Rapu Rapu gets ECC

Vancouver — Australian-based Lafayette Mining has received an Environmental Clearance Certificate (ECC) from the Philippine government, paving the way for development of TVI Pacific’s (TVI-T) Rapu Rapu massive-sulphide property in the province of Albay.

“When developed, the project will be one of the largest mines in the country and generate in excess of A$600 million of export earnings,” says Ian Culbert, Lafayette’s CEO.

Located in the east-central part of the country, the past-producing property has a positive feasibility study in place. This envisions mining the Ungay Malobago deposit as an open-pit operation treating 4.9 million tonnes of material grading 1.4% copper, 2.4% zinc, 30.4 grams silver and 2.71 grams gold per tonne over a six-year mine life.

The 820,000-tonne-per-year operation would produce 610,900 tonnes copper, 89,200 tonnes zinc, plus 3.6 million oz. silver and 293,000 oz. gold over its life. Projected capital costs are slated at US$37.8 million, generating an internal rate of return of an impressive 30%.

A “Besshi-type” massive-sulphide deposit, the project was originally discovered in the 1960s. It reportedly produced some 200,000 tonnes of ore from an underground operation.

Mineralization is hosted as bands and lenses conformable to the schistocity of low-grade metamorphosed schists.

In 1991, ore reserves were pegged at 3 million tonnes grading 1.8% copper, 2.5% zinc, plus 40 grams silver and 2-3 grams gold.

To the west of the planned open pit, Lafayette is completing a conceptual study on possible underground exploitation of the old Karogrog mine.

Operated by Hixbar Gold Mines from the late 1930s until the 1960s, Karogrog still holds 1.1 million tonnes grading 1.3% copper, 2% zinc, 25 grams silver and 2.7 grams gold. The orebodies occur as thick lenses of massive sulphides hosted in quartz-sericite schist. The main orebody was 140 metres long, 60 metres wide and 30 metres thick.

Based on its receipt of the ECC, Layfayette has launched an aggressive development program. This includes a study into the cost of constructing the mine, the conclusion of project financing and the securing of agreements with smelters.

Project construction is expected to take about a year and could begin as early as the fourth quarter of 2001.

Based on an earlier deal, Lafayette granted TVI 3.3 million options in the Australian junior at a price of A20, as well as a net smelter royalty of 2.5%.