Indophil remains confident of 2016 start for Tampakan project

MANILA, Philippines - Indophil Resources NL (Indophil) remains optimistic of starting production of its Tampakan Copper-Gold Project by 2016 with mineral resource estimate rising substantially, based on a recent report.

In a report to Australian Stock Exchange, Indophil said it received from its project manager, Xstrata, a revised upgraded mineral resource estimate for the Tampakan project.

Indophil holds a 37.5-percent beneficial interest in the Tampakan project.

Based on the Xstrata’s latest data, the total estimated mineral resources (measured, indicated and inferred) for the Tampakan deposit has risen by almost 20 percent from 2.49 billion tons at 0.6 percent copper at a 0.3 percent copper cut-off grade to 2.94 billion tons at 0.51 percent copper at a 0.2 percent copper cut-off grade.

“This represents a tonnage increase of 18 percent over the previously reported October 2009 total resource estimates,” the report to the stock exchange said

In the same report, Xstrata Copper reports a “significant increase” in the more-confident measured and indicated category, up from 1.69 billion tons (0.6 percent) to 2.27 billion tons (0.55 percent). This represents a 34-percent increase in tonnage in the measured and indicated category.

On the basis of the new information, estimated contained copper at Tampakan in total resources has risen to 15 million tons from 13.9 million tons while estimated contained gold has risen to 17.9 million ounces from 16.2 million.

This resource upgrade report came as the Philippine government recognizes responsible minerals development as a fourth priority for the country’s economic growth.

This developed as the whole mining industry welcomed President Aquino’s recent public announcement that Philippine mining policy will be clarified by the end of February 2012.

Richard Laufmann, Indophil CEO, said in his report to the ASX that even though the Tampakan deposit has been acknowledged as world-class, the new information confirms its ranking as one of the significant undeveloped copper-gold deposits in the world.

“The enhanced level of confidence provided in this upgraded resource estimate for Tampakan is encouraging. It is timely, and serves to restate the significance of this deposit to minerals development in the Philippines as the project partners work towards securing the range of approvals required to bring this important development to production,” Laufmann said.

The Tampakan project is committed to create about 13,000 jobs in its construction and production stages.

Aside from creating new job opportunities, the project is seen to stimulate economic growth not only in Mindanao, where the project is located, but also in the entire country.

Tampakan, at almost $6 billion in development, could be the largest single foreign investment in Philippine history.

Once completed, the project’s contribution to the Philippine economy over the first 20 years is estimated at $37 billion.

In the construction and production stage alone, Tampakan will add one full percentage point to national gross domestic product (GDP), and deliver 10 percent of regional economic growth in Mindanao.

So far, the project has started infusing capital of $3 million a year into the local community.

The project’s economic benefits would also result to providing annual health services to 15,000 people and education support to 19,000 school students.

At present, more than $300 million has been spent on studies and discovery for the project.