St Augustine Gold & Copper has welcomed a US$961,125 funding boost from its strategic Philippine partner Queensberry Mining, after the company exercised a portion of the warrants it purchased during a private placement last year. The funds will assist St Augustine’s exploration efforts at the King-king project on Mindanao Island.
The company’s president Andrew Russell says, “We are appreciative of the support Queensberry continues to provide through additional investment in St Augustine as we continue to move the King-king project forward.”
King-king is about 35km east of Davao City and 13km from the coast. It is one of the largest undeveloped copper-gold deposits in the world with a measured and indicated mineral resource of 962.3 million tonnes at 0.25% total copper, 0.06% soluble copper and 0.33 grams/tonne gold, consisting of 5.4 billion pounds of contained copper and 10.3 million troy ounces of contained gold. The project is listed as one of the top priority projects by the Philippine Mines and Geosciences Bureau.
St Augustine and its partner Nationwide Development Corporation (NADECOR) are working to advance the project as quickly as possible. The companies have submitted declaration of mine plan feasibility (DMPF) and an environmental impact study (EIS) to the Philippines’ Environment and Natural Resources department and Geosciences Bureau for approval.
The proposed production schedule includes high grade production for the first five years @ 0.802% equivalent copper or 1.250 grams/tonne equivalent gold, with average annual production of 267 million pounds of copper and 395,000 ounces of gold.
St Augustine says the Philippine permitting process is expected to be completed by quarter 3 of 2013. The company has extended the expiry date of all 14,737,500 warrants exercisable at Can$0.75 from November 17, 2012 to July 15, 2013, in a move aimed at directing more funds to the working capital required to complete a NI 43-101 compliant study at King-king.