Olympus Pacific Minerals has entered a formal joint venture agreement with Abra Mining & Industrial Corporation (AMIC), Jabel Corporation, Kadabra Mining Corporation (KMC), and PhilEarth Mining Corporation in respect of the Capcapo Gold Property, northern Philippines. KMC is a wholly-owned subsidiary of Olympus Pacific.
Capcapo is strategically located in Abra Province, Northern Luzon, and north of the prolific Baguio-Mankayan Gold District that has combined production, current reserves and resources in excess of 60 million ounces of gold.
The company, through KMC, completed its due diligence drilling at Capcapo in September 2007. Results included 94 metres from surface @ 1.49 grams/tonne gold, 0.31% copper and 5.59 grams/tonne silver; 34 metres from 41 metres @ 2.43 grams/tonne gold, 0.67% copper and 8.93 grams/tonne silver; 27 metres from 47 metres @ 2.55 grams/tonne gold, 0.55% copper and 3.49 grams/tonne silver; and 18 metres from 94 metres @ 4.43 grams/tonne gold, 0.91% copper and 3.38 grams/tonne silver.
Olympus Pacific’s chief executive officer John Seton says: “This acquisition is an integral part of our strategy to become a multi-mine producer and complements our development stage Malaysian property in diversifying our company over three countries in South East Asia.
“Our due diligence drilling at Capcapo indicates we have a truly world-class copper-gold discovery typical of the premium deposits found in the Philippines. I believe our success in negotiating this exciting ground is two fold - first, our successful track record commissioning two gold processing plants that generate us operating cash and second, our recent announcement that we are starting feasibility at Bau Central in the Bau Goldfield, East Malaysia. We are excited about the major potential at Capcapo and our strategic partnership with AMIC.”
The joint venture agreement also grants the company a right of first refusal over a mineral production sharing agreement held by Jabel over the Patok property, also in Abra Province.