Global Ferronickel increases mine reserves

MANILA, Philippines — Listed Global Ferronickel Holdings Inc. (FNI) announced that proven and probable ore reserves at its Cagdianao site increased by 21 percent, allowing it to proceed with further exploration work.

In a regulatory filing, FNI said ore reserves increased to 43.8 million wet metric tons as of the end of October as against 36.3 million WMT in June last year.

FNI president Dante Bravo said the ore reserves estimate was proven to be viable based on the results of the economic assessment done in consonance with the Philippine Mineral Reporting Code (PMRC).

PMRC sets out the minimum standards, recommendations and guidelines for public reporting in the Philippines of exploration results, mineral resources and ore reserves.

Further exploration work should be done to delineate additional mineral resource with the potential to be converted to ore reserves and extend the life of the mine to beyond its projected eight years mine life at an annual mine production of 5.5 million WMT.

“Peripheral drilling as well as grass roots drilling  should be intensified as a new road will be constructed which will provide easy access to these ore extensions when the exploration results are favorable and upon approval of the special tree cutting and earthballing permit,” the report said.

The company recently completed its 2018 shipment, exceeding its target to export nearly six million WMT of nickel ores.  This, however, is still slightly lower than last year’s shipment amid achallenging global environment.

FNI, the second largest nickel producer in the country and the largest single lateritic mine exporter in the world, shipped 5.7 million WMT this year, 3.3 percent below last year’s 5.9 million WMT.

Among its subsidiaries are Platinum Group Metals Corp., Surigao Integrated Resources Corp., PGMC-CNEP Shipping Services Corp., and PGMC International Limited.

The company’s nickel project covers over 4,300 hectares in Surigao del Norte, divided into seven contiguous laterite deposits.

FNI is covered by its mineral production sharing agreement for a period of 25 years and with a maximum annual production volume of five million DMT.