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's Runruno gold/moly project has Candy boost towards full feasibility
UK listed Metals Exploration's (AIM: MTL) Runruno project in the Philippines is unusual in that it is a gold project with byproduct molybdenum - a relatively uncommon combination, at least with payable grades.
But, says Metals Ex's managing director, Jonathan Beardsworth, it is one which excites his geologists who feel that the deposit is likely to lie on the flanks of a massive porphyry-type body which the company is only just about to start drilling on.
Even so, Metals Exploration has already defined around 2 million ounces of gold located effectivel y on the flanks of an old volcano with the likelihood, his geologists say again that there may well be similar deposits on the volcano's opposite and adjacent flanks too.
The area is already known as a highly prospective one too with the occurrence only a little more than 20 km away from OceanaGold's big Didipio copper gold deposit and in the same region as the historic gold mining centre of Baguio.
Exploration to date has defined a JORC-compliant Inferred & Indicated mineral resource of 2.0Moz gold and 34.4Mlb molybdenum, contained within 31.17 million tonnes at average grades of 2.00 g/t gold and 0.05% molybdenum.
The deposit is located within a large alkaline volcanic complex, approximately 3.5 kilometres in diameter, of which less than 15% has been effectively explored.
Speaking at the Proactive Investors/Mineweb One2One forum in London this week, Beardsworth told the audience of investors that there has been a complete change-around financially over the past several months - from a company which was struggling to tie down finance after the collapse of the markets and the drying-up of credit late last year and early this, to one which is now fully funded through to the completion of its feasibility study.
The turnaround has come because of a big input of funding from Solomon Capital, the private investment fund of multi-millionaire property developer, Christian Candy. Solomon Capital now owns a little over 44% of Metals Exploration.
Metals Exploration has also unveiled the results of an independent technical project assessment undertaken by Australian consultants Mining Associates.
While the report broadly endorses Metals Exploration's field exploration programme to date it also suggested that a more sophisticated method of resource estimation is required - and Mining Associates has subsequently been hired to conduct just such an assessment.
It pointed to possible under-reporting of molybdenum values assessments, and also felt that there was likely to be wider potential over the company's licence area which has not yet been drill tested, although a programme to test some of the other potential targets is now under way.
Drilling to take the project to the full feasibility stage is ahead of schedule with 45,000 metres of a 65,000 metre programme completed. The bankable feasibility study is due out in early 2010.
Commenting on the Mining Associates study, Beardsworth stated "MA's report is a welcome independent endorsement of the work we have done to date at Runruno, and of the potential that remains in the rest of the system outside the existing resource envelope.
The report has also been extremely useful in providing pointers to technical work and practices that remain to be implemented. We look forward to working closely with MA and receiving the results of their detailed resource review in due course".
"It is also pleasing that with the additional funds raised in May, and because our main drilling programme is proceeding ahead of schedule, we have been able to start the two planned drilling programmes outside the existing resource area to test the potential of the rest of the system. We await the results with interest".
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