Philex explores Padcal mine for more deposits

MANILA, Philippines - Listed Philex Mining Corp. is scouring further its Padcal copper-gold mine in Benguet for copper and gold deposits as part of a five-year plan to maximize revenues from its tenements, a top company official said.

Philex president and CEO Eulalio Austria said drilling operations are being conducted in three target sites adjacent to the main Padcal mine to find more copper and gold deposits with higher ore grades.

The drilling results from the ongoing exploration is expected to be finalized next year.

Philex is currently mining just five percent of its 14,000-hectare mining tenement in Benguet, making it possible that further mineralization with higher ore grades can exist within the contract area.

As the mine ages, lower grade ores are extracted from the production side, prompting Philex to raise the daily ore production tonnage to 27,000 metric tons (MT) per day from 25,000 MT per day previously.

“We have to increase our tonnage because ore grade is now lower,” Austin said.

As Philex recovers from the massive tailings spill it suffered from two years ago, it is reviewing its operational efficiencies and looking at ways to increase revenues from its current operations.

“As much as possible, we want to stabilize our revenues. Once you approach the end of your mine life, ore grades are also lower. And so, earnings would be lower and would affect our topline. We are looking for ways to increase our operational efficiency and maximize our mining tenements because some of these are still not in the production stage,” said Austin.

The government recently allowed the company to resume regular operations after having paid the penalty and completed clean up operations for waterways affected by the tailings spill in August 2012.