Metals Exploration Plc
LATEST NEWS
Operational Update
25th January 2012
Metals Exploration plc is pleased to provide an operations update on matters relating to its Runruno gold-molybdenum project and exploration activities in the Philippines.
Highlights
- Runruno site earthworks commenced.
- Program of early site works approved for implementation over five months to expedite full construction.
- Full construction estimated to take 15 months following completion of early site works and availability of debt funding.
- Key early works include development of the processing plant pad and construction infrastructure.
- Contracts awarded for site earthworks and the construction camp.
- Good progress made on processing plant earthworks.
- The Company through its subsidiary FCF Minerals Corporation and Leighton Contractors (Asia) Limited ("Leighton") have entered into a Letter of Intent for an Engineering and Construct contract and a Procurement contract to design and construct the Runruno processing plant.
- Leighton has commenced detailed design and engineering works for the processing plant.
- Debt funding activities have progressed positively.
- Potential gold mineralised zone outlined south of the Runruno mineralisation; follow up drilling required.
- Drill hole intercepts include MXD842 - 3m @3.46 g/t Au, 454 ppm Mo and MXD845 - 13m @ 2.28 g/t Au, 2,951 ppm Mo.
- Strong copper intersection recorded in hole MAD010 - 31m @ 0.85%Cu, 0.35 g/t Au at Magnetite Creek.
- Metals Exploration increases its beneficial interest in the Runruno Gold project to 100%.
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Metals Exploration is a natural resources exploration and development company operating in the Pacific Rim, with particular focus on the Philippines.
The Company’s principle 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 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.