Australian firm halts gold exploration in Surigao
Australian firm Lindian Resources announced a halt to its gold exploration in the Philippines after local authorities decided not to extend its permit to explore resources in Surigao del Norte.
Lindian, which is listed on the Australian Securities Exchange, has rights over a project on Masapelid Island through its local unit Bundok Mineral Resources Inc. (BMRI), which has a contractual arrangement with San Manuel Mining Corp. (SMMC).
Lindian managing director Steve Leithead said in a statement that the Mines and Geosciences Bureau (MGB) had denied SMMC’s application for renewal of its exploration permit.
SMMC asked for a two-year renewal of its permit under the mineral production sharing agreement (MPSA) covering the Masapelid, where gold was mined before World War II.
Leithead clarified that, although the renewal application has been denied, the MPSA remains valid until January 2016.
He added that Lindian had sought a legal review of the MGB decision, where the bureau may have “erred in its rationale for” denying SMMC’s application.
Lindian was told that it had been denied “due process in the (MGB) decision-making process [when] a key document was withheld from [BMRI and SMMC] in the preparation” of their renewal application, Leithead said.
He added that BMRI and SMMC would prepare a motion for reconsideration to be filed within the prescribed 15 days.
Lindian “has a range of further appeal options available if the MR application fails, including, but not limited to, an appeal to the Office of the President, and if necessary, to the courts,” Leithead said.
Lindian data show that the initial gold exploration target at the Masapelid project is 300,000 to 500,000 ounces, based on a target gold resource of up to a million tons, at 10 to 15 grams of gold per ton.
