MANILA, Philippines - Pangilinan-led Philex Mining Corp. announced yesterday it found additional gold reserves that would enable it to extend the lifespan of its Padcal copper-gold mine by two more years.
Philex said an additional 20 million tons of ore reserves discovered within 800 to 600 meter levels within the tenement would extend the lifespan of the mine in Benguet province to year 2022 from 2020.
“The validation of additional reserves in the 800 to 600 meter level is indeed a very welcome development for the company. Aside from extending Padcal’s mine life, the incremental reserves also enhance the company’s value and provide us with more flexibility before the Silangan project comes on stream,” said Philex president and CEO Eulalio B. Austin Jr.
The $1.2 billion Silangan copper gold project in Surigao del Norte would become the company’s next income generator once the Padcal mine in Benguet closes.
Philex has moved the target period for the completion of the definitive feasibility study for the Silangan project to the first quarter of 2016 from the original target completion period of the end of the year.
“We are currently evaluating several techniques on waste materials handling and refining our mine design that will enable us to develop the Silangan project into an efficient and environment-friendly mine operation,” Silangan Mindanao and Mining Co. Inc. president Yulo Perez said.
The Silangan project, which is targeted for commissioning by 2018, would be operated by Silangan Mindanao Mining, a wholly-owned subsidiary of Philex Mining.
Once operational, the mine would have a projected lifespan of 30 years for the first phase. In the first five years of its operation, the mine is expected to produce five to seven million tons of ore annually, ramping up to an annual tonnage of 10 million tons.
The company is aggressively scouring the environs of the Padcal mine for additional resources to cope with prevailing low metal prices.
Philex reported a 21 percent drop in its nine-month profit to P756 million despite stronger production. The slide in income was due to weak metal prices.
The Padcal mine operated for 269 days in the January to September period, same number of days as last year. Produced during the period were 25.7 million pounds of copper, slightly lower than the 26.8 million pounds produced a year ago.
Gold production, meanwhile, rose to 81, 599 ounces from 78, 744 ounces with gold grades improving to 0.440 grams per ton.
The average realized prices for gold during the first nine months of the year fell to $1, 171 per ounce while average copper prices declined by 19 percent to $2.45 per pound.
The company’s total consolidated revenues dipped to P7.29 billion from P8.37 billion a year ago.