MGB endorses conversion of Canadian miner's EP to FTAA

MANILA, Philippines - The Mines and Geosciences Bureau (MGB) Region IVA has endorsed the conversion of Canadian miner Crazy Horse Resources exploration permit into a Financial or Technical Assistance Agreement (FTAA).

This brings the company closer to securing a mining permit.

A portion of the endorsement reads as follows: “Respectfully forwarded to the director, Mines and Geosciences Bureau, the herein application of Asian Arc Mining Resources, Inc. the company’s Philippine subsidiary, requesting for conversion of its Exploration Permit No. IV A-005 encompassing 4, 085.9202 hectares situated in Taysan, Batangas Province into a Financial or Technical Assistance Agreement (FTAA).”

“Final consideration of the above-request shall be done by Mines and Geosciences Bureau Central Office in view of EO (Executive Order) 79 issued on July 6, 2012.”

The new mining policy issued last month prohibits the granting of new mining permits pending the passage of a law rationalizing the sharing of revenues between mining firms and the state.

Crazy Horse chairman and CEO Mitch Alland said, however, that the company is pleased with the endorsement of the MGB regional office.

“Given the recent issuance of the Presidential Executive Order (EO 79) on mining policy, the company is pleased with the quick action of the regional office in issuing this favorable endorsement for the conversion of the company’s exploration permit to an FTAA in line with the new government policy,” he said.

The Taysan project is a copper-gold porphyry deposit that has a measured and indicated resource estimate of 459 million tons using a cut-off of 0.1 percent copper and an additional 509 million tons of inferred resource.

Based on measured and indicated resources, copper deposits were estimated at 2.6 billion pounds, gold at 1.5 million ounces; silver at 12.3 million ounces; and magnetite at 14.9 million tons.

A pre-feasibility study (PFS) for the project was completed in April 2012.