Omico inks deal to fasttrack Itogon project

MANILA, Philippines – Publicly-listed Omico Corp., though its mining unit, signed a core drilling agreement that will fasttrack exploration activities at a gold project in of Itogon, Benguet.

In a disclosure to the Philippine Stock Exchange, Omico said the drilling operations agreement was signed by subsidiary Omico-Ivanhoe Mining Inc. and Primo Asia Mining & Drilling Inc.

The drilling operations involve a guaranteed minimum of 3,000 aggregate meters divided into seven holes at a maximum depth of 1,000 meters per hole.

Omico said management decided to proceed with the diamond drilling program after finishing the surface geological exploration which included surface geological mapping and rock grab geochemistry, drainage geochemical survey, soil geochemical survey and re-opening of 12 old abandoned tunnels.

The company holds a mining agreement with the Macawiwili Gold Mining & Development Co. to operate and mine on the 119 claim blocks owned by MGMDC. The mining claims collectively cover an area of 837 hectares.

Omico president Tommy K.H. Tia said the company has budgeted P100 million for the Itogon gold project, more than P20 million of which will be spent for the drilling program.

Tia said funding for the project will come from internally-generated cash. He said the company may still take in a foreign strategic partner depending on the outcome of the drilling program.

He said the company remains in talks with interested parties, including a Chinese group, which he declined to name.

The mine site, which lies within the Baguio gold district, is prospective for both low sulfidation epithermal vein gold mineralization.

Aside from the Omico-Macawiwili mining project, Omico is scouting for other mining claims for acquisition, either through outright purchase, share-for-property swap or share-for-share swap arrangement with the claim owners.

Omico nearly doubled its net income last year to P25.62 million from only P13.72 million in 2008. Revenues grew 28 percent to P85.37 million, mainly coming from the sale of housing units in the company’s Sta. Rosa Homes project in Nueva Ecija and assigned share of condominium units in a joint venture project located in Tagaytay City.

The company secured in April this year an MPSA from the Department of Environment and Natural Resources, allowing it to jumpstart the exploration and development of the Itogon mine site.