Geograce Resources Philippines Inc. has signed an agreement with Vale Exploration Philippines Inc., the local subsidiary of the second-largest metals and mining company in the world, to jointly explore for gold and copper on an 84,046-hectare site in Masbate Island.
Under the agreement, Vale Philippines, the local flagship of Companhia Vale do Rio Doce, may invest $6 million over three years to fund early-stage exploration of the site with an option to take an undivided 51 percent interest in the Masbate claims.
Geograce, for its part, will take charge of securing permit approvals and community relations on the project.
The company said the exploration project covers seven mineral claims which are adjacent to the Aroroy gold mine being developed by CGA Mining of Australia, which has already established a significant mineral resource base.
According to Geograce, Masbate was the subject of previous studies made by international agencies, which indicated high prospectivity for gold and copper deposits based on the island’s extensive mineralization.
“The island has a previous history of gold mining dating back to the 1980s and is once again attracting interest for its mineral resources,” Geograce said in a statement issued yesterday.
“We are extremely pleased to become the first Philippine partner of Vale. Vale is not only one of the world’s biggest mining companies, but its success is strongly rooted in helping develop its home country Brazil into a natural resources superpower. The Philippines is an emerging market for mining but it has the mineral potential to become like Brazil. Geograce looks forward to utilizing Vale’s technical expertise and experience from around the world to follow Brazil’s example for the Philippines,” Geograce management services chairman Michael Defensor said.
Geograce president Jerry Angping, for his part, said Vale’s interest in the Philippines “confirms our country’s great mineral potential,” adding that the company continues to examine highly promising mineral tenements all over the country to boost its portfolio.
Vale is the world’s largest producer of iron ore and iron ore pellets, the world’s second-largest producer of nickel and one of the world’s largest producers of manganese ore and ferroalloys. Vale also produces bauxite, alumina, aluminium, copper, coal, cobalt, precious metals, potash and other products.
To support its growth strategy, Vale is actively engaged in mineral exploration efforts in 21 countries around the globe. Vale operates large logistics systems in Brazil, including railroads, maritime terminals and a port, which are integrated with its mining operations. Directly and through affiliates and joint ventures, Vale has investments in the energy and steel businesses.
Since 2007, to the present, Geograce has spent more than $5 million on early-stage exploration and assessment of promising mining claims throughout the Philippines, the company said.