TORONTO—Cadan Resources Corp. of Canada, whose underground mining project in South Cotabato has just gone commercial, is preparing to ramp up production to take advantage of high gold prices.
Company president and CEO Robert Butchart told the Inquirer on the sidelines of the PDAC 2013 miners’ convention in Canada that the company wanted its T’boli underground gold mine in South Cotabato to reach an output capacity of 25,000 ounces per year by the end of 2013.
By 2014, Cadan wants gold production capacity at 50,000 ounces per year.
It is possible the T’boli mine will have about 1.1 million ounces of gold, at least according to its inferred mineral resource. “We expect to file an updated report before the fourth quarter of 2013,” Butchart said.
The T’boli mine was estimated to have a mine life of 20 years.
Working capital will come from the recently completed $4.46-million fundraising via private placement. The proceeds will provide working capital for both T’boli and the Batoto project, Butchart said.
The first gold pour in December 2012 reached more than $500,000 in metal value. The first gold bars made were from 1,881 dry metric tons (DMT) of milled rock from an existing stockpile derived mainly from underground vein drive development in 2011 and 2012.