Nickel Asia digs for gold

Manila, Philippines -  Nickel Asia Corp. will start drilling for gold at its Manmanok property in the province of Apayao as it aims to further broaden its mining portfolio.

At the company’s annual stockholders meeting yesterday, Nickel Asia president Gerard H. Brimo said the drilling will be undertaken by 71.25 percent-owned subsidiary Cordillera Exploration Co. Inc. (CEXCI).

“The commencement of drilling will mark an important step in our objective to diversify to other metals,” Brimo said.

Substantial geochemical and geophysical work has already been accomplished in portions of the 7,802-hectare Manmanok property by the previous owners, Newmont Philippines and Anglo American.

Anglo earlier said the property could contain shallower sedimentary-osted epithermal gold with the possibility of deeper copper-gold porphyry style deposits and had identified four drilling targets. 

The drilling program is aimed at identifying continuities and extensions of the main prospect areas through detailed geological and geochemical work. 

 CEXCI has four properties in Central Cordillera of Northern Luzon that are prospective for gold and copper. Two of the properties are located in Mankayan and straddle the provinces of Benguet, Ilocos Sur and Mt. Province.

Funding for the drilling program will come from the $1.8 million invested by its Japanese partner Sumitomo Metal Mining Co. Ltd. in return for 25 percent equity in CEXCI.

Once the amount is used up, Sumitomo has the option to invest $2.8 million for an additional 15 percent equity, which would shore up its total equity to 40 percent.

Meanwhile, Brimo said construction of the second plant, Taganito, is proceeding well with the opening slated in the fourth quarter of 2013. 

Nickel Asia vice-president Dennis Zamora said the Taganito project will have a capacity of 4.5 million tons per year and raise the group’s production capacity to 14.5 million tons by 2014.

Zamora said the Taganito plant, which will process limonite ore using the high-pressure acid leach process to to produce nickel-colbalt sulfide forfinal treatment in Japan, is expected to significantly boost ore sales.