Newly acquired HD785-7 Rigid bodied dump trucks
Newly acquired HD785-7 dump trucks.
Komatsu PC1250-8 hydrolic excavator
Newly acquired Komatsu PC1250-8 hydraulic excavator.
ROM pad and processing plant area
ROM Pad and Processing Plant area.
Road rehabilitation
Road rehabilitation.
Construction of junior staff accomodation
Construction of junior staff accomodation.
Mine access road
Mine access road.
Processing Plant site
View of the procesing plant from the ROM Pad.
Installation of powerline at the processing plant site.
Installation of powerline at the processing plant site.
Gabion wall to protect river from flooding
Gabion wall to protect river from flooding
Batch plant.

Recently completed mine operation mess hall.
Slope rehabilitation along the processing plant site.
Regular water quality, air and noise monitoring are conducted within the FTAA area.
Pine tree seedling being grown at one of the nurseries maintained by the company.
Pine tree seedling being grown in one of the nurseries maintained by the company.
Company-sponsored student scholars visiting the project site are given an orientation by a senior geologist.
Community pharmacy and medical clinic funded by the company to cater to health needs of the community.
School children beneficiaries of feeding program.
Basic Learning Program are given to adults who were not able to go to regular school.
Aside from jobs, the community are given livelihood to help them stand on their own feet after the project decommissions.
Animal dispersal as part of the livelihood program for the community.
Medical mission, feeding program and other program for the benefit of the community.
The company achieved the "4,000,000 manhours worked without lost-time accident" certificate issued by the Mines and Geosciences Bureau.

Latest News

05/06/2013 - Open Offer Result and Issue of Equity Read More
29/05/2013 - Dismissal of petitions for a Writ of Kalikasan and a Writ of Continuing Mandamus Read More
24/05/2013 - Chairman's Letter Read More
24/05/2013 - Notice of Annual General Meeting Read More
24/05/2013 - Annual Results 2012 Read More
10/05/2013 - Open Offer Announcement Read More
08/04/2013 - Operational Update to 31 March 2013 Read More
28/03/2013 - Equity Raising Circular and Notice of General Meeting March 2013 Read More
26/03/2013 - $57.7m Equity Raising Read More
28/02/2013 - Information on BIR Memorandum Circular No17-2013Read More

Metals Exploration Plc

LATEST NEWS

Operational Update
Quarter ended 31st March 2013

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 operations update on matters relating to its Runruno goldmolybdenum project ("the Project") and exploration activities in the Philippines.

Highlights

  • Commitments received to raise approximately US$57.7 million via a share placing, subject to shareholder approval, to fund the development of the Runruno gold project.
  • Shareholders to be offered the opportunity to participate via an Open Offer which could raise an additional €4.5 million.
  • MTL in discussions with potential lenders other than Solomon Capital Limited to secure approximately US$70 million in debt funding to allow the full construction of Runruno and the acquisition of the mining fleet for post construction operations - the debt facility is expected to be agreed by the end of 2013.
  • 78.9% upgrade in the Inferred JORC Resource for the Malilibeg South area to 340,000 ozs of gold at 1.4 g/t Au.
  • Runruno JORC 2012 compliant resource base increased now containing 1.73 million ozs of gold at 1.63g/t Au (combined Runruno Main and Malilibeg South resources), up from 1.58 million ozs of gold contained at 1.69 g/t Au.
  • The bulk of early construction work now complete and within budget – outstanding work expected to be concluded by the end of Q2.
  • An all-weather road constructed from the national Solano – Runruno road into the project site.
  • Permanent power will be supplied to site from the national grid; stage 1 an overhead power line from Maddiangat to Runruno (22 kms) to supply construction power is 60% complete.
  • Majority of the mining fleet purchased and is currently at port in Manila.
  • MTL to design and construct the processing plant using specialist contractors and sub-contractors after negotiations with Leighton Contractors (Asia) Limited to enter into an EC&P contract were terminated.
  • MTL's subsidiary, FCF, awarded the Presidential Mineral Industry Environmental Award for the second year running – validates the Company's commitment to being a responsible miner.

Ian Holzberger, Executive Chairman, commented:

"The general site works at Runruno continue unabated and it is satisfying to report that the majority of the key earthworks, infrastructure and access components of the project have are close to being completed. By the middle of 2013 the site infrastructure will be ready for the construction of the processing plant.

"With that element in mind, I was buoyed by the support we received from our shareholders in relation to the recent equity raising and we look forward to committing to the full construction phase after the General Meeting in April. The task now is to obtain debt funding to complete development and move Runruno into production and I am confident that this can be achieved before the end of the year.

"The exploration and resource extension work remains promising and it is very welcome to announce a significant upgrade in the Inferred Mineral Resource in the Malilibeg South area."

Read More

Metals Exploration is a natural resources exploration and development company operating in the Pacific Rim, with particular focus on the Philippines.

The Company’s principal asset is the Runruno Gold-Molybdenum Project on the island of Luzon in the northern Philippines. The Company acquired the project in February 2005 and recently increased its interest in the project to 100%.

Work to date has defined a resource of 1.39 million ounces (Moz) of gold, and 25.6 million pounds (Mlb) of molybdenum with 1,050,000oz gold reporting to the Measured and Indicated categories and 900,000oz gold within the Mining Proven & Probable Reserve category. For further information please see the Runruno Resource page.

In October 2011, the Runruno Declaration of Mining Project Feasibility ("DMPF") was approved. This paved the way for the Project to move forward to development and construction phase. Early project development works have began in January 2012.

In May 2010 the Company announced the results of the Runruno project Feasibility Study which confirmed the viability of the project, projecting average production of 96,700oz of gold per annum over a mine life of 10.4 years, at an average forecast operating cost $477/oz gold before any molybdenum credits. The capital cost is forecast to be US$149.3 million, with payback within 3.5 years at US$1,000/oz gold. The Runruno project will be an open pit operation, and will use the proven BIOX® and carbon in leach processes to recover gold and molybdenum.

In March 2010 the Company announced the award of the Environmental Compliance Certificate (ECC) for the Runruno project, which was issued after satisfactory evaluation of the project’s Environmental Impact Statement by the Philippine Environmental Management Bureau. The ECC process was conducted with the full participation and involvement of the local community, and under the ECC the Company is committed to implement measures to protect and mitigate against any adverse impacts on the health and welfare of community and the environment. Securing the ECC is a significant point, following the award of the Financial or Technical Assistance Agreement, demonstrating continued support from the Philippine Government for the development of the Runruno project.

In October 2009 Metals Ex reached an important milestone as the Financial or Technical Assistance Agreement (FTAA) was signed by Executive Secretary Eduardo Ermita on the authority of the President of the Philippines. Under the terms of the FTAA, FCF Minerals, the Philippine subsidiary which operates the Runruno Project, is granted the exclusive right for 25 years to explore, mine, process and export minerals from the licence area. In exchange for this right, FCF is required to commit a minimum investment of $50 million in project development, much of which will be spent on local infrastructure benefiting local communities.

Metals Exploration works hard to maintain excellent relations with the local communities in the project areas. FCF Minerals promotes social and economic development through the Runruno Livelihood Foundation, a trust funded jointly by the Company and the Philippine government. We also conduct all our operations in a safe and environmentally responsible manner to industry best practise standards.

Metals Exploration Plc is publicly listed company on the London Stock Exchange and admitted to the Alternative Investment Market (AIM:MTL) on 22 October 2004.

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