Anglo active at Boyongan (March 08, 2002)

Vancouver – Partners Anglo American (AAUK-Q) and Philex Gold (PGI-V) have kicked off the 2002 drill campaign over the Boyongan copper-gold prospect with two of the first four holes returning impressive values on the Philippine project.

Hole 35 was drilled to the north at a 60 angle some 80 metres southwest of the discovery hole. The hole cut oxide mineralization from 91 metres through to the end of the hole at 560 metres. The 469 metre section ran 0.67% copper and 1.09 gram gold per tonne. Included in this interval was a 230 metre portion averaging 0.92% copper and 1.61 grams gold.

Hole 36 was collared 140m south of hole 18 (896 metres grading 0.49% copper and 1.57 grams gold) returning 1.44% copper and 1.96 grams gold over 215 metres from 129 metres downhole.

Holes 32 and 33 were collared 230 metres east of hole 26 (71 metres grading 0.28% copper and 0.29 gram gold) and 210 metres west of hole 8 (no significant values), respectively. The holes were stopped due to poor ground conditions at 239 and 177 metres down hole before hitting the favourable intrusive body. Despite failing to hit the mineralization, hole 32 stopped in clayey rock with argilled diorite fragments.

“We are pleased to see the resumption of drilling following a brief year-end break, and the excellent results from holes 35 and 36,” says Philex’s Chief Executive Officer, Gerard Brimo. “About 15,000 metres of resource definition drilling is planned in Boyongan this year, as well as scout drilling primarily to the south of the deposit to test for other mineralized porphyry systems in the general area.”

Hole 37 was collared 200 metres east of hole 35 and drilled to the north at a 60 angle. The hole hit the mineralized body at 138 metres downhole through to its final depth at 378 metres.

Hole 38 was also drilled at 60 to the north some 40 metres southeast of hole 18. This hole cut intense stockwork mineralization at 50 metres downhole down to its current depth at 174 metres.

Moving 60 metres northwest of the discovery hole, hole 39 was drilled to the north at 60 cutting mineralization from 99 metres down to its current depth of 338 metres.

Hole 40 is currently being collared 100 metres north of hole 37.

Assay results for these holes are pending.

Reconnaissance drilling 4-km to the south at Magpayang, has so far failed to encounter any mineralization. Hole 1 cut 258 metres of Quaternary cover before being terminated. Holes 2 and 3 are currently turning in Quaternary cover at depths of 120 and 85 metres, respectively.

Anglo American discovered the covered deposit in September 2000, when hole 6 returned a 365 metre intercept grading 0.70% copper and 1.9 grams per tonne gold. Subsequent drilling throughout 2001 continued to yield impressive numbers including 393 metres grading 1.58% copper and 2.39 grams gold in hole 15.

Located on the northeastern side of the island in the historic Surigao gold district, the project covers part of a north-south trending Pliocene volcano-magmatic arc, which hosts a number of known gold mines. So far some 38 holes have been completed on the property outlining a high-grade mineralized core over a 400-by-300 metre area with a mineralized zone covering a 900-by-300 metres area.

Currently, five rigs are turning and a sixth will be added shortly. Of these, four are slated for delineation drilling at Boyongan and two will be used for reconnaissance work to the south

Late last year, Anglo American purchased an additional 10% equity stake in the project and surrounding ground from Philex for US$20 million. Additional payments of up to US$5 million will be required should the metal content of the deposit or of any other discovery within the surrounding claims contain more than 3.6 million tonnes copper-equivalent. The deal is expected to close early this year, at which point Philex and Anglo American will each hold a half-stake in the project. The major can then earn an additional 30% interest by completing a bankable feasibility study.