Gold and copper producer Philex Mining Corp. said Monday it extended the operation of Padcal mine in Benguet province by two years, or up to December 2024.
Philex said in a disclosure to the stock exchange the Padcal mine life extension was finalized after confirmatory drilling and technical studies identified additional mineable reserves.
Philex said the updated remaining mineable reserves in Padcal mine as of end March were estimated at 30.2 million tons, with average gold and copper grades of 0.23 grams per ton (g/t) and 0.18 percent, respectively.
The new estimate includes additional reserves of 16.2 million tons from the previously declared mineable reserves as of end-2020 at 17.4 million tons, with average gold and copper grades of 0.27 g/t and 0.18 percent as reported in February 2021.
“The additional mineable reserves are expected to be mined over two years, extending the life of Padcal mine until December 31, 2024,” the mining firm said.
It said that aside from additional revenues for the government, the Padcal mine life extension would ensure the continuous employment of 1,831 employees and support the social development of the host local government units and neighboring communities during the pandemic.
“The company is currently processing all required permits and other regulatory requirements in connection with this impending life of mine extension,” the mining firm said.
The Padcal mine has been in operation since 1958.
Philex said the Padcal mine life extension would also give the company more time to bring the Silangan project in Surigao del Norte province into development and commissioning stages.
Philex Mining said in 2019 it would earmark $750 million for the development of the Boyongan ore body of the Silangan mine and appointed J.P. Morgan for equity investment and Japan’s Mizuho Financial Group Inc. for project financing.
Philex already spent P17 billion for pre-development works at Siliangan mine, a large-scale project composed of Boyongan, Bayugo and Kalayaan ore prospects.
Latest estimates by Philex showed that Silangan mine had 571 million tons of mineral resources.
Philex’s stock price rose 2.2 percent Monday to close at P6.50.
