Vancouver — With low gold prices forcing a suspension at the Sibutad mine, and with the Bulawan operation running in the red, the intrinsic value of Philippine gold miner Philex Gold (PGI-V) appears to be resting on the newly discovered Boyongan copper-gold deposit.
The junior reported a loss of US$2.5 million, or 6 per share, in the first quarter of 2001, compared with a loss of US$2.7 million, or 7 per share, in the corresponding period of last year. Revenues jumped to US$4.8 million from US$3.3 million.
A 56% increase in production from the Bulawan operation on the island of Negros was offset by an average gold price of US$263 per oz. This was US$34 lower than in the first quarter of 2000. The mine cranked out 18,065 oz. during the quarter, compared with 11,555 oz. last year. The increase is attributed to a 39% increase in ore grade to 2.5 grams gold per tonne from 1.8 grams.
Also hurting the company’s bottom line was a US$660,000 non-cash charge related to the development work at the mine site.
On the island of Mindanao, the junior’s joint-venture partner, Anglo American (AAUK-Q), has three rigs turning on the promising Boyongan copper-gold prospect. The latest results are in from the bottom of hole 15, which tallied 393 metres grading 1.58% copper and 2.39 grams gold from 61 metres down-hole to the end of the holes at 454 metres. The hole terminated in moderate primary sulphide mineralization.
The major can earn a 40% interest in the property by spending $2.2 million. It can then increase its interest to 70% by completing a bankable feasibility study.
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