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Additional Information

Market:	AIM
Sector:	Gold Mining
EPIC:	MTL
Latest Price:	12.63 (0.00%)
52-week High:	19.25
52-week Low:	10.63
Market Cap:	87.70M

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Metals Exploration Full Metals Exploration profile here

Metals Exploration is a natural resources exploration and development company operating in the Pacific Rim, with particular focus on the Philippines.

The Company’s principle asset is the Runruno gold-molybdenum project on the island of Luzon in the northern Philippines. The Company acquired the project in February 2005 and holds an 85% interest with an exclusive option over the remaining 15%.

Metals Exploration hails 'rewarding' progress at Runruno gold-moly project - UPDATE

Friday, January 27, 2012 by Sergei Balashov

---Adds broker comments---

Metals Exploration (LON:MTL) called the last three months of 2011 a “rewarding” quarter, which saw the mining firm make significant progress at its flagship Runruno gold-molybdenum mine in the Philippines.

The company has now started earthworks at the Runruno site with the programme of early site works expected to take five months to expedite construction.

Full construction is expected to take 15 months following the completion of early site works, which include the development of the processing plant pad and construction infrastructure.

Meanwhile, Leighton Contractors, which is responsible for the design and construction of the Runruno processing plant, has started detailed design and engineering works.

During the quarter, Metals Exploration received the declaration of Mining Project Feasibility (DMPF), allowing it to move Runruno into the development and construction stage, and raised its stake in the project from 85 percent to 100 percent.

Runruno, when it is up and running in the next two years, will produce an average 96,700 ounces of gold a year for the next 10 years and three months, according to the 2010 feasibility study.

The company has recently outlined a potential gold mineralised zone south of the Runruno mineralisation.

Drill intercepts included three metres at 3.46 grammes per tonne (g/t) gold and 454 parts per million (ppm) molybdenum and 13 metres at 2.28 g/t gold and 2,951 ppm moly.

“It has been a very rewarding and significant quarter with the issue of the DMPF, approval of a package of early site works and indeed the initiation of those works with the commencement of earthworks on the processing plant site,” said MTL executive chairman Ian Holzberger.

“The encouragement we continue to receive in our exploration drilling activities both south of the Runruno pit and at Magnetite Creek demonstrates the potential of Runruno.

“It is significant that the company has now developed an understanding of the potential mineralisation south of the planned pit and can set about testing that model.”

House broker Fairfax believes the company is significantly undervalued at 11p with more than three times upside at this point.

Mining analyst John Meyer said the team had made good progress at Runruno with permits acquired and earthworks started.

New results could add value before commissioning of a mine where much of the technical risk now seems to have been addressed, he added.

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