St. Anthony and Ampusongan Copper-Gold Porphyry Deposit

Highlights

• Extensively drilled gold-rich porphyry deposit at St. Anthony with historical resources1 of 65 Mt @ 0.29% copper and 0.37 g/t gold, which compares well with the wireframe resource in the NI 43-101 report from October, 2009 showing 61.3 Mt @ 0.30% copper and 0.37 g/t gold.

• St Anthony is covered by an approved Mining Lease Contract valid until 2012 (after which it will be converted to a Mineral Production Sharing Agreement as per the Mining Act of 1995).

• St. Anthony has a low strip ratio (less than 2:1) with the ore deposit outcropping (no large pre-strip required)

• The Masalin prospect is a poorly drill-defined, potentially large porphyry copper-gold deposit on the Ampusongan tenement

• There is excellent potential for additional large porphyry copper-gold deposits adjacent to St Anthony at Ampusongan (the Eastern and Northern prospects respectively)

• Strategically located within the core of the Central Luzon Cordillera mineral belt

St. Anthony - Previous Work

Initial rock chip sampling was carried out over the area in 1962. A short drilling program followed. Philex subsequently conducted systematic exploration in 1969 using a combination of geochemical sampling, IP surveying and surface geological mapping, adit development and diamond drilling. Between 1969 and 1974, Philex drilled a total of 58 vertical holes (15,459m) on a nominal 60 m grid, and developed 10 exploration adits (1,017m).

Based on the drilling and tunneling described above, an historical indicated resource of 80 million tonnes grading 0.4% Cu and 0.4 g/t Au was estimated by Jacinto in 1975.

No further work occurred on the property from the mid 1970’s until 1980 / 81 when Philex completed a further 10 drill holes. This drilling was followed by an updated resource estimate and further metallurgical test work in 1982. Philex reviewed the project again in 1985 and conducted additional economic evaluations.

The leases over the deposit at this time were held by Gamban Mining and Development Corporation / Geodata Mineral Resources Co. Inc. who completed a feasibility study complete with mine plan and process plant design in 1984, the key points of which are summarised below:

Summary of feasibility studies completed by Gamban Mining and Development Corporation / Geodata Mineral Resources Co. Inc. :
Gamban Mining / Geodata - Summar of Key Paramters of the completed Feasibility Study (1984)
Activity
Outcome
Geological Reserves used in pit design (non-JORC)
- 53Mt @ 0.33%Cu; 0.48 g/t Au (at a 0.2% cut-off grade)
Mine Plan

- Ore production rate 3.5 Mtpa, open pit @ 1:1.7 strip ratio
- 15 year mine life
- Pit design includes overburden stripping, roadway cut to waste dumps, low grade (cut-off) sections and waste inclusion within the ore body

Metallurgical Test Work
- Standard flotation; recoveries Cu 85 %; Au 40%

- Concentrate greade:
Cu     28%
Au   ~20g/t
Plant Design

- 10,000 DMT per annum
- Process Plant Design includes:  Multi-stage crushing, single stage grinding, copper flotation & re-grind mill

Forecast Annual
- 16,000 t Cu
- 60.000 oz Au
- 90,000 oz Ag
Costs (capital / operating)

Historical operating costs, infrastructure and project development costs estimated

 

Summary

The St. Anthony Deposit is a well defined copper-gold porphyry. Extensive metallurgical and engineering studies have been conducted and two feasibility studies have been completed. The St. Anthony project can be fast-tracked to production through confirmatory drilling and metallurgical studies followed by a modern feasibility study.

Ampusongan - Previous Work

The Ampusongan area was explored by several companies in the 1960’s and 1970’s, including Philex, Filmag, Benguet and KAPECO. Most of the work focused on the northern Masalin prospect with lesser work conducted on the Eastern and Northern prospects which lie immediately adjacent to the St. Anthony lease boundary. Exploration activities included geochemistry (stream sediment, soil and rock sampling), an IP survey and drilling. These programs delineated an anomalous area, measuring 2000 m N-S by 200 m wide, centered on an altered diorite body along Masalin creek.

In 1974 Dr. Luis Ynigo reports for KAPECO that 745 soil samples were collected over an isometric grid measuring 1.8km north south by 0.8km east west. Copper values ranged from 10 to 6400ppm outlining a significant copper anomaly centered on Masalin Creek.). Further follow up rock chip samples yielded values up to 23% copper within pockets of “near massive sulphide mineralization”.

Summary

Geologists from the Bureau of Mines and Geosciences assayed 11 rock-chip samples, which returned copper values of up to 0.30% and gold values up to 2.25 g/t. Based on their field observations, sample results, and results of the four old drill holes, the Bureau of Mines geologists concluded that the Masalin area had the potential to host a large porphyry copper-gold system containing on the order of 300 million tons of mineralization grading about 0.5% copper and 0.6 g/t gold. Evaluation of the Eastern and Northern mineralized zones concluded that smaller porphyry targets existed in those areas.

1 These tonnage and grade calculations are not NI 43-101 compliant and therefore should not be relied upon.