Philex reports add’l mineral resource, says Padcal lifespan may be extended

MANILA, Philippines - Philex Mining Corporation may be able to extend the lifespan of its Padcal copper-gold mine in Benguet after additional mineral resources were found.

According to the Pangilinan-led firm, an additional 110.9 million tons of mineral resources were found within 800 to 600 meter levels (ML) in its tenement.

The resource volume corresponds to metal content of 473 million pounds of copper and 1.342 million ounces of gold.

“The Padcal mine’s measured and indicated resources at 800-600 ML is expected to augment the mineable inventory of the company and may likely extend the mine’s life beyond 2020,” said company president Eulalio Austin Jr.

“We look forward to the next two years of exploration within the vicinity of the Padcal mine to further identify additional resources and increase the company’s current mineral inventory,” he added.

The completion of the new mineral resource estimate increases the Padcal mine’s total resources 71 percent to 267.7 million tons as of the end of 2014. This also raises the contained metals to 1.23 billion pounds of copper (by 62 percent) and 3.24 ounces of gold (by 71 percent).

The mineral resources indicated in the estimate, however, is not an indication of actual production for gold and copper but are estimations based on drilling results.

Philex registered a 125 percent increase in its net income in 2014 on improved revenues brought about by higher number of operating days and cost streamlining.

The company earlier announced a net income of P703 million, up from P312 million reported in 2013 despite lower ore grade recovery and weakness in metal prices.

The company reported total revenues of P10.898 billion in 2014 against P9.802 billion in 2013.

The Padcal mine operated for a full year in 2014 compared to only 10 months in 2013, resulting to a 23 percent increase in tonnage.