Philex gets additional mine life for Padcal

MANILA, Philippines — Pangilinan-led Philex Mining Corp. has extended the life of its Padcal mine by another three years up to 2027 after confirmatory drilling yielded additional mineable reserves.

In a disclosure to the Philippine Stock Exchange yesterday, Philex Mining said it recently completed confirmatory drillings on the ore body and technical studies on the mining methodology and Tailings Storage Facility (TSF) 3.

The company said the activity successfully identified additional mineable reserves of 24 million tons in its Padcal Mine.

At an annual production rate of 8.1 million tons, Padcal mine’s life Is extended by three years to Dec. 31, 2027.

“The new extension of the life of Padcal mine from Dec. 31, 2024 to Dec. 31, 2027 will provide the continuous employment of 1,838 Padcal employees as well as sustain the necessary assistance given to the social development of the host and neighboring communities,” Philex Mining said.

As of end-October, Padcal Mine has an estimated mineral resource of about 230.4 million tons with an average grade of 0.29 grams per ton (g/t) and 0.18 percent for gold and copper, respectively.

Based on the updated remaining mineable reserves as of end-October, Padcal mine is estimated to have 42 million tons with an average gold and copper grades of 0.22 grams per ton (g/t) and 0.17 percent, respectively.

The total recoverable gold is estimated to be 233,000 ounces while the total recoverable copper is estimated to be 127.4 million pounds.

“The new estimate includes remaining reserves from the previously declared mineable reserves as of Dec. 31,2021 aggregating to 29.4 million tons with an average gold and copper grades of 0.23 g/t and 0.18 percent, respectively,” Philex Mining said.

Meanwhile, Padcal mine’s extension will also allow the mining firm a smooth transition to the start of commercial operations of the Silangan copper-gold mine in Surigao del Norte.

Philex Mining said the Silangan project, estimated to commence in early 2025, was in response to the global demand for green metals and the government’s call for mineral resources development to be a driver for national growth and economic recovery.

Pre-development works are on going at the Silangan project, which include earthmoving activities and the excavation of the portal site for underground mining.

Phase 1 of the Silangan project, which covers the Boyongan deposit, has a long mine life of 28 years and will take two and a half years to develop.

The company had said it will initially spend $224 million for the first phase of the Silangan copper-gold mine.

In another disclosure, Philex Mining said the convertible notes issued to Asia Link B.V. is also extended by another three years.

This, after Asia Link and Silangan Mindanao Exploration Co. Inc. (SMECI) agreed to the three-year extension of the maturity date of the convertible notes held by Asia Link  from Dec. 19  to Dec. 18, 2025.

Asia Link is a wholly owned subsidiary of First Pacific Co. Ltd. and a major shareholder of the company.

Under the agreement, the maturity date is further extendible for another three years, at 1.5-year intervals, at the option of SMECI.

“The extension was made in support of the fund-raising activities for the development of the Silangan Copper-Gold Project of SMECI under its subsidiary, Silangan Mindanao Mining Co. Inc.,” Philex Mining said.

The convertible notes agreement was signed by Asia Link, the Social Security System and SMECI on Dec. 9, 2014, wherein SMECI issued convertible notes in favor of Asia Link and SSS.

Philex Mining agreed to be the solidary co-issuer under the agreement.

The convertible notes held by SSS have not been extended and will mature on Dec. 18, consistent with the agreement.