Canadian mining firm bullish on RP

CGA Mining Limited, the foreign partner of Filminera Resources Corp., remains bullish on the growth prospects of the mineral industry in the Philippines and is set to expand the gold refining capacity of its local subsidiary Philippine Gold Processing and Refining Corp. (PGPRC) next year.

In an interview at the sidelines of the 8th Asia Pacific Mining and Exhibit at the Sofitel Philippine Plaza yesterday, Michael J. Carrick, president and chief executive officer of Canadian CGA Mining, said that despite the current global financial crisis, Filminera remains a “unique exception” in that it is on track in its production timetable and is, likewise, on budget.

“Filminera is completely funded and is not hedged,” Carrick said, adding that the company is not experiencing technical difficulties.

Carrick said, Filminera is on track with the completion of the first phase of development of its Masbate gold project in the first quarter of 2009.

The company is projecting an annual gold production of 200,000 ounces and an annual revenue stream of $180 million.

Carrick said they have spent a total of $200 million to develop the Masbate gold mine.

CGA owns 40 percent of Filminera, while 60 percent is held by the Filipino owners.

The gold produced by the Masbate mine is refined by PGPRC which currently has a rated capacity of four million tons of ore.

The expansion, Carrick said, would increase PGPRC’s refining capacity to 7.5 million tons of ore.