11th Mar 2014 12:31
LONDON (Alliance News) - Metals Exploration PLC Tuesday said the construction phase of its Runruno gold-molybdenum project is developing on budget with Stage 2 work underway.
The natural resources exploration and development company, with operations in the Philippines, said it remains on track and on budget to support the objective of starting operations in the fourth quarter with construction 46% complete as of January 31.
Metals Exploration said that engineering of the processing plant on site was 75% complete at January 31 and construction work on stage two of the company's 69 kilovolt overhead power line at the site has started and is now also 75% complete.
The company added that its forecast operating costs have now been updated to average USD474 per ounce of gold at the site over the first five years of production, an increase on its 2010 estimate of USD442 per ounce.
Metals Exploration already mines from the site and has been ramping up mining activity with over 1.6 million tonnes of material mined from within the pit outline to date and a further 5.0 million tonnes planned to be mined over the next nine-month period in advance of production through the processing plant.
The company said that in further mining at the site, mineralisation is showing a positive link to the company's ore reserve block model, and its resource continues to be extended, with two holes in the last few months confirming the continuity of mineralisation to the south and east of its ore model.
Metals Exploration also said that its plan to secure a USD70 million debt financing facility is progressing well and nearing completion, and noted that the finalisation of this process will conclude Runruno's financing requirements.
Metals Exploration shares were up 8.7% to 6.25 pence Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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