Lepanto projects how's good prospects

MANILA, Philippines - The Far Southeast project, a joint venture between Lepanto Mining Consolidated Co. and Gold Fields Ltd., likely contains a higher inferred mineral resources of 891.7 million tons, based on the South African mining giant’s report during the Denver Gold Forum.

This is more than the previously reported 657 million tons with a grade for gold of 0.94 g/t and 0.65 percent for copper.

Gold Fields said the resource drilling program for Far Southeast has been progressing well, focused on testing new high-value positions.

Lepanto, which owns 60 percent of Far Southeast, however, pointed out in a disclosure to the Philippine Stock Exchange, that the report has yet to be reviewed by a competent person within the context of the Philippine Mineral Reporting Code.

Gold Fields, one of the world’s biggest gold producers, said the process for procurement of a financial or technical assistance agreement (FTAA) license, which allows a foreign corporation to legally own and control a majority stake of large-scale mineral resources in the Philippines, continues.

It bought a 40-percent stake in Far Southeast from offshore holding firm Liberty Express Assets in 2010. It has a separate option agreement with Lepanto to acquire an additional 20-percent stake in the same project pending the acquisition of a FTAA.

The total consideration for acquiring a 60-percent stake in the Far Southeast project is $340 million.