Philex Gold Releases Clarification News for Boyongan Cu/Au Deposit Mineral Resources and Reserves
September 30 2008 - 1:41PM
Marketwired
At the request of the Ontario Securities Commission ("OSC"), Philex
Gold Inc. (TSX VENTURE: PGI) ("Philex" or "Company") issues the
following clarification with respect to its previous press releases
issued since June 14, 2004 regarding declared mineral resources for
the Boyongan porphyry Cu/Au Deposit in the Philippines; a joint
venture with Anglo American Exploration (Philippines) ("Anglo").
The 2004 announcement of an Inferred Mineral Resource of 219Mt
at 0.51%Cu and 0.74g/t Au at a 0.60% copper equivalent ("CuEq")
cut-off in the oxide zone and 0.4 % CuEq cut-off in the sulfide one
were footnoted as not having demonstrated economic viability. It
was further noted in the said release, that AMEC Americas Ltd.
("AMEC"), estimated that only 67Mt of the said resources had
demonstrated "economic viability" as per CIM Standards. The Company
believes that it had made these statements in compliance with
NI43-101 Disclosure Rules. The OSC has since recommended that the
Company remove any reference to the said Inferred Mineral Resources
on the Company's website, which recommendation the Company has duly
complied with.
In late 2007, Anglo completed a pre-feasibility study ("PFS") on
the Boyongan Deposit that included an updated Mineral Resource
estimate. This study included drill hole data up to May 2007 and
yielded Indicated Mineral Resources of 83Mt at 0.68%Cu and 1.10g/t
Au at a CuEq cut-off of 0.50%.
In June 2008, the Company engaged the services of an independent
consultancy, Independent Resource Estimations ("IRES") to complete
a Pre- Feasibility Study (PFS) using parameters and assumptions
more in tune with current operations within the Philippines. As the
initial part of this PFS, IRES has completed a new Mineral Resource
estimate using drill hole data up to December 31st, 2007.
The Company is pleased to announce that this study has yielded a
Measured Mineral Resource of 104.5Mt at 0.80%Cu and 0.99g/t Au, and
an Indicated Mineral Resource of 0.87Mt at 0.80%Cu and 0.08g/t Au;
for a total Measured and Indicated Mineral Resource of 105.4Mt at
0.80%Cu and 0.98g/t Au at a Cu cut-off grade of 0.50%. The
resources have been compiled down to -400m elevation. Due to the
various resource figures out in the public domain, the Company has
duly filed a clarifying NI43-101 compliant Technical Report.
In addition, IRES has just completed the PFS using long-term
metal prices of $2.75/lb for Cu and $700/oz for Au for the base
case. The PFS shows a positive NPV and has yielded a Proved Mineral
Reserve of 65.8Mt at 0.87%Cu and 1.39g/t Au, and a Probable Mineral
Reserve of 1.9Mt at 0.85%Cu and 0.52g/t Au; for a total Proved and
Probable Mineral Reserve of 67.8Mt at 0.87%Cu and 1.37g/t Au; at a
0.60%Cu and 0.80g/t Au cut-offs.
As announced in a recent disclosure, the Company's parent,
Philex Mining Corporation, has agreed, in principle, to acquire
Anglo's 50% stake in the Boyongan deposit for US$55M giving it full
control of the property.
The Boyongan deposit is a porphyry-hosted Cu/Au occurrence
located in an island-arc setting. The current model created to
estimate the current resources was constructed using geological
domains comprising a 0.25%Cu outer shell and a 0.25g/t Au outer
shell - a method typically used in the modeling of similar
deposits. The objective of the shells is to control the influence
of sampling data to areas which are expected to represent and to
limit the undue projection of high grades into lower grade areas
and vice versa.
Over 85,823m of drilling on the Boyongan deposit has been
completed to date and has resulted in the average distance between
samples being 45m; IRES conclude that this spacing is sufficiently
dense to accurately outline the mineralization of the domains.
Grade capping was applied on Cu at 5% and on Au at 10g/t and a
block size of 20m x 20m x 10m (XYZ) was used and ordinary kriging
was the method of interpolation to estimate grades. A minimum of 3
samples and a maximum of 20 composites were used to generate an
estimate. An initial isotropic search ellipsoid of 75m was used as
the first search strategy; a range defining approximately
two-thirds of the total variance.
Cross validation tests demonstrate the final ordinary kriged
model is robust and adequately mimics the trends observed in the
original dataset. The data density within the Cu shell is
sufficiently great enough, to have a high confidence in the
estimated mineral resources. The resources were only tabulated down
to the -400m elevation.
These current Mineral Resource and Reserve figures are reported
in accordance to NI43-101 guidelines and conform to CIM Standards.
The full reports will be published in the Company's website and in
SEDAR.
Cautionary Note Concerning Resource Estimates
The mineral resource figures referred to in this press release
are estimates and no assurances can be given that the indicated
levels of copper or gold will be produced. Such estimates are
expressions of judgment based on knowledge, mining experience,
analysis of drilling results and industry practices. Valid
estimates made at a given time may significantly change when new
information becomes available. While the Company believes that the
resource estimates included in this press release are well
established, by their nature resource estimates are imprecise and
depend, to a certain extent, upon statistical inferences which may
ultimately prove unreliable. If such estimates are inaccurate or
are reduced in the future, this could have a material adverse
impact on the Company.
The Resource and Reserve Estimates and the PFS were prepared by
Dexter S. Ferreira of IRES. Mr. Ferreira is a senior
geostatistician with over 18 years experience in project evaluation
internationally, including extensive involvement with mineral
projects throughout Canada, South America and Africa; he is a
member of the South African Council for Natural Scientific
Professions, and qualifies as a 'Qualified Person 'and 'Competent
Person' as defined in National Instrument 43-101, the JORC
Code.
Mr. Ferreira has given his consent to the release of this press
statement, the contents of which he has reviewed and has found to
be consistent with the above technical reports and compliant with
the rules and guidelines as set forth in NI 43 101.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
Contacts: Philex Gold Inc. Rogelio G. Laraya President (632)
746-8756 (632) 631-9498 (FAX) Email: rglaraya@yahoo.com Website:
www.philexgold.com
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