12th Feb 2019 11:14
LONDON (Alliance News) - Bezant Resources PLC on Tuesday said results from a study at its Mankayan copper-gold project, in the Philippines, discovered alternative routes to bring the mine into production.
The copper-gold exploration and development company, said that the study conducted by independent consultants Mining Plus Pty Ltd showed that the Mankayan porphyry supports "different robust routes for potential future development", including, a sub-level caving scenario.
The study reported an average production grade in excess of 0.64% copper equivalent.
The company selected four different options for further analysis in the study, and under all four, the time to initial production has been estimated to be five years.
The company's two preferred scenarios entail lower start-up costs than those with higher production rates. The first of these features a medium production rate valuing the project at USD1.18 billion. The other has lower start-up costs "coupled with a good overall project value" maintained by ramping up the production rate after the first footprint, with the project then valued USD797 million.
Chief Executive Officer Laurence Read said: "Mankayan is a major, well delineated copper-gold porphyry style deposit and this latest Mining Plus study serves to demonstrate potential robust development options able to sustain an average mining grade above 0.64% copper equivalent at average costs below USD20 per tonne."
He added: "The identification of a sub level caving route also provides a potential new way forward for Mankayan by way of an intermediary step towards full block caving which, when combined with new sequencing work, allows for first revenues to be achieved earlier for significantly reduced start-up capex."
Bezant shares were trading down 15% at 0.11 pence each.
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