Padcal gold mine’s life extended yet again, now till end-2028

INQUIRER FILE PHOTO

MANILA, Philippines — Philex Mining Corp. extended the operations of its Padcal mine in Benguet again by a full year to Dec. 31, 2028, from the previously projected end of mine life in 2027, as the company led by tycoon Manuel V. Pangilinan discovered additional gold resources to extract.

In a disclosure on Friday, Philex Mining said the decision was made based on a study that confirmed the feasibility of extending the mine life for another year.

Actively producing gold and copper since 1958, Padcal’s operating life has been extended several times, most recently in 2022 when the company announced that the mine will remain online until the end of 2027 or an additional three years.

Most recently, Philex Mining recalibrated the Padcacl mining plan following the conduct of price sensitivity analyses, which further confirmed the economic viability of such a move.

“Padcal Mine has been in operation for more than six decades and still has a remaining ore resource that can be mined depending on global metal price forecasts,” the company said.

Segue to Silangan

At the same time, the listed firm said the extension would allow “a smooth transition” to jump-start the Silangan project’s commercial operation scheduled for early 2026.

Philex Mining said this was “in response to the global demand for green metals and the government’s call for mineral resources development to be a driver for national growth and economic recovery.”

The Silangan copper and gold project in Surigao del Norte, dubbed as one of the country’s largest mining projects, is targeted to commence commercial operations by the first quarter of 2026.

Philex Mining said that Padcal mine’s additional tonnage would come from the mining of pillars at the “760-ML” production level, which will contribute good mineral grades.

“There are tonnages also from previously developed draw points beyond hundred-percent extraction that provided good grades that we continue to mine. These are on top of the minable reserves that we declared in the 2027 projected end of mine life,” the company said.

Minable

The remaining minable reserves are estimated at 30.25 million tonnes with an average gold and copper grades of 0.20 grams per tonne (g/t) and 0.18 percent, respectively, based on the mine site’s data as of Oct. 31.

The total recoverable gold is pegged at 137,600 ounces, while the total recoverable copper is expected to reach 93.20 million pounds.

Philex Mining said the new projection includes remaining reserves from the previously declared minable reserves as of Dec. 31, 2023, totaling 33.9 million tonnes with an average gold and copper grades of 0.21 g/t and 0.17 percent.

The company also said Padcal’s prolonged mine life would sustain the employment of 1,879 employees that are handling the mining project as well as the assistance given to the social development of the host and neighboring communities.