In a disclosure to the Philippine Stock Exchange, Dizon Mines said Medusa decided to withdraw after tests indicated that the potential of recovering gold from Dizon’s mine tailings or waste materials is marginal.
Dizon didn’t disclose the final results of the tests conducted by Medusa, which had the option to acquire a 60-percent stake in a joint venture company that will recover gold and other minerals from the Dizon mine tailings.
Medusa earlier estimated the cost of processing conservatively "at $1/ton, with an additional $1/ton for project logistics and management." The Dizon project is located approximately 200 kilometers northwest of Manila. The Dizon porphyry copper-gold mine operated as a 50:50 joint venture between Dizon Mines and Benguet Consolidated Inc. between late 1979 and 1997 with Benguet as the operator.
The open pit mine finally closed in 1997 after mining 110.03 million tons of ore and recovering 749.76 million pounds of copper and 1.91 million ounces of gold. Benguet subsequently withdrew from the joint venture.
Medusa Mining had earlier teamed up with Bactech Mining Corp. of Canada to conduct a due diligence study on gold, silver and copper projects in the Philippines.
The memorandum of understanding signed by Medusa and Bactech is for an initial three year period with an option to extend. During this period, Bactech will provide its technology, which is particularly successful at recovering gold, silver and copper metal from refractory mineralization, to the joint venture exclusively for the Philippines.
The technology is particularly successful at economically recovering gold, silver and copper metal from refractory sulphide mineralization.
The purpose of the joint venture is to vend economically viable projects into a newly-created corporate entity to be owned equally by Medusa and Bactech.