agreement with Crescent Mining for its Guinaoang porphyry copper/gold deposit project, located about six kilometers east of the Lepanto area in Mankayan, Benguet.

Gold Fields already has a separate option agreement with Lepanto Consolidated Mining Co. for its Far South East (FSE) project in the same mining district.

In an interview, Mines and Geosciences Bureau (MGB) director Leo Jasareno, expressed confidence that Gold Fields is pushing ahead with its investment in the Philippines.

 Gold Fields has reportedly paid a $7 million downpayment for the $70-million one-year option, he said.

By securing Crescent’s property, Jasareno said Gold Fields “will have a bigger property, along with the FSE project.”

Following the option agreement with Gold Fields, Crescent Mining has filed with the MGB for a renewal of its exploration permit.

Crescent Mining is a Filipino company 40 percent controlled by   Bezant PLC Resources’ wholly-owned subsidiary Asean Copper Investments Ltd., which also holds the right to acquire the remaining 60 percent for minimal consideration.

Gold Fields, similar to its deal with Lepanto, has acquired the option to purchase 60 percent of Crescent Mining.

Gold Fields’ option agreement with Lepanto is for the acquisition of Lepanto’s 60 percent in the FSE project.

Gold Fields has already made two payments to Lepanto and is scheduled to make a final payment in March next year if it decides to pursue the FSE project following several exploratory drillings which have shown promising results.

Crescent Mining holds a Mineral Production Sharing Agreement (MPSA) over an area covering 543 hectares.

The deposit is located approximately 240 kilometers north of Manila and six km east of the copper/gold mine owned and operated by Lepanto Consolidated.

Since its discovery in the early 1970s, extensive drilling (more than 45,000 meters in 48 holes) and metallurgical work has been undertaken by Goldfields Asia Ltd, Pacific Falkon and others.

Based on historical analysis of 33,000 meters of drilling, the resource is estimated to be more than 166 million tons, with 1.9 billion pounds of copper and 2.9 million ounces of gold.