Philex Gold reports positive test drill results in Surigao

Philex Gold Inc. (PGI), a subsidiary of publicly-listed Philex Mining Corp., said latest drilling results at the Boyongan site in Surigao del Norte were exceptional.

"PGI is very pleased with the excellent drill results from initial in-fill holes at Bongoyan," PGI chairman and chief executive officer Walter Brown said in a disclosure to the Philippine Stock Exchange.

Brown also said that the company’s partner Anglo American Exploration, " has committed to 17,000 meters of confirmatory drilling, which will upgrade the resources from the "inferred" to the indicated category necessary to advance the project to a pre-feasibility stage."

PGI is a Canadian mineral exploration company active in the Philippines.

The company earlier finalized agreements for the joint venture of its Lascogon and Danao properties with FEC Resources. The properties, covering 2,306 hectares also in Surigao del Norte, will be transferred into a joint venture company to be both owned by PGI and FEC.

Under the agreement, FEC will earn a 40-percent interest in the properties by paying PGI $250,000 and advancing by way of loan $1 million to the joint venture company for exploration.

FEC may earn an additional 20 percent by funding the development and construction of the mine up to $10 million.

Initial drilling under the joint venture will focus on the 100-hectare Lascogon prospect with a 10-month exploration and delineation work program early this month.

PGI’s other interests include the 50 percent owned North project on Mindanao Island, a joint venture with Anglo American Plc, the former Bulawan gold mine and a number of gold prospects.

The North project includes the Boyongan copper-gold porphyry deposit discovered in 2000, the separate Bayugo copper-gold prophyry system identified in 2003 and other aspects.

PGI was created in 1996 from the gold assets of Philex, which owns 81 percent of the gold producer’s outstanding shares. Its objective is to become a substantial low-cost mineral producer in the Philippines through exploration, development and acquisition.

Philex has been operating for over 45 years and is the Philippines’ largest copper-gold producer.