Philex’s new mine seen yielding $7B in sales
Philex Mining Corp. has estimated that it will generate almost $7 billion in sales of metallic minerals throughout the lifespan of its Silangan copper-gold project in Surigao del Norte.
The listed mining company said in a disclosure it could generate gross revenues of $6.91 billion from the Boyongan deposit alone of the mining development.
Philex Mining assumed a price of $3.20 per pound of copper and $1,342 per ounce of gold in coming up with financial assumptions.
Its recently concluded feasibility study revealed that the first phase of the Silangan project covering the Boyongan deposit has approximately 81 million tons of mineable reserves that are estimated to yield 2.81 million ounces of gold and 992.8 million pounds of copper.
The Manuel Pangilinan-led company announced last December its intention to pursue the mining project using the in-phase development plan, where the deposits will be mined using a starter sublevel cave mine.
The Silangan project, which covers the Boyongan and Bayugo deposits, will initially mine 2,000 tons of ore a day. The production rate will be gradually ramped up until it reaches 12,000 tons a day or 4 million tons a year.
Once the project reaches its ninth year, a copper flotation circuit will be added to the process plant as the ore mined would, by then, consist of oxide and sulfide minerals.
Mining will start at the east sublevel cave because it has the highest grade ore. To jump-start the mining process, Philex Mining will place a new decline to access the east sublevel cave while the existing exploration decline will be rehabilitated to serve as an alternative mine access and a ventilation exhaust for mine air.
Ore from the mine will be hauled using mine trucks from the underground to the process plant at the surface, where it will be crushed and ground to required sizes.
Copper, gold and silver will be recovered using copper and gold leaching processes for the predominantly oxide minerals.
Philex Mining is slated to begin the development of the first phase of the Silangan project this year. It is targeting to commence commercial operations in the first quarter of 2025.
The initial capital cost for jump-starting the project is estimated at $224 million which will be spent within the 2.5-year development period.
The firm previously disclosed it would need around $1.5 billion to sustain the mine life of Silangan.