31 August 2014
Metals Exploration plc (AIM: MTL) ("Metals Exploration" or "the Company"), the natural resources exploration and development company with assets in the Pacific Rim region, is pleased to provide an update on matters relating to the construction and development of its Runruno gold-molybdenum project ("the Project") in the Philippines.
- Project build programme progressing well.
- Construction of the gold recovery process plant within budget
- Planned commissioning of the processing plant now expected in Q2 2015 due to late delivery of final engineering drawings.
- Management is confident the Group has sufficient financial resources to absorb any additional cost due to the delay.
- Drawing down of debt facility has commenced.
- 90,000 ounces of gold delivery hedge orders have been placed.
- The construction team and complimentary technical consultants are successfully executing the self- managed project build.
- All high value and long lead equipment packages have been awarded with most components successfully delivered to site.
- The quality of materials and construction of the processing plant is to a very high standard.
- Production readiness planning and preparations have commenced.
- Exploratory drilling suspended while the Company's resources are focused on Project construction.
Ian Holzberger, Executive Chairman, commented:
"For the period being reported upon the rate of change experienced in the company and at the Runruno project site has been quite remarkable and it is pleasing to report the infrastructure components which were established in advance of the main build have proven capable of supporting the demands of a fast moving construction project like ours.
The advanced procurement of the high value and long lead time plant components, most of which are now on site or in storage close by, supports an orderly approach to the erection of the processing plant minimising construction risk.
On the ground the process plant construction works are being executed to a pleasingly high standard and likewise, the construction works on establishing the Residual Storage Impoundment are being undertaken to the same standard.