28 February 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
operations update on matters relating to its Runruno gold-molybdenum project ("the Project") and
exploration activities in the Philippines.
- Construction phase of the Runruno gold project 46% complete (as at 31 January 2014).
- Project is on track and on budget to support the objective of commencing operations in Q4 2014.
- Banking due diligence workflows for US$70m debt facility, progressing satisfactorily and nearing completion. Finalisation of the debt component will
conclude Runruno financing requirements.
- Forecast operating costs updated to reflect current cost base. Operating cost now estimated to average US$474/oz gold over the first five years of production.
- Mining activity continues to ramp up with over 1.6 million tonnes of material mined from within the pit outline.
- Mineralisation where intersected in the pit is showing a positive correlation to the ore reserve block model.
- On-site infrastructure now fully operational in support of processing plant and residual storage construction activities.
- Engineering of the processing plant 75% complete (as at 31 January). Procurement of long lead items and major mechanical packages completed during the quarter.
- Construction work on stage 2 of the 69kV overhead power line from Bayambong to Maddiangat has commenced and is currently 75% complete.
- Tree cutting permit issued clearing the way to commence construction of the Residual Storage Impoundment.
- Safety at site remains a key priority and no loss time accidents were recorded in the quarter.
- Resource extension continued with two additional holes completed in the period confirming continuity of mineralisation to the south and east of the ore body.
Ian Holzberger, Executive Chairman, commented:
"Metals Exploration continues to make good progress on the construction of the Runruno gold project. As at 31 January, the Project was 46% complete and importantly remains on track and within budget to support the objective of commencing commissioning Q4 2014.
A key component in this is to finalise the US$70 million debt facility required to conclude the remaining financing requirements. I am pleased to report that banking due diligence workflows are progressing satisfactorily and nearing completion.
At site, mining activities have begun from within the pit outline and over the next nine months will fully expose the ore body in readiness for production. The on-site infrastructure is now fully operational to support the processing plant and residual storage construction activities and it is pleasing to begin taking delivery of the mechanical equipment to be used in the processing plant."