An extended pre-feasibility study for the Tampakan Copper-Gold Project in the southern Philippines indicates annual average copper production of 340,000 tonnes and gold production of 350,000 ounces based on a 20 year operation.

The study confirms the world-class, low-cost and long-life nature of the deposit, underpinned by a 2.2 billion tonne mineral resource containing 12.8 million tonnes of copper and 15.2 million ounces of gold.

It was conducted by Sagittarius Mines, as owner of Tampakan, on behalf of project manager Xstrata Copper, which has a 62.5% interest in the project, and Indophil Resources, which has a 34.23% stake.

The results, which are still subject to confirmation within a final feasibility study, outline a potential mining operation based on open pit mining with land-based waste rock and tailings storage.

The study outlines mill recovery rates of 83-90% for copper and 60-80% for gold, with a copper concentrate grade of 37-34%.

An initial stage one capital outlay of US$5.2 billion, includes provision for associated infrastructure and a contingency of more than US$800 million.

Indophil’s CEO Richard Laufmann describes the study results as “very favourable and compelling”.

“Based on these findings, Tampakan is a standout as the most realistic and attractive undeveloped copper-gold deposit in the world.”

He says that from an Indophil perspective, the latest findings warrant immediate commitment to the final feasibility study.

The study says that in stage one, from years 1-3, it is estimated that 44 million tonnes/year of ore will be processed resulting in 320,000 tonnes/year of copper and 290,000 ounces/year of gold, with stage two production, from years 4-20, of 66 million tonnes/year of ore resulting in 346,000 tonnes/year of copper and 359,000 ounces/year of gold.

www.indophil.com