Metals Exploration has started early site construction works at the Runruno Gold-Molybdenum Project in Central Luzon with earth works initiated on the processing plant pad. The company has also increased its beneficial interest in Runruno to 100% by exercising its option agreement with Christian Mining. The acquisition cost US$44.44 per reserve ounce of gold acquired (135,000 ounces) for a total of US$6 million.
Metals Exploration has issued a Letter of Intent to Leighton Contractors (Asia) Limited to enter into an engineering and construct contract and a procurement contract to design and construct the Runruno processing plant. The letter is subject to a number of pre-requisites. Detailed design and engineering works for the processing plant have commenced with Leighton.
Runruno is in Central Luzon, 320km north of Manila. It is development ready with a feasibility study completed in May 2010. The resource is estimated at 26 million tonnes @ 1.69 grams/tonne gold and 453ppm molybdenum. There are 1 million payable ounces and the mine life is estimated at 10.3 years. Annual production in years 1-5 is estimated at an average of 101,800 ounces and in years 6-10 at 92,700 ounces.
The company’s Philippine operating subsidiary FCF Minerals Corporation has been recognized as an outstanding achiever at the recent National Mine Safety and Environment Awards. FCF received three awards for environment and safety performance including the coveted Presidential Mineral Industry Environmental Award (Exploration Category).
Metals Exploration executive chairman Ian Holzberger says, “The acquisition of the interest in the Runruno Gold Project that the company did not own for a modest US$44.44 per reserve ounce of gold is very satisfying. It must be considered to offer a significant value add for the company.
“It is equally satisfying that since the company secured the Declaration of Mining Project Feasibility, it has been able to take tangible steps towards the ultimate full development of the Runruno project.
“The issue of a Letter of Intent to Leighton with regard to the design and construction of the processing plant, the initiation of early site works and the commencement of detailed design activities, whilst it finalizes a debt package to fund the full development, will shorten the construction timetable and add value.”