Philex acquires ground in Bicol gold mining district

A recent agreement sets the stage for Philex Gold (PGI-T) to explore and develop a 729-ha claim group in the Bicol gold district of the Philippines.

Situated on Southern Luzon Island, 300 km southeast of Manila, the Bicol gold district has both operating gold mines and a number of past producers.

One of these — an underground mine that operated from 1939 to 1941 and produced nearly 10,000 oz. gold — is within the land package being acquired by Philex Gold. Operations at this site ceased during the war and never resumed.

The claim group was explored during the 1980s by a previous operator, which outlined 273,000 tonnes grading 5.5 grams gold per tonne, contained in four veins at the Exciban target.

Philex is required to pay $75,000 to the vendor upon completion of legal due diligence, as well as a success fee, depending upon the amount of reserves discovered and a favorable production decision. A sliding scale royalty of 3% to 4% is also payable, related to gold price.

Drilling will begin after the due diligence is completed.

Philex Gold has other properties in the Philippines. The junior recently added claims covering favorable geology contiguous to its Sanfran property in eastern Mindanao Island.