Philex raises Padcal resource estimate

Philex Mining Corp. has added 110.86 million tons of mineral resources to its assets in Padcal, Benguet.

Philex president Eulalio B. Austin Jr. said in a statement the updated inventory could yield 473 million pounds more of copper and 1.34 million ounces of gold.

Austin said estimated additional resources were defined at depths of 600 meters to 800 meters, shallower than Padcal’s current operating level ranging from 782 meters to 908 meters.

He added that there were on-going feasibility studies relating to mining within the 800- to 600-meter level.

The company president said that with the possible addition to the 156.81 million tons of minable inventory that was declared for Padcal’s operation, the mine’s life “may likely” be extended beyond 2020.

Also, the addition puts Padcal’s estimated copper resource at 62 percent higher than the initial 758.4 million pounds.

Likewise, the resource estimate jumped 71 percent from the original 1 million ounces.

“We look forward to the next two years of exploration within the vicinity of the Padcal mine to further identify additional resources and increase the company’s current mineral inventory,” Austin said.

In September 2014, Austin said Philex Mining was gearing up for a new five-year plan meant to further develop Padcal and help the company recover from the tailings leak accident in 2012.

He said that the plan involved exploration on three target sites adjacent to the current mining area.

Regulators suspended operations in the Padcal mine following heavy rains that caused a sinkhole in one of its tailings pond in 2012.

This resulted in nontoxic water and tailings being released to the nearby creek, which converges with the river in Pangasinan.

Last September, Austin said the company needed to stabilize its revenues in the wake of the suspension of operation—now lifted—and especially considering that mine was approaching end-life when ore grades are dropping.

He explained that a drop in ore grades could pull down a company’s top line. Thus, Philex was looking into ways to improve operational efficiency.