Philex, Anglo drill Boyongan

Vancouver — Drilling has so far failed to find additional resources at the North project in the Philippines.

Partners Philex Gold (PGI-V) and Anglo American (AAUK-Q) have seven rigs turning in an effort to evaluate the economic potential of the property, situated in Surigao province. The scout program is centred around the Boyongan copper-gold deposit. Results from four holes returned a best value of 0.14% copper and 0.18 gram gold over 420 metres in hole 67.

“Quite a number of scout holes, primarily south of Boyongan, have been completed, though unfortunately none of these gave us the results we had been hoping for,” says Philex CEO Gerard Brimo.

Anglo discovered the Boyongan deposit in September 2000, when hole 6 returned a 365-metre intercept grading 0.7% copper and 1.9 grams gold per tonne. Subsequent drilling throughout 2001 and 2002 continued to yield impressive numbers, including 393 metres grading 1.58% copper and 2.39 grams gold in hole 15, and 896 metres of 0.49% copper and 1.57 grams gold in hole 18.) However, results by the end of 2002 indicate that although the deposit contains high grades in part, the tonnage anticipated from the oxide zone is unlikely to be sufficient to support a large-scale, long-life operation. Also, the deep-seated sulphide mineralization appears to have an erratic grade distribution. This finding prompted Anglo American to drill for additional mineralization.

Anglo to drill 28,000 metres this year, with resource estimates for the Boyongan deposit and metallurgical tests expected by the fourth quarter.

Philex and Anglo each hold a half-stake in the project. The major can earn an additional 30% by completing a bankable feasibility study.