Australian firm halts gold exploration in Surigao | Inquirer Business

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.

Article continues after this advertisement

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.

FEATURED STORIES

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.

Article continues after this advertisement

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.

Article continues after this advertisement

He added that BMRI and SMMC would prepare a motion for reconsideration to be filed within the prescribed 15 days.

Article continues after this advertisement

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.

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our daily newsletter

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

TAGS: gold exploration, Mining and quarrying, San Manuel Mining Corp., Surigao del Norte

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our newsletter!

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

© Copyright 1997-2024 INQUIRER.net | All Rights Reserved

This is an information message

We use cookies to enhance your experience. By continuing, you agree to our use of cookies. Learn more here.