Australia's junior explorers - The ASIA Miner

Philippines
Toledo assesses Berong improvements
TOLEDO Mining Corporation is investigating
ways to extend the curr ently restrained shipping
period of its direct shipping ore (DSO) nikkel
from the Berong joint venture project on
Palawan, is assessing a possible value-added
strategy and is improving the port area. These
measures are aimed at improving revenue at
a time when the JV is targeting annual production
of 750,000 wet metric tons (WMT) @
1.8% nickel from the end of this year.
An engineering company is evaluating the
constraints of the shipping window which
sees shipments halted during the monsoon
season. AIM-listed Toledo hopes to extend
the shipping window and increase annual capacity
to 1 million WMT. If this is not possible
the company believes the non-shipping period
presents an opportunity to build a stockpile
of ‘r eady-to-go’ 1.8% or e. At pr esent
Toledo ships its ore to China but also believes
it may be prudent to investigate value-added
opportunities to find the most suitable pr ocess
for the ore, generating more cashflow.
At its port, Toledo plans to extend the causeway
to achieve better ship loading ef ficiency
with the first phase of the extension
agreed at a budget of US$314,000. This will
extend the existing pier by about 30 metr es
seaward, creating a deeper loading draft
which should provide more stable barge-loading
conditions even during moderate swell.
While the pier extension may not necessarily
prolong the shipping period, it will greatly en-
METALS Exploration is making steady pr ogress
on development of the Runruno Gold
Project with the early works pr ogram reaching
design activity levels and work under
way on multiple facets of the pr oject. The
company is also making progress with a debt
funding package to support the full development
of Runruno with legal documentation
advanced and finalization expected shortly.
The earthworks are at an advanced stage
with the camp site, batch plant and lay-down
area completed, two causeways established
across the Sulong River to facilitate access to
the processing plant site and the pr ocessing
plant earthworks nearing completion. Work is
continuing on construction of the camp and of-
8 | ASIA Miner |July/August 2012
hance the loading throughput.
Berong has a JORC-compliant resource of
9.13 million tonnes @ 1.55% nickel and a potential
resource of 120 million tonnes @
1.34% nickel. The nearby Long Point and
Moorsom projects have a potential resource
of 120 million tonnes @ 1.27% nickel. During
the first quarter of 2012 production of run-ofmine
ore from Berong was 183,000 WMT at
an average grade of 1.88%. DSO operations
resumed in early Mar ch when the shipping
window reopened with shipments of 48,700
WMT @ 1.82% and 54,000 WMT @ 1.63%
carried out during March. Another three shipments
of 55,603, 48,315 and 40,845 WMT
were made in subsequent weeks.
The Berong operation is held by Ber ong
Nickel Corporation, a joint ventur e between
Toledo, Atlas Consolidated Mining and Deve-
fice complexes, and on the pioneering work to
establish the road into the pit with the material
extracted being used as fill on both the laydown
and processing plant site areas.
Leighton Contractors Asia have been contracted
to design and construct the pr ocessing
plant at a guaranteed maximum of
US$91.5 million out of a total capital cost for
the entire project of US$167.8 million.
Leighton reports that it is pr oceeding well
with the processing plant detailed engineering
program.
Other aspects of the early stage works program
include provision of construction power,
provision of potable water, erection of a concrete
batching plant and acquisition of selec-
lopment and World Fund Pte Ltd, which r ecently
purchased ENK’s 18.7% stake.
Owing to a delay in the granting of a new
tree cutting permit, the Berong mine has a limited
mining area which is impacting on the
amount of high grade ore that can be produced.
This forced the joint venture to revise the
ore sales plan from a single 1.8% grade to a
combination of 1.8%, 1.6% and 1.5% grade
shipments in order to maximize revenue until
a new permit is granted.
Toledo is also seeking other potential buyers
for its 40% stake in the Ipilan nickel operation
after it received a draft share purchase
agreement from Chinese gr oup Jinchuan,
which contained terms that the company ,
along with its JV partners, thought wer e
wholly unacceptable. The exclusivity granted
to Jinchuan in the MoU has expired.
Loading direct shipping ore from Toledo Mining’s Berong Nickel Project on Palawan island.
Steady progress on early Runruno development
ted units of the mobile fleet.
Metals Ex executive chairman Ian Holzberger
says, “It is very satisfying to see the progress
being made on the ground at Runruno
as the early works program ramps up and the
work commences on multiple facets of the
project. This work demonstrates the company’s
capacity to implement the Runruno project
and is crystallising the size and scope of
the project to its stakeholders. Equally it is
pleasing to see the pr ogress made with the
processing plant detailed engineering pakkage
under Leighton’s management. This
work will support the early commencement
of the processing plant construction once full
funding is available.”