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St Augustine starts King-king permitting process
ST AUGUSTINE Gold & Copper has started
the process of permitting of the King-king
Copper-Gold Project in the southeast of the
island of Mindanao by completing and submitting
the Declaration of Mine Project Feasibility
(DMPF). King-king is one of the largest undeveloped
copper-gold deposits in the world
with a measur ed and indicated mineral r esource
of 5.4 billion pounds of contained copper
and 10.3 million ounces of contained gold.
The project, which is listed as one of the top
priority projects by the Philippine Mines and
Geosciences Bureau, also has an inferred resource
of 188.8 million tonnes @ 0.215%
total copper, 0.048% soluble copper and
0.265 grams/tonne gold. It is 35km east of
Davao City, 13km from the coast, has a low
strip ratio (0.8:1) and is at an advanced stage
with 95,651 metres of drilling composed of
291 core and reverse circulation holes, including
6052 metres of new drilling composed
of 14 core holes (and 1 RC) in 2011.
The company’s Philippines partner, Nation-
INITIAL drilling as well as the extensive and
intense skarn alteration that extends for more
than 700 metres along strike have pr ovided
Mining Group with further indications that the
Tagpura/Bayag Bayag prospects at its Comval
Copper-Gold Project have the potential to
host a significant copper ore body. Assay results
from the first of eight holes into Bayag
Bayag target have provided results that support
extensive drilling.
The initial hole inter cepted more than 100
metres of variably skarn altered limestone consisting
of massive gar net, pyroxene, epidote
pyrrhotite and visible copper mineralization as
chalcopyrite. The assays include 44 metres @
0.64% copper from 39 metres, including 28
metres @ 0.88% copper from 55 metres.
Three holes have been drilled at Bayag
Bayag with another thr ee being drilled. The
company has a total of eight holes planned in
the initial drilling program at Bayag Bayag in
order to test the overall width and strike extent
of this mineralization. This will be done in conjunction
with ground magnetic surveyingl.
The onsite exploration team has mapped
surface mineralization consisting of skarn al-
wide Development Corporation (NADECOR),
as party to the Mineral Pr oduction Sharing
Agreement with the Philippine Gover nment,
has submitted the DMPF to the Department
of Environment and Natural Resources and
the Mines and Geosciences Bur eau for review
and approval.
The DMPF is a r egulatory requirement that
includes 20 plans, certifications and other documents
required to obtain approval from the
Philippine government to develop King-king.
This submittal begins the permitting pr ocess
and represents an important milestone. NADE-
COR’s and St Augustine’s mutual commitment
to development of the project in a manner that
is protective of health, safety and the environment
was incorporated into the DMPF.
NADECOR is in the process of resolving internal
issues within its boar d of directors, however
these issues did not impact submission
of the DMPF. Also, while some delay in the issuance
of deliverables due to St Augustine by
NADECOR has occurred as a result, the com-
pany understands that NADECOR’ s board
members and key shar eholders are working
toward resolution of these issues. Company
management is communicating constantly
with its partner to ensur e the interests of the
company and the project are protected.
St Augustine’s CEO Andrew J Russell says,
“The company has invested mor e than $70
million in the project and the DMPF to date.
The next steps are the completion of a pr efeasibility
study and following that, a bankable
feasibility study (BFS). The BFS is targeted for
completion later this year to coincide with anticipated
receipt of approved permits.
On June 1 St Augustine Services Inc, a
subsidiary of St Augustine, signed a Memorandum
of Agr eement with the T echnical
Education and Skills Development Authority
(TESDA) of the Philippines, the first such
agreement for a mining company. TESDA will
facilitate and participate in the conduct of
workforce training for the King-king pr oject
through construction and operation.
Promising indications from Comval project
teration and gossans, with this potentially mineralized
zone being identified over 700 metres
of strike length. The nature and extent of
the alteration mineral assemblage indicates
that the mineralizing system is large and par-
The pit and workings at Mining Group’s Tagpura prospect on the Comval project.
allels can be drawn with many skarn/copper
porphyry systems around the world. Skar n
alteration is a common tool for exploration of
larger porphyry mineralizing systems.
Mining Group’s managing director Andrew
Maurice says, “The initial assay r esults from
Bayag Bayag ar e encouraging, especially
Philippines
when combined with the assay r esults we
previously announced from the Tagpura and
Maangob targets. All of our targets are in relatively
close pr oximity, with Bayag Bayag
only 700 metres south of T agpura, further
supporting the potential economic viability of
the Comval copper/gold project.
“Perhaps the most significant featur e of
what we see at Bayag Bayag is evidence of
a widespread and intensive zoned alteration
system commonly associated with large copper/gold
porphyry systems.
July/August 2012 | ASIA Miner | 13