Lepanto exec bares Victoria project plans

Artemio F. Disini, president of Lepanto Consolidated Mining Co. and the Chamber of Mines of the Philippines, announced the company's plans for the operations of its Victoria mine, while awaiting for a definitive feasibility study of the Far South East Copper Project.

Disini made this disclosure during the monthly meeting of the Philippine Mineral Exploration Association (PMEA) at the American Chamber Hall at Corinthian Plaza.

It will be recalled that Lepanto closed its enargite mine in 1997, after 61 years of operation, prompting the Filipino company to put in operation the Victoria mine only 18 months after its discovery in 1995.

Disini said Lepanto is cashing in on the bullish gold and silver markets which have been on an uptrend since the end of 1999. With Placer Dome's announcement of suspending all its hedging activities, gold breached the psychological level of $300 per ounce in the world market.

Disini bared that Victoria has a current reserve of about 5.5 million metric tons with an average grade of 7.70 gAu/MT. The mine also contains silver and copper minerals at 40 gAg/MT and 0.39 percent copper, respectively. Total resource is around 11 million metric tons at 7.3 gAu/MT.

Lepanto utilizes the cut-and fill method of mining to extract the vein-type deposits adding recently a more advanced mechanized drift and fill method. Mine access are the Tubo Shaft and the newly connected Nayak Twin Decline, a 4m by 4m by 1.2 km ramp from the surface to the underground working areas which also serves as an additional ventilation conduit.

Disini said that the Victoria mine paved the way for Lepanto's transition from essentially a copper producing mine to a gold-copper producing company. Disini likewise gave indications that Victoria is a low-cost gold mining operation. The mine is currently producing at a milling rate of 2,000 MT per day.