Crazy Horse Resources has suspended all activity at its Taysan copper-gold project in the Philippines while it continues to pursue a trade sale or joint venture for the site. The site is under a care and maintenance schedule during the company’s cash conservation mode.
Taysan is an advanced copper-gold porphyry deposit about 100km south of Manila in the Batangas province on Luzon Island, 20km from the country’s major port. It hosts an estimated measured and indicated 459 million tonnes, and an additional inferred 509 million tonnes for 1.18 million tonnes of contained copper, 1.5 million ounces of contained gold, 12.3 million ounces of contained silver and 14.9 million tonnes of contained magnetite.
A pre-feasibility study released in April 2012 showed robust economics on a 15 million tonne per annum operation for a life of 24 years. Crazy Horse was given its first endorsement to convert the Taysan exploration permit to a mining licence, with the Philippines’ Mines and Geosciences Bureau signing off on the initial step in the approval process in August.
Crazy Horse chairman Mitch Alland says the company was pleased by the quick action of the regional office in issuing the endorsement which is in line with a new government policy.
The company’s Philippine affiliate has also recently completed the sale of rights to a private local corporation to purchase the Taysan port facility in Batangas city. The US$11.5 million payment to the Taysan Port Company is due this month, but Mitch Alland says the divestment will not affect the mine project’s economics.
Meantime, the founder of the company and chief operating officer Brian Lueck has resigned from his position, but will continue to support Crazy Horse Resources. Roderick RC Salazar III will replace his position on the Board.