PHILEX Mining Corp., the country's largest mining firm, recently unveiled the initial mineral resource estimates for its Bayugo project, showing good prospects for its gold and copper mining site in Surigao del Norte.

In a disclosure to the Philippine Stock Exchange, the company said that external consultants and in-house geologists have made an initial estimate of 85.7 million dry metric tons (dmt) of indicated resource with 0.88 percent copper per ton and 0.73 grams of gold per ton.

The experts also estimated 32.7 million dmt of inferred resource with 0.75 percent copper per ton and 0.63 grams of gold per ton.

Boyongan and Bayugo are within the Silangan property in Tubod, Surigao del Norte. Philex has a 50 percent interest in the property, which it acquired from mining firm, Anglo American.

The other 50 percent is held by Philex Gold Inc. (PGI), a Canadian-listed company that is in turn 81-percent owned by the Philex parent firm.

Philex and PGI are conducting more drillings in the Bayugo area to further define the resource and complete the pre-feasibility study, Philex president Jose Ernesto C. Villaluna Jr. said in a disclosure to the Philippine Stock Exchange.

The Bayugo deposit is now comparable to the Boyongan deposit, which was previously announced at 104 million dmt of measured resource (with 0.80 copper grade and 0.99 grams gold per dmt) and 19.8 million dmt (0.79 copper grade and 0.70 grams gold per dmt) of inferred resource.

The exploration program at the Bayugo project is ongoing, and at the time of this mineral resource estimate, a number of ?excellent? drill results have been received, which are not yet included in the estimate above, said PGI president Rogelio G. Laraya in a separate statement.

?Once the exploration program has been completed, the complete drill hole database will be used to make an estimate for an updated resource model,? Laraya said.

The positive development on Philex?s new prospect is expected to further improve the performance of its shares on the local bourse.

Philex?s share price has skyrocketed in recent weeks on the back of persistent rumors of a bidding war for control of the mining firm between the groups of businessman Manuel Pangilinan who runs Hongkong-based First Pacific Co. Ltd. and San miguel Corp. president and COO Ramon Ang.

Philex?s share price hit a high of P20 in recent weeks due to this rumor.

On the PSE Friday, Philex shares closed lower at P18 pershare, declining by 6.5 percent along with the broad decline in stock prices, with a total of P267 million changing hands. Riza T. Olchondra