SOUTHEAST ASIA SPECIAL — Triarx explores ground in Philippines, PNG

Former electronics firm Arrowlink could soon be entering a golden age, if its new business strategy proves successful.

Arrowlink became Triarx Gold (CDN) in April and changed its focus from electronics to mineral exploration in Southeast Asia. The transformed company, which has since opened offices and acquired companies in Papua New Guinea (PNG) and the Philippines, is an aggressive junior with five gold and gold-copper properties (one of which is near production) in those countries.

The three Philippine properties are wholly owned, while the PNG government has the right to acquire 30% of Triarx’s two properties there.

The company’s first priority is to bring one of the projects to production, while early and mid-stage exploration is undertaken on the other four.

The most advanced project is Nalisbatan, on the island of Luzon in the Philippine province of Camarines Norte. Triarx is exploring a splay fault off the main Philippine fault on a property that once hosted a heap-leach operation. The known gold resource there is 100,000 oz.

Many artisanal miners have worked the property over the past six years and have taken an estimated 1.5 kg gold per day out of surface diggings. Muck left behind by the miners grades a average 5-6 grams gold per tonne, and the wall rock contains 0.5 to 3 grams. These are important numbers if it is proved that a large, bulk-tonnage mining operation is to be sustainable.

In order to search for the deep-seated porphyry mineralization amenable to such an operation, Triarx recently began a large induced-polarization survey of the property. A drill will be moved to the site shortly.

Zone expansion

Triarx’s short-term plan is to expand the known gold zone, which is amenable to infill mining methods, and begin exploring other parts of the property.

The company hopes to triple, to 300,000 oz., the gold resource at Nalisbatan’s Main zone and delineate tonnage to the south and west of the main body in the area of artisanal workings. The company also plans to initiate a production phase with an initial target of 50,000 oz. gold per year.

The Mabilo property, which is near Nalisbatan, has a copper-gold skarn deposit with intervals of 3.5 grams gold and 0.5% copper. Here, Triarx is also focusing on the potential of the porphyry on the property to support a bulk-tonnage, open-pit operation. “We’re very excited about the prospects for that,” says Triarx geologist Tim Collver.

The Philippine Salatan property, situated on the island of Mindanao, hosts a zone of porphyry-style mineralization with significant intervals of copper, gold and molybdenum. Triarx is in the early stages of exploration there.

In PNG, the company is exploring for gold and copper using OK Tedi and Porgera models. Its Tingi Valley property actually lies between Placer Dome’s Porgera gold mine and BHP’s OK Tedi gold-copper mine. Surface trenching has defined structures and mineralization similar to that found at OK Tedi, and areas of skarn and surface porphyry mineralization with overlapping sediments have been mapped.

Collver says major companies have expressed interest in joint-venturing the property but explains that the company is biding its time. “We want to get some work done, further the development of the thing and try to cut a better deal,” he explains. “We’re not desperate to get a joint venture.” On the Kubor property, Triarx is looking at four separate prospects in an area where gold has been deposited as a result of faulting on the flanks of a granodiorite intrusion that allowed fluids to enter the overlying sediments.

Triarx has trenched some areas and used the information to outline specific drill targets.

On the Poru prospect at the southern end of the Kubor property, the company is exploring a kilometre-wide volcanic crater on the side of a larger cone. A past owner of the property found gold showings there, but, after 1,800 metres of drilling on geophysical anomalies, located only indications of gold mineralization.

Landowners’ royalties

While the PNG government has the right to obtain 30% of any mining project in the country, its interest must be bought.

In the past, the government has earmarked 5% of its total share for local landowners, a practice Triarx supports. Collver explains that if a landowner is receiving a royalty, he’s less likely to object to the project. “He’s going to want to see some production,” says Collver. “It’s a very pragmatic approach.”

Working in PNG, which Collver describes as a dynamic country, has posed no problem for Triarx. “I’m reasonably comfortable with the way things work there,” says Collver, pointing out the government’s co-operation in helping develop the huge Lihir gold deposit.

As for the rest of the country, “it’s got some significant mines and world-class deposits, [as well as] a very set, established mining law. The letter of the law does hold; it’s been tested many times.

“Even though there are inherent challenges within the country with respect to land ownership, you can develop these mines and make a lot of money,” he adds.

Triarx has sufficient capital to complete the initial drilling of its Philippine properties and the aeromagnetic surveying of its PNG properties.

“We’ll run out of money in September, so we’re going to be looking for money around June or July,” says Collver.

Philippines

Area: 300,000 sq. km

Pop.: 73,265,584

Capital: Manila

Prospective for:

Gold,copper,nickel