Silangan mine study points to higher reserves – Philex

MANILA, Philippines — A definitive feasibility study conducted by Philex Mining Corp. showed that the company’s Silangan copper and gold project had higher mineral reserves in all three ore deposits.

In a regulatory filing, Philex said the  recently-concluded study showed that the first phase of the Silangan project had a mineral resource estimate of 571 million metric tons, up 43 percent from the previously declared 398 million MT for the Boyongan, Bayugo and Kalayaan ore deposits.

“We are thrilled with the outcome of the study which reaffirms the immense potential and magnitude of the project,” Philex president and chief executive officer Eulalio Austin Jr. said.

The Silangan mine is a large-scale high grade copper-gold development, with a number of greenfield and brownfield components, located in Surigao del Norte It is one of three big-ticket mining projects seen to propel the Philippines as a major regional copper producer.

“Over the next few months, we will be focusing our efforts on raising equity and financing for mine development,” he said.

Philex has earmarked an initial $750 million for the development of the Boyongan ore body, the maiden phase of the project.

For its fund raising, the mining firm has appointed J.P. Morgan for equity investment and Mizuho for project financing.

It also engaged international law firm White & Case and Philippine law firm Sycip Salazar Hernandez & Gatmaitan as legal consultants.

Philex will be adopting underground sub-level cave mining for ore extraction which will feature a state-of-the-art milling facility that will utilize modern convention technologies for ore processing.

Silangan will be developed in phases with the Boyongan deposit to be fully developed within two and a half years and is expected to commence commercial production by the second half of 2022.

The first phase of the Boyongan deposit has an initial estimated mine life of 22 years. For the initial stage, Silangan is expected to yield high grade mineable ore grades of 0.63 percent for copper and 1.2 grams per MT for gold.

The second phase, which will be comprised of the Bayugo deposit, is scheduled to undergo preliminary feasibility study for underground sub-level cave mining within the year.

Bayugo is expected to be mine-ready as early as the fifth year from the start of Boyongan’s commercial operations.The remaining substantial mineral resource and inventory including Kalayaan and the remnants of Boyongan will be subjected to future studies.

Philex remains optimistic that global interest for mineral products will stay robust in the long-term with consistent growth from Asia particularly from China, led by its power and infrastructure sectors.