KING-KING COPPER-GOLD PROJECT
MINDANAO, PHILIPPINES
TECHNICAL REPORT
PURSUANT TO NATIONAL INSTRUMENT 43-101 OF
THE CANADIAN SECURITIES ADMINISTRATORS
Prepared For
RATEL GOLD LIMITED
and
RUSSELL MINING AND MINERALS, INC.
Prepared By
INDEPENDENT
MINING CONSULTANTS, INC.
Michael G. Hester, FAusIMM
Vice President and Principal Mining Engineer
Independent Mining Consultants, Inc.
Donald F. Earnest, P.G.
President
Resource Evaluation, Inc
John G. Aronson
President
AATA International, Inc.
October 12, 2010
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
i
Table of Contents
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
11.0
12.0
Summary
.
.
.
.
.
.
.
.
.
1.1
General
.
.
.
.
.
.
.
.
1.2
Geology
.
.
.
.
.
.
.
.
1.3
Exploration
1.4
Mineral Resource
.
.
.
.
.
.
.
1.5
Mineral Processing and Recovery to Saleable Product.
.
.
1.6
Environmental and Permitting
.
.
.
.
.
1.7
Conclusions and Recommendations .
.
.
.
.
Introduction and Terms of Reference .
.
.
.
.
.
Reliance on Other Experts. .
.
.
.
.
.
.
Property Description and Location .
.
.
.
.
.
4.1
Property Location
.
.
.
.
.
.
.
4.2
Land Area and Mining Claim Description .
.
.
.
4.3
Agreements and Encumbrances
.
.
.
.
.
4.4
Other Mineral and Mining Activities outside the Property Boundaries
4.5
Environmental Obligations .
.
.
.
.
.
4.6
Permit Status .
.
.
.
.
.
.
.
Accessibility, Climate, Local Resources, Infrastructure and Physiography .
5.1
Access .
.
.
.
.
.
.
.
.
5.2
Climate
.
.
.
.
.
.
.
.
5.3
Local Resources
.
.
.
.
.
.
.
5.4
Infrastructure .
.
.
.
.
.
.
.
5.5
Physiography .
.
.
.
.
.
.
.
5.6
Mining Surface Rights and Mining Personnel
History
.
.
.
.
.
.
.
.
.
Geologic Setting
.
.
.
.
.
.
.
.
7.1
Regional Geology
.
.
.
.
.
.
.
7.2
Local Geology.
.
.
.
.
.
.
.
Deposit Types .
.
.
.
.
.
.
.
.
Mineralization .
.
.
.
.
.
.
.
.
9.1
General
.
.
.
.
.
.
.
.
9.2
Oxide Zone .
.
.
.
.
.
.
.
9.3
Mixed Zone .
.
.
.
.
.
.
.
9.4
Sulfide Zone .
.
.
.
.
.
.
.
9.4
Microthermometry .
.
.
.
.
.
.
Exploration .
.
.
.
.
.
.
.
.
Drilling
.
.
.
.
.
.
.
.
.
Sampling Method and Approach.
.
.
.
.
.
.
12.1 General
.
.
.
.
.
.
.
.
12.2 Mitsubishi Metal Mining Corp
.
.
.
.
.
12.3 Benguet Corporation .
.
.
.
.
.
.
12.4 Echo Bay Mines Ltd. (King-king Mines Inc) .
.
.
.
Technical Report / Form 43-101F1
1
1
2
2
3
10
11
12
14
16
18
18
19
23
24
24
25
28
28
28
28
29
30
31
31
34
34
36
51
52
52
52
53
54
54
55
56
60
60
61
61
62
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
ii
Table of Contents (Continued)
13.0
Sample Preparation, Analyses and Security .
.
.
.
.
13.1 Mitsubishi Drilling Program .
.
.
.
.
.
13.2 Benguet Drilling Programs .
.
.
.
.
.
13.3 Echo Bay Drilling Programs .
.
.
.
.
.
13.4 IMC/REI Opinion of Sample Preparation, Security and
Analytical Procedures .
.
.
.
.
.
14.0 Data Verification
.
.
.
.
.
.
.
.
14.1 Comparison of Assays with Original Assay Certificates
.
.
14.2 Echo Bay Re-Assays of Benguet Samples .
.
.
.
14.3 RMMI Check Assays .
.
.
.
.
.
.
14.4 Conclusions and Recommendations .
.
.
.
.
15.0 Adjacent Properties .
.
.
.
.
.
.
.
16.0 Mineral Processing and Metallurgical Testing
.
.
.
.
16.1 Metallurgical Samples
.
.
.
.
.
.
16.2 Grinding
.
.
.
.
.
.
.
.
16.3 Flotation Area .
.
.
.
.
.
.
.
16.4 Analytical Procedures for Process Testing .
.
.
.
17.0 Mineral Reserves and Mineral Resource Estimates .
.
.
.
17.1 Mineral Resource
.
.
.
.
.
.
.
17.2 Mineral Reserve
.
.
.
.
.
.
.
17.3 Description of the Block Model
.
.
.
.
.
17.4 Resource Classification
.
.
.
.
.
.
17.5 Bulk Density .
.
.
.
.
.
.
.
17.6 Impact of Various Drilling Campaigns
.
.
.
.
18.0 Other Relevant Data and Information .
.
.
.
.
.
18.1 Review of 1997 Kilborn SNC Lavalin Feasibility Report. .
.
18.2 Conservative Mineral Resource Calculation .
.
.
.
18.3 Environment and Socioeconomic Issues.
.
.
19.0 Interpretation and Conclusions
.
.
.
.
.
.
20.0 Recommendations
.
.
.
.
.
.
.
.
21.0 References
.
.
.
.
.
.
.
.
.
22.0 Date and Signature Page
.
.
.
.
.
.
.
23.0 Additional Requirements for Technical Reports on Development Properties
23.1 Mining Operations .
.
.
.
.
.
.
23.2 Recoverability .
.
.
.
.
.
.
.
23.3 Markets
.
.
.
.
.
.
.
.
23.4 Project Approach.
.
.
.
.
.
.
.
23.5 Taxes and Other Payments. .
.
.
.
.
.
23.6 Capital and Operating Costs, Economic Analysis. .
.
.
24.0 Certificates of Qualified Persons.
.
.
.
.
.
.
25.0 Figures
.
.
.
.
.
.
.
.
.
Appendix 1. Head Assay Analysis Log
.
.
.
.
.
.
Appendix 2. Pertinent Legal Documents .
.
.
.
.
.
Appendix 3. Environmental .
.
.
.
.
.
.
.
Appendix 4. Relevant Samples
.
.
.
.
.
.
.
Technical Report / Form 43-101F1
63
63
63
64
68
69
69
78
87
88
91
92
93
98
99
104
106
106
109
111
123
127
128
130
130
134
134
162
163
167
170
171
171
172
175
177
179
180
181
185
204
207
220
275
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
iii
List of Tables
1-1
1-2
1-3
4-1
11-1
11-2
14-1
14-2
14-3
14-4
14-5
16-1
16-2
16-3
16-4
16-5
16-6
16-7
16-8
16-9
16-10
16-11
16-12
16-13
16-14
16-15
17-1
17-2
17-3
17-4
17-5
17-6
18-1
20-1
20-2
23-1
Mineral Resource
.
.
.
.
.
.
.
.
Economic Parameters for King-king .
.
.
.
.
.
Proposed Mine and Plant Production Schedule
.
.
.
.
King-king Permits
.
.
.
.
.
.
.
.
Drilling by Campaign .
.
.
.
.
.
.
.
Drilling History by Company .
.
.
.
.
.
.
Comparison of Drillhole Database with Assay Certificates – Echo Bay Drilling
Comparison of Drillhole Database with Geologic Logs – Benguet Drilling .
Changes to Database since 2009 Due Diligence Review
.
.
.
RMMI Check Assays versus Original Assays – Total Copper
.
.
RMMI Check Assays versus Original Assays – Gold
.
.
.
Sulfide Ore Sample Details .
.
.
.
.
.
.
1S Composite Sample Description .
.
.
.
.
.
2S Composite Sample Description .
.
.
.
.
.
Head Grade Assays of Sulfide Ore Composites
.
.
.
.
Mineralogy of Sulfide Ore Composite Samples
.
.
.
.
Oxide Ore Sample Details .
.
.
.
.
.
.
Oxide Composite Sample Description
.
.
.
.
.
Head Grade Assays of Oxide Ore Composite.
.
.
.
.
Mineralogy of Oxide Ore Composite .
.
.
.
.
.
History of Grinding Tests
.
.
.
.
.
.
.
Oxide Flotation Results for New Reagents .
.
.
.
.
Concentrate Impurities in Lakefield Study .
.
.
.
.
Flotation Design Criteria
.
.
.
.
.
.
.
History of Flotation/Leaching Tests .
.
.
.
.
.
Head Assay Analysis Log
.
.
.
.
.
.
.
King-king Mineral Resource .
.
.
.
.
.
.
Economic Parameters for King-king .
.
.
.
.
.
King-king Lithology for Resource Modeling .
.
.
.
.
General Ore Type Criteria .
.
.
.
.
.
.
Specific Gravity Measurements by Rock Type
.
.
.
.
Comparison of Various Drilling Campaigns for Copper
.
.
.
Parameters and Resource Estimates for 1997 Kilborn Study and 2010 Study
Proposed Drill Holes .
.
.
.
.
.
.
.
Additional Drilling and Study Cost
Proposed Mine and Plant Production Schedule
.
.
.
.
Technical Report / Form 43-101F1
4
6
8
27
56
56
73
75
76
89
90
93
94
94
94
95
96
97
97
97
99
101
102
103
103
105
106
109
112
112
128
129
130
164
166
173
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
iv
List of Figures
1-1
1-2
4-1
4-2
4-3
5-1
7-1
7-2
7-3
7-4
7-5
9-1
11-1
11-2
14-1
14-2
14-3
14-4
14-5
14-6
14-7
14-8
14-9
14-10
14-11
16-1
17-1
17-2
17-3
17-4
17-5
17-6
17-7
17-8
17-9
17-10
17-11
17-12
17-13
17-14
17-15
17-16
17-17
Final Pit
.
.
.
.
.
.
.
.
.
Conceptual Process Flow Diagram .
.
.
.
.
.
Project Location
.
.
.
.
.
.
.
.
Mining Tenement Location .
.
.
.
.
.
.
Major Deposit Areas with Respect to Tenement Boundary .
.
.
Physiography .
.
.
.
.
.
.
.
.
Regional Geology
.
.
.
.
.
.
.
.
Local Geology.
.
.
.
.
.
.
.
.
Commonly Referenced Deposit Areas
.
.
.
.
.
District Alteration
.
.
.
.
.
.
.
.
Mineral Prospect Areas
.
.
.
.
.
.
.
Mineral Zones from the Block Model
.
.
.
.
.
Drillhole Locations by Campaign
.
.
.
.
.
.
EB-27 Collar .
.
.
.
.
.
.
.
.
Echo Bay Re-assay of Benguet Samples – Total Copper
.
.
.
Echo Bay Re-assay of Benguet Samples – Total Copper – Log Base 10
.
%Half Relative Deviation vs Mean – Echo Bay Re-assays of Benguet Copper
%Half Relative Deviation vs Mean – Echo Bay Re-assays of Benguet Gold
Echo Bay Re-assay of Benguet Samples – Gold
.
.
.
.
Echo Bay Re-assay of Benguet Samples – Gold – Log Base 10
.
.
Echo Bay Re-assay of Benguet Samples – Soluble Copper .
.
.
Total Copper – RMMI Check Assay vs Original Assays
.
.
.
HRD% vs Mean Copper Grade for RMMI Check Assays .
.
.
Gold – RMMI Check Assays vs Original Assays
.
.
.
.
HRD% vs Mean Gold Grades for RMMI Check Assays
.
.
.
Process Flow Diagram
.
.
.
.
.
.
.
Resource Cone
.
.
.
.
.
.
.
.
Model Lithology – 325 Bench
.
.
.
.
.
.
Model Lithology on Section 10,300 .
.
.
.
.
.
Structural Zones with GT Data
.
.
.
.
.
.
Box Plot of Total Copper by Rock Type – 15m Composites .
.
.
Box Plot of Soluble Copper by Rock Type – 15m Composites
.
.
Box Plot of Gold by Rock Type – 15m Composits .
.
.
.
Probability Plot of Total Copper by Rock Type – 15m Composites .
.
Probability Plot of Soluble Copper by Rock Type – 15m Composites.
.
Probability Plot of Gold by Rock Type – 15m Composites .
.
.
Box Plot of Total Copper by Structural Zone – 15m Composites .
.
Box Plot of Soluble Copper by Structural Zone – 15m Composites .
.
Box Plot of Gold by Structural Zone – 15m Composites
.
.
.
Probability Plot of Total Copper by Structural Zone – 15m Composites
.
Probability Plot of Soluble Copper by Structural Zone – 15m Composites .
Probability Plot of Gold by Structural Zone – 15m Composites
.
.
Box Plot of Total Copper by Oxide/Sulfide Code – 15m Composites
.
Technical Report / Form 43-101F1
9
11
18
20
22
30
35
37
38
45
50
53
57
59
81
82
83
83
84
85
86
89
89
90
90
92
110
113
114
115
186
187
188
189
190
191
192
193
194
195
196
197
198
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
v
List of Figures (Continued)
17-18
17-19
17-20
17-21
17-22
17-23
17-24
17-25
17-26
17-27
17-28
17-29
17-30
18-1
18-2
18-3
18-4
18-5
18-6
18-7
18-8
18-9
18-10
18-11
20-1
23-1
23-2
23-3
Box Plot of Soluble Copper by Oxide/Sulfide Code – 15m Composites
.
Box Plot of Gold by Oxide/Sulfide Code – 15m Composites
.
.
Probability Plot of Total Copper by Oxide/Sulfide Code – 15m Composites
Probability Plot of Soluble Copper by Oxide/Sulfide Code – 15m Composites
Probability Plot of Gold by Oxide/Sulfide Code – 15m Composites .
.
Total Copper Variograms. Host Rocks in Sulfide Zone
.
.
.
Total Copper Variograms. Intrusive Rocks in Sulfide Zone .
.
.
Copper Grades on Section 10,300 .
.
.
.
.
.
Gold Grades on Section 10,300
.
.
.
.
.
.
Resource Classification for Total Copper
.
.
.
.
.
Resource Classification for Gold
.
.
.
.
.
.
Cross Section 10350 Showing Resource Classification
.
.
.
Specific Gravity versus Ascu/Tcu Ratio
.
.
.
.
.
Permitting Roadmap for the King-king Project
.
.
.
.
Illegal Small-Scale Mining at the King-king Site
.
.
.
.
View of Pantukan, Excessive Siltation in the King-king River
.
.
The King-king River in the Lowlands as It Enters the Davao Gulf .
.
The King-king River in the Lowlands
.
.
.
.
.
The King-king River in the Low Mountains .
.
.
.
.
The King-king River in the High Mountains Surrounding the Project Site .
The King-king Project Site (View 1) .
.
.
.
.
.
The King-king Project Site (View 2) .
.
.
.
.
.
The King-king Project Site – Showing Eroded Area .
.
.
.
Illegal Small Miners’ Living Quarters and Processing Facilities
.
.
Proposed Holes
.
.
.
.
.
.
.
.
Final Pit Design
.
.
.
.
.
.
.
.
Copper Supply, Mt Contained Copper (from BHP-Billiton) .
.
.
Copper Prices and Inventories (from Freeport McMoRan) .
.
.
Technical Report / Form 43-101F1
199
200
201
202
203
118
119
121
122
124
125
126
127
139
141
142
144
145
145
146
147
147
150
150
165
174
176
176
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
1.0
Summary
1.1
General
1
This Technical Report presents a mineral resource estimate for the King-king Copper-Gold
Project in eastern Compostela Valley, Mindanao, Philippines. King-king has been
extensively drilled, sampled, and delineated and constitutes a significant copper-gold deposit.
This document summarizes the resource tonnage, grade, and classification and other
pertinent information consistent with NI 43-101. This report contains an initial life of mine
plan which utilizes the resource established herein by Independent Mining Consultants, Inc.
(IMC). The King-king Project is not currently an operating property and there has not been
any commercial scale production from the property.
This document follows the format of Form 43-101F1 for Technical Reports in Canada and
JORC Code guidelines for Public Reports in Australia. The mineral resource estimate was
prepared for Ratel Gold Limited (Ratel) and Russell Mining and Minerals, Inc, (RMMI).
The King-king Copper-Gold Project is held in a Mineral Production Sharing Agreement
(MPSA#009-92-XI, approved by the government May 27, 1992 and amended December 11,
2002) by The Philippine Government, NADECOR (Nationwide Development Corporation),
and Benguet Corporation. The MPSA grants the parties to the MPSA the exclusive right to
explore, develop and exploit minerals within the area comprising the King-king deposit. The
deposit size depicted in Figure 1-1 below is 2.5 square kilometers and the area of the Mineral
Property in the MPSA is 15.5 square kilometers (see Figure 4-2). There is a memorandum of
understanding (MOU) between NADECOR and St. Augustine Mines Ltd., a subsidiary of
Russell Mining and Minerals, Inc. (RMMI), that provides for formation of a Joint Venture
(JV) once Benguet Corporation is eliminated from the MPSA. Under the MOU, RMMI
retains the exclusive right to develop the project through itself or an associated entity. Ratel
and RMMI have agreed to complete a Share Exchange Agreement wherein Ratel will gain
100 percent control of SAML and RMMI will be compensated in Ratel equity.
This work was completed by three companies, Independent Mining Consultants (IMC),
AATA International, Inc. (AATA) and Resource Evaluation Inc. (REI).
Their
responsibilities and the qualified persons are listed in Section 2.0 (Introduction).
The King-king Copper/Gold Project is located approximately 92 road kilometers from Davao
City, Mindanao, Philippines. King-king is a gold-rich porphyry copper deposit spatially
related to significant epithermal vein systems that can be potentially exploited by open pit
mining methods to produce economic concentrations of gold and copper. Most of the
mineralization is amenable to flotation and to gravity concentration to produce two
concentrates: 1) a copper-gold concentrate and 2) a gold concentrate. The porphyry deposit
is spatially related to significant epithermal vein systems which with further exploration
could prove to host economically important precious metal mineralization.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
1.2
2
Geology
The King-king Deposit is a porphyry copper-gold deposit hosted by hornblende biotite
diorite porphyritic rocks that intrude interbedded sediments, submarine volcanic rocks, and
volcanoclastic sediments. The intrusive rocks are believed to be Miocene in age, while the
the wall rocks are Cretaceous to early Tertiary. Copper and gold mineralization occurs at or
near the apex of the composite diorite intrusive complex within the intrusive rocks and
extending well into the surrounding wall rocks.
The majority of the sulfide copper mineralization in the King-king deposit consists of
chalcopyrite and bornite, with lesser amounts of chalcocite, digenite, and covellite. Rapid
regional uplift and erosion likely caused the nearly complete removal of a classical leached
cap and prevented the development of typically thick oxide and supergene enriched zones
found in other major porphyry deposits. Copper mineralization in the oxide zone includes
malachite, chrysocolla, cuprite, and tenorite. Gold is relatively abundant in the oxide zone,
as evidenced by widespread gold panning and small-scale mining activities on the oxidized
slopes above the main King-king zone. Gold occurs in the sulfide zone of the deposit in free
form in close association with bornite and as exsolution intergrowths in other sulfides,
particularly chalcopyrite. Native gold is occasionally observed on fractures and in
quartz veinlets.
The King-king deposit is pyrite-poor, averaging less than one percent by volume for the
entire deposit. This is reflected by the relative absence of a pyrite halo that is commonly
developed around many porphyry copper deposits.
For process development purposes, two types of mineralization are considered: sulfide and
oxide (which includes mixed oxide-sulfide material).
1.3
Exploration
Exploration of the King-king deposit has spanned a few decades, and represents the efforts of
numerous companies and individuals. A wide variety of techniques have been employed,
including:
1)
2)
3)
4)
5)
6)
Surface mapping and sampling
Drilling (primarily diamond core)
Adit and raise sampling
Geochemistry (soil, stream, and down-hole)
Development of cross sections, long sections, and plan maps
Physical and computer-generated three-dimensional modeling.
A significant portion of past work focused on drilling to explore, define and confirm the
economic potential of the property.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
3
The interpretation of the exploration work done to date is that the King-king deposit is a
significant copper-gold porphyry system with the potential to become an economic project.
The drilling done to date has also been used to develop an NI 43-101 compliant mineral
resource for the deposit, as presented in Section 1.4 and 17.
All of the exploration data collection, including the drilling data, is historic data compiled by
previous property owners. Ratel and its contractors were not involved in the compilation of
this data. The only work conducted by Ratel and its contractors is the interpretation of the
mapping and drilling data to develop the current mineral resource.
Future drilling will focus on geotechnical diamond drilling to obtain core samples for pit wall
stability analysis, final slope angle definition and hydrology-pore pressure studies, and
hydrogeological studies. Additional diamond drilling will collect samples for metallurgy
testing, in-fill certain areas of the deposit for confirmation of gold assays generated by the
earlier Benguet drilling, and to better define certain lithologic contacts.
1.4
Mineral Resource
A major task of IMC is the establishment of a mineral resource including tonnage, ore grade,
and classification. The mineral resource was developed based on historic drilling that was
completed by three companies from 1972 – 1997 (Mitsubishi Corporation, Benguet
Corporation and Echo Bay Mining. The assay information was on electronic files. These
files were checked and corrected by hand comparison to assay certificates and printed
scanned paper logs, and an electronic data base for assembly of a block model was produced.
An important aspect of IMC’s mandate is to verify the validity of drill and assay data. As
part of this project, 100 core samples for independent check assay analysis were recovered
from the core drilled by Benguet and Echo Bay that is currently stored at the core shed
located in Pantukan City, Compostela Valley. The results of those assays confirm the
presence of gold and copper. IMC and REI hold the opinion that these recent check assays
provide sufficient confidence that the data generated and compiled by Benguet and Echo Bay
are valid for the estimation of measured and indicated mineral resources.
The King-king Copper/Gold deposit is currently envisioned to be mined using large scale
open pit mining methods to produce ore to a flotation concentrator. Initial estimates of
mining, process, and overhead costs were applied along with initial estimates of process and
mining recovery to establish an estimate of mineral resources that have reasonable
expectation of economic extraction. Table 1-1 summarizes the mineral resources at the
King-king Copper/Gold Project as determined by IMC.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
4
Table 1-1. King-king Mineral Resource
Ore
Type
Ore
Ktonnes
Eq Cu
(%)
Tot Cu
(%)
Sol Cu
(%)
Gold
(g/t)
10/4/2010
Eq Au
(g/t)
0.855
0.536
0.658
0.444
0.269
0.336
0.266
0.037
0.124
0.575
0.445
0.495
1.196
0.894
1.009
0.654
0.454
0.489
0.349
0.253
0.270
0.210
0.032
0.063
0.428
0.335
0.351
0.916
0.757
0.785
0.705
0.463
0.512
0.373
0.255
0.279
0.224
0.033
0.072
0.465
0.347
0.371
0.987
0.771
0.815
0.541
0.394
0.431
0.288
0.219
0.237
0.167
0.025
0.061
0.353
0.292
0.308
0.756
0.657
0.682
Measured Mineral Resource
Oxide
Sulfide
Total
40,879
66,402
107,281
Indicated Mineral Resource
Oxide
Sulfide
Total
120,443
563,800
684,243
Measured/Indicated Mineral Resource
Oxide
Sulfide
Total
161,322
630,202
791,524
Inferred Mineral Resource
Oxide
Sulfide
Total
31,915
93,548
125,463
Notes:
Eq Cu (oxide) = Total Copper + 0.715 x Gold, Cutoff = 0.27% Eq Cu
Eq Cu (sulfide) = Total Copper + 0.600 x Gold, Cutoff = 0.23% Eq Cu
Alternatively, as Equivalent Gold:
Eq Au (Oxide) = Gold + 1.399 x Total Copper, Cutoff = 0.37 g/t Eq Au
Eq Au (Sulfide) = Gold + 1.668 x Total Copper, Cutoff = 0.38 g/t Eq Au
Total Material in Cone Shell
1,429,845 Ktonnes
Waste:Ore Ratio
0.81 (Inferred as Waste)
Waste:Ore Ratio
0.56 (Inferred as Ore)
Measured and indicated mineral resource amounts to 791.5 million tonnes at 0.512% copper
equivalent, 0.279% total copper, 0.072% soluble copper, and 0.371 g/t gold. Inferred mineral
resource is an additional 125.5 million tonnes at 0.431% copper equivalent, 0.237% total
copper, 0.061% soluble copper, and 0.308 g/t gold. The measured and indicated mineral
resource consists of 4.9 billion pounds of contained copper and 9.4 million troy ounces of
contained gold. The last column of the table also shows that with metal grades defined in
terms of equivalent gold, instead of equivalent copper, the equivalent gold grade of the
measured and indicated mineral resource is 0.815 g/t gold equivalent (0.99 g/t for the oxide
resource and 0.77 g/t for the sulfide resource).
Based on current market conditions, Independent Mining Consultants, Inc. (IMC) would
classify the King-king deposit as a copper-gold co-product deposit. The historical
precedence is to rank the minerals in a deposit in order of economic significance, which is
generally defined in terms of gross revenue. Based on the measured and indicated mineral
resource for King-king and the October 1, 2010 closing spot prices of $3.68 per pound
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
5
copper and $1320 per ounce gold, and preliminary estimates of plant recovery and smelter
payable amounts (Table 1-2), about 60% of the potential revenue is due to copper and 40%
due to gold. Since the gold contribution is more than 25% of total revenue, gold is classified
as a co-product, instead of a by-product. At the $1320 gold price the copper price would
have to drop to about $2.50 per pound for gold to be the predominant revenue driver.
The resources are contained within a floating cone pit shell and are compliant with the
“reasonable prospects for economic extraction” clauses of Canada’s NI 43-101 regulations
and also Australia’s JORC code. The cone shell is based on a copper price of US$ 1.75 per
pound and a gold price of US$ 660 per troy ounce.
For $1.75 copper and $660 gold, copper equivalent grades are defined as:
Eq Cu (Oxide Ores) = Total Copper + 0.715 x Gold
Eq Cu (Sulfide Ores) = Total Copper + 0.600 x Gold
And breakeven copper equivalent cutoff grades are 0.27% and 0.23% for oxide and sulfide
respectively. Table 1-2 summarizes the economic parameters used.
Only measured and indicated resource blocks were allowed to contribute to the development
of the floating cone shell used for the resource tabulation; inferred blocks were treated as
waste to develop the cone shell.
There is no guaranty that any of the mineral resource will be converted to mineral reserve.
There is also no guaranty that inferred mineral resource will be upgraded to measured or
indicated mineral resource or mineral reserves.
IMC has also developed a preliminary mining production schedule (i.e. production forecast)
for the King-king Project. Seven mining phases were designed to do the scheduling. The
phases include haulage roads and adequate working room for large mining equipment.
Figure 1-1 shows the final pit design. The final pit design was based on the economic
parameters shown above, including commodity prices of $1.75 per pound copper and $660
per ounce gold. Only measured and indicated mineral resource was allowed to contribute to
the design.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
6
Table 1-2. Economic Parameters for King-king
Parameter
Copper Price Per Pound
Gold Price Per Troy Ounce
Base Mining Cost Per Tonne Material
Mine Replacement Capital Per Tonne
Lift Cost Per Bench Below 250
Process Cost Per Ore Tonne
G&A Cost Per Ore Tonne
Process Recovery of Copper (Average)
Process Recovery of Gold (Average)
Smelting/Refining Payable for Copper
Smelting/Refining Payable for Gold
SRF Cost Per Pound Copper
NSR Royalty
NSR Factor for Total Copper
NSR Factor for Gold
Gold Factor for Copper Equivalent
Total Copper Equivalent Cutoff Grades
Breakeven (without lift)
Internal
Copper Factor for Gold Equivalent
Gold Equivalent Cutoff Grades
Breakeven (without lift)
Internal
Units
(US$)
(US$)
(US$)
(US$)
(US$)
(US$)
(US$)
(%)
(%)
(%)
(%)
(US$)
(%)
(US$)
(US$)
(none)
$1.75 Cu / $660 Au
Oxide/Mix Sulfide
1.750
1.750
660
660
1.100
1.100
0.150
0.150
0.015
0.015
4.200
4.200
0.600
0.600
74.3%
85.9%
83.4%
80.9%
96.4%
96.4%
95.0%
95.0%
0.260
0.260
3.0%
3.0%
22.822
26.385
16.308
15.819
0.715
0.600
(%Cu)
(%Cu)
(none)
0.27
0.21
1.399
0.23
0.18
1.668
(g/t)
(g/t)
0.37
0.29
0.38
0.30
Table 1-3 shows the mine production schedule. Ore production varies by year because it is
based on 8766 plant hours per year with an oxide/mixed ore processing rate of 48,300 ktpy
(0.1815 hrs/kt) and a sulfide processing rate of 36,500 ktonnes per year (0.2402 hrs/kt). Ore
mined during preproduction and Year 1 amounts to 36,800 ktonnes or about 80% of nominal
plant capacity. The copper equivalent cutoff grade varies by year to balance the mine and
plant production rates.
Preproduction stripping requirements are minimal at 12.7 million tonnes. Total material is
scheduled at 51.2 million tonnes for Year 1. Years 2 through 16 total material requirements
are about 72 million tonnes per year.
This schedule results in 812.5 million ore tonnes at 0.275% total copper, 0.367 g/t gold and
0.506% copper equivalent. This is measured and indicated resource only, inferred resource is
considered waste. Total material is 1.46 billion tonnes.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
7
The table also shows that between a potential low-grade cutoff grade of 0.2% copper
equivalent and the operating cutoff grade for each year there is the potential to stockpile 49.7
million ore tonnes at 0.160% copper and 0.132 g/t gold.
The table also shows a proposed plant production schedule. Year 1 is shown as the ore
mined during preproduction and Year 1 and Years 22 and 23 include the low grade.
Including the low grade, total plant production amounts to 862.2 million ore tonnes at
0.268% total copper, 0.354 g/t gold, and 0.491% copper equivalent.
Total plant production is about 9% more ore tonnes than the measured/indicated mineral
resource. The mineral resource was tabulated at breakeven cutoff grades of 0.27% Eq Cu for
oxide and 0.23% Eq Cu for sulfide. Operating cutoff grades for the production schedule
were allowed to go down to 0.21% Eq Cu (internal cutoff) for oxide/mixed material and
0.20% Eq Cu for sulfide.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
8
Table 1-3. Proposed Mine and Plant Production Schedule
Mining
Year
PP
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
TOTAL
Mine Production Schedule
Cu Eq
Ore
Cu Eq Tot Cu Sol Cu
Cutoff (%) Ktonnes
(%)
(%)
(%)
0.32
4,830
0.642
0.492
0.275
0.32
31,970
0.791
0.466
0.299
0.36
43,874
0.875
0.412
0.226
0.30
42,410
0.802
0.392
0.154
0.26
42,700
0.556
0.227
0.082
0.26
39,190
0.568
0.256
0.058
0.25
40,490
0.483
0.332
0.094
0.23
36,740
0.457
0.323
0.033
0.20
37,300
0.506
0.326
0.050
0.20
37,670
0.497
0.304
0.048
0.20
37,770
0.444
0.300
0.043
0.24
36,880
0.438
0.274
0.033
0.24
36,630
0.436
0.245
0.029
0.24
36,590
0.446
0.227
0.029
0.24
36,510
0.468
0.227
0.029
0.20
36,590
0.432
0.205
0.029
0.20
36,690
0.419
0.210
0.032
0.20
36,510
0.349
0.185
0.031
0.20
36,500
0.373
0.205
0.033
0.20
36,500
0.385
0.206
0.031
0.20
36,500
0.408
0.217
0.027
0.20
36,500
0.393
0.189
0.025
0.20
15,112
0.458
0.244
0.038
812,456
0.506
0.275
Technical Report / Form 43-101F1
0.069
Low Grade Stockpile
Gold
Ore
Cu Eq Tot Cu Sol Cu
(g/t)
Ktonnes
(%)
(%)
(%)
0.212
2,363
0.263
0.166
0.101
0.459
1,427
0.282
0.203
0.060
0.676
9,871
0.295
0.228
0.138
0.623
2,743
0.258
0.161
0.088
0.492
6,353
0.233
0.116
0.037
0.490
6,956
0.231
0.135
0.034
0.241
5,416
0.227
0.172
0.048
0.223
2,624
0.216
0.153
0.013
0.297
0.318
0.235
0.270
3,896
0.223
0.148
0.016
0.317
3,252
0.222
0.137
0.012
0.364
2,586
0.222
0.124
0.015
0.401
2,215
0.222
0.113
0.015
0.378
0.348
0.273
0.280
0.299
0.318
0.340
0.357
0.367
49,702
0.245
0.160
0.058
Gold
Waste
(g/t)
Ktonnes
0.135
5,500
0.120
17,841
0.097
17,750
0.141
26,847
0.176
22,947
0.156
25,854
0.086
26,094
0.105
32,636
34,700
34,330
34,230
0.123
31,224
0.142
32,118
0.163
32,824
0.182
33,275
35,410
35,310
30,991
25,321
19,668
14,994
15,293
8,458
0.132
Total
Tonnes
12,693
51,238
71,495
72,000
72,000
72,000
72,000
72,000
72,000
72,000
72,000
72,000
72,000
72,000
72,000
72,000
72,000
67,501
61,821
56,168
51,494
51,793
23,570
593,615 1,455,773
Waste:
Ore
0.76
0.53
0.33
0.59
0.47
0.56
0.57
0.83
0.93
0.91
0.91
0.77
0.81
0.84
0.86
0.97
0.96
0.85
0.69
0.54
0.41
0.42
0.56
0.69
Ore
Ktonnes
36,800
43,874
42,410
42,700
39,190
40,490
36,740
37,300
37,670
37,770
36,880
36,630
36,590
36,510
36,590
36,690
36,510
36,500
36,500
36,500
36,500
39,058
25,756
862,158
Cu Eq
(%)
0.771
0.875
0.802
0.556
0.568
0.483
0.457
0.506
0.497
0.444
0.438
0.436
0.446
0.468
0.432
0.419
0.349
0.373
0.385
0.408
0.393
0.327
0.245
0.491
Proposed Plant Schedule
Tot Cu Sol Cu
Gold
Hours/
(%)
(%)
(g/t)
Ktonne
0.469
0.412
0.392
0.227
0.256
0.332
0.323
0.326
0.304
0.300
0.274
0.245
0.227
0.227
0.205
0.210
0.185
0.205
0.206
0.217
0.189
0.193
0.160
0.268
0.296
0.226
0.154
0.082
0.058
0.094
0.033
0.050
0.048
0.043
0.033
0.029
0.029
0.029
0.029
0.032
0.031
0.033
0.031
0.027
0.025
0.050
0.058
0.068
0.427
0.676
0.623
0.492
0.490
0.241
0.223
0.297
0.318
0.235
0.270
0.317
0.364
0.401
0.378
0.348
0.273
0.280
0.299
0.318
0.340
0.219
0.132
0.354
0.1897
0.1998
0.2067
0.2053
0.2237
0.2165
0.2386
0.2350
0.2327
0.2321
0.2377
0.2393
0.2396
0.2401
0.2396
0.2389
0.2401
0.2402
0.2402
0.2402
0.2402
0.2244
0.2145
0.2280
Plant
Hours
6,979
8,766
8,766
8,766
8,767
8,766
8,766
8,766
8,766
8,766
8,766
8,766
8,767
8,766
8,767
8,765
8,766
8,767
8,767
8,767
8,767
8,766
5,524
196,597
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
9
Figure 1-1. Final Pit
Technical Report / Form 43-101F1
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
1.5
10
Mineral Processing and Recovery to Saleable Product
The ore is planned to be delivered to the primary crusher next to the final pit perimeter and
then crushed ore conveyed approximately 3.6 overland kilometers to the mill located in the
low lands at approximately 200 meter elevation. Process tailing would be pipeline conveyed
to a tailing management facility starting at an estimated 40 meters above sea level and also
located in the lowlands. The process plant will grind the ore utilizing a SAG mill followed
by three balls mill to reduce the ore for copper flotation to an estimated P80 150 microns.
The majority of the gold is expected to be recovered with the copper in the concentrate.
There will be some gold recovered by gravity concentrator circuits as shown in Figure 1-2, a
conceptual process flow diagram.
Additional ore throughput is expected in the early years of production because the grinding
circuit is designed at the higher bond work index of 16 kWh/tonne, which is for the sulfide
zone ore. The early years of production (1-6) will experience softer ore due to the higher
amount of oxide and mixed zone ore treated (bond work index of 12). There is significant
upside potential in that time period to process higher tonnages and the downstream processes
(screens, pumps, pipes, float cells, thickeners, etc.,) will be sized to accommodate 25%
higher throughput.
The flow sheet was based on sequential flotation circuits (sulfide copper first) for producing
copper concentrates containing gold from copper sulfide minerals (chalcopyrite and bornite)
and from copper oxide minerals (malachite principally). The copper sulfide mineral flotation
circuit was designed based on the feasibility level testing performed in 1997 at the Lakefield,
Ontario research facility. Copper oxide mineral flotation circuit design was based on RMMI
interpretation of the results from commercial mine reports and research reports on other
projects and mines utilizing typical reagents and flow sheets developed for oxide mineral
flotation.
The Lakefield studies indicated 85% of the total copper in the sulfide zone ore would report
to the final copper concentrate. The sulfide ores tested contained between 3 and 15 percent
acid soluble copper. The actual copper sulfide mineral recoveries would have been
significantly higher than 85% when factoring in the acid soluble portion that would have had
low recovery. In this study sulfide copper was defined as copper in sulfide minerals and
from a data base assay point of view it was total copper minus soluble copper.
RMMI research on flotation of malachite (predominant copper oxide mineral at King-king) at
commercial mines, recent feasibility studies and other reported copper oxide flotation studies
showed that 72 to 90 percent of malachite and chrysocolla are recovered in flotation. Most
of the results fall in the 75% recovery range. Soluble copper (copper oxide minerals)
flotation recoveries used in this resource estimate ranged mostly from the high 50’s percent
to the mid 60’s percent recovery depending on the soluble copper head grade. Therefore,
conservative estimates for recovery of soluble copper by flotation were assumed at this level
of study.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
Primary
Crushing
11
SAG Mill
Gold Gravity
Circuit
EW Type
Gold Circuit
Intensive
Cyanide
Leach
Gold Dore
Shipped to
Refinery
Ball Mills
Legend:
Ore
Concentrate
Tailing
Gold
Sulfide
Flotation
Cleaner
Flotation
Oxide
Flotation
Concentrate
Dewatering
at Port
Gold Gravity
Circuit
Concentrate
Stored at Port
until Shipped to
Smelter
Land Tailing
Management
System
Figure 1-2. Conceptual Process Flow Diagram
The copper-gold concentrate grade is expected to range from 29 to 33% copper and 13 to 71
grams per tonne gold and average 31% copper and 35 grams per tonne gold. The concentrate
grades were estimated by final concentrate results reported in the 1997 Lakefield studies
combined with the 2009 King-king Project mine plan and from final concentrate grades
reported for results from commercial mine reports and research reports on other projects and
mines utilizing typical reagents and flow sheets developed for copper oxide mineral flotation.
1.6
Environmental and Permitting
Based on the known information provided to date, AATA International, Inc (AATA).
(Environmental Consultants, See Section 2.0) sees no environmental issues that would
prevent the permitting of the proposed operations. Although AATA currently does not see
any permitting issues that would prevent the operation of the proposed King-king
Copper/Gold Project, AATA cannot predict all the concerns or issues the permitting agencies
may have with the proposed project during the permitting process, nor can AATA control
how long the agencies will take to issue the necessary permits. At this time, quantification of
all the environmental impacts of the proposed facilities and operations is not possible. A
better understanding of these will be developed during the permitting process.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
1.7
12
Conclusions and Recommendations
The results of this study indicate that the King-king Project has the potential to become an
economic producer of copper and gold. However, more information will be required to move
the project forward.
IMC and REI recommend an initial drill program of about 16 diamond drill holes that will
add confidence, and additional resources, particularly gold resources, to the King-king GoldCopper Deposit. In additional to geology and assay information, these holes will provide
information for a broad range of topics at King-king such as metallurgy, acid rock
characteristics, geotechnical issues, including slope stability, etc.
Following the recommended development work and studies, including metallurgical work, a
definitive project plan will be developed by the owner. This will include the definitive
studies for plant location, mine design, infrastructure, and construction plan. This will result
in a sufficient data for economic evaluation to bankable standards, concluding in a Bankable
Feasibility Study (BFS) within approximately 24 months.
A new topographic survey of the mine, valueless rock storage, plant, and tailings storage
areas will also be required. The last survey was conducted in 1997. Significant artisanal
mining activity and also natural erosion have impacted the surface topography.
Process testing on new core should address the following items:
 Optimum primary grinding size for various ore zones and lithology types
 Geo-statistical analysis of grinding and flotation
 Copper oxide mineral response to flotation with recently developed and
commercialized oxide flotation reagents and flow sheets
 A thorough study of regrind product size
 Optimized cleaner flotation reagent schemes and flow sheet for ore variations
 Evaluate centrifugal gravity and flash flotation recovery of gold from the primary
grinding circuit and from tailing streams in flotation
 Evaluate concentrate processing by hydrometallurgical methods to recover gold and
copper at site
 Rheology studies on tailing for settler design and tailing dam design
 Settling and filtration studies on concentrates for dewatering purposes
Benguet gold assays were not used in the current mineral resource estimate. Work done by
Echo Bay, and confirmed by IMC, shows the Benguet gold assays are biased high by about
10%. There were however about 1493 Echo Bay re-assays of Benguet samples that were
available for the current resource estimate. IMC recommends an initial re-assaying of a
about 200 Benguet drill hole pulps and their corresponding remaining half of core for total
copper and gold. The purpose is to determine if the bias observed in the Benguet gold assays
was due to sample preparation or the analytical work (or both). Based on the outcome of
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
13
this, additional Benguet pulps and/or core will be assayed to supplement the existing
database and improve the confidence of mineral resource and mineral reserve estimates.
The proposed budget for the additional drilling, analysis of the drill results and above
mentioned studies is: $3.4 million USD. Ratel plans to implement the drill program during
the fourth quarter of 2010.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
2.0
14
Introduction and Terms of Reference
Ratel Gold Limited and Russell Mining and Minerals, Inc. requested the development of a
mineral resource estimate and Technical Report for the King-king Copper-Gold Project from
the following team of consulting firms:
Person / Company
Summarized Responsibility
Donald Earnest
Resource Evaluation, Inc. (REI)
Geology and History
John Aronson
AATA International (AATA)
Environmental, Permitting
Michael G. Hester
Resources and Report Assembly
Independent Mining Consultants, Inc. (IMC)
The mineral resource estimate is compliant with Canadian National Instrument 43-101 (NI
43-101).
The above group worked together as a team and each provided a qualified person for this
Technical Report under the definitions of NI 43-101. Michael Hester acted as the primary
author of the Technical Report.
The King-king Copper-Gold Project is a porphyry sulfide deposit that is potentially amenable
to large scale open pit mining. The project is located in southeastern Mindanao of the
Philippines.
This work was started in May of 2010 and this final Technical Report was completed in
September 2010.
Historic drill data was obtained from electronic drill logs and electronic drill hole data bases,
as well as, paper assay certificates that were on file under the control of RMMI. IMC
personnel transferred and keypunched the drill hole information into computer files for use in
the generation of the computer based block model and mineral resource estimate.
The King-king Copper-Gold Project has also been referred to historically as the King-king
Copper Gold Porphyry Project. The drilling for the project was conducted between 1969 and
1997 by a few different companies, including: Echo Bay, Benguet Corporation and
Mitsubishi Corporation.
A number of historic reports have been prepared that were of value as background in the
development of this report. Those reports are listed in the reference section of this Technical
Report.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
15
Don Earnest visited the property on June 4 - 7, 2010 in the company of SAMI management.
Don Earnest visited the core shed to review the condition of the drill core, confirm lithology
and alteration of the core and select core sample intervals for assay verification purposes.
Don Earnest and SAMI management reviewed the core, toured the property, and visited
potential mining infrastructure sites.
This report is in metric units. Tonnes are metric tons of 2204.6 pounds (lbs). Ktonnes means
1000 metric tons. Precious metal grades for gold and silver are presented in grams or troy
ounces per tonne and the abbreviation koz is 1000 troy ounces. Metal grades for copper are
in percent by weight. Quantities of copper are often expressed in pounds (lbs) since prices
are typically quoted in lbs on world markets.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
3.0
16
Reliance on Other Experts
This Technical Report was assembled by the team of consultants as outlined in Section 2.0.
Each was responsible for specific chapters in this report. Final assembly of the report was
accomplished by Michael Hester of Independent Mining Consultants, Inc. who also acted as
the primary author of the Technical Report.
The chapter responsibilities are summarized below:
Qualified Person
Donald Earnest, Resource Evaluation, Inc
John Aronson, AATA International, Inc.
Michael Hester, Independent Mining Consultants, Inc.
Section Responsibilities
Sections 5 through 13
Section 18.3
Sections 1, 2, 3, 4, 14, 15, 16,
17, 18, 19, 20, 23
Independent Mining Consultants, Inc, and the consultants listed above have not verified or
audited the property ownership as outlined in Section 4.0. The authors have relied on the
opinion of Land Council to Ratel as evidenced in the letter provided by Ramon Adviento,
land expert in the Philippines (his office is in Davao City, Mindanao) regarding the land
status in a letter to RMMI dated August 10, 2010 (Appendix 2, Exhibit 3). According to the
letter NADECOR has been granted the mineral rights by the government of the Republic of
the Philippines. Ratel, through its equity in SAML, will have the right to continue
exploration and development of the property once their Joint Venture agreement with
NADECOR is finalized.
Where possible, the authors have confirmed information provided by SAMI or previous
authors by comparison against other data sources or by field observation.
AATA has reviewed the environmental situation of the property as can be determined from
existing reports and tertiary data available. IMC has assumed that any operating permit and
reclamation requirements are properly accounted for in the information provided by AATA,
RMMI and Ratel and that any potential future operations will not be prejudiced by
environmental, permitting, or related constraints.
IMC has not audited the process plant or tailing design information presented in this
document. The developed concepts concerning these are typical for the industry. The testing
data presented in Section 16 is historic in nature; most of it was developed for the Echo Bay
study. The primary author has no reason to doubt its validity.
AATA currently does not see any permitting issues that would prevent the operation of the
proposed King-king Copper/Gold Mine, but AATA cannot predict all the concerns or issues
the permitting agencies may have with the proposed project during the permitting process,
nor can AATA control how long the agencies will actually take to eventually issue the
necessary permits. At this time, quantification of all the environmental impacts of the
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
17
proposed facilities and operations is not possible. A better understanding of these will be
developed during the permitting process.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
18
4.0
Property Description and Location
4.1
Property Location
The King-king Project is centered at approximate geographical coordinates 7°11’31”N
Latitude and 125°58’40”E Longitude on the Philippine Island of Mindanao. Figure 4-1
shows the location. The project site is located at Sitio Gumayan, Barangay King-king,
Municipality of Pantukan, Province of Compostela Valley, in Mindanao.
Figure 4-1. Project Location
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
4.2
19
Land Area and Mining Claim Description
The King-king tenement has a total land area of 1,548 hectares and is shown in Figure 4-1.
All mineral resources within the Republic of the Philippines are owned by the State and,
unless otherwise closed, withdrawn or claimed, are open to exploration by way of mining
claims, leases or agreements with the Philippine government. The King-king deposit is
located within the boundaries of the King-king MPSA (Mineral Production Sharing
Agreement No. 009-92-XI), which was approved by the government on May 27, 1992 for an
initial term of 25 years and covers approximately 1,656 hectares. The MPSA was amended
on December 11, 2002 to bring it in line with Republic Act No. 7942, otherwise known as
“The Philippine Mining Act of 1995.” The MPSA is in favor of NADECOR as Claim
Owner-Leaseholder and Benguet as Operator. It grants to NADECOR (owners) and Benguet
the exclusive right to explore, develop, mine and operate minerals within the tenement area,
including surface access to exercise such rights. Production from the MPSA is subject to a
government share (royalty) comprised of an excise tax, which is payable in addition to other
prescribed taxes and fees.
The King-king MPSA is a conversion of mining leases covering 184 mining claims that are
owned by NADECOR. Benguet would obtain a 50 percent earn-in through funding of 100
percent of the development and construction of the mine under an Operating Agreement
dated August 21, 1981 and amended December 11, 2002.
Subsequently, Echo Bay Mines Inc. (EBMI), TVI Pacific (TVI) and King-king Mines, Inc.
(KMI) entered into option agreements executed on October 25, 1995 with Benguet whereby
Benguet granted KMI the option to purchase within 24 months or up to October 25, 1997,
Benguet's interest in the agreement, and the NADECOR royalty, the government share, and
the right of Benguet to buy back a 20 percent (20%) interest in KMI.
After drilling the property, EBMI and TVI opted not to exercise the option that expired on
October 25, 1997. The property then reverted to original ownership.
On August 29, 2008 NADECOR terminated its Operating Agreement with Benguet
Corporation under the terms of the agreement due to the failure to execute on work plans for
six consecutive years. On May 26, 2008 and again on December 10, 2009, NADECOR filed
a motion with the Secretary of the DENR to remove Benguet from the MPSA as Operator for
their continued failure to implement the exploration and work program. The DENR in a
November 23, 2009 order declared NADECOR the sole operator on the MPSA for the term
of a renewed two year exploration period. The order was primarily based on a detailed report
completed September 30, 2009 by the Region 11 MGB which reviewed in detail the work
accomplished on the King-king tenement area. The November order was substantiated in
January 2009 when the Secretary of the DENR issued a finding sustaining the Order after a
Request for Reconsideration was submitted by Benguet rebutting the November Order. On
April 29, 2010, the Office of the President issued a Final and Executory Order Sustaining the
November Order.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
20
Figure 4-2. Mining Tenement Boundary
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
21
A negotiated settlement heads of terms agreement was reached between Benguet and Strato
International Holdings, Ltd., of which RMMI has 50 percent ownership and NADECOR has
50 percent ownership, in July 2010 wherein Benguet would transfer their interest, if any, in
the Operating Agreement, MPSA, and surrounding claims to Strato in exchange for a cash
payment of $25 million USD, scheduled in several payments over 7 years and the surrender
of approximately 49% of the outstanding secured debt of Benguet, which has been secured
under contract by Strato. The surrender of the debt, under the agreement, provides for a
credit to the settlement payments of approximately $8 million USD. This agreement is
currently in the due diligence phase prior to final agreement. .
NADECOR and Russell Mining and Minerals Inc. (RMMI) signed an exclusive Letter of
Intent in April 2010 and an amended agreement in July 2010 to develop the project under a
JV arrangement. Under the agreement, RMMI will undertake the exploration and work
programs, feasibility studies and baseline studies for preparing an EIA, DMPF and a
bankable feasibility report as well as the funding of such efforts. In return for such funding,
RMMI would earn in a 60% interest in the planned JV. In March of 2010 the
aforementioned LOI was replaced with a Memorandum of Understanding between
NADECOR and St. Augustine Mining Ltd. (SAML), a subsidiary of RMMI, which provided
for the terms of the LOI as well as emplacing a Preferred Share Investment Agreement
wherein SAML could invest up to $30 million USD prior to the acquiring of clear title to the
MPSA and conclusion of a Joint Venture Agreement. RMMI retains the right to assign the
development of the King-king project to an affiliated entity under the MOU.
Ratel Gold Limited (Ratel) and RMMI have agreed to complete a Share Exchange
Agreement wherein Ratel will gain 100 percent control of SAML and RMMI will be
compensated in Ratel equity. Additionally, as part of the transaction, Ratel will acquire
RMMI’s 50 percent ownership of Strato.
Fees relative to the King-king mineral property and the Operator, NADECOR, have been
paid. The mining occupation fees for King-king MPSA No. 009-92-XI were paid by
NADECOR on February 9, 2010 for the period of May 27, 2008 – May 26, 2010, see exhibit
1 in Appendix 2. The fees for 2011 are due in February 2011. The performance bond for the
approved exploration and environmental work programs for the next two years beginning
May 2010 for the MPSA was paid on June 11, 2010; see Exhibit 2, also in Appendix 2. All
land and mineral exploration fees are in order for the King-king MPSA in regards to the
current property Operator and claim owner NADECOR.
A qualified person expert opinion letter is attached (Exhibit 3, Appendix 2) regarding the
claims and land status. There are no other private entities or corporations, other than
NADECOR, with a claim of possession over the said tenement area. This is evidenced from
the fact there are no records of taxes being paid to Compostela Valley Province on this land
by others. MPSA 009-92-XI awarded to NADECOR on May 27, 1992, defines the
ownership of the surface rights covering the lands within the 1,656 hectares rests with the
government of the Republic of the Philippines. NADECOR and the government have sole
control over this land and its development into a mineral producing mine and mill. RMMI
and NADECOR have an agreement to develop the property together. Based on this
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
22
discussion, it appears that Benguet does not have any back-in rights to the property, once a
final agreement, as described above, is reached.
With respect to the tenement boundaries, the known King-king mineralized areas are located
on the south side of the tenement, as shown in Figure 4-3. This figure also shows some
commonly referenced deposit area names. There has not been any commercial scale
development of the deposit, so there are not any significant waste deposits or tailings ponds
on the property. Small scale mining, however, has resulted in numerous small pits, waste
deposits, spent ore piles, and plants within the tenement area. These are shown in several
photographs in Section 18.
Benguet developed some underground workings for sampling and testing the King-king ores.
These are limited in scale and occur in the main deposit area in the south.
Several buildings from Echo Bay’s tenure in 1997 remain at the project site, but these are in
disrepair. These buildings are located in the south east area of known mineralization and are
approximately 50 meters outside the currently designed open pit perimeter.
The King-king River is the major geographical feature of the mineral property area. It
transects the currently designed open pit approximately 100 meters from the western open pit
perimeter.
Figure 4-3. Major Deposit Areas With Respect to Tenement Boundary
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
4.3
23
Agreements and Encumbrances
Owners of mining claims for land to be mined are permitted royalties in accord with their
operating agreement. The Memorandum of Understanding between NADECOR and SAML
provides that NADECOR fund their agreed upon portion of project costs and retain 40%
ownership, after Bankable Feasibility or to take a 3.5% royalty subject to a sliding scale
based on the price of copper, and adjusted annually to the commodity price index.
The Philippines Government takes an excise tax on metallic minerals. This excise tax is set
by Section 151 (A) (3) of Republic Act (RA) No. 8424 or the National Internal Revenue
Code of 1997 (1997 Tax Code), as amended by RA No. 9337 effective July 1, 2005. The
Code states that excise tax on metallic minerals would be “…based on the actual market
value of the gross output thereof at the time of removal,…in agreement with the following
schedule (for the King-king Gold-Copper Project): Gold and copper, two percent (2%).”
To calculate the tax base, no deductions are allowed for mining, milling, refining,
transporting, handling, marketing and other expenses. If the minerals are sold or consigned
overseas, costs of sea freight and insurance are deductible.
The King-king mineral property is accessed via the Buko-buko sa Anay-Lawaan dirt road.
Along this road outside the mineral property are 19 landowners that NADECOR has various
rights of way agreements with. Renewal of these rights of way is not a hindrance to the
status of MPSA 009-92-XI as covered by law. The aforementioned Exhibit 3 describes in
detail the law surrounding this matter. In summary, the mining rights holder will not be
prevented from access to the mineral property and conducting mining operations as long as
property damaged as a consequence of such access and mining operations is satisfactorily
compensated for. Again, as in the work programs mentioned above, a bond must be posted
with the regional Mines and Geosciences Bureau to guarantee the compensation.
There is an annual mining occupation fee of about 200 Philippine Pesos per hectare per year
that is paid to the province.
RMMI through its subsidiary, St. Augustine Mining Ltd. (SAML), has an option earn-in 60%
equity interest in the King-king project Joint Venture. This earn-in is defined by a
Memorandum of Understanding (MOU) signed in April 2010 by RMMI, SAML and
NADECOR. RMMI paid $400,000 to NADECOR for exclusivity to enter into the MOU in
November 2009. SAML will pay NADECOR an additional $7.1 Million in two phased
payments toward the earn-in. The entire $7.5 Million gives SAML 6% earn-in. SAML has
committed to spend $43.5 Million dollars toward completion of a Bankable Feasibility Study
for the project. Completion of the study earns SAML 45% earn-in of the total project.
SAML has made an additional commitment to spend a minimum of $32 Million or a
calculated amount based on planned tonnage throughput, as determined in the planned
feasibility study, in development capital. The calculated premium expenditure will be 0.457
X Planned Tonnage (Estimated at 100,000 tpd) X 1000 or 5% of Capital Cost, whichever is
less. These expenditures earn SAML the additional 9% needed for a 60% total earn-in. Any
over allocated variance between the amount spent toward BFS and the amount committed
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
24
pays NADECOR first and the balance will be credited toward the development capital
commitment at 50%.
Ratel Gold Limited (Ratel) and RMMI have agreed to complete a Share Exchange
Agreement wherein Ratel will gain 100 percent control of SAML and RMMI will be
compensated in Ratel equity. Additionally, as part of the transaction, Ratel will acquire
RMMI’s 50 percent ownership of Strato.
4.4
Other Mineral and Mining Activities outside the Property Boundaries
There are small scale gold mining operations in the adjacent mining tenements next to the
King-king tenements. These tenements are called the SARC claims and the PMC claims.
Nadecor is in the process of acquiring these claims for use as possible sites for King-king
facilities.
There are no existing tailing ponds or waste deposits of note outside (or inside) the King-king
Mineral Property Area. The most notable feature from small scale mining in the King-king
and adjacent tenements is the sediment deposition visible along the King-king River banks.
The King-king River is the most notable natural feature outside the property area.
4.5
Environmental Obligations
Mineral Production Sharing Agreements (MPSA) are decided or entered into on the
stipulation that the mining activities are managed in a technically, financially, socially,
culturally and environmentally conscientious method. The King-king Gold-Copper Project
has an approved MPSA that was most recently amended in 2002 as already mentioned above.
The Department of Environment and Natural Resources (DENR) requires an Environmental
Compliance Certificate (ECC) for any mining activity except when an exploration permit has
been issued or through the exploration period of an MPSA. The ECC is issued by the DENR
based on an Environmental Impact Assessment (EIA) process, in which an Environmental
Impact Statement (EIS) is prepared by the contractor in agreement with procedures under the
ECC system. A completed biological profile of the proposed mining area is required as part
of these procedures.
NADECOR/Ratel will also complete an International Social and Environmental Impact
Assessment (I-SEIA), based on IFC Performance Standards (PS), the Equator Principles
(EP), and other international guidelines. The IFC PS and EP form the de facto standards
applied to many major operations seeking investments and guarantees from multilateral,
bilateral and commercial financial institutions worldwide. The I-SEIA will serve as a
complementary document to the National EIS to be presented to the Government of the
Philippines for project approval.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
25
The Environmental Compliance Certificate is required for mining properties with an area of
1,548 hectares or more and, a project which includes open-pit mining, processing facilities,
coal fired power plants, land based tailing management systems, well fields, port facilities for
storing and loading concentrates and off-loading coal, infrastructure and other support
facilities.
Once the ECC is approved, NADECOR/Ratel will be required to submit for approval of an
Environmental Protection and Enhancement Program (EPEP) for the life of the mine. Once
the plan is approved, it will have to be implemented. Annual updates to this plan are
required.
Once the ECC is approved, NADECOR/Ratel will also be required to apply for approval of a
Social Development and Management Plan (SDMP) for the life of the mine. Once the plan is
approved, it will have to be executed.
NADECOR/Ratel is required to create a Mine Environment Executive Office within their
organization which collects the assets needed to put into operation the environmental
management programs and to handle the contractor’s environmental concerns. Any mining
practice not in agreement with anti-pollution laws and regulations will be required to be
remedied; and, failure to do so is also a case for the suspension of mining operations if there
is impending hazard to the environment.
Development of a modern large-scale mining operation at King-king will improve the current
baseline environmental and social conditions within and outside the mineral property area.
More than two decades of illegal small-scale miner activity has environmentally degraded the
mineral property area and downstream areas along the King-king River, particularly with
regards to sediments and E coli bacteria counts. Mine development will lead to gradual
cessation of small mining activities over a few years and subsequent departure of the small
miners and associated people, thus reducing E coli counts. Mine development will bring
sediment control structures to the streams and the King-king River in the mine area that will
much reduce downstream sediment flow in the waterways. Development will increase
employment, income and taxes in the municipality that will lead to improvements in social
conditions in the municipality and surrounding areas. See Section 18.3 for more details.
4.6
Permit Status
The MPSA document and the approved Work Plans (exploration and environmental) allow
work to be carried out that is necessary to obtain an approved DMPF (Declaration of Mine
Project Feasibility) and a ECC (Environmental Compliance Certificate), which allow the
future development of the mine. This work would include work proposed for the property,
i.e. to drill, sample, transport, survey, baseline studies, etc.
In the Philippine Constitution, minerals and mineral lands belong to the country. Private
individuals can embark on exploration, development and utilization of the mineral resources
under four modes of mineral agreements with the government: Mineral Production Sharing
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
26
Agreement (MPSA), Co-Production, Joint Venture and Financial or Technical Assistance
Agreement (FTAA). The first three modes of agreement are available only to Filipino
citizens or corporations where at least 60 per cent of the capital is owned by Filipinos. The
last mode is available to 100 per cent foreign owned corporations.
The Philippine Mining Act of 1995 is the chief law governing mineral lands in the
Philippines. In its transitory provisions, existing mining rights (i.e. leases and MPSA’s)
issued under prior mining laws shall remain valid, shall not be impaired and shall be
recognized by the government. The MPSA covering the King-king project falls under this
provision of the mining law, having been issued in 1992 and amended in 2002.
The Mineral Production Sharing Agreement (MPSA) has been the most common form in use.
The features of this method are as follows:
 The contractor has the exclusive right to conduct exploration, development and
operation in the contract area.
 The MPSA has a term of 25 years, renewable for another 25 years.
 The contractor is required to carry out activities according to an approved work
program (NADECOR/RMMI have an approved work plan and are executing it) and
commit expenditure for the environment, the community and the development of geosciences
The financial requirement includes the payment of occupation fees (PhP100/hectare) and
excise tax at 2 per cent of gross revenue.
Prior to forming an MOU with RMMI, NADECOR was granted one of the major critical
agreements, permits, licenses and certificates vital in its mining operations. This was the
Mineral Production Sharing Agreement No. 009-92-XI, which was approved by the
government on May 27, 1992 (MPSA) 095-97-V, and amended on December 11, 2002.
NADECOR/RMMI have entered into agreements to acquire/control adjacent claims
surrounding the King-king claims for the purpose of managing the valueless rock from
mining operations to protect the environment. They also have gained control of 4,415
hectares of unclaimed land in the lowlands west of King-king for development of a tailing
management facility.
Other primary Permits of note required for operating the mine and process facilities are listed
in the table below. Many additional permits are required to bring the mine to production.
See Section 18.3 for more details.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
27
Table 4-1
King-king Permits
Permit
Date Issued / Submitted
Environmental Compliance Certificate
After EIS
Environmental Protection and Enhancement Program
After ECC approved
Permit to Construct Tailings Pond
After design
Permit to Operate Tailings Pond
After construction
Permit to Operate Power Plant
After construction
Permit to Operate Oil – Water Separator
After construction
Term
Annual renewal
Permit to Operate a Waste Disposal Facility (Landfill)
Use for Industrial Water – National Water Resources Board
1 Year
Wells for drinking Water – National Water Resources Board
1 Year
Permit to Cut Trees
Monthly renewal
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
28
5.0
Accessibility, Climate, Local Resources, Infrastructure and Physiography
5.1
Access
The project area is approximately 35 aerial kilometers east-northeast of Davao City, and
some 1,000 aerial km southeast of Manila. Locally, it is about 10 aerial km northeast of the
Municipality of Pantukan, Province of Compostela Valley. Pantukan is about 92km by road
from Davao City via the well paved Tagum City–Mati National Road. From Pantukan town
proper, the project can be reached through the 18km Buko-buko sa Anay-Lawaan dirt road
which as of the date of this report can be negotiated in 35-45 minutes using motorcycles or
approximately three hours via conventional four-wheel drive vehicles.
5.2
Climate
The climate is tropical (Type I-B) with no pronounced wet and dry seasons. Maximum
rainfall usually comes between the months of June and December. Daytime temperatures
range from 18 to 35 degrees Celsius and the daily average is about 27oC (81oF). Rainfall
ranges from 2,000 to 3,200 millimeters per year within the mountains and 1,800 to 2,000
millimeters per year along the coastal plain. Normal precipitation is 2,100mm per year and
the average daily relative humidity is 81%.
Typhoons are extremely rare but torrential rains and subsequent flash floods are not
uncommon.
There are no climatic conditions that should cause the project great operational difficulty.
The greatest climatic issue will be managing storm waters that will result from excessive
rainfall at intermittent times during the life of the project. However, this is a common
operating issue at many tropical mine sites and should be manageable with proper controls
and planning.
5.3
Local Resources
The local unemployment is approximately 7% and underemployment is 22%. In 2009 the
local Pantukan Municipal government sent a letter to the Department of Environmental and
Natural Resources requesting the King-king Project be developed as swiftly as possible. The
local community is favorable to the project.
Primary employment in the region is on plantations growing bananas or coconuts.
Secondary jobs exist for a limited number of workers in the several small scale mines in the
mountains northeast of Pantukan City.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
29
According to the National Statistics Office of the Philippines, the 2007 populations of
communities near the King-king Project were as follows:
Pantukan Municipality
Magnaga
Napnapan
King-king
Davao City
5.4
Population
69,656
7,743
9,983
21,444
1,366,153
Infrastructure
Some of the basic infrastructure is in-place for exploration and development of the King-king
deposit. A paved highway from Davao City runs 10 kilometers southwest of the project. The
project mine area in the 250- to 950-meter elevation range can be reached via the previously
mentioned 18km Buko-buko sa Anay-Lawaan dirt road, and with minor improvements it can
be made passable by large four-wheel drive vehicles such as drilling rigs and supply, fuel and
water trucks. Planned low-land facilities, including the tailings area, mill site, port facility,
and power plant location can be accessed via local area roads.
Water for exploration has been taken from low pressure artesian wells, including two wells
developed from exploration diamond drill holes located on the southern side of the deposit or
from nearby small surface drainage that runs through the southern and northern ends of the
project area. Potential sources for water for mining and processing include wells planned to
be situated in the alluvium deposits located southwest of the mineral area, or the King-king
River.
Power availability is currently too limited in Mindanao to assume that grid-supplied power
will be available for operation of King-king. Construction of a 120 MW coal fired power
plant is envisioned for the project.
Anticipated concentrate volumes and requirements for coal import necessitate the
construction of a dedicated port facility. The only port facility in the Pantuken area consists
of a concrete barge landing ramp, which should be available to handle barges from the
existing deep water port facilities at Davao and Tagum for transport of inbound materials for
construction and early mine operation.
Currently there is a drill core storage facility in Pantukan (approximately 1,000 square
meters). Expansion of this facility onto nearby grounds or complete relocation to another
area in Pantukan City is possible. Several buildings from Echo Bay’s tenure in 1997 remain
at the project site, but these are in disrepair.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
5.5
30
Physiography
The coastal plain extends a length of 6 kilometers from Davao Gulf to the base of the
mountains where the King-king project is located. The majority of the population lives along
the coastal plain with significantly lower population densities in the mountains. Figure 5-1
below shows the topography of the local area.
The topography in the immediate project area is steep and rugged with elevations ranging
from 260-950 meters above mean sea level (AMSL) and averaging 800 meters AMSL. The
porphyry copper-gold mineralization outcrops between 400 m and 700 m elevations. The
terrain gradually transitions through moderately rugged to rolling moving westward toward
the coastline. The dominant drainage pattern in the area is dendritic. The property itself is
drained by the Casagumayan and Lumanggang creeks, tributaries of the King-king River
which enters the Davao Gulf at Pantukan.
The project area is covered generally by sparse tropical rainforest mostly left over from past
commercial logging operations. Old growth trees are mostly gone, and large areas of the
previously timbered slopes have been cleared, cultivated and planted with corn and other
crops by local mountain tribes and lowland settlers. In the foothills toward Davao Gulf, what
used to be forest-covered slopes are now dominated by cogon grass. Vegetables and fruitbearing trees are grown in some places but these are limited and concentrated in localized flat or
rolling terrain.
Figure 5-1. Physiography
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
5.6
31
Mining Surface Rights and Mining Personnel
The approved 1992 MPSA, amended in 2002, that NADECOR is a party to as the tenement
holder and as the operator, gives NADECOR exclusive right to develop the surface and
underground mineral resources at King-king.
Operations and maintenance staffing would be sourced from Pantukan and neighboring
municipalities, the province of Compostela Valley, from the island of Mindanao, from the
Philippines and from outside of the Philippines. The municipality of Pantukan is home to
60,000 people and approximately 22% are underemployed in this area and in the province.
There is a large craft trained work force to draw from in the Davao area. The population of
Davao is 1.4 million people. Thus, there is a sizable work force to draw from near the mine
site.
6.0
History
The project history can be briefly summarized as follows;
1966-1968
NADECOR discovers the King-king mineralization anomaly;
1969-1972
Mitsubishi Mining Corporation drilled 54 surface diamond drill
holes;
1981
NADECOR entered into an operating agreement with Benguet
Corporation (Benguet);
1981-1991
Litigation regarding ownership did not allow any activity
within the project. In 1991 all legal issues were resolved in
favor of NADECOR ownership of mineral claims;
1991-1994
Benguet drilled 69 diamond core holes and 25 reverse
circulation (RC) holes in addition to completing extensive
surface and underground exploration. An in-house feasibility
study was completed;
1992
The Mineral Production Sharing Agreement (MPSA) was
signed between NADECOR, Benguet and the Philippine
Government;
1995-1997
Echo Bay Mines, Inc. drilled approximately 128 holes (52,718
meters). All Echo Bay data were acquired by Kinross Gold,
which waived its option to proceed with the King-king project;
2005
NADECOR and Benguet applied for a conversion of the
MPSA into a Financial Technical Assistance Agreement
(FTAA) covering the porphyry area of the project;
2008
NADECOR terminated the Operating Agreement and applied
to the government to have Benguet removed from the MPSA
and became sole owner of the King-king project;
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
2009
2010
32
NADECOR and RMMI reach an agreement to work together to
develop the project, with RMMI undertaking extensive analysis
to update the project information and mine plan;
Jan 15, the Department of Environmental and Natural
Resources (DENR) order for NADECOR to undertake the
work program and Benguet to hand over possession in order to
allow for immediate resumption of operations.
From 1969 to 1972, Mitsubishi Mining Corporation undertook initial exploration of the
deposit, completing 54 surface diamond drill holes for a total of 13,031 meters of drilling.
These initial holes all were drilled within the confines of the present resource outline. The
Mitsubishi drilling was only assayed for total copper and acid soluble copper. None of the
core from this drilling is known to exist.
Benguet Corporation (Benguet) signed an Operating Agreement with Nationwide
Development Corporation (NADECOR) on August 21, 1981 for the exploration and
development of the King-king property. However, the validity of the Operating Agreement
was contested by some members of NADECOR's board which resulted in a lengthy court
litigation that ended in November 1991 with the final decision of the Philippine Supreme
Court upholding Benguet's rights under the aforesaid Operating Agreement. Exploration
work was conducted from August 1990 by NADECOR while awaiting the court’s decision
on the abovementioned litigation. As soon as the Supreme Court upheld the Operating
Agreement, Benguet took over the exploration work from NADECOR. From 1991 until
1994, Benguet completed 69 diamond core holes (19,247m), 25 reverse circulation holes
(4,926m), 326m of confirmatory adits and underground raises, 2,500 hectares of geological
mapping, and the collection of 2,172 surface rock samples. The Benguet drilling was
concentrated in the Lumanggang and Casagumayan areas in the central and west areas of the
current known deposit. Benguet produced an in-house "pre-definitive" feasibility study in
March 1994.
From 1995-1997 King-king Mines Inc. (KMI), an Echo Bay Mines, Inc. company, entered
into an option agreement with Benguet and NADECOR to develop the King-king Project.
KMI drilling amounted to 128 core holes and 52,718m of drilling. Kilborn International, Inc.
(Kilborn) was retained by KMI to complete a plus or minus 20 percent capital and operating
cost estimate for the King-king Project, the scope of which was based on several specific
items and on Kilborn's interpretation of Echo Bay Mines' generic requirements for what was
termed by Echo Bay to be a Level l Study. The scope included those activities necessary for
evaluation of equipment, processes, environmental and regulatory considerations, and
economic factors sufficient to confirm a technically viable and cost effective facility.
Several other consulting groups provided services for the project. DCCD Engineering of
Manila, under subcontract to Kilborn, provided capital cost estimates for port facilities, local
labor rates, and local costs for services and consumables. Knight Piesold Ltd. (Knight
Piesold), under contract with KMI, provided costs for the various tailings dam and waste
rock storage alternatives, as well as closure costs. Fluor Daniel, under contract with KMI,
completed the mine planning and mine cost estimate portions of the report.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
33
In mid-1997, KMI’s “Level I” study estimated a total mineral resource of 1,040 million
tonnes containing 0.306% Cu and 0.41grams Au per tonne for the King-king deposit. This
resource included a “mineable reserve” of 403 million tonnes @ 0.332% Cu and 0.488g/t Au.
The authors emphasize that neither the KMI “Level 1” mineral resource estimate or the
“mineable reserve” estimate is compliant with current Canada NI 43-101 guidelines. These
estimates are included in this Technical Report only because they are an important part of the
project history. The property then reverted to original ownership.
In 1998, Benguet completed a revised mineral resource estimate that was based on all
available exploration drilling data and on a 0.20%TCu cut-off grade. This estimate, which
the authors of this report emphasize is not compliant with current NI 43-101 guidelines,
totaled 749 million tonnes containing 0.387% Cu and 0.433g/t Au.
All Echo Bay data was subsequently acquired by Kinross Gold (Kinross) through its merger
with Echo Bay in 2002. Kinross subsequently waived its option to proceed with the project.
Kinross provided all the available data in its archives to RMMI.
Early in 2010, NADECOR terminated its Operating Agreement with Benguet. NADECOR
is the sole claim owner and operator of the King-king Project. Subsequently, NADECOR
and Russell Mining and Minerals Inc. (RMMI) signed an agreement to co-develop the
project, with RMMI to undertake extensive analysis to update the project information and
mine plan. NADECOR has been ordered to complete an exploration and work program by
the DENR as the operator through the exploration phase. NADECOR has submitted a Work
Program to DENR and has also initiated arbitration proceedings against Benguet to confirm
termination of the Operating Agreement. The Work Programs were approved in May 2010.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
7.0
Geological Setting
7.1
Regional Geology
34
The southeastern Mindanao peninsula (comprising the mountainous provinces of Davao
Oriental, Compostela Valley and Davao del Norte) is bounded by two parallel subduction
systems – the north-south trending East Mindanao trench, which is a segment of the
Philippine Trench situated off the east coast of Mindanao, and the north-south trending
Davao Trench situated between Samal Island and the east coast of Davao Gulf (Punongbayan
and Listanco, 1992; Datuin 1992). Active tectonism is manifested in the frequent low to
moderate-intensity earthquakes being felt in the area.
The King-king porphyry copper-gold deposit is located on the western flank of the eastern
Mindanao Cordillera. So far, it is the most southerly of the NNW-trending groups of
porphyry copper and gold deposits that include the now-closed Hijo and Amacan Mines of
North Davao Mining Corporation, the old Masara Mines of Apex Mining Company, the
Kalamatan Mine of Sabena Mining Company, and the fabulous gold-rush areas of Diwalwal
in Monkayo farther north (Burton, 1977; Culala, 1987). All these are part of a 75-km long,
NNW-trending mineralized belt that runs across southeastern Mindanao. The development
of this belt can probably be attributed to tension relief faulting induced by the Philippine
Fault (Philippine Rift Zone). There are other mines and mineral prospects that lie outside the
belt but which are still within and evidently related to, the NNW-trending Mindanao segment
of the Philippine Rift Zone. These include the Cabadbaran Gold Mine and the Placer Gold
Mine of Manila Mining in Agusan del Norte, the Coo Gold Mine of Banahaw Mining in
Agusan del Sur, the Siena Gold Mine of Suricon, and, the Asiga porphyry copper prospect,
all in Surigao del Norte in northeastern Mindanao. These referenced properties are shown on
Figure 4-1, the project location map.
The King-king district itself is bounded by two major splays of the Philippines Fault that
make it a tectonically-active arm. About 20 km to the east is the main Agusan Valley fault
and its branches that obviously controlled the courses of Manat, Agusan and Bitanagan rivers
and was probably responsible in the formation of Maragusan Valley, a broad plain believed
to be a sediment-filled graben perched high on top of Diwata Range 650 m to 850 m ASL.
Several kilometers to the west is a thrust fault running N-S parallel to Davao Gulf with Kingking situated on the over-riding side. Figure 7-1 shows the regional geology.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
35
Figure 7-1. Regional Geology
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
7.2
Local Geology
7.2.1
General
36
The main King-king deposit is a low-pyrite porphyry copper system with locally significant
associated gold. It is the largest of several prospects associated with mineralized intrusives
disposed along a NE-trending belt measuring some 6km long and 3km wide that have been
staked by NADECOR. These intrusives were emplaced in a folded sequence of CretaceousPaleocene volcano-sedimentary rocks, apparently along pre-existing NW-trending anticlinal
axes. The intrusions probably occurred during the middle- to late-Miocene (Geological Map of
the Philippines, Philippine Bureau of Mines, 1963). The axial portions of the anticlines have
since been largely eroded, exposing the cupolas of the underlying intrusives.
The main King-king deposit, as defined by a 0.20% total copper cut-off, is elongated along a
N70°W trend and measures some 1,800 m long and from 250 m to 550 m wide, as shown in
Figure 7-2. Figure 7-3 shows the relative location of various areas of the deposit, such as
Tiogdan, Casagumayan, Lumanggang, Bacada, and Bibutaan, which are commonly referenced
in geologic discussions of King-king. The deposit has an apparent steep NE dip especially in its
central sections. On longitudinal section, it appears as an irregularly-shaped body with an
undulating bottom. In most sections, though, the bottom of the mineralization has yet to be fully
defined.
The deposit may be subdivided into two more or less equal segments: 1) the eastern segment
underlying Lumanggang, where copper mineralization is in general extremely erratic and where
the better gold mineralization occurs in pockets usually associated with localized zones of
strong silicification and quartz stockworks; and, 2) the western segment within the
Casagumayan and Tiogdan areas which generally carries higher copper and gold values and is
more uniformly mineralized. These two segments could either be parts of one and the same
body, or of two or more adjoining masses related to separate, although probably geneticallyrelated, intrusives.
The deposit is hosted to a large extent by the diorite intrusive complex with which it is
genetically related, and partly by the intruded volcanics and sediments. The diorite complex
consists of the biotite diorite porphyry and the accompanying hornblende diorite and diorite
porphyry which represent the late magmatic differentiates of the former. The biotite diorite
porphyry is the most important host intrusive and appears to be the major intrusive underlying
the King-king district. Local brecciation accompanied the diorite intrusions into the
predominantly volcanics wallrocks resulting in the development of intrusion breccia along the
contacts. The overall shape of the diorite complex is elongate, trending northwesterly and
measuring 1,800 m along the longer axis and some 400 m across on average in width.
The intruded volcanics are composed of pyroclastics (tuff, lithic tuff) and flows (andesites) with
intercalated sediments (mostly wackes) which are typically located further away from the
deposit. Geologic mapping indicates that the sediments-pyroclastics sequence has a general
northwest trend with southwest dips. However, local reversals of dip are common, forming
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
37
minor anticlines and synclines along roadcuts and gullies south of the main King-king deposit.
Within the ore zone, the sediments have not been identified on surface or in the drill cores,
although their presence may be obscured by hydrothermal alteration. Hornfelsic rocks
encountered in the ore zone are thought to originally have been sediments but these hornfels
may represent volcanic rocks that have been intensely metamorphosed.
The intrusion of dioritic rocks continued even after the porphyry copper deposit was emplaced,
as evidenced by the presence of post-mineral hornblende diorite porphyry, diorite porphyry and
dacite porphyry. These occur as peripheral stocks bounding the Lumanggang and Bacada areas,
and as northwest-trending lenticular bodies or dikes flanking the porphyry mineralization. One
hornblende diorite porphyry dike measures 5m to 15m wide and is traceable for more than
1,000m along and within the south flank of the deposit. Elongate hornblende diorite stocks
bounding the southern and western portions of Bacada also trend northwest.
Figure 7-2. Local Geology
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
38
Figure 7-3. Commonly Referenced Deposit Areas
7.2.2
7.2.2.1
Intrusive Rock Types
The Diorite Complex Related to Mineralization
Biotite Diorite Porphyry (BDP)
This is the main intrusive in King-king and the most important host to copper-gold
mineralization. Copper mineralization within the biotite diorite porphyry (BDP) consists
predominantly of bornite with subordinate chalcopyrite occurring usually as fracture fillings.
Bornite appears to increase towards the western half of the orebody from Casagumayan to
the Tiogdan area. A number of drillholes intersected BDP dikes below thick volcanic cover
indicating that the base portion of the deposit is largely underlain by this intrusive.
The BDP is generally brownish, medium- to coarse-grained and is characterized by the
presence of primary “book” biotite that accounts for about 10% of the rock’s volume. Type
localities are found in Bacada, Casagumayan Creek and in Tiogdan. It is crumbly in the
near-surface when not silicified or when lacking well-developed quartz veinlets. Along or
near the contact with the volcanic wallrock, the diorite commonly exhibits strong breccia
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
39
texture with pebble-size to occasional cobble-size angular xenolithic fragments tightly
welded in the rock matrix. These represent fragments of the intruded rocks that were stoped
by the magma during intrusion.
Petrography of BDP core samples indicates the plagioclase has maximum extinction angles
of 13° to 16° (andesine). The copper and gold grades in the BDP average 0.37% and 1.17 g/t
respectively.
Intra-mineral Hornblende Diorite Porphyry (IHDP)
The intra-mineral hornblende diorite porphyry (IHDP) occurs as stocks situated in the central
part of the Lumanggang and Casagumayan areas of the deposit. It is brownish-gray, mediumto coarse-grained porphyritic with large subhedral plagioclase (andesine) and hornblende
phenocrysts occurring in an interlocking feldspathic matrix. In thin section the hornblende
phenocrysts are estimated to comprise 10% to 20% of the rock volume. Locally it contains
primary biotite comprising some 1% to 3% by volume. Within the Main King-king body,
copper and gold grades in the IHDP average 0.37% and 0.44 g/t, respectively.
Intra-mineral Diorite Porphyry (IMDP)
The intra-mineral diorite porphyry (IMDP) is lighter in color, has a relatively finer matrix
and more dispersed plagioclase (andesine) and hornblende phenocrysts compared with the
IHDP, whose hornblende is more tightly packed. It contains 3% to 5% hornblende which in
some cases has been totally altered to secondary biotite, leaving a plagioclase-dominated
texture in which the maximum extinction angle of plagioclase in 10 samples examined was
20°.
The IMDP locally exhibits a smooth line contact with the IHDP, but in most cases the
contacts are gradational. In some instances IHDP clasts occur in the IMDP, making it very
difficult to distinguish between the two intrusives. In cases where the contact between the
two is not clear, the texture and hornblende content become the basis for identification.
Among the mineralized intrusives, the IMDP is the least well mineralized with respect to
copper and gold, with grades in the ore zone averaging 0.37% Cu and 0.38 g/t Au
respectively.
Intra-Mineral Dacite Porphyry (IDAP)
As intersected in a few drill holes, this appears to be a minor intra-mineral intrusive
occurring as a series of dikes with well-defined contacts cutting the BDP. It is generally
massive, coarse-grained, and porphyritic with large euhedral to subhedml plagioclase
(andesine) phenocrysts as much as 0.5 cm in size and hornblende set in a fine feldspathic
matrix.
Mineralization is mainly fracture filling with almost equal amounts of bornite and
chalcopyrite. Classified as an intra-mineral intrusive, its copper might have been remobilized
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
40
from earlier mineralized rocks during its intrusion. Its alteration is basically propylitic,
similar to that of the post-mineral dacite porphyry mapped outside of the copper
mineralization zone where chlorite, epidote and calcite are the predominant alteration
minerals. Where bornite is the predominant mineral, copper grades are generally over 0.2%
with occasional values exceeding 1% Cu near contacts with the intruded biotite diorite
porphyry.
Intrusion/Hydrothermal Breccia
Drillholes in Lumanggang intersected hydrothermal brecciation (as breccia pipes) that
appears to be intra- to late-mineralization in age. As mapped on surface and logged in drill
core, the largest hydrothermal breccia appears in plan to be generally elliptical in shape,
measuring roughly 40m to 60m in diameter, with the longer axis oriented in a N60°E
direction. The fragments are pebble-size to cobble-size, angular, and dominated by volcanics
which occasionally carry copper oxides and IHDP fragments. The fragments commonly
exhibit effects of rotation with rounded edges rimmed by rock flour. However, tightly
welded pebble-size to cobble-size angular to sub-angular fragments have also been observed.
Copper grades range from 0.04% to 0.68% Cu, averaging 0.27% Cu. Gold varies from trace
amounts to 0.6 g/t, averaging 0.21 g/t.
7.2.2.2
Post-Mineral Intrusives
Diorite Porphyry (DP)
This unit, which occurs west of the ore zone in Lumanggang and extends towards Binutaan,
is a northwest-trending stock measuring 60m to 120m wide and about 900m long. Its texture
is coarser than the mineralized IMDP. Displaying only weak propylitic alteration, it is
essentially barren of sulfide mineralization. It is generally greenish due to chlorite infused in
the matrix and locally contains specks of epidote. In thin section, it contains >25%
plagioclase and 2% primary quartz. The plagioclase has extinction angles ranging from 9° to
27° (oligoclase to andesine).
Hornblende Diorite Porphyry (HDP)
This greenish-gray unit is megascopically similar to the IHDP except for the essentially
propylitic alteration it exhibits and the absence of porphyry copper mineralization. It intruded
the western flank of the mineralized diorite and also occurs as lenses or dikes within the
general mineralized zone. Its intrusion appears to have been influenced by a pre-existing
northwest-trending fracture system, as evidenced by the dike's presence both inside and away
from the main King-king body, as well as by the predominantly northwest elongation of its
longer axis as mapped east and south of Bacada. It commonly contains specks or
disseminations of epidote. In all cases, the copper grade drops drastically to below 0.1% Cu
inside of this dike.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
41
The HDP is also distinguished from the DP by the presence of ≥10% hornblende phenocrysts
which are minimal (1-2%) in the DP, and by the presence of relatively euhedral plagioclase
laths.
Dacite Porphyry (DAP)
This rock is characterized by large (up to 0.5cm) subhedral plagioclase and hornblende
phenocrysts set in a fine- to medium-grained feldspathic matrix. Petrography shows mediumsized to large sub-angular to sub-rounded plagioclase with maximum extinction angles of 23°
(andesine), and medium-sized to large phenocrystal sub-angular to sub-rounded primary
quartz that comprise up to 10% of the rock’s volume. The rock is propylitized, characterized
by matrix epidote and chlorite and calcite in microveinlets.
7.2.3
Host Rock Types
Tuff and Andesite
The pre-mineralization volcanic rocks are dominated by a sequence of pyroclastics (tuff and
lithic tuff) and andesite flows. The tuff is massive to bedded, fine-grained to aphanitic and is
gray to dark-gray where relatively unaltered. Locally it is lithic (as suggested by the presence
of relict lithic fragments), and scoriaceous as indicated by the presence of crumbly open
spaces observed in some drill core. The andesite flows are either aphanitic or porphyritic,
with the latter texture having noticeable medium-sized plagioclase phenocrysts. No intrusive
contact has been noted between the tuff and andesite.
The volcanics exhibit a general northwest strike with moderate to steep southwest dips,
although locally the beds dip north due to folding. Within the main King-king deposit in
Casagumayan the northwest strikes and southwest dips are reflected by the tuff layers logged
in some drillholes. It is believed that there were only insignificant disruptions. Colors in the
tuff vary from greenish to brownish-gray depending on the dominant alteration mineral.
Petrography showed that it consists of fine to large intermingled quartz, and feldspar shards
(up to 25% by volume). One sample showed plagioclase (andesine) crystals with recorded
extinction angles ranging in one sample from 19° to 21°.
Sulfide mineralization within the volcanic rocks is usually confined to within the contact
zone with the intrusive complex. Copper and gold grades range from 0.06% to 0.84% total
Cu (averaging 0.22% total Cu), and; from trace to 0.87 g/t Au, averaging 0.18 g/t Au.
Sedimentary Rocks
The sedimentary rock units generally overlie the volcanic rocks around the main King-king
deposit and the surrounding prospect areas. Intercalation of the sedimentary units and the
pyroclastics was observed, but in most cases distinctions between individual thin beds are
difficult to identify megascopically. The sediments are generally thinly bedded and show
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
42
rhythmic bedding characteristics. Individual rock units locally contain greenish to reddish
volcanic fragments generally measuring 1mm in diameter, as observed in the graywacke
exposed at Diat, Panganason, Mabaros and south of Main King-king deposit.
The sedimentary rocks trend generally northwest and dip southwest, although dip reversals to
the northeast are common due to localized steep folding, particularly to the south of the Main
King-king deposit. Near the Buko-buko checkpoint and along the Maplag - Buko-Buko road,
near-vertical dips are exhibited apparently as a result of regional faulting and folding.
Some of the clastic rocks identified microscopically consist of arkosic graywacke, feldspathic
wacke, lithic wacke, tuffaceous siltstone, and shale. The plagioclase component of these
rocks ranges from 12% to 35%. Other common accessory minerals are quartz and
hornblende. Pyroxene and biotite are rare. The rock fragments that comprise 10% to 15% of
the lithic wacke are andesitic. Exposures of a reddish-maroon mudstone/shale along two
portions of the Maplag - Buko-buko road and in the Lahi area are thought to be correlative.
7.2.4
Structures
The major faults in the main King-king deposit and immediate vicinities are generally
northwest-trending and dip steeply to the northeast. The Soysoy Fault (which is thought to
define the south flank of the main deposit) apparently influenced the course of Soysoy Creek.
It is traceable for 1.5 km along its strike length, extending northwest beyond King-king
River. Several other faults (particularly those traced across Casagumayan and Tiogdan) have
been observed inside the deposit which show localized silicification and associated quartz
veinlets along the walls. North-northwest-trending faults comprise the other major set of
structures mapped in King-king. These faults are commonly observed in the northern part of
Tiogdan and outside of the known mineralization.
The dominance of the northwest structural component is reflected by the preferred
orientation of the post-mineral hornblende diorite porphyry (HDP) dikes, the epithermal
quartz stockwork zone in the Casagumayan and Tiogdan “bardown” areas and the elongation
of the entire main deposit. The same trend is also expressed by the HDP stocks situated
peripheral to the main King-king deposit. It is apparent that these northwest-trending
structures played an active part during the emplacement of the mineralized diorite complex
and the post-mineral intrusives. The north-norhwest faults, on the other hand, appear to have
also influenced to some extent the emplacement of the HDP as indicated by the dikes near
Tiogdan.
On a district-wide scale, the northwest fabric is also defined by the orientation of the faults
and veins and orientation of the longer axes of post-mineral diorite stocks in Binutaan and
Diat and the shape and orientation of the biotite diorite and hornblende diorite porphyries in
Diat.
Folding in the area is evident outside of the main King-king deposit. The fold axes generally
trend northwest with localized deviations to the east and west. The folds observed in the
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
43
Lahi, Barricade, Buko-buko sa Anay and Maplag areas are generally small but are viewed as
part of a much larger northwest-trending regional folding. Recumbent folds which appear to
have been developed as a result of regional stresses are noted along portions of the Maplag Buko-buko road.
7.2.5
7.2.5.1
Hydrothermal Alteration
General
Four major and two relatively minor hydrothermal alteration zones have been recognized in
and around the main deposit. From the central portion and outward, the major zones are: 1)
the K-silicate (potassic) zone, which is further subdivided into K-feldspar and biotite
subzones; 2) the quartz-sericite-chlorite (QSC) zone; 3) the sericite-clay-chlorite (SCC) zone;
and 4) the propylitic zone, which is further subdivided into epidote and chlorite sub-zones.
Important mineralization occurs in the first three major alteration zones. Figure 7-4
illustrates these alteration zones.
Locally overprinting the major porphyry alteration zones are epithermal alteration zones
represented by: 1) argillic alteration, which includes both an intermediate zone and patches of
advanced argillic alteration (AAA), and 2) a quartz-dominated zone that is further subdivided
into a quartz stockwork zone and a coincident to later zone of pervasive silicification.
The hydrothermal alteration zoning at King-king is typical of other porphyry copper deposits
in the Philippines and in other parts of the world. However, King-king is quite different from
other Philippine deposits on account of the occurrence of widespread biotite alteration and
the presence of a strong and well-developed K-feldspar-rich zone. Moreover, the stockworkpervasive silicification zone is much more intense than in other deposits. The absence of a
typical phyllic (or quartz-sericite-pyrite) alteration zone reflects the very low total pyrite
(<1%) content of the deposit. What is regarded as the phyllic zone is characterized by quartz
sericite-chlorite (QSC). As in other deposits, King-king is enveloped by a propylitic
alteration zone. Epidote is not an exclusive component of the propylitic zone as in most
other known porphyry copper systems, but rather is found in all alteration types. However,
advanced argillic alteration (which is extensively developed in other deposits such as the
Dizon porphyry copper-gold deposit in Zambales) has been observed at King-king only
locally in a few faults and structures that are generally outside and bounding the ore zone.
The alteration zones are described in greater detail in the following subsections.
7.2.5.2
K-Silicate (Potassic) Alteration
Potassic alteration predominates in the mineralized diorites (particularly the biotite diorite
porphyry) and the volcanics that are near the intrusive contacts. It consists of quartz-sericitebiotite (±K-feldspar), chlorite+ magnetite ±epidote± pyrite. This zone carries the bulk of the
sulfide mineralization in the deposit area. The potassic zone is divided into two sub-zones - –
the K-feldspar sub-zone and the biotite sub-zone.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
44
K-Feldspar Sub-Zone
Central to the main body of mineralization and the various alteration zones is the K-feldspar
sub-zone. This sub-zone is characterized by the megascopic occurrence of K-feldspar which
is observed along fractures lined with quartz veinlets as spots partially rimming the
plagioclase and as complete matrix replacement that gives the rock a pinkish hue. In some
drill holes the K-feldspar is so intense that it imparts an almost uniform pink coloration to the
rock. Clay stain tests conducted on 24 core samples indicated percentages of K-feldspar
ranging from 5% to as high as 90%.
Biotite Sub-Zone
Enveloping the K-feldspar sub-zone, the biotite sub-zone is generally characterized by the
presence of pervasive and interstitial secondary biotite and sericite occurring as dispersed
flakes, shredded disseminations or pigment-like infusions in the matrix, and as partial to
complete replacements of hornblende. Chlorite locally occurs partially replacing biotite or
altering the plagioclase, while sericite (where pervasive) almost totally replaces the
plagioclase. Quartz occurs in the biotite sub-zone as matrix replacement and microveinlets.
Magnetite occurs as disseminations, micro-fracture fillings, and locally as small clots
intimately associated with chlorite-altered biotite. Epidote is observed as disseminations,
fracture fillings and as flakes sometimes attached to chalcopyrite and bornite on the walls of
the quartz veinlets and quartz vugs.
7.2.5.3
Quartz-Sericite-Chlorite (QSC)
The QSC alteration consists of a quartz, chlorite, sericite, ±pyrite, ±magnetite, ±biotite,
±epidote assemblage. This alteration imparts a generally light greenish gray to greenish
color to the affected rocks with local brownish tinge from relict biotite specks and/or
disseminations. The alteration zone envelopes to a large extent the K-silicate alteration zone
both vertically and laterally. Quartz occurs mainly as replacements and veinlets. Sericite and
chlorite are pervasive in the matrix. Pyrite is ubiquitous but generally in minor (<1% by
volume) in amount. Chlorite and sericite, with or without associated magnetite, tend to be
more abundant along micro-fractures than in the matrix.
7.2.5.4
Sericite-Clay-Chlorite (SCC)
This alteration overprints both the K-silicate and QSC alteration types. It appears as a pale
greenish white or off-white color and renders the rock crumbly on its surface, particularly in
zones with very weak quartz infusion or veinlets. Pyrite is weak or absent. Magnetite occurs
as veinlets or as disseminations which are partly or wholly altered to hematite. This zone
generally contains relict biotite as brownish patches in the less weathered portions of
outcrops. Epidote is commonly observed in the matrix and occasionally in fractures.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
45
▲
N
Figure 7-4. District Alteration
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
7.2.5.5
46
Propylitic Alteration
This outermost alteration zone is characterized by a predominance of chlorite. There are two
propylitic sub-types recognized around the deposit, namely: a) the epidote-rich inner subzone, and b) an outer sub-zone that contains little or no epidote. The contact between the two
sub-zones is gradational. Calcite is a common component in the propylitic zone, occurring as
fine flakes disseminated in the matrix as well as in thin veinlets or fracture fillings. Pyrite
occurs sparingly as discrete grains and occasional fracture fillings. Quartz in this zone
generally occurs as micro-stringers occasionally intermingled with microcrystalline calcite.
Chlorite commonly occurs as micro-veinlets or fracture fillings. Epidote occurs either
dispersed or disseminated in the matrix, interspersed with quartz veinlets or superimposed on
the plagioclase.
7.2.5.6
Argillic Alteration
This alteration overprints the other alteration types but is apparently limited to the Bacada
area and the area just southeast of Bacada. It is believed to be related to a later epithermal
event superimposed over the porphyry system. It includes both the intermediate and
advanced argillic alteration assemblages (AAA). The intermediate argillic zone envelopes
Bacada and is in turn locally overprinted by patches of advanced argillic alteration along
portions of the Bacada road (Matting area) going to Lumanggang.
In general the AAA zone is local in occurrence compared to the intermediate argillic
alteration and is given only minor importance in the larger King-king alteration scenario.
The zone is characterized by chalky-white, leached out materials and strong kaolinite
alteration. The kaolinite occurs as microveinlets together with fine-grained disseminated
pyrite. Whitish 0.3 cm wide quartz veinlets have also been noted locally. In south Bacada
along the road to Biasong, a ± 1m-wide, massive irregular silicified zone with chalcedonic
clasts has been mapped that exhibits AAA characteristics. Stain tests of two samples from the
Matting area in Bacada indicated the clay is comprised of illite and kaolinite. However,
alunite, one of the typical clay minerals found in a typical AAA, has not been identified,
although the argillized zone in the ridges of Lumanggang appears to be supergene. Here it is
restricted to selvages in and along the walls of northwest-trending fault planes and other
fractures, and these seem to taper downward and persist no deeper than 5m or so. The
silicified outcrops in Lumanggang look leached and occasionally are pitted. Although pyrite
has not been observed, the existing boxwork structure (pits and vugs) indicate that it has been
completely leached.
7.2.5.7
Quartz-dominated Alteration
Quartz related to alteration occurs in distinct N40°W-trending bands within the copper
deposit in the Casagumayan and Tiogdan areas, which as a zone measures 800m long and
75m across on average. It overprints all other alteration zones and is believed to be related to
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
47
later epithermal events superimposed across the porphyry system. This alteration is divided
into two sub-types: 1) the quartz stockwork zone, characterized by well-developed, densely
interlacing quartz veinlets in which the earlier alteration mineral assemblages and much of
the sulfide mineralization have been more or less preserved, and: 2) a zone of pervasive
silicification that is texture-destructive, obliterating most of the secondary biotite and leaving
only remains of the feldspars, mafic minerals, and original sulfide mineralization.
With some exceptions, the quartz stockwork zone generally contains elevated gold values
compared to the surrounding zones, averaging more than 1.0 g/t. On surface in the
Casagumayan and Tiogdan bardown areas it occurs as a N40°W-trending band measuring
from 25m to 140m wide and about 800 m long that has been well-exposed by the small-scale
miners working in the area. This zone dips steeply to the northeast as defined in a number of
drill holes. A more limited stockwork zone has also been identified around DDH-52 in the
Lumanggang area as an irregularly-shaped pipe-like zone measuring some 200 m x 75 m. As
in the Casagumayan area, this zone also contains generally elevated gold values.
Microthermometry analysis of samples taken from quartz stockwork outcrops and drill cores
yielded a homogenization temperature averaging 253°C, well within the epithermal range.
The zone of pervasive silicification, on the other hand, is quite restricted in occurrence, as
shown by intersections in a number of drill holes. This zone is characterized by extreme
pervasive quartz replacement (>50% by volume) which appears to have largely destroyed the
original copper and gold mineralization in the replaced rocks. The zone is commonly
transitional with the quartz stockwork zone, suggesting that it is an advanced form of the
stockwork. Grades in the pervasive silica alteration range from 0.02% to 0.17% total copper
and 0.02 g/t to 0.19 g/t gold.
7.2.6
7.2.6.1
Potential Exploration Targets
General
Drilling completed to date has not fully delineated the boundaries of mineralization in the
King-king deposit. Mineralization at Lumanggang is open to the north, west, and south. Drill
hole EB-89, located 300 meters west of the nearest hole, intersected 264 meters of
mineralization that at a 0.20% copper cut-off averages 0.430% copper and 0.198 g/t gold. All
of the holes on the north side of Lumanggang intersected significant mineralization, and
holes to the south also revealed good grades of gold and copper, It is believed that the
Lumanggang and Bacada zones almost certainly connect at depth. The Casagumayan zone is
open to the north and at depth in several areas and there is potential for additional high grade
gold mineralization along the footwall of the stockwork zone. Similarly, the Tiogdan area is
open at depth as well as to the west across the King-king River. Figure 7-5 shows the place
names referenced in this section.
In addition to King-king, three gold camps are present on the NADECOR property Panganason, Diat, and Binutaan. All of the camps are characterized by extensive artisanal
mining consisting of numerous active tunnels, surface cuts and placer mining supported by
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
48
numerous small ball and rod mills, small CIP plants and on-site mercury amalgamation.
Based on their reconnaissance and detailed geological mapping, Benguet geologists
recommended all three of the areas for further exploration. Shortly before suspending
exploration, Echo Bay drilled a few scout holes in these areas.
7.2.6.2
Panganason
Panganason, the largest gold camp within the NADECOR property boundary, lies about
1.5km northeast of the main King-king deposit. At least two major veins hosted by
sedimentary rocks and biotite diorite porphyry were originally mapped on the NADECOR
claims that extended farther eastward into the adjacent Pantukan Minerals Corp (PMC)
claims. The veins range in width from 0.50m to 0.95m and are usually composed of quartz
with localized MnO2 wads and clayey components. From its underground mapping work
inside NADECOR ground in 2003, Benguet estimated an underground resource of 62,000
tonnes averaging 7.70g/t Au, using a 5.0g/t Au cut-off. The authors emphasize that this is
not an NI 43-101 compliant estimate.
7.2.6.3
Diat
Diat is situated less than one km north of Panganason. Copper and gold mineralization at
Diat occurs in and around a diorite porphyry believed to be part of the main King-king
copper porphyry deposit. Several 0.1 to 1.0m-wide gold-bearing quartz-calcite veins were
mapped within the NADECOR property limits. The veins are hosted by sedimentary rocks,
andesite and biotite diorite porphyry. Based on its 2003 mapping, Benguet estimated a small
underground resource of 2,000 tonnes at an average grade of 9.38g/t Au. This estimated
resource (which the authors emphasize is not NI 43-101 - compliant) extends eastward and
outside of NADECOR’s tenement into the Boringot gold camp, which is part of PMC’s
property. Echo Bay drilled a single scout hole to a depth of 683m at Diat. The hole
intersected altered and mineralized diorite porphyry with significant thicknesses of visible
copper mineralization and anomalous gold values.
7.2.6.4
Binutaan
The Binutaan area is located approximately one km north of the main King-king deposit.
Like at Diat, copper and gold mineralization occurs in and around a diorite porphyry body
which is part of the main King-king copper porphyry deposit. Two mineralization styles have
been recognized and require drilling to evaluate - a low sulfidation epithermal vein system,
and porphyry Cu-Au mineralization like that found in the main Kng-king deposit.
Low-Sulfidation Epithermal Vein System
The intrusive-related epithermal veins are hosted by the King-king diorite porphyry suite and
volcano-sedimentary sequence and trend west-northwest to north-northwest. Vein
mineralogy is typical of quartz-base metal mineralization, consisting of crushed and gougy
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
49
vein material that is predominantly quartz and silicified BDP fragments with 10-20%
sulfides. In places, breccia textures are recognizable. The quartz is light grey in color,
medium to coarsely crystalline, and vuggy. The sulfides consist of pyrite (±arsenopyrite),
galena, sphalerite and chalcopyrite, occurring as clusters and disseminations and local
infilled breccias. At higher elevations, an oxide zone is developed that contains chrysocolla,
malachite and manganese-iron oxides infilling fractures and vugs. Benguet’s detailed
geological mapping in 1999 disclosed eleven major veins and splays which were exploited
by local miners via artisanal tunnels. Vein widths vary from <0.15m to 2.0m and average
0.64 m. Strike lengths range from 70m to 835m. Assays ranged from <1.0 to 58g/t Au, 2.1 to
350 g/t Ag and 0.003 to 5.38% Cu.
In contrast to the free-milling gold mineralization at Panganason, the ore at Binutaan is
refractory in nature, based on the experiences of local small-scale gold recovery plant
operators, Gold recoveries in mini-CIP plants are normally not more than 65%, usually at 90hour contact time. The refractory nature of the Binutaan gold mineralization may be
attributed to gold encapsulation in the relatively high amounts of chalcopyrite and the
possible presence of arsenical pyrite, including arsenopyrite. To realize a respectable profit
margin, artisanal miners/ operators must feed their CIP plants with mineralization that is >20
g/t Au, giving CIP plant operators better metal recoveries.
Porphyry Cu-Au System
The porphyry copper-gold mineralization at Binutaan is centered on an ovoid-shaped biotite
diorite porphyry measuring 625m x 350m as mapped in plan, occurring mainly in the
potassic-altered and fractured carapace of the high-level diorite intrusion. Quartz veining is
characteristically finely crystalline, crustiform banded to saccharoidal with trace pyrite,
chalcopyrite, chalcocite and probably specularite.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
50
Figure 7-5. Mineral Prospect Areas
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
8
51
Deposit Types
In general terms, the King-king gold-copper deposit is consistent in type and form with other
copper-gold porphyry sulfide deposits of the Philippines. The following discussion
summarizes these consistencies, as well as a few notable variations with other classic
porphyry-type deposits:
1) The King-king gold-copper deposit is associated with stock-size mineralized
intrusives situated along a north-east-trending belt measuring some 6km long and
3km wide. These intrusives were emplaced in a folded sequence of CretaceousPaleocene volcano-sedimentary rocks apparently along pre-existing northwesttrending anticlinal axes;
2) Four major and two relatively minor hydrothermal alteration zones have been
recognized in and around the main deposit. From the central portion and outward, the
major zones are: 1) the K-silicate (potassic) zone, which is further subdivided into Kfeldspar and biotite subzones; 2) quartz-sericite-chlorite (QSC); 3) sericite-claychlorite (SCC); and 4) the propylitic zone, which is subdivided into epidote and
chlorite sub-zones. Important mineralization occurs in the first three major alteration
zones;
3) The majority of the known sulfide mineralization at King-king consists of
chalcopyrite. Bornite-rich sulfide ore is less abundant. Gold occurs both free and in
association with copper sulfides. Oxide mineralization is present in the upper part of
the deposit and grades into sulfide mineralization below. Copper mineralization
includes malachite, chrysocolla, cuprite, chalcopyrite, chalcocite, bornite and
covellite;
4) With some exceptions, the quartz stockwork zone generally contains elevated gold
values averaging more than 1.0 g/t compared with the surrounding zones;
5) King-king is quite different from other deposits in the Philippines on account of the
occurrence of widespread biotite alteration and the presence of a strong and welldeveloped K-feldspar-rich zone. Moreover, the stockwork-pervasive silicification
zone is much more intense than in other deposits. The absence of a typical phyllic (or
quartz-sericite-pyrite) alteration zone is attributed to the very low total pyrite (<1%)
content of the deposit.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
9
9.1
52
Mineralization
General
Gold and copper mineralization in the King-king deposit is hosted primarily by an elongate,
dike-like N60°W-striking diorite intrusive complex consisting predominantly of plagioclaserich hornblende diorite and biotite diorite porphyries, and later magmatic differentiates.
Among the intrusives, the most favorable host rock appears to be the biotite diorite porphyry,
followed by intra-mineral hornblende diorite porphyry and intra-mineral diorite porphyry. In
the intruded volcano-sedimentary rocks, tuff appears to be the most favorable host, especially
near or along contacts with the intrusives. Mineralization at King-king occurs as fracture
fillings and to a lesser extent as disseminations in the diorite porphyries and adjacent
wallrocks. Better gold and copper grades appear to occur where there was intimate mixing
of different rock types, such as along contact zones or where several intra-mineral dikes or
intrusives cut the earlier lithologies.
The majority of the mineralization in the King-king deposit is hypogene (sulfide). Rapid
regional uplift and erosion likely caused the nearly complete removal of a classical leached
cap and prevented the development of typically thick oxide and supergene enriched zones
found in other porphyry deposits. For process development purposes, two types of
mineralization are considered: sulfide and oxide (which includes mixed oxide-sulfide
material). Figure 9-1 shows an example of the oxide, mixed, and sulfide interpretations as
represented in the block model.
9.2 Oxide Zone
In general, the depth of oxidation is greatest under ridge tops (reaching 150 m in
thickness), and thins progressively to the valley bottoms where oxidation may only
extend to a depth of a few meters due to active erosion. The transition between oxidized ore
and sulfide ore is usually quite abrupt and mixed zones are seldom more than a few tens of
meters thick. The Lumanggang area contains the greatest thickness of surface oxidation.
In the oxide and mixed oxide-sulfide (mixed) zones, partially oxidized chalcopyrite and
bornite are occasionally found along with tenorite, malachite, chrysocolla, cuprite and other
copper oxide minerals, together with the iron oxides, hematite, jarosite and goethite. On
account of their bright colors and usual association with the more visible, ridge-forming,
highly silicified outcrops and quartz stockworks, past impressions of the relative abundance
of malachite and chrysocolla in the deposit may have been exaggerated because these
silicified outcrops are generally found only in limited areas within the oxidized cap of the
deposit.
Gold is relatively abundant in the oxide zone, as evidenced by widespread gold panning and
small-scale mining activities on the oxidized slopes of Casagumayan and Tiogdan. Some of
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
53
the gold particles examined in the possession of the small-scale miners were found to be
attached to quartz and/or blebs of magnetite. According to old-timers who pioneered gold
panning at King-king, coarser gold particles were more abundant in the original soil horizon
that existed over the deposit. Gold particles panned along the creeks typically range up to
2mm in diameter.
Figure 9-1. Mineral Zones from the Block Model
9.3 Mixed Zone
The mixed zone consists of the oxide minerals described in the previous section,
partially oxidized chalcopyrite and bornite, and limited supergene mineralization.
Chalcopyrite and bornite are partially to completely replaced by secondary chalcocite and
covellite, with covellite almost always rimming bornite (Benguet Geological Report on
Phase 1 Exploration of the King-king Copper Porphyry Gold Project, 1995; Benguet
Feasibility Report, 1994; Lakefield Research Ltd. Mineralogical Studies, 1996; King-king
Mines Inc., King-king Project, Level I Feasibility Study, 1997).
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
54
9.4 Sulfide Zone
Hypogene copper mineralization consists predominantly of chalcopyrite with
overall lesser amounts of bornite and primary chalcocite, the latter occurring as
fracture fillings in the areas of the deposit that are distinctly more bornite-rich.
Bornite-rich areas include the biotite diorite porphyry, where bornite partially replaces
chalcopyrite and occurs in amounts roughly equal to or greater than chalcopyrite.
Lesser sulfide minerals include molybdenite, which commonly occurs as fracture coatings
and in quartz veins. There appears to be a higher grade molybdenite-bearing shell along
the fringes the copper-gold mineralization. Digenite, covellite, tetrahedrite, galena, and
sphalerite have been observed in trace amounts in petrographic studies.
Gold occurs in the sulfide zone of the deposit in free form in close association with bornite
and as exsolution intergrowths in other sulfides, particularly chalcopyrite. Native gold is
occasionally observed on fractures and in quartz veinlets.
The King-king deposit is characteristically pyrite-poor (<1% by volume for the entire
deposit). This is reflected by the relative absence of a pyrite halo that is commonly developed
around most porphyry copper deposits. The low pyrite content of the deposit to some extent
may have contributed to the deposit’s lack of a classic leach cap and supergene enrichment
zone, as there was probably not enough pyrite present to generate sufficient acid to form
these zones.
9.5
Microthermometry
Benguet conducted microthermometry of fluid inclusions in numerous quartz samples from
drill core and outcrops which indicated essentially high temperatures of homogenization
(above 400°C) for the mineralizing fluids. Occasional daughter minerals believed to be halite
were noted in some samples. The high temperatures of homogenization and the high salinity
of the fluids (as implied by the presence of halite (NaCl) daughter minerals) are typical of
porphyry copper systems.
Statistical analysis of 151 homogenization readings showed three thermal populations - one
with a mean temperature of 848°C; a second with a mean temperature of 475° C, and a third
population at 253°C. While the first two populations are typical of porphyry copper systems,
the third points to a possible epithermal regime, or perhaps an infusion of meteoric water,
both of which imply emplacement of certain mineralization at a shallower depths. The lower
temperature range was determined from samples taken mostly from the quartz stockwork
outcrops in the gold panning areas and the stockworks intersected in drill holes.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
10
55
Exploration
Exploration of the King-king deposit has spanned a few decades, and represents the efforts of
numerous companies and individuals. A wide variety of techniques have been employed,
including:
7) Surface mapping and sampling
8) Drilling (primarily diamond core)
9) Adit and raise sampling
10) Geochemistry (soil, stream, and down-hole)
11) Development of cross sections, long sections, and plan maps
12) Physical and computer-generated three-dimensional modeling.
A significant portion of past work focused on drilling to explore, define and confirm the
economic potential of the property. Section 11.0 (Drilling) includes a summary table (Table
11-1) and description of documented drilling completed to date on the King-king deposit.
Section 6.0 (History) also summarizes much of the work done in the past by previous
workers.
The interpretation of the exploration work done to date is that the King-king deposit is a
significant copper-gold porphyry system with the potential to become an economic project.
The drilling done to date has also been used to develop an NI 43-101 compliant mineral
resource for the deposit, as presented in Section 17.
All of the exploration data collection, including the drilling data, is historic data compiled by
previous property owners. Ratel and its contractors were not involved in the compilation of
this data.
The only work conducted by Ratel and its contractors is the interpretation of the mapping and
drilling data to develop the current mineral resource. Geologic cross sections were
developed by RMMI personnel and reviewed by Don Earnest of REI. The mineral resource
model and mineral resource were developed by REI and IMC, independent contractors to
Ratel.
Future drilling will focus on geotechnical diamond drilling to obtain core samples for pit wall
stability analysis, final slope angle definition and hydrology-pore pressure studies, and
hydrogeological studies. Additional diamond drilling will collect samples for metallurgy
testing, in-fill certain areas of the deposit for confirmation of gold assays generated by the
earlier Benguet drilling, and to better define certain lithologic contacts.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
11
56
Drilling
As summarized in Section 6.0 – History, three companies completed drilling campaigns on
the King-king property - Mitsubishi Metal Mining Corp. (Mitsubishi), Benguet Corporation
(Benguet), and Echo Bay Mines Ltd. (Echo Bay). The drillhole database provided to IMC
consisted of 276 holes drilled by these companies, which represented 89,922 meters of
drilling. Table 11-1 shows the drilling by campaign (RC = Reverse Circulation). Figure 111 shows the drillholes by drilling campaign.
Table 11-1. Drilling by Campaign
Campaign Description
No. of Holes
Mitsubishi Core Holes
54
Benguet Core Holes
69
Benguet RC Holes
25
Echo Bay Core Holes
128
TOTAL DRILLING
276
Meters
13,031
19,247
4,926
52,718
89,922
No. of Intervals
4,352
6,412
4,456
18,440
33,660
Table 11-2 shows details of the drilling by hole series and drill hole type – diamond core
holes (DDH), and reverse circulation holes (RCH).
Table 11-2
Drilling History by Company
54
23
38
3
5
10
13
2
128
DDH Holes
DDH Holes
DDH Holes
DDH Holes
DDH Holes
RCH Holes
RCH Holes
RCH Holes
DDH Holes
Mitsubishi
Benguet
Benguet
Benguet
Benguet
Benguet
Benguet
Benguet
Echo Bay
1972
1991-1994
1991-1994
1991-1994
1991-1994
1991-1994
1991-1994
1991-1994
1996-1997
DDH 1-54
BC 1-23
BN 1-31(A&B)
NH 1-3
PQ 1-5
BNR 1-9
M-Series Holes
PQ-Series Holes
EB 1-126
The core holes were nominally sampled on 3m down-hole intervals, though a portion of the
early Echo Bay holes were sampled on 2m intervals. The Benguet RC holes were sampled
on 1m intervals. Of the 33,600 intervals, 33,466 were assayed for total copper, 33,323 for
soluble copper, and 29,192 for gold. Gold assays were not done for the Mitsubishi drilling.
Soluble copper assays were done for almost every interval for which total copper was done.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
57
Figure 11-1. Drillhole Locations by Campaign
Technical Report / Form 43-101F1
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
58
Most of the Echo Bay holes and a significant number of the Benguet core holes are angle
holes oriented southwest to intersect structures oriented northwest with a northeast dip.
However, locally, actual orientation of mineralization of porphyry systems is complex and
the relationship between true mineral thickness and sample intercept thickness is unknown.
It is the opinion of IMC that the drilling done to date is sufficient to develop an NI 43-101
compliant mineral resource for the King-king deposit.
Based on the structural zones developed by IMC to control block grade estimation (see
Section 17.3.6), the area represented by the drill hole samples is approximately 1,695,000
square meters, or about 170 hectares. The 400m bench is a central bench in the deposit. It
contains 192 15m composites assayed for copper and 108 composites with acceptable gold
assays. Dividing the sampled area of 1,695,000 m2 by the number of composites and taking
the square root provides a semi-quantitative measure of average sample spacing in plan view.
This results in average sample spacings of 94m for copper and 125m for gold.
Drill Hole Collar Location Check
During the June 5, 2010 site visit, Don Earnest attempted to locate 21 randomly-selected drill
hole collars in the field. Because of dense vegetation overgrowth and sloughing of cut banks
at drill sites, only six hole collars were located. Two of the holes found contain steel casing
with valves and are currently in use as water wells - NH-1 (a Benguet hole drilled in the early
1990’s) and EB-3, an Echo Bay hole drilled in 1995. The collars for two Echo Bay holes
(EB-27 and EB-121) were found and both have small (0.3m) roughly circular concrete pads
surrounding open PVC pipe collar casing (see Figure 11-2). Of the remaining two holes, an
open hole collar (no concrete pad) for M31-2R (an RC twin hole of the earlier Mitsubishi
DDH-31B) was found, as was the collar of the Benguet hole NH-4, which contained a
cylindrical concrete plug.
In the opinion of the author (D. Earnest), the fact that the majority of the drill hole collars
selected for field checks were not locatable in the field is not a material issue. In the case of
each of the 21 randomly selected holes, it was clearly evident that a drill site had been
constructed. The likelihood that any of the holes selected were not drilled is remote.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
59
Figure 11-2
EB-27 Collar
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
12
12.1
60
Sampling Method and Approach
General
As briefly described in Section 11, three companies completed drilling campaigns on the
King-king property - Mitsubishi Metal Mining Corp. (Mitsubishi), Benguet Corporation
(Benguet), and Echo Bay Mines Ltd. (Echo Bay). All sampling data used for this resource
update are derived from only diamond drill core or RC drill hole cuttings generated by these
three companies - no surface grab samples or samples from underground openings were
included. In general the sample intervals in the core holes was nominally 3m in length,
though a portion of the early Echo Bay holes were sampled on 2m intervals. The Benguet
RC holes were sampled on 1m intervals. Regarding the consideration of rock type, or other
geologic controls on the sampling interval, there was generally no attempt to break sample
intervals at geologic contacts or to separate out perceived high grade zones by any of the
three companies. Core was split longitudinally by Benguet and Echo Bay on site with the
resulting half-core sent to off-site sample preparation laboratories. RC samples generated by
both of these companies were bagged and sent to off-site labs as well. Other than sample
length, the sampling methods and approach used by Mitsubishi are unknown.
On June 6 and 7, the author (Don Earnest of REI) closely examined the core from 23 holes
during the course of collecting 100 core samples for check assay analysis (see Section 14.3)
from core currently stored at the facility near Pantukan City, Compostela Valley. The core
from the Benguet and Echo Bay drilling campaigns was found to be in generally good
condition, especially considering that the core has been transported between different storage
facilities a number of times over the past 20 years. Drilling run blocks were found to be in
place in most of the boxes examined and/or sampled, with sample breaks in most cases noted
in black marker on the wooden box dividers. With a few exceptions (where it appeared that a
box had been dropped or dumped at some point during handling/transport), the core was
found to be in correct order in the boxes, with the continuity between the remaining half
pieces generally good. It was noted during the collection of the check sampling of the core
that the solid core pieces of many of the rock types intersected have a general tendency to
shatter when struck with a hammer, with some lithologies worse than others. Future core
drilling programs should incorporate diamond saws for splitting the core for analysis in lieu
of using conventional hydraulic knife-blade-type core splitters.
A number of the wooden boxes were found to have moderate termite damage. These boxes
(and others like them not examined) should be replaced and the core carefully transferred to
new boxes under the supervision of a geologist.
Though core recoveries were measured and recorded for Benguet and Echo Bay drilling,
these data were not included in the digital database provided to IMC for this study. Other
than possible effects of sample recovery on grade, neither IMC or REI know of any factors
that could materially impact the accuracy and reliability of the sample results. Due to a bias
in the Benguet gold assays which is discussed later in this section, these assays were not used
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
61
for the IMC resource estimate, but were replaced with the Echo Bay re-assays where
available.
Appendix 4 includes a list of relevant samples for King-king drilling.
12.2
Mitsubishi Metal Mining Corp
From 1969 to 1972, Mitsubishi drilled 54 core holes totaling 13,031 meters. Core was split
(splitting method unknown) on three meter intervals and subsequently assayed. Sample
preparation and analytical procedures used are unknown. Assay results for total copper and
acid soluble copper for the Mitsubishi holes are present in the drill hole database provided by
Benguet. Gold reportedly was not assayed. To the knowledge of REI and IMC there are no
drill logs, drill core, or assay certificates available from the Mitsubishi drilling that could be
used to document any of the assay results.
12.3
Benguet Corporation
From 1992 to 1994, Benguet drilled 69 core holes totaling 19,247 meters, and 25 reverse
circulation drill holes totaling 4,926 meters. Core samples were split and assayed on three
meter intervals and reverse circulation holes were sampled and assayed on one meter
intervals. Most of the core was HQ (63.5mm) and NQ (47.60mm) diameter. Four holes were
PQ diameter (85mm).
After splitting at the site using a conventional knife-blade core splitter, the core was placed in
sample bags and sent to the sample preparation laboratory in Davao City, where pulps were
prepared for shipment to separate analytical facilities. Assaying was done by two Benguet
in-house labs at Dizon and Balatoc and by McPhar Labs in Manila. In 1997 an initial check
assay program by Echo Bay of 460 pulps obtained from Benguet indicated that the quality of
the Benguet copper assaying was within industry standards, but a systematic bias in the
Benguet gold assays was noted, particularly in grades near the average for the deposit.
Approximately 10,000 splits of pulps from all of the core holes were subsequently obtained
by Echo Bay from Benguet in 1997. Of these, 22 of the more critical holes were re-assayed
by lnchcape Testing in Manila to further evaluate assay quality. Results of this work show
that total copper assaying error was within acceptable industry standards of error, acid
soluble copper assays were biased low and the gold assays were biased high compared to the
1997 re-assays. Check assay samples were taken for the current study in June 2010 from the
remaining half of split core from eight Benguet drill holes currently stored at the core shed
near Pantukan. Results for these check samples (which were prepared and analyzed by
Independent Assay Laboratories Ltd. (IALL) in Wangara, Western Australia) confirm that
the original Benguet results for total copper and acid soluble copper are within industry
standards of error compared to the recent re-assay work by IALL, while the original Benguet
gold assays were biased high compared to the re-assaying. See Section 14 - Data Validation
for details of the June 2101 check assay sampling study.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
12.4
62
Echo Bay Mines Ltd. (King-king Mines Inc)
On November 2, 1995, Echo Bay (through its Philippine company, King-king Mines Inc.)
collared its first hole on the deposit. The current database contains the results of 128 Echo
Bay core holes totaling 52,718 meters. Most of the core was split on three meter intervals,
with a few of the early holes in suspected high grade gold areas split on two meter intervals.
All of the holes with road access were collared PQ (85mm-diameter) core size to obtain as
large a sample of the oxide zone as possible. Drill holes were reduced to HQ (63.50mmdiameter) size upon reaching sulfide ore or at the limit of the ability of the drill to penetrate
with PQ tools. A few holes were further reduced to NQ (47.60mm-diameter/ core size in
order to case off bad ground. Nineteen of the holes were mobilized and supported by
helicopter and were drilled using HQ size core barrels. Core was transported as soon as
possible to a centrally located logging area on site for inventory and geotechnical logging and
then transported to a facility in Davao City for geologic logging. Core was divided in half
with a conventional knife-blade core splitter in Davao City and a sample prepared producing
a 150 gram pulp for shipping to the Inchcape Testing Lab in Manila. The pulps were assayed
for gold, total copper, acid soluble copper and molybdenum. Check assay samples were
taken for this study in June 2010 from the other half of split Echo Bay core currently stored
at the core shed near Pantukan City. Results of this sampling confirm the Echo Bay results
of 1997 for total copper and gold are within acceptable industry standards of error. However,
Echo Bay acid soluble coppers were found to be biased high compared to the recent re-assay
work, perhaps due to Inchcape’s use of a more aggressive acid soluble copper analytical
method. See Section 14 - Data Validation for details of the June 2101 check assay sampling
study.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
13
63
Sample Preparation, Analyses and Security
Estimates of mineralized tonnage and grade at King-king Gold-Copper have historically been
based upon assays derived from drilled intercepts. Approximately 33,660 samples were
taken over the course of the project and processed by four separate analytical laboratories Benguet’s in-house labs at Dizon and Balatoc, McPhar Labs in Manila and Inchcape Labs in
Manila. The sample preparation was not completed by the issuers or any of their contractors.
It was done by the companies previously working on the project.
13.1 Mitsubishi Drilling Programs
Sample preparation and analysis procedures for the Mitsubishi drilling program of 19691972 were not available for review. The sample chain of custody and security procedures
used by Mitsubishi are unknown.
13.2 Benguet Drilling Programs
Sample preparation and analysis procedures for the Benguet drilling programs are described
in the reference titled “Benguet Sample & Assay Procedure.” Core samples were collected
on 3m intervals and split at the site, placed in sample bags, and sent to the company’s sample
preparation laboratory in Davao City. There the samples were dried and crushed to a
nominal 1/8 inch size. This was split down to about 500 grams that was then pulverized to
150 mesh. The pulp was then divided into two 250- to 300-gram samples, one for analysis
and one for reserve. The pulps were then shipped to Benguet’s in-house analytical labs at
either Balatoc or Dizon for analysis. Total copper analysis was done on a 0.5-gram sample.
Three-acid digestion was used (perchloric, nitric, and hydrochloric acids) prior to analysis
by atomic absorption (AAS).
Soluble copper analysis was done on a 1.0-gram sample. Digestion was with 5% sulfuric
acid at room temperature for two hours, with solution stirring every 15 minutes. As with
total copper, final analysis was done by AAS.
Based on the documentation provided to IMC, it appears that the Benguet laboratories also
performed gold analysis by solution methods rather than by fire assay. The gold analyses
were based on 10.0-gram samples. Nitric acid was first added under low heat to decompose
sulfides. Potassium chlorate was then added, followed by hydrochloric acid, which formed
aqua regia and dissolved the gold. Additional HCL was added to dissolve salts that may
have formed, and MIBK (methyl isobutyl ketone) was added to collect the gold. Final gold
analysis was by AAS. In light of Benguet’s gold analytical procedures, Echo Bay’s decision
to re-assay Benguet samples for gold is not surprising.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
64
The specific sample chain of custody and security procedures employed by Benguet are not
known, although it is likely that the samples were continually under Benguet company
control, given that the samples were prepared as well as analyzed in company laboratories.
13.3 Echo Bay Drilling Programs
13.3.1 Core Splitting and Sample Preparation
Core was transported as soon as possible to a centrally located logging area on site for
inventory and geotechnical logging. The geotechnical logging was carried out by trained
technicians following procedures recommended by Knight-Piesold (J. Haile, 1995). Core was
then transported daily to the Davao office warehouse for detailed geologic logging. The
entire core was photographed prior to splitting and the photographs were transferred to a CDROM format for ease of storage and access.
Core splitting was done by trained technicians using conventional hydraulic knife-blade
splitters. One half of the core was placed in permanent storage in a secure, enclosed
warehouse. The remainder of each sampled interval was transported daily to a sample
preparation facility located in Davao City that was independently operated by Inchcape
Testing. The entire sample was crushed to minus one-tenth inch using a jaw crusher. A
sample weighing approximately one kilogram was then split from the crushed material using
a riffle splitter. This entire split was pulverized using a large capacity disk pulverizer. The
pulps were reduced in size to a nominal 90 percent passing through a minus 200 mesh screen.
A pulp split weighing approximately 150 grams from each sample was then shipped to the
Inchcape Testing laboratory in Manila by air freight. The remainder of the pulp and the
coarse reject were returned to King-king Mines Inc. for secure, permanent storage in an
enclosed warehouse.
Gold assaying was done by fire assay with an atomic absorption finish on fifty-gram charges.
Total copper and molybdenum were assayed using a total digestion followed by atomic
absorption technique. A weak acid, room temperature digestion followed by atomic
absorption analysis was used for acid soluble copper analysis.
13.3.2 Assay Quality Control/Quality Assurance
The Quality Assurance/Quality Control (QA/QC) program used by King-king Mines Inc
(KMI) was designed by Ken Lovstrom, a consulting geochemist, together with KMI staff
early in 1996 and was fully implemented in the second quarter of 1996. To provide the
highest degree of assurance for assay data, KMI used three reputable independent assay
laboratories. The primary lab was Inchcape Testing Services located in Manila. The
secondary check laboratory was Cone Geochemical located in Denver, Colorado. Chemex
Labs Ltd. of Vancouver was used for limited check assaying and for round robin assays of
control samples. Echo Bay’s chain of custody and security procedures were not documented
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
65
in writing, but it is highly likely that rigid procedures were followed, based on the authors’
first-hand experience with other Echo Bay projects that were overseen by Ken Lovstrom.
13.3.2.1
Assay Reliability
The reliability of numerical data is measured by precision and accuracy. Precision is the
degree of reproducibility, regardless of accuracy. Accuracy is the degree of closeness to a
true and generally unknown value. The limit of detection is another important term because
assay labs define a detection limit as "that point at which precision is plus or minus 100
percent." Therefore by definition all assay values for concentrations larger than the limit of
detection (LOD) will have greater precision. The next step in providing quality assurance for
any analytical program is the quantification of results. The limit of quantification (LOQ) is
the point that 95 percent of the samples fall within plus or minus 10 percent and assumes that
one in every twenty samples falls outside this range. The limit of quantification varies with
the concentration, detection limit and precision factor for the process and assumes a
homogenous sample. This is a critical assumption and each lab produces this qualifying
statement quickly.
The Limit of Quantification for Inchcape Testing was 0.5 ppm gold, for Chemex was 0.6
ppm gold, and for Cone was 0.1 ppm gold. The large discrepancy between LOQ for Cone
versus both of the other labs was a function of the final separation technique used by Cone.
Detection limits and LOQ's for copper are very low relative to copper grades of economic
interest and are not critical to the quality control program. For gold, precision decreases from
95 percent within plus or minus 10 percent to 95 percent within plus or minus 100 percent
below 0.5 ppm. This does not mean that data below this threshold is unquantifiable. The
following table, provided by lnchcape Testing, defines the precision curve for all data. This
curve was the accepted tolerance limit to which data generated by the assay labs should be
held.
Concentration (ppm gold)
Tolerance
0.005
0.050
0.100
0.500
±100%
±50%
±25%
±10%
Analytical accuracy and precision are dependent on the techniques used:
• Fire Assay
• Atomic Absorption
A variety of other factors including technique, detection limits, sampling, sample
preparation, extraction, homogenization, reagent purity, instrumentation and professionalism
all contribute to the integrity of analytical data. These factors can have an accumulated effect
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
66
on assay data. The presence of coarse gold alone can alter an assay value plus or minus 17
percent at the 0.5 ppm concentration level, significantly violating the assumption of
“homogeneity” incorporated into the tolerance values listed above. This was nearly double
the tolerance for a homogenous sample at the same concentration. A variance in gold assays
of plus or minus 11 percent and copper assays of plus or minus 7 percent are accepted as
within industry standards due to the nature of the analyses used by KMI. Figure 14-4 in the
next section shows an example of tolerance, or precision, versus grade for gold, and that in
general, for gold, actual precision is not as good as the table above based on theoretical
“homogenous” samples.
Accuracy was established by using control samples. These control samples are used to check
for laboratory assay "batch busts", data entry errors, or other analytical problems. Running
means for control samples having concentrations above, below, and at the limit of
quantification are compared with accepted true values for those samples as established by a
round robin test.
Precision was established by comparing assay pairs and was expressed as percent running
standard deviation. Variance was defined by the ratio of the running mean and standard
deviation.
13.3.2.2
Quality Control Protocol
The intent of this QA/QC program was to monitor assays on a per batch basis using control
samples, duplicates, blanks, replicates and umpire laboratories to insure assay integrity. KMI
monitors seven different types of samples to detect the precision and accuracy of assays
provided by the various assay laboratories.
• Bulk pulp control samples
• Bulk reject control sample
• Duplicate core sample
• River sand sample
• Second laboratory check sample
• Lab duplicate sample
• Certified standards
Bulk Pulp Control Samples "A”
During 1996 KMI used six different bulk pulp control samples, KM 1 through 6. Control
samples KM 1 through 3 were submitted randomly in oxidized zones, and KM 4 through 6
were used in sulfide zones. All were designated by the letter “A" immediately following the
hole and sample number and are easily identifiable on assay sheets. Forty kilograms of split
core from the project were composited to obtain a desired grade for copper and gold.
Bondar-Clegg in Reno, Nevada pulverized and mixed the bulk samples and generated 75
gram pulp packets. Ten of each of the pulp packets were assayed by Cone Geochemical in
Denver, Colorado to establish initial concentration ranges for gold and copper. Subsequently
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
67
each control sample has been resubmitted to Cone, Inchcape, and Chemex for round robin
assaying to determine the "true" values for each sample.
A bulk pulp control sample was submitted at a frequency of one per every twenty samples.
Assays are reviewed against the accepted year to date means and global means as established
by the round robin analysis for gold and copper. Assays that fall outside these criteria are reassayed along with the five preceding and five following drill samples in that batch. After the
re-assay returns it will be placed in the database as an original assay.
Bulk Reject Control Samples "B"
The bulk rock control sample used in this program was identified by the letter "B"
immediately following the sample number. The material for this sample was a composite,
oxide, coarse reject from drill hole EB-7, with known gold and copper values. Ten samples
were initially submitted to Cone for analysis to set assay ranges for gold and copper. A bulk
reject was submitted one per day per hole and was specifically designed to check sample
preparation. Any assays that fall above or below two standard deviations are re-assayed along
with the five preceding and five following drill samples in that batch.
Duplicate Core Samples "C”
For every fortieth sample, the second half of the split core was used completely for assay.
The purpose of this sample was to check the core splitting and sampling procedures for
quality and bias.
River Sand Samples "D”
This blank control sample was generated by the Inchcape Testing sample prep facility. A
sample of ordinary river sand was run through the crushing and pulverizing equipment after
each sample. Every tenth sample was submitted for assay. The purpose of this sample was to
check the sample preparation procedures for cleanliness and cross contamination.
Second Lab Check Samples "E"
Each month, duplicate pulps of 5 percent of the assays received are re-submitted to a second
lab. The selection of these samples was random and not biased toward a particular range of
concentrations for either gold or copper. Cone Geochemical in Denver was chosen as the
second lab. The purpose of this sample was to provide an outside lab check of the primary
lab.
Lab Duplicate Samples "F"
Inchcape Testing re-assays one sample in ten as an internal check. This re-assay was reported
on the final sheet of each assay report. This data was tracked by King-king Mines Inc.
personnel and was given the letter "F" to distinguish it from the various other check samples.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
68
Certified Standards "G"
Inchcape Testing uses internally several certified standards including Canmet and Gannett
standards for copper and gold. King-king Mines Inc, staff monitors and evaluates these assay
results. Several standards are included in each batch of samples fired.
13.4
IMC/REI Opinions of Sample Preparation, Security and Analytical Procedures
It is the opinion of IMC that the Echo Bay sample preparation, security, and analytical
procedures are adequate for the nature of mineralization being tested, namely a bulk,
relatively low grade base metal deposit that includes precious metals.
It is also the opinion of IMC and REI that the Echo Bay QA/QC program exceeded industry
standards at that time and also exceeds current standards in place at most companies. Also
the principal authors worked with Ken Lovstrom (now deceased) on other Echo Bay projects
and have high regard for his work.
The Benguet sample preparation and analytical procedures, as described in information
provided to IMC, also appear appropriate. The total copper and soluble copper analysis
methods are also appropriate. The Benguet gold analysis method, however, is complex, and
not commonly used. As will be discussed in the next section of this report, there appears to
be a bias with regard to the Benguet gold assays. Total copper results, however, appear to be
in line with Echo Bay results.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
14
69
Data Verification
IMC performed the following data verifications on the King-king sampling database:
•
•
•
A significant portion of the assays in the database were compared with assay
certificates and geologic logs,
For the 1997 Feasibility Study, Echo Bay re-assayed a significant number of Benguet
samples for copper and gold. IMC did comparisons of the Echo Bay and Benguet
assays for these sample intervals,
Don Earnest of REI pulled 100 samples from Benguet and Echo Bay existing core to
be assayed for copper and gold for comparison with original assays.
The following sections include the details of the various studies.
14.1
Comparisons of Assays with Original Assay Certificates
14.1.1 Echo Bay Assays
IMC originally selected 14 Echo Bay drillholes to compare assays in the database with
original assay certificates. These holes were:
EB-2
EB-35
EB-95
EB-7
EB-68
EB-105
EB-8
EB-86
EB-115
EB-21
EB-88
EB-121
EB-26
EB-92
These were a somewhat random selection of holes, though there was a bias toward selecting
more of the higher grade holes.
The first 14 entries of Table 14-1 show the results of comparing the holes with assay
certificates for total copper, soluble copper, and gold. For each mineral, in each hole, the
total number of assays, the number verifiable on available certificates, and the number of
errors are shown. Also, the differences in the database and certificates are explained under
the “Description of Errors” column. The left number is what was in the database versus the
certificate value on the right.
Three of the 14 holes, EB-7, EB-8, and EB-68 did not have all the assay certificates
available, though the data compared well with the certificates that were available. Other than
EB-115 most of the denoted errors are minor in nature except for a gold assay in EB-2 and a
total copper assay in EB-92 which were off by an order of magnitude. EB-115 however
contained three total copper assays and one gold assay with order of magnitude errors.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
70
Due to the results of EB-115, and also the three holes with incomplete assay certificate
coverage, IMC selected seven additional Echo Bay holes to audit:
EB-9
EB-89
EB-116
EB-63
EB-119
EB-124
EB-11
The result of the audit of these holes is also shown on Table 14-1. Certificate data was
incomplete for EB-9 and EB-11. Results for EB-116 were relatively poor, similar to EB-115,
which indicated the possibility of a significant lapse in the data entry/verification for a
portion of the Echo Bay data.
IMC then audited EB-113, EB-114, EB-117 and EB-118 to bracket the problem holes. Table
14-1 shows that holes EB-113, EB-114, and EB-117 are fine. Certificate data was only
available for the first 31 records of EB-118 and none of the assays compared with the
database. The first 33 (not 31) assays in EB-118 were the same as EB-117, indicating a
portion of EB-117 was copied over the EB-118 data. A review of the cross sections
indicated the certificate data compared well with surrounding holes (and what was originally
in the database did not). Also, the data in the lower portion of EB-118, the portion not
covered by the certificates, looks reasonable compared to surrounding holes.
IMC then checked EB-120, EB-122, EB-123, EB-125, and EB-126, which represent all the
Echo Bay drilling after EB-118, plus three additional holes EB-43, EB-53, and EB-77. The
latter three were chosen because no other holes from the 40’s, 50’s, or 70’s series had been
selected. These holes checked reasonably well.
Overall 33 of the 128 Echo Bay holes were audited which is about 26% of the holes. The
bottom of Table 14-1 shows this amounted to 4,961 data records of a total of 18,427 Echo
Bay records (27%). Certificate entries were available for 84% of the total copper assays,
82% of the soluble copper assays, and 89% of the gold assays. The overall error rate was
about 1%. The overall error rate is acceptable though IMC would expect it to be about half
that in a verified database. The fact that these errors clustered in three holes probably drilled
about the same time indicates a lapse in the data entry procedures for a brief period near the
end of the Echo Bay drilling program.
IMC corrected the known errors, replacing the database values with certificate values.
14.1.2 Benguet Assays
There were not any assay certificates available to IMC for the Benguet holes. There were
however, image files from old Benguet drill logs that also included assay values for total
copper, soluble copper, and gold. Minimally, this allowed verification that there was not any
tampering with, or errors introduced into the database since the Benguet tenure.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
71
IMC selected 14 Benguet holes for review:
BC-5
BN-20
M25-3R
BC-11
BN-25B
NH-1
BC-16
BNR-2
PQ-3
BC-21
BNR-7
PQ-5
BN-18
BNR-10
Table 14-2 shows the results of the comparison in the same format as the Echo Bay data
comparison. BNR-2, BNR-10, M25-3R and the upper portion of BNR-7 were sampled by
reverse circulation drilling. Assays were done on 1m intervals. On the logs averages over
three meter intervals were recorded. IMC averaged the database values to do the
comparison.
Results of the comparison were good. The bottom of the table shows an error rate of 1.2%
for total copper, 0.6% for soluble copper, and 1.8% for gold. This is a bit high, but it can be
seen that only about three of the assays amounted to order of magnitude errors (a gold assay
in BN-18 and BNR-2 and a soluble copper assay in BNR-7).
IMC did not change any values in the database due to this comparison. Since the check was
against data in logs, not assay certificates, there is no way of knowing which value is the
correct one. Also, as noted above, most of the differences are minor.
14.1.3 Mitsubishi Assays
To IMC’s knowledge there are not any available assay certificates for the Mitsubishi data.
Only total copper and soluble copper were assayed for those samples.
14.1.4 Other Data Checks
IMC did a listing of data records with soluble copper greater than or equal to total copper and
reviewed these against certificates when available. A cluster of these in EB-59 showed that
what was recorded in the database as soluble copper assays were actually gold assays for 18
records. These were replaced with the correct values from the assay certificates.
A listing of records with total copper equal to gold showed a cluster of records in BNR-4
where the gold assays in the database were actually total copper assays. The errant gold
assays were replaced with values from the logs.
It was also discovered that several assays were represented in the database as either 0.98 or
0.99 that original certificates indicated were actually 0.098 or 0.099. These were about 10
Echo Bay assays and occurred in total copper, soluble copper and gold. IMC reviewed all
0.98 and 0.99 assays in the database because of this error. It is not certain how, or when, this
error was introduced.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
72
Due to the IMC database checks about 132 data records were changed compared with the
database used for the 2009 due diligence review. Table 14-3 shows the assays with values in
red the ones changed. Note that -9 is the IMC code for “no-assay”.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
73
Table 14-1. Comparison of Drillhole Database With Assay Certificates - Echo Bay Drilling
Hole ID
EB-2
EB-7
EB-8
EB-21
EB-26
EB-35
EB-68
EB-86
EB-88
EB-92
EB-95
EB-105
EB-115
EB-121
EB-9
EB-116
Analysis
Tot Cu
Sol Cu
Gold
Tot Cu
Sol Cu
Gold
Tot Cu
Sol Cu
Gold
Tot Cu
Sol Cu
Gold
Tot Cu
Sol Cu
Gold
Tot Cu
Sol Cu
Gold
Tot Cu
Sol Cu
Gold
Tot Cu
Sol Cu
Gold
Tot Cu
Sol Cu
Gold
Tot Cu
Sol Cu
Gold
Tot Cu
Sol Cu
Gold
Tot Cu
Sol Cu
Gold
Tot Cu
Sol Cu
Gold
Tot Cu
Sol Cu
Gold
Tot Cu
Sol Cu
Gold
Tot Cu
Sol Cu
Gold
No. of
Assays
167
167
167
151
151
151
230
230
230
206
206
206
150
150
150
101
101
101
125
125
125
156
156
156
194
194
194
183
183
183
166
166
166
117
117
117
179
179
179
135
135
135
230
230
230
155
155
155
No. in
Certs
167
167
167
37
17
151
65
25
65
204
206
206
150
150
150
101
101
101
36
36
36
156
156
156
194
194
194
183
156
156
166
166
166
117
117
117
179
179
179
135
135
135
28
28
173
155
155
155
Technical Report / Form 43-101F1
%
100%
100%
100%
25%
11%
100%
28%
11%
28%
99%
100%
100%
100%
100%
100%
100%
100%
100%
29%
29%
29%
100%
100%
100%
100%
100%
100%
100%
85%
85%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
12%
12%
75%
100%
100%
100%
No. of
Errors
0
1
1
1
0
0
1
0
0
0
0
0
2
0
0
1
0
0
0
0
0
0
0
0
0
0
0
1
0
0
0
0
0
0
0
0
5
3
3
0
0
0
0
0
0
1
6
7
%
0.0%
0.6%
0.6%
2.7%
0.0%
0.0%
1.5%
0.0%
0.0%
0.0%
0.0%
0.0%
1.3%
0.0%
0.0%
1.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.5%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
2.8%
1.7%
1.7%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.6%
3.9%
4.5%
Description of Errors - Comparisons are database/certificates
0.108 vs 0.109
1.169 vs 0.116
0.393 vs 0.392
0.269 vs 0.270
Most certificates not available
Most certificates not available
Most certificates not available
Most certificates not available
Most certificates not available
0.325 vs 0.235, 0.265 vs 0.263
0.244 vs 0.224
Most certificates not available
Most certificates not available
Most certificates not available
0.606 vs 0.048
0.503 vs 0.603, 1.270 vs 0.270, 0.247 vs 0.242, 0.990 vs 0.099, 0.980 vs 0.098
0.194 vs 0.144, 0.024 vs 0.026, 0.050 vs 0.030
0.496 vs 0.446, 0.980 vs 0.098, 0.742 vs 0.792
Most certificates not available
Most certificates not available
Most certificates not available
0.419 vs 0.491
0.147 vs 0.142, 0.398 vs 0.396, 0.003 vs 0.083, 1.784 vs 0.784, 0.074 vs 0.073, 0.049 vs 0.040
0.043vs0.047, 0.082vs0.032, 0.033vs0.037, 0.827vs0.822, 0.891vs0.691, 2.328vs2.228, 0.459vs2.459
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
74
Table 14-1 (Continued). Comparison of Drillhole Database With Assay Certificates - Echo Bay Drilling
EB-119
EB-124
EB-11
EB-89
EB-63
EB-113
EB-114
EB-117
EB-118
EB-120
EB-122
EB-123
EB-125
EB-126
EB-43
EB-53
EB-77
TOTAL
Tot Cu
Sol Cu
Gold
Tot Cu
Sol Cu
Gold
Tot Cu
Sol Cu
Gold
Tot Cu
Sol Cu
Gold
Tot Cu
Sol Cu
Gold
Tot Cu
Sol Cu
Gold
Tot Cu
Sol Cu
Gold
Tot Cu
Sol Cu
Gold
Tot Cu
Sol Cu
Gold
Tot Cu
Sol Cu
Gold
Tot Cu
Sol Cu
Gold
Tot Cu
Sol Cu
Gold
Tot Cu
Sol Cu
Gold
Tot Cu
Sol Cu
Gold
Tot Cu
Sol Cu
Gold
Tot Cu
Sol Cu
Gold
Tot Cu
Sol Cu
Gold
Tot Cu
Sol Cu
Gold
112
112
112
133
133
133
162
162
162
171
171
171
108
108
108
134
134
134
141
141
141
134
134
134
100
100
100
172
172
172
199
199
199
150
150
150
133
133
133
7
7
7
165
165
165
161
161
161
134
134
134
4961
4961
4961
112
112
112
133
133
133
11
11
33
171
171
171
108
108
108
134
134
134
141
141
141
134
134
134
31
31
31
172
172
172
199
199
199
150
150
150
133
133
133
7
7
7
165
165
165
161
161
161
134
134
134
4169
4084
4425
Technical Report / Form 43-101F1
100%
100%
100%
100%
100%
100%
7%
7%
20%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
31%
31%
31%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
84%
82%
89%
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
31
31
31
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1
0
0
1
1
0
45
42
42
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
100.0%
100.0%
100.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.6%
0.0%
0.0%
0.7%
0.7%
0.0%
1.1%
1.0%
0.9%
Most certificates not available
Most certificates not available
Most certificates not available
These were ALL wrong, according to the certificate. The first 33 records (tcu, scu, and au) were
exactly the same as were entered for EB-117. The top of EB-118 is significantly higher grade than
what was in the database and appears more correct compared to surrounding holes.
2.58 vs 0.345, 2.58 was on the certificate but was designated as a control sample.
0.395 vs 0.500
0.048 vs 0.524
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
75
Table 14-2. Comparison of Drillhole Database With Geologic Logs - Benguet Drilling
BC-5
BC-11
BC-16
BC-21
BN-18
BN-20
BN-25B
BNR-2
BNR-7
BNR-10
M25-3R
NH-1
PQ-3
PQ-5
TOTAL
Tot Cu
Sol Cu
Gold
Tot Cu
Sol Cu
Gold
Tot Cu
Sol Cu
Gold
Tot Cu
Sol Cu
Gold
Tot Cu
Sol Cu
Gold
Tot Cu
Sol Cu
Gold
Tot Cu
Sol Cu
Gold
Tot Cu
Sol Cu
Gold
Tot Cu
Sol Cu
Gold
Tot Cu
Sol Cu
Gold
Tot Cu
Sol Cu
Gold
Tot Cu
Sol Cu
Gold
Tot Cu
Sol Cu
Gold
Tot Cu
Sol Cu
Gold
Tot Cu
Sol Cu
Gold
118
118
118
67
67
67
112
112
112
59
59
59
115
115
115
56
56
56
102
102
102
222
222
222
247
247
247
161
161
161
228
228
228
140
140
140
108
66
108
132
132
132
1867
1825
1867
116
116
116
67
67
67
111
111
111
55
55
55
115
115
115
56
56
56
102
102
102
222
222
222
247
247
247
161
161
161
228
228
228
140
140
140
108
66
108
132
132
132
1860
1818
1860
Technical Report / Form 43-101F1
98%
98%
98%
100%
100%
100%
99%
99%
99%
93%
93%
93%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
0
1
0
0
0
0
1
0
1
1
0
0
2
0
1
0
0
0
2
0
1
3
3
8
5
3
8
0
0
0
1
0
0
0
0
1
2
0
8
6
3
5
23
10
33
0.0%
0.9%
0.0%
0.0%
0.0%
0.0%
0.9%
0.0%
0.9%
1.8%
0.0%
0.0%
1.7%
0.0%
0.9%
0.0%
0.0%
0.0%
2.0%
0.0%
1.0%
1.4%
1.4%
3.6%
2.0%
1.2%
3.2%
0.0%
0.0%
0.0%
0.4%
0.0%
0.0%
0.0%
0.0%
0.7%
1.9%
0.0%
7.4%
4.5%
2.3%
3.8%
1.2%
0.6%
1.8%
0.013 vs 0.011
0.582 vs 0.583
0.070 vs 0.080
0.251 vs 0.261
0.560 vs 0.500, 1.500 vs 1.520
0.020 vs 1.200
0.650 vs 0.630, 0.730 vs 0.770
0.700 vs 0.800
0.127 vs 0.11, 0.16 vs 0.11, 0.15 vs 0.45 (log entries were average of 3 intervals)
0.144 vs 0.16, 0.20 vs 0.25, 0.008 vs 0.16
1.36vs1.48, 0.287vs0.26, 0.267vs0.25, 0.227vs0.26, 0.117vs0.01, 0.243vs0.23, 0.267vs0.33, 0.37vs0.31
0.087 vs 0.11, 0.243 vs 0.30, 0.157 vs 0.21, 0.415 vs 0.28, 0.213 vs 0.34
0.087 vs 0.008, 0.26 vs 0.28, 0.035 vs 0.02 (Intervals on logs were average of 3 assays)
0.17vs0.29, 0.273vs0.40, 0.233vs0.21, 0.24vs0.50, 0.55vs0.43, 0.41vs0.55, 0.58vs0.43, 1.10vs0.69
Intervals on the log were 3m intervals that were an average of 3 assay intervals
0.59 vs 0.69, intervals on the log were an average of 3 assay intervals
0.560 vs 0.580
0.750 vs 0.740, 0.050 vs 0.060
0.20vs0.42, 1.96vs1.98, 2.18vs2.24, 0.86vs0.88, 1.56vs1.63, 1.16vs1.18, 0.10vs0.11, 0.06vs0.05
0.22 vs 0.23, 0.22 vs 0.21, 0.24 vs 0.25, 0.78 vs 0.77, 0.30 vs 0.31
0.40 vs 0.39, 0.07 vs 0.08, 0.16 vs 0.17
0.38 vs 0.39, 0.144 vs 0.140, 0.34 vs 0.30, 0.50 vs 0.48, 0.36 vs 0.33
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
76
Table 14-3. Changes to Database Since 2009 Due Diligence Review
hole_id
BNR-4
BNR-4
BNR-4
BNR-4
BNR-4
BNR-4
BNR-4
BNR-4
BNR-4
BNR-4
BNR-4
BNR-4
BNR-4
BNR-4
BNR-4
BNR-4
BNR-4
BNR-4
BNR-4
BNR-4
BNR-4
BNR-4
BNR-4
BNR-4
BNR-4
BNR-4
BNR-4
BNR-4
BNR-4
BNR-4
BNR-4
BNR-4
BNR-4
BNR-4
BNR-4
EB-115
EB-115
EB-115
EB-115
EB-115
EB-115
EB-115
EB-115
EB-115
EB-115
EB-115
EB-115
EB-116
EB-116
EB-116
EB-116
EB-116
EB-116
EB-116
EB-116
EB-116
EB-116
EB-116
EB-116
EB-116
EB-116
EB-116
EB-116
EB-116
EB-116
from
101.6
102.6
103.6
104.6
105.6
106.6
107.6
108.6
109.6
110.6
111.6
112.6
113.6
114.6
115.6
116.6
117.6
118.6
119.6
120.6
121.6
122.6
123.6
124.6
125.6
126.6
127.6
128.6
129.6
130.6
131.6
132.6
133.6
134.6
135.6
3
60
168
255
267
306
387
414
417
444
489
528
0
27
69
114
150
153
165
174
213
216
219
228
249
252
390
423
438
441
to
102.6
103.6
104.6
105.6
106.6
107.6
108.6
109.6
110.6
111.6
112.6
113.6
114.6
115.6
116.6
117.6
118.6
119.6
120.6
121.6
122.6
123.6
124.6
125.6
126.6
127.6
128.6
129.6
130.6
131.6
132.6
133.6
134.6
135.6
136.6
6
63
171
258
270
309
390
417
420
447
492
531
3
30
72
117
153
156
168
177
216
219
222
231
252
255
393
426
441
444
length
Technical Report / Form 43-101F1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
imc_samp tcu2009
103
0.250
104
0.130
105
0.200
106
0.180
107
0.190
108
0.270
109
0.230
110
0.220
111
0.200
112
0.180
113
0.180
114
0.210
115
0.250
116
0.240
117
0.100
118
0.170
119
0.150
120
0.160
121
0.640
122
0.280
123
0.180
124
0.180
125
0.120
126
0.180
127
0.180
128
0.250
129
0.130
130
0.220
131
0.140
132
0.100
133
0.180
134
0.230
135
0.090
136
0.180
137
0.160
2
0.214
21
0.126
57
0.177
86
0.944
90
0.217
103
0.197
130
0.503
139
1.270
140
0.247
149
0.310
164
0.990
177
0.980
1
0.358
10
0.317
24
0.195
39
0.584
51
0.355
52
0.419
56
0.118
59
0.209
72
1.171
73
0.922
74
1.529
77
1.496
84
1.459
85
1.957
131
0.364
142
0.008
147
0.980
148
0.289
tcu
scu2009
0.250
0.020
0.130
0.020
0.200
0.030
0.180
0.020
0.190
0.020
0.270
0.020
0.230
0.060
0.220
0.020
0.200
0.010
0.180
0.010
0.180
0.010
0.210
0.020
0.250
0.010
0.240
0.030
0.100
0.004
0.170
0.030
0.150
0.020
0.160
0.004
0.640
0.010
0.280
0.020
0.180
0.060
0.180
0.010
0.120
0.020
0.180
0.020
0.180
0.020
0.250
0.020
0.130
0.030
0.220
0.020
0.140
0.020
0.100
0.010
0.180
0.004
0.230
0.020
0.090
0.004
0.180
0.010
0.160
0.050
0.214
0.194
0.126
0.980
0.177
0.024
0.944
0.038
0.217
0.018
0.197
0.050
0.603
0.036
0.270
0.051
0.242
0.047
0.310
0.067
0.099
0.015
0.098
0.006
0.358
0.184
0.317
0.180
0.195
0.147
0.584
0.398
0.355
0.289
0.491
0.464
0.118
0.003
0.209
0.168
1.171
0.734
0.922
0.354
1.529
0.275
1.496
0.980
1.459
0.400
1.957
1.784
0.364
0.074
0.008
0.012
0.098
0.012
0.289
0.049
scu
0.020
0.020
0.030
0.020
0.020
0.020
0.060
0.020
0.010
0.010
0.010
0.020
0.010
0.030
0.004
0.030
0.020
0.004
0.010
0.020
0.060
0.010
0.020
0.020
0.020
0.020
0.030
0.020
0.020
0.010
0.004
0.020
0.004
0.010
0.050
0.144
0.098
0.026
0.038
0.018
0.030
0.036
0.051
0.047
0.067
0.015
0.006
0.184
0.180
0.142
0.396
0.289
0.464
0.083
0.168
0.734
0.354
0.275
0.098
0.400
0.784
0.073
0.012
0.012
0.040
au2009
0.250
0.130
0.200
0.180
0.190
0.270
0.230
0.220
0.200
0.180
0.180
0.210
0.250
0.240
0.100
0.170
0.150
0.160
0.640
0.280
0.180
0.180
0.120
0.180
0.180
0.250
0.130
0.220
0.140
0.100
0.180
0.230
0.090
0.180
0.160
0.045
0.069
0.049
0.496
0.980
0.136
1.407
0.542
0.288
0.742
0.510
0.528
0.990
0.043
0.012
0.073
0.082
0.065
0.018
0.033
0.827
0.891
2.328
1.928
0.459
3.561
0.445
0.990
0.109
0.459
au
0.170
0.170
0.170
0.280
0.280
0.280
0.150
0.150
0.150
0.170
0.170
0.170
0.070
0.070
0.070
0.190
0.190
0.190
0.130
0.130
0.130
0.030
0.030
0.030
0.070
0.070
0.070
0.070
0.070
0.070
0.060
0.060
0.060
0.080
0.080
0.045
0.069
0.049
0.446
0.098
0.136
1.407
0.542
0.288
0.792
0.510
0.528
0.099
0.047
0.012
0.073
0.032
0.065
0.018
0.037
0.822
0.691
2.228
1.928
2.459
3.561
0.445
0.099
0.109
0.459
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
77
Table 14-3 (Continued). Changes to Database Since 2009 Due Diligence Review
hole_id
EB-118
EB-118
EB-118
EB-118
EB-118
EB-118
EB-118
EB-118
EB-118
EB-118
EB-118
EB-118
EB-118
EB-118
EB-118
EB-118
EB-118
EB-118
EB-118
EB-118
EB-118
EB-118
EB-118
EB-118
EB-118
EB-118
EB-118
EB-118
EB-118
EB-118
EB-118
EB-118
EB-118
EB-118
EB-15
EB-15
EB-2
EB-2
EB-26
EB-26
EB-35
EB-53
EB-59
EB-59
EB-59
EB-59
EB-59
EB-59
EB-59
EB-59
EB-59
EB-59
EB-59
EB-59
EB-59
EB-59
EB-59
EB-59
EB-59
EB-59
EB-6
EB-6
EB-7
EB-77
EB-77
EB-8
EB-92
from
0
3
6
9
12
15
18
21
24
27
30
33
36
39
42
45
48
51
54
57
60
63
66
69
72
75
78
81
84
87
90
93
96
183
32
36
21
153
15
75
42
27
594
597
600
603
606
609
612
615
618
621
624
627
630
633
636
639
642
645
144
384
32
27
36
32
165
to
length
3
6
9
12
15
18
21
24
27
30
33
36
39
42
45
48
51
54
57
60
63
66
69
72
75
78
81
84
87
90
93
96
99
186
34
38
24
156
18
78
45
30
597
600
603
606
609
612
615
618
621
624
627
630
633
636
639
642
645
646
147
386
34
30
39
34
168
Technical Report / Form 43-101F1
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
2
2
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
1
3
2
2
3
3
2
3
imc_samp tcu2009
1
0.022
2
0.024
3
0.036
4
0.023
5
0.009
6
0.018
7
0.028
8
0.013
9
0.005
10
0.009
11
0.011
12
0.028
13
0.087
14
0.039
15
0.015
16
0.014
17
0.027
18
0.013
19
0.010
20
0.007
21
0.013
22
0.012
23
0.026
24
0.012
25
0.011
26
0.012
27
0.017
28
0.017
29
0.042
30
0.021
31
0.023
32
0.023
33
0.019
62
0.712
17
0.069
19
0.091
8
0.110
52
0.180
6
0.325
26
0.265
15
0.244
10
2.580
199
0.152
200
0.175
201
0.196
202
0.268
203
0.256
204
0.082
205
0.093
206
0.183
207
0.118
208
0.044
209
0.090
210
0.063
211
0.081
212
0.033
213
0.026
214
0.063
215
0.066
216
0.084
49
0.250
168
0.560
17
0.393
10
0.577
13
0.395
17
0.269
56
0.606
tcu
scu2009
1.577
0.003
2.087
0.003
1.438
0.013
0.307
0.008
0.313
-9.000
0.087
0.005
0.096
0.003
0.109
0.001
0.032
0.001
0.018
-9.000
0.045
0.001
0.042
0.001
0.032
0.001
0.051
0.013
0.100
0.008
0.287
0.001
0.249
-9.000
0.487
0.002
0.753
0.001
0.903
0.003
1.414
0.002
1.439
0.011
1.311
0.004
1.408
0.004
0.941
0.002
0.690
0.003
0.540
0.001
0.389
0.017
0.369
0.008
0.360
0.001
0.540
0.001
-9.000
0.001
-9.000
0.001
0.712
0.980
0.069
0.500
0.091
0.760
0.110
0.108
0.180
0.019
0.235
0.209
0.263
0.054
0.224
0.042
0.345
0.128
0.152
0.171
0.175
0.214
0.196
0.202
0.268
0.179
0.256
0.333
0.082
0.073
0.093
0.095
0.183
0.145
0.118
0.085
0.044
0.046
0.090
0.073
0.063
0.067
0.081
0.109
0.033
0.047
0.026
0.063
0.063
0.070
0.066
0.144
0.084
0.047
0.250
0.010
0.560
0.990
0.392
0.340
0.577
0.048
0.500
0.276
0.270
0.200
0.048
0.009
scu
1.524
2.093
1.390
0.281
0.320
0.070
0.060
0.036
0.011
0.005
0.013
0.014
0.012
0.019
0.039
0.220
0.169
0.406
0.708
0.869
1.133
1.333
1.724
1.253
0.891
0.597
0.511
0.194
0.282
0.310
0.444
-9.000
-9.000
0.098
0.050
0.076
0.109
0.019
0.209
0.054
0.042
0.128
0.007
0.008
0.006
0.008
0.011
0.005
0.007
0.006
0.006
0.002
0.005
0.004
0.006
0.001
0.002
0.004
0.003
0.005
0.010
0.099
0.340
0.524
0.276
0.200
0.009
au2009
0.055
0.023
0.075
0.019
0.013
0.020
0.028
0.013
0.013
0.010
0.010
0.010
0.005
0.081
0.014
0.011
0.037
0.015
0.011
0.003
0.014
0.025
0.060
0.034
0.026
0.015
0.015
0.014
0.082
0.025
0.218
0.066
0.064
0.861
0.065
0.279
0.038
1.169
0.251
0.653
0.496
0.481
0.171
0.214
0.202
0.179
0.333
0.073
0.095
0.145
0.085
0.046
0.073
0.067
0.109
0.047
0.063
0.070
0.144
0.047
0.980
0.387
0.233
1.566
0.684
0.180
0.033
au
1.607
4.813
3.749
0.540
0.452
0.065
0.098
0.696
1.679
0.327
1.864
0.939
1.268
0.109
0.155
0.478
0.334
0.300
0.335
1.433
0.276
0.641
0.583
0.436
0.546
0.610
0.559
0.203
0.196
0.136
0.121
-9.000
-9.000
0.861
0.065
0.279
0.038
0.116
0.251
0.653
0.496
0.481
0.171
0.214
0.202
0.179
0.333
0.073
0.095
0.145
0.085
0.046
0.073
0.067
0.109
0.047
0.063
0.070
0.144
0.047
0.098
0.387
0.233
1.566
0.684
0.180
0.033
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
14.2
78
Echo Bay Re-Assays of Benguet Samples
14.2.1 Re-Assayed Holes
IMC received assay certificates for the following 22 Benguet holes that were re-assayed
during the course of the Echo Bay Feasibility Study:
BC-1
BC-11
BN-4
BN-20
BN-30B
BC-2
BC-13
BN-7
BN-26
BN-31
BC-3
BC-14
BN-8
BN-27
BC-7
BC-15
BN-18
BN-29
BC-10
BN-1
BN-19
BN-30
The assay data was entered into the database and verified by IMC. The data amounted to
about 1171 total copper assays, 1493 gold assays, and 139 soluble copper assays. Most of
the assays were on the Benguet pulps, not remaining core samples.
14.2.2 Total Copper
Figure 14-1 shows a xy plot and linear regression for the total copper assays. This represents
1159 assay pairs because pairs with an assay less than 0.01% or greater than 3.0% were
excluded. The statistics indicate a mean copper grade of 0.239% for the Benguet assays
versus 0.237% for Echo Bay. The regression equation (forced through the origin) has a slope
of 0.989, very nearly one, which is an excellent result. It can also be seen that the samples
generally cluster fairly tightly around the regression line.
Figure 14-2 shows another xy plot, this time a plot of base 10 logarithms to show more
details at the lower end of the distribution. All 1171 re-assays are included on the plot. The
line on the plot is at a slope of 1. Again, it can be seen that there is very good correlation
between the original Benguet assays and Echo Bay re-assays for total copper. It can be seen
that there is quite a bit of scatter at the low end of the distribution, at an x-axis value of about
-1.5, which corresponds to a grade of about 0.03% total copper. It is expected that the assay
precision should be low at these low grades.
Figure 14-3 shows a plot that represents precision and bias calculations for the data. The x
axis is the mean value for each assay pair, i.e. (Benguet Assay + Echo Bay Assay)/2. The y
axis is the %HRD (Half Relative Deviation), calculated as (Benguet Assay –
Average)/Average and expressed as a percentage. The average %HRD value for all the
points is a measure of bias between the data sets. Another statistic is the %HARD (Half
Absolute Relative Deviation) which is the absolute value of %HRD, which ignores the sense
of the error or relative deviation. %HARD is a measure of assay precision. The bottom of
Figure 14-3 shows for all samples the precision estimate is about 7.2%, i.e. any assay should
be within +/-7.2% of the true value. As Figure 14-3 also shows, precision is poor for lower
grade samples and improves as the grade increases. For samples with a mean copper value
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
79
greater than (or equal to) 0.05% copper the precision estimate is 5.7%. The bias estimates
shown are -3.5% for all data (Benguet > Echo Bay), but only -1.9% for samples greater than
0.05% total copper. These are considered goo results.
According to the assay certificates, the Echo Bay total copper assay was based on four acid
digestion (HF, HNO3, HCLO4, and HCL) followed by analysis by atomic absorption.
14.2.3 Gold
Figure 14-5 shows a xy plot and linear regression for the gold assays. This represents 1485
assays pairs because pairs with an assay less than 0.01 g/t or greater than 5.0 g/t were
excluded. The statistics indicate a mean gold grade of 0.454 g/t gold for Echo Bay versus
0.489 g/t gold for Benguet, an approximate 7.7% difference. The regression equation, forced
through the origin, has a slope of 0.914, i.e. Echo Bay gold = 0.914 x Benguet gold, which
implies an 8.5% to 9% difference in the assays. The Benguet gold assays are biased high
compared with the Echo Bay assays.
Figure 14-6 shows another xy plot, this time a plot of base 10 logarithms to show more
details of the distribution. It can be seen that for the assays less than -0.75 along the x-axis,
which corresponds to about 0.2 g/t gold, there is considerable scatter around the 1:1 line for
the assay results. This is fairly typical because assay precision at grades lower than the 0.2
g/t threshold is usually poor for standard fire assays. Above about -0.5 on the x-axis (about
0.3 g/t gold) the assays tend to cluster fairly well around the 1:1 line though it is noticeable
that a significant majority of the assays plot below the line (Benguet > Echo Bay).
Figure 14-5 shows a plot that represents precision and bias calculations for the data. For all
samples the precision estimate is 20.6% that implies that any assay should be within +/20.6% of the true value. For samples with a mean greater than 0.2 g/t gold the precision
estimate is 14.4%. Considering that the check assays are duplicate samples (versus say reassays of the same pulp) this range of precision is acceptable for gold. Bias estimates by the
%HRD calculation are -7.3% (Benguet > Echo Bay) for all samples and -4.0% for samples
greater than 0.2 g/t gold.
The Echo Bay gold assays were based on a 50g fire assay with an atomic absorption finish.
14.2.4 Soluble Copper
Check assays of soluble copper were limited to two holes, BN-1 and BN-18.
Figures 14-7 shows a xy plot of Benguet versus Echo Bay soluble copper assays. The line on
the graph is at a slope of 1:1 and it can be seen that the Echo Bay assays are always higher
than the Benguet assays. The mean grades are 0.381% soluble copper for Echo Bay versus
0.277% for Benguet.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
80
It appears that the Echo Bay soluble copper assay method was more aggressive assay than
the method used by Benguet, though two holes is not very diagnostic. Comparisons of the
results of block grade estimation with and without Benguet assays, as discussed in Section
17.6, did not indicate this magnitude of difference in soluble copper results.
The Echo Bay soluble copper assays are based on sulfuric acid digestion followed by
analysis by atomic absorption. The Feasibility Study report describes it as “a weak acid,
room temperature digestion”.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
81
Figure 14-1
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
82
Figure 14-2
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
83
Figure 14-3. %Half Rel Deviation vs Mean - Echo Bay Re-Assays of Benguet Copper
100.00%
80.00%
60.00%
%HRD
40.00%
20.00%
Cu Re-Assays
0.00%
-20.00%
-40.00%
-60.00%
-80.00%
0
0.5
1
1.5
2
2.5
Mean Copper Assay (%)
No. of
Benguet
Samples
Cu (%)
1171
0.241
1082
0.258
Description
All Samples
Avg Cu >=0.05%
EB
Cu (%)
0.240
0.258
%
Precision
Bias
Diff
(%HARD) (%HRD)
-0.32%
7.18%
-3.48%
0.06%
5.70%
-1.89%
Figure 14-4. %Half Rel Deviation vs Mean - Echo Bay Re-assays of Benguet Gold
100.00%
80.00%
60.00%
40.00%
%HRD
20.00%
0.00%
Re-Assays
-20.00%
-40.00%
-60.00%
-80.00%
-100.00%
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
Mean Gold Assay
Description
All Assays
Avg Gold >= 0.2 g/t
No. of
Benguet
Samples
Au (g/t)
1493
0.501
887
0.762
EB
Au (g/t)
0.476
0.739
Technical Report / Form 43-101F1
%
Precision
Bias
Diff
(%HARD) (%HRD)
-5.00%
20.59%
-7.34%
-3.08%
14.41%
-4.01%
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
84
Figure 14-5
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
85
Figure 14-6
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
86
Figure 14-7
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
14.3
87
RMMI Check Assays
D. Earnest (REI) collected a suite of 100 diamond drilled 3-meter intervals on June 5-7,
2010. All samples were obtained from material remaining in the King-king Pantukan core
shack, and were considered representative of variations in lithology and grade for samples of
the original drilling programs. The intent was to verify the original assay results. The
samples included 68 samples from original Echo Bay core and 32 samples from original
Benguet core.
14.3.1 Total Copper
Figure 14-8 shows an xy plot of original total copper assays on the x axis and the RMMI
check assay on the y axis. Original Benguet and Echo Bay samples are distinguished on the
graph. Most of the samples cluster relatively closely to the 1:1 line plotted on the graph,
though there are five to six significant outliers, and for all of them the check assay was
significantly lower than the original assay.
Figure 14-9 shows the plot of the mean total copper grade (mean of the original assay and
check assay for each pair) on the x axis and %HRD (Half Relative Deviation) on the y axis.
Section 14.2.2 defined the terminology used. Table 14-4 shows the relative statistics for the
comparison. For all samples the original copper assay averaged 0.468% copper versus
0.424% for the check assay. This is about a 9.5% difference in the means. Results are
similar for Echo Bay and Benguet samples with the check assays being 9.7% lower than
Echo Bay original samples and 9.4% lower than Benguet original samples. Precision
estimates by the HARD calculation are about 10% meaning than any one assay is expected to
be within +/-10% of the true value. Bias estimates from the %HRD calculation method are 4.9% for all data (original assay > check assay), -4.5% for Echo Bay original samples and 5.9% for Benguet original samples.
These results are not as favorable as those obtained by Echo Bay with their program to reassay Benguet samples, though assay results were similar for the majority of the 100
samples. The Echo Bay re-assay program showed a lower bias and better precision than the
RMMI check assay program. The results may partly be explained by degradation of the
samples over time, or possibly that 100 samples do not represent a large enough population.
14.3.2 Gold
Figure 14-10 shows an xy plot of original gold assays on the x axis and the RMMI check
assay on the y axis. Original Benguet and Echo Bay samples are distinguished on the graph.
Most of the samples cluster reasonably close to the 1:1 line plotted on the graph, though there
are a few significant outliers. Note there is one Echo Bay sample with an original assay of
14.3 g/t and an RMMI check assay of 6.8 g/t that is not shown. Note also that this single
assay can significantly distort mean value calculations with only 100 samples available.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
88
Figure 14-11 shows the plot of the mean gold grade on the x axis and %HRD (Half Relative
Deviation) on the y axis. Table 14-5 shows the relative statistics for the comparison. For all
samples the original gold assay averaged 0.962 g/t versus 0.801 g/t gold for the check assay.
This is about a 16.7% difference in the means. Also, for all data, the precision estimate is
23.0% (any one assay is expected to be within +/-23% of the true value) and the bias
estimated by the %HRD calculation is -13.4% (original assay > RMMI check assay.
The table also shows significantly different results for Echo Bay and Benguet original
samples. For all Echo Bay samples the precision estimate is 19.4%, and goes to 15.2% when
samples less than 0.12 g/t gold and the outlier at 14.3 g/t are excluded. The bias for Echo
Bay samples is -10.7% (Echo Bay > RMMI) for all samples and goes to a very reasonable 5.5% when the low grade and outlier are excluded. For original Benguet samples the
precision estimate is 30.7% and the bias -19.0 (Benguet assay > RMMI assay). Truncating a
few low grade samples has minimal impact on the results. As with the Echo Bay re-assay
program, the RMMI assays indicate the original Benguet gold assays are biased high.
14.4
Conclusions and Recommendations
The results of the comparison of assays in the database to assay certificates indicate that the
Echo Bay data were not as clean as expected. However, based on the IMC checks, and
subsequent corrections, IMC is of the opinion that the database now correctly reflects
original assay results to an acceptable level of accuracy for the current resource
determination.
The Benguet total copper assays and Echo Bay re-assays compare well and indicate good
assay precision for total copper. Based on this, the Benguet total copper assays are
acceptable for resource calculation.
The Benguet gold assays are biased high compared with the Echo Bay assays, and also the
RMMI check assays, and will not be used for the current resource model. However, they
will be replaced with Echo Bay re-assays when available.
The RMMI check assay program was successful in that it broadly validated previous Benguet
and Echo Bay copper assays and Echo Bay gold assays. On average, the check assays tended
to be lower than the original assays. This can partially be explained by a few outliers since
100 samples is not a particularly large population. It is also possible that there has been some
degradation of the samples over time.
It is reported to IMC that pulps and remaining core are available for some portion of the
Benguet drilling. IMC recommends an initial re-assaying of a about 200 Benguet drill hole
pulps and their corresponding remaining half of core for total copper and gold. The purpose
is to determine if the bias observed in the Benguet gold assays was due to sample preparation
or the analytical work (or both). Based on the outcome of this, additional Benguet pulps
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
89
and/or core should be assayed to supplement the existing database and improve the
confidence of mineral resource and mineral reserve estimates.
14-8. Total Copper - RMMI Check Assays vs Original Assays
3.00
2.50
Chk Cu
2.00
Echo Bay
Benguet
1.50
1.00
0.50
0.00
0.000
0.500
1.000
1.500
2.000
2.500
3.000
Original Copper
14-9. HRD% vs Mean Copper Grade for RMMI Check Assays
40.00%
20.00%
HRD%
0.00%
-20.00%
Benguet
Echo Bay
-40.00%
-60.00%
-80.00%
-100.00%
0.000
0.500
1.000
1.500
2.000
2.500
3.000
Mean Copper
Table 14-4. RMMI Check Assays versus Original Assays - Total Copper
Description
All Data
Echo Bay Data
Echo Bay Data 0.2% < Original Cu
Echo Bay Data Original Cu < 1.5%
Benguet Data
Benguet Data 0.2% < Original Cu
No. of
Original
Samples Cu (%)
100
0.468
68
0.505
58
0.570
64
0.403
32
0.389
26
0.453
Technical Report / Form 43-101F1
Check
Cu (%)
0.424
0.456
0.512
0.373
0.354
0.408
%
Precision
Bias
Diff
(%HARD) (%HRD)
-9.54%
9.98%
-4.92%
-9.68%
9.72%
-4.47%
-10.15%
9.40%
-5.11%
-7.43%
9.59%
-4.01%
-9.14%
10.53%
-5.87%
-10.05%
10.57%
-7.90%
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
90
Figure 14-10. Gold - RMMI Check Assays vs Original Assays
8.00
7.00
Check Gold
6.00
5.00
Echo Bay
4.00
Benguet
3.00
2.00
1.00
0.00
0
1
2
3
4
5
6
Original Gold
Figure 14-11. %HRD vs Mean Gold Grade for RMMI Check Assays
60.00%
40.00%
20.00%
%HRD
0.00%
Benguet
Echo Bay
-20.00%
-40.00%
-60.00%
-80.00%
-100.00%
0.000
1.000
2.000
3.000
4.000
5.000
6.000
Mean Gold Assay
Table 14-5. RMMI Check Assays versus Original Assays - Gold
Description
All Data
Echo Bay Data
Echo Bay Data 0.12 < Original Au < 10
Benguet Data
Benguet Data 0.135 < Original Au
No. of
Original
Samples Au (g/t)
100
0.962
68
1.101
56
1.068
32
0.665
29
0.723
Technical Report / Form 43-101F1
Check
Au (g/t)
0.801
0.926
0.997
0.535
0.587
%
Precision
Bias
Diff
(%HARD) (%HRD)
-16.68%
23.04% -13.37%
-15.89%
19.41% -10.73%
-6.62%
15.20%
-5.46%
-19.45%
30.74% -18.98%
-18.83%
28.93% -15.96%
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
15
91
Adjacent Properties
There are currently no active mineral projects that are adjacent to the King-king Gold-Copper
Deposit. Section 7.1 listed the major mines and mineral prospects in eastern Mindanao.
These are also shown on Figure 4-1.
There is significant artisanal mining for gold in the King-king Mineral Property Area and in
adjacent mining tenements surrounding the King-king claims. These areas are north and
northeast of the King-king Gold-Copper Deposit. Additional details regarding these potential
future mineral targets are presented in Section 7.2.6 Potential Exploration Targets.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
16
92
Mineral Processing and Metallurgical Testing
This section provides a discussion of the metallurgical test work used as the basis for the
conceptual process design. This work focuses on the metallurgy testing performed by
Lakefield Research starting in 1996 and completing in 1997 for Echo Bay Mines, the mineral
lease holder at the time. This work was chosen because it represented the most detailed
flotation investigation performed to date on the sulfide type ore. Other more recent test
results at other projects and mines, and commercial applications at mines of a new suite of
copper oxide mineral collectors (since 2003) were used to estimate the recovery and grade of
copper concentrates produced from mixed ore at King-king. Other earlier flotation studies
are also briefly described in tables below.
A generalized process flow diagram is presented in Figure 16-1.
The nominal design was 108,700 tpd at 92% availability (100,000 tpd), operating seven days
per week producing two separate concentrates; one each of copper-gold and gold.
Figure 16-1
Process Flow Diagram
Primary
Crushing
SAG Mill
Gold Gravity
Circuit
EW Type
Gold Circuit
Intensive
Cyanide
Leach
Gold Dore
Shipped to
Refinery
Ball Mills
Legend:
Ore
Concentrate
Tailing
Gold
Technical Report / Form 43-101F1
Sulfide
Flotation
Cleaner
Flotation
Oxide
Flotation
Concentrate
Dewatering
at Port
Gold Gravity
Circuit
Land Tailing
Management
System
Concentrate
Stored at Port
until Shipped to
Smelter
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
16.1
93
Metallurgical Samples
Several Echo Bay drill hole intervals were selected for testing representing a wide range of
ore zones and ore grades. Samples were broadly broken up into sulfide ore (predominantly
sulfide mineralization, 85-97%) and oxide ore (sulfide and oxide mineralization together,
approximately 70% Sol Cu). These samples were used for generating composite samples;
two sulfide ore composites (1S and 2S), one oxide ore composite; and samples for head grade
versus recovery testing and metallurgical mapping test work.
16.1.1 Sulfide Ore Samples
Table 16-1
Sulfide Ore Sample Details
Drill Hole No.
(sample ID)
5 (KKM-001)
From-To (m)
TCu, %
Au, g/t
Sol Cu, %
0.033
Lith
Code*
20
Sample Wt.,
Kg
93
252-286
0.48
0.61
6 (KKM-004)
100-120
0.34
0.12
0.007
20
100
75 (KKM-004)
135.1-158.75
0.34
0.12
0.007
20, 30
“
6 (KKM-005)
236-273
0.59
1.33
0.023
20
99
9 (KKM-008)
60-80.2
1.30
0.55
0.21
30
100
10 (KKM-011)
124-169.8
0.50
<0.02
0.015
20
100
8 (KKM-012)
336-367.8
0.21
0.26
0.011
30
100
12 (KKM-015)
354-387.55
0.16
0.19
0.005
20
100
13 (KKM-017)
393-425.75
0.27
0.61
0.010
30
100
31 (KKM-019)
174-210.15
0.32
0.69
0.010
20
100
21 (KKM-020)
256-288.2
0.62
1.54
0.025
20
100
31 (KKM-021)
111-148
0.19
0.25
0.009
20
100
31 (KKM-022)
240-274
0.23
0.75
0.009
20
100
70 (KKM-024)
138-170
1.19
1.37
0.029
20
90
30 (KKM-025)
285-319
0.36
0.54
0.031
20, 30
108
37 (KKM-026)
175-213
0.65
1.50
0.059
30
107
53 (KKM-028)
38-69
1.12
4.02
0.064
20
106
43 (KKM-029)
128-166
0.62
0.93
0.040
20
107
46 (KKM-031)
210-249.35
0.35
1.86
0.012
20
100
*First lithology when more than one is listed was the dominant one.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
94
Individual sulfide samples used in the grade versus recovery testing and metallurgy mapping
tests are representative of the present day ore body. Sulfide samples have representative TCu,
Au and Sol Cu ranges, are distributed throughout the planned open pit and cover the two
major sulfide ore lithologies. (See the drill map, Figure 11-1, shown in Section 11.)
Therefore, the curves generated from the grade versus recovery results were usable for
predicting recoveries of sulfide copper (TCu minus Sol Cu) and gold for the blocks in the
new block model.
Sulfide ore composite 1S was prepared from the following drill hole intervals:
Table 16-2
1S Composite Sample Description
Drill Hole
EB006
EB075
EB009
EB010
Interval (m)
100-120
135.1-158.75
60-80.2
128-169.8
Lithology Code
20
20, 30
20
20
Sulfide ore composite 2s was prepared from the following drill hole intervals:
Table 16-3
2S Composite Sample Description
Drill Hole
EB005
EB006
EB020
Interval (m)
252-286
236-273
60-80.2
20
20
20
The head analyses of these two composites are illustrated below.
Table 16-4
Head Grade Assays of Sulfide Ore Composites
Element
1S
2S
Cu, %
Mo, %
Au, g/t
Ag, g/t
0.72
0.013
0.44
3.5*
0.61
0.004
1.06
1.27
Sulfur, %
2.00
1.00
Sol Cu, %
0.093 0.023
*Two assays for silver on 1S, 3.0 and 4.0 g/t
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
95
Mineralogy of the two composites is shown below.
Table 16-5
Mineralogy of Sulfide Ore Composite Samples
Sample
ID
1S
2S
Chalco
-pyrite
Bornite
Chalcocite
Covel
-lite
Digenite
Tetrahedrite
major
major
trace
minor
minor
trace
trace
Trace
Trace
trace
minor
Malachite
Chrysocolla
Cuprite
Cu
There is one rock type (lithology code 20) represented by the composite samples out of the
two major sulfide ore rock types. The samples are concentrated in the central and east side of
the pit (5, 6, 8, 10 and 20) with only hole 75 from the western part of the deposit. Overall the
sulfide composite samples seem to represent the ore from the first development phases of the
pit where the eastern half of the pit is developed first due to its higher grades of copper and
gold. Samples are consistent with the need to know how the pay back years will behave.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
96
16.1.2 Oxide Ore Samples
Table 16-6
Oxide Ore Sample Details
Drill Hole No.
(sample ID)
7 (KKM-002)
From-To (m)
TCu, %
30-60.25
2.03
7 (KKM-003)
12.95-30
9 (KKM-006)
Au, g/t
0.46
Sulfur,
%
0.23
Lith Code*
30
Sample Wt.,
Kg
119
0.65
0.28
0.030
30
80
15-36
0.40
0.36
0.070
30
102
9 (KKM-007)
39-54.3
2.22
0.57
0.63
30
102
12 (KKM-009)
45.4-66.2
1.02
0.80
3.55
20
112
11 (KKM-010)
100-134.9
0.80
1.17
0.020
20
100
13 (KKM-013)
36-60.75
0.23
0.10
0.86
30
108
8 (KKM-014)
108-140
0.58
0.1
0.070
20, 30
100
8 (KKM-014)
82-87.3
0.58
0.1
0.070
20
“
11 (KKM-016)
80-96
0.53
1.37
0.22
30, 20
100
7 (KKM-016)
128-141.3
0.53
1.37
0.22
30
“
14 (KKM-018)
62-97.15
0.70
0.37
0.46
30, 20
100
15 (KKM-023)
0-14
0.35
0.13
0.040
20, 10
100
17 (KKM-023)
0-18
0.35
0.13
0.040
20, 10
“
53,41 (KKM-027)
0-23
0.79
2.48
0.040
30, 20, 10
108
54 (KKM-030)
3-28.35
0.16
0.73
0.13
30
100
28 (KKM-032)
0-30
0.38
0.55
0.020
30, 10
100
56 (KKM-033)
0-36
0.070
0.37
0.010
30, 20
100
18 (KKM-034)
4-30
0.46
1.48
0.020
30
100
50 (KKM-035)
7-33
0.078
0.10
0.20
30
100
*First lithology when more than one is listed was the dominant one.
Individual oxide samples used in metallurgy mapping tests are representative of the present
day ore body. Oxide samples have representative TCu, Au and Sol Cu ranges, are distributed
throughout the planned open pit with an emphasis in the east and central parts of pit, and
cover the two major oxide ore lithologies. (See the drill map, Figure 11-1, shown in Section
11.)
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
97
An oxide ore composite was prepared from the following drill hole intervals:
Table 16-7
Oxide Composite Sample Description
Drill Hole
EB007
EB007
EB008
EB008
EB011
EB007
Interval (m)
30-60.25
13.0-30
108-140
82-87.5
80-96
128-141.3
Lithology Code
30
30
20, 30
20
30, 20
30
The head analyses of the oxide composite is illustrated below.
Table 16-8
Head Grade Assays of Oxide Ore Composite
Element
Cu, %
Mo, %
Au, g/t
Ag, g/t
0.84
<0.002
0.61
2.5
Sulfur, %
0.29
Sol Cu, %
0.59
Mineralogy of the oxide composite is shown below.
Table 16-9
Mineralogy of Oxide Ore Composite
Sample
ID
Oxide
Comp
Chalcopyrite
Bornite
Chalcocite
Minor
trace
trace
Covel
-lite
Digenite
Trace
Tetrahedrite
Malachite
major
Chrysocolla
Cuprite
Cu
trace
The two major rock types (lithology codes 20 and 30) are represented by the composite
sample. The samples are concentrated in the central and east side of the pit (holes 7, 8 and
11). Overall the oxide composite sample seems to represent the ore from the first
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
98
development phases of the pit where the eastern half of the pit is developed first due to its
higher grades of copper and gold.
Results of the gold recovery to flotation of the oxide ore were used in the block model
development for this resource estimate. Since most of the oxide copper in the Lakefield
study was recovered by acid leaching followed by precipitation and flotation of the
precipitate these recoveries were not used in this study. Discounted recoveries for similar
oxide mineral flotation results with new types of reagents were used instead. More details
regarding oxide mineral recovery are explained in the flotation section below.
16.2
Grinding
Bond work index measurements were performed for each composite (1S, 2S and oxide
composite)
The Bond work index (kWh/metric ton) for each composite was determined in standard Bond
ball mill closed circuit grindability tests and the results are reported below:
1S
Bond work index (kWh/tonne) 16.1
Screen size, microns
150
Product K80, microns
113
Feed K80, microns
1889
2S
16.3
150
150
2130
Oxide
12.1
150
117
1575
The process facility design basis is 108,700 tons/day (tpd) and includes a 92% plant
availability factor (100,000 tpd). This section describes the preliminary grinding circuit and
its design basis.
Design of Circuit
The grinding test results for composite 2S were applied to predict the primary grinding
circuit. This was the most conservative value. A significant portion of the early years of
production will come from the softer material represented in sample 12.1, thus there is
significant upside potential in that time period to process higher tonnages and the
downstream processes (screens, pumps, pipes, float cells, thickners, etc. will be sized to
accommodate 125,000 tpd, 25% higher throughput).
The plant design was based on application of Hogg & Fuerstenau model for SAG mill power
estimation and application of Bond’s Law for estimation of conventional ball mill grinding
capacity. The design also included some assumptions based on the author’s experience
regarding crusher product size and practical product size from the SAG mill. The circuit
design was a conventional SABC (with 3 ball mills and 3 crushers).
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
99
1) A single SAG mill of 40 ft diameter and 21.0 EGL ft length driven by a 20 MW
GMD.
2) Three ball mills each at 27 ft diameter and 39.5 EGL ft length driven by a 18 MW
GMD.
3) Three crushers in closed circuit with the SAG oversize, two operating, MP800’s or
equivalent.
4) The SAG mill will be outfitted with 70mm (2.9 inch) grates and will discharge onto
two double deck super screens with 10 mm screen aperture (0.38 inch) bottom.
Table 16-10: History of Grinding Tests
Test
Description
Purpose
Performed
By
Date
# of
Tests
Results
Bond Ball Mill
Tests
Feasibilty primary
grinding study by
Echo Bay
Lakefield
Research
1997
3
Bond Mill Work Indices: Sulfide
Ore Composites: 1S – 16.1, 2S-16.3;
Oxide Composite- 12.1 kWh/tonne
Bond Ball Mill
Tests
Preliminary
Flotation
Investigation
Metcon
Research
1993
8
Copper recovery was insensitive to
particle size in range of 300-100
micron. Concentrate wt. increased
with larger particle size and
concentrate grade increased with
decreased particle size.
Additional future primary grinding geostatistical test work on ore samples representative of
the first 5 years of production from lithology codes 20 and 30, plus some intervals from the
later years, is recommended to insure the primary grinding circuit is not over or under
designed.
16.3
Flotation Area
Design values reported here for the sulfide rougher flotation circuit are based on the design
factors listed in the report titled “King-king Project Level 1 Feasibility Study April 1997
Volume 3 of 3 Appendix II Design Criteria”. Only the design criteria for sulfide mineral
flotation were applied in the current report. Preliminary copper oxide mineral flotation
results were developed from other technical reports from recent feasibility reports where
copper oxide mineral flotation was applied, from laboratory test results from other projects
and mines and from commercial application results at mines. These results were applied to
design the copper oxide flotation rougher circuit.
The flow sheet developed for King-king was based on sequential flotation circuits (sulfide
copper first) for producing copper concentrates containing gold from copper sulfide minerals
(chalcopyrite and bornite) and from copper oxide minerals (malachite principally). Copper
sulfide mineral flotation circuit was designed based on the Lakefield research performed in
1997. Copper oxide mineral flotation circuit designs were based on RMMI interpretation of
the results from commercial mine reports and research reports on other projects utilizing the
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
100
new reagents developed in the past seven years for oxide mineral flotation. (Note two
commercial operations indicated both sulfide and oxide copper were floated in the same
circuit so there may be some capital savings if this proves possible at King-king.) Gravity
concentration circuits were added in the primary grinding circuit and on copper oxide
mineral flotation rougher tailing to enhance gold recovery. (Copper rougher concentrate
regrind and cleaner circuits have not been designed at this time.)
The Lakefield test report titled “An Investigation of the Recovery of Copper and Gold from
King-king Sulphide Ore Samples” contains the details of the sulfide copper flotation results.
The Lakefield study results of sulfide copper head grade versus rougher flotation recovery
and the reported losses of copper in the downstream cleaner circuits were used to generate a
sulfide copper recovery equation for the block model. Sulfide copper is defined by the assays
as TCu minus Sol Cu (acid soluble copper). The equation for sulfide copper recovery is:
Sulfide Cu Rec. = (100-2.5*((TCu-SolCu)*1.6683)^(-0.54)-5)/100
The recovery was capped at 92%
Gold recovery to the final copper concentrate is defined as the percentage of total gold in the
head grade that reports to the copper concentrate via the flotation processes. The Lakefield
study results of gold head grade versus rougher flotation recovery and the reported losses of
copper in the downstream cleaner circuits were used to generate a gold recovery equation for
the block model. The equation for gold recovery to the copper concentrates is:
Gold Rec. to Con = 0.011936 * gold g/t ^ 2 + 0.092599 * gold g/t + 0.77111 - 0.09
The recovery was capped at 75%.
A copper recovery equation for Sol Cu to the copper concentrate through oxide flotation was
developed by utilizing the Lakefield reported mineralogy of the oxide ore composite shown
above in Table 16-9 and reviewing information in the literature for results on copper oxide
flotation utilizing the new more efficient reagents (alky hydroxamates) available today (and
not in 1997). Results were found for commercial plants and for recent laboratory scale tests.
These results are summarized in Table 16-11 below.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
101
Table 16-11
Oxide Flotation Results for New Reagents
Head Grade
Range, %
Dosage Range, Recovery,
Con
g/t
%
Grade, %
Mine Name
Ore Type
Oxides
Sulfides
Minto Mine, Yukon Canada
Cu-Au
X
X
3.6% (1.6%
ASCu)
1200
Radio Hill Mine, Australia
Cu
X
X
2.8 - 4.5%
80 - 120
70%
24%
N.S.W., Australia
Queensland, Australia
Cu
Cu
X
X
1.40%
1.5 – 1.8%
NR
NR
72%
75%
41%
36%
North Queensland
Cu
X
X
NR
30-90
75%
35%
Metorex, DRC, Ruashi
Cu-Co
X
X
2.95% Cu
NR
75%
NR
95%
45.6
Comments
Lab results, reagent on site for when needed,
cost reported as $10/kg, ASCu component
recovery was 89%
Grade unchanged with AM28, Without AM28
recovery is 50 - 60%, commercial application
Tailings, Cu-Malachite, Azurite, Lab Results
Tailing, Cu-Chrysocolla, Lab results
Lab Results, early testing on reagent at
Ausmelt, Ore, recovery improved from 52% to
75%
Improved concentrator recovery of copper
from 65% to 75%, Commercial Application
Malachite is the predominant copper oxide mineral in the King-king deposit according to the
above mentioned mineralogy report in the Lakefield study. Research indicates that malachite
recovery varied from 72% to 89% with most of the findings falling in the 75% recovery
range. Malachite was the main copper oxide mineral observed in the core samples evaluated
in the June 2010 visit to the King-king core building. Due to the fact that no actual test work
has been performed on the King-king ore with the new reagents available the Sol Cu
recovery was significantly discounted from the observed 75% level. A grade versus recovery
equation was developed for Sol Cu with a cap of 70%. Most of the Sol Cu recoveries in the
block model were in the 57-65% range when this equation was applied. The equation for Sol
Cu recovery to the copper concentrates is:
SolCu Rec. = (73 - 3.5 * (SolCu * 1.6683) ^ ( - 0.54) -3) / 100
The recovery was capped at 70%.
It has also been estimated that some gold recovery by gravity concentration means will be
achieved. A significant portion of the gold is recovered by this means in operating porphyry
gold and copper-gold deposits throughout the world. It is reported in the geology and
mineralogy sections of the 1997 feasibility report and in the geological logs of the core that
free gold was observed. Therefore, with the advances made in gravity concentration methods
since 1997 there is a good possibility of additional gold recovery by this means. There are
significant losses of gold in the cleaner circuit after recovering the gold in the rougher circuit;
this suggest there is potential to recover this gold in the cleaner tailing by gravity
concentration. Anecdotally, there are approximately 15 illegal miner adits operating in the
deposit area and it was observed that gold is recovered by panning ground ore. These
observations indicate gravity concentration should improve gold recovery of the overall
process.
The current design includes two large scale gravity concentrating systems. One circuit would
be operating on underflow from the primary grinding circuit cyclone clusters (9 XD70
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
102
Knelson units) and another would be operating on the tailing from the copper oxide flotation
rougher circuit (9 XD70 Knelson units).
The equation for gold recovery from gravity concentration is:
Gravity Gold Rec. = (18-4.5*(gold g/t*1.6683/2)^(-0.54))/100
The recovery was capped at 15%.
The recovery falls off significantly at low grades because it is felt the occurrence of free gold
at low gold grades is much lower than at high gold grades.
Cleaner circuit studies at Lakefield indicate that a 31% copper concentrate should be
achievable due to the presence of minor quantities of bornite (63% Cu) in the ore.
Concentrate analysis for impurities for the composite sample in the Lakefield test work is
shown in the table below.
Table 16-12
Concentrate Impurities in Lakefield Study
Element
Al
Ag
As
Cl
Au
Ba
Be
Bi
Ca
Cd
Co
Cr
Cu
Fe
F
Hg
Insol
K
Assays, g/t
9800
95.1
580
42
51.2
39
<1
<20
3200
26
32
<50
333000
250000
100
2.5
83400
3100
Element
Assays, g/t
La
Loss on Ignition
Mg
Mn
Mo
Na
Ni
P
Pb
S
Sb
Se
Sn
Te
Y
Zn
Total
<50
129000
2400
92
910
3300
32
200
1300
291000
270
470
<20
270
<5
1500
990287
Design flotation times for sulfide copper rougher flotation and the soluble copper rougher
flotation circuits are shown in the table below. The 1997 Feasibility Study design criteria
were used to estimate the sulfide copper rougher tank flotation cell size. Flotation times for
soluble copper rougher flotation were estimated from the report titled “Flotation of mixed
copper oxide and sulphide minerals with xanthate and hydroxamate collectors, 2008”.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
103
Table 16-13: Flotation Design Criteria
Type of
Flotation
Plant Float
Time, min.
Sulfide Cu
Rougher
Soluble Cu
Rougher
Pulp Flow
Rate,
m³/min.
m³
Required
Cell
Size, m³
No. of
Cells
21
287
6,540
300
24
17
287
5,294
300
18
Table 16-14: History of Flotation/Leaching Tests
Test Description
Purpose
Performed
By
Lakefield
Labs, Ontario
Date
1997
# of
Tests
~100
Feasibility
level Met
Data
Lakefield
Labs, Ontario
1997
29
Feasibility
level Met
Data
Lakefield
Labs, Ontario
1997
6
Sulfide ore
flotation and oxide
ore flotation/acid
leaching/precipitati
on/flotation of
precipitate
An investigation of
the recovery of
Copper and gold
from King-king
oxide ore samples
An investigation
into the leaching of
copper and
precious metals
from a sample
submitted by Echo
Bay Mines
Continued flotation
ore variability test
work, mineralogy,
and tailing settling
test
Feasibility
level Met
Data
Feasibility
Level Testing
Lakefield
Labs, Ontario
1997
37
Metallurgical
mapping of oxide
ore at King-king
Feasibility
Level Testing
Lakefield
Labs, Ontario
1997
24
Leaching of oxide
ore with acid and
cyanide
Feasibility
Level Testing
Lakefield
Labs, Ontario
1997
Preliminary
flotation
investigation of
mixed oxidesulfide and sulfide
ore types
Pre-feasibility
level testing
Metcon Labs
Tuson,
Arizona
1993
Technical Report / Form 43-101F1
~50
Results
Cu and Au recovery on sulfide ore 85% and
78% respectively. Cu and Au recovery on
floated/tail leached/sol’n precip/precip
floated was 80% for Cu and 70% for Au.
Salable concentrate grade produced (27 –
33%Cu).
Additional study of the oxide ore process of
float-leach tail-precip Cu with Na2S-float
precip. 86% copper recovery and 70% gold
recovery if 40C leach temperature utilized.
Cyanide leaching recovered 73-91% of the
gold and 35-43% of the silver. Sulfuric acid
leaching in column tests recovered 81% of
the copper in 23 days. Recommendation
was agitated leach with non-oxidative acid
leach for copper followed by cyanide leach
of gold.
Recommend additional work to improve 1S
type ore rec. and grade to final con. 2S type
ore samples – 88% Cu rec, 34% Cu grade,
78%Au rec, 93g/t Au grade. 1S type ore
samples – RoCon: 88% Cu rec, 78%Au
recovery; Final Con: 69% Cu rec, 59% Au
rec, 26% Cu and 71 g/t Au Con grade
Final Con results: Cu recovery 57%, Cu
grade 33%, Au 49% rec and 53 g/t Au
grade. 10% lower recoveries than on
composite samples.
Copper recovery of 85% and gold recovery
of 95%
Lock cycle test work on the sulfide ore
produced 82% Cu and 83% Au rec. to final
2nd cleaner con with 20% Cu and 35 g/t Au.
Oxide-sulfide tests indicated the tailing
would need to be acid leached to achieve
+80% copper recovery.
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
104
Some ore has been observed to oxidize rapidly in previous metallurgical test programs. To
counter this effect and more closely simulate actual mining and milling operations where the
time between mining and milling is often less than 24 hours, freezing or vacuum sealing of
future coarse ore rejects selected for met testing should be performed as soon as they are
produced at the assay lab and these samples should remain in this condition until execution
of laboratory grinding and flotation tests begin on each sample.
Investigation of combined rougher flotation of sulfide and soluble copper as well as
sequential flotation should be investigated. Combined rougher flotation may decrease capital
and operating costs.
Process testing on new core should address the following items:
 Optimum primary grinding size for various ore zones and lithology types
 Geo-statistical analysis of grinding and flotation
 Copper oxide mineral response to flotation with recently developed and
commercialized oxide flotation reagents and flow sheets
 A thorough study of regrind product size
 Optimized cleaner flotation reagent schemes and flow sheet for ore variations
 Evaluate centrifugal gravity and flash flotation recovery of gold from the primary
grinding circuit and from tailing streams in flotation
 Evaluate concentrate processing by hydrometallurgical methods to recover gold and
copper at site
 Rheology studies on tailing for settler design and tailing dam design
 Settling and filtration studies on concentrates for dewatering purposes
16.4
Analytical Procedures for Process Testing
Analytical procedures at the Lakefield Lab in Canada were not provided. The Lakefield
Contact details are listed below.
SGS Minerals Services, Lakefield
PO Box 4300
185 Concession Street
Lakefield, Ontario, K0L 2H0
Phone: +1(705) 652-2000
Fax: +1(705) 652-6365
Analytical procedures at the Metcon Lab in Tucson are described below. The Metcon
Contact details are listed below.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
105
METCON Research Inc.
7701 N. Business Park Drive
Tucson, Arizona 85743, USA
Phone: 520-579-8315
FAX: 520-579-8315
E-mail: info@metconresearch.com
Two 55 gallon drums containing two separate samples of drill core identified as mixed (MX)
and sulfide (SF) weighing approximately 686 lbs and 598 lbs gross weight respectively were
delivered to the METCON Research Inc. laboratory facility on 10 May 1993 by common
carrier. Each sample/ore type was treated separately and identically as follows.
Samples were stage crushed to minus 1 inch and riffle mixed and split into a 3/4 split portion
which was saved and a 1/4 split portion which was stage crushed to minus 10 mesh and riffle
mixed and split into 1000 gm test charges for use in the metallurgical test program.
One test charge, as prepared above/ was selected at random, pulverized, and mixed and split
by rolling and dipping into three portions. One portion was submitted for duplicate copper,
iron, sulfur, gold/ and silver analyses. Another portion was submitted for spectrographic
analysis. The third or reject portion was saved. The arithmetic average of the duplicate head
assays were reported at 0.520 percent copper, 3.62 percent iron, 0.19 percent sulfur, 0.022
ounce per ton gold and 0.26 ounce per ton silver for the mixed ore type and 0.376 percent
copper, 3.70 percent iron, 0.17 percent sulfur, 0.026 ounce per ton gold and 0.07 ounce per
ton silver. These analyses were used as the head assay for all flotation tests performed. (See
Appendix 1, Head Assay Analysis Log and Report of Spectrographic Analysis for details).
Table 16-15
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
17
106
Mineral Resources and Mineral Reserves Estimates
17.1
Mineral Resource
Table 17-1 shows the mineral resource for the project.
Table 17-1. King-king Mineral Resource
Ore
Type
Ore
Ktonnes
Eq Cu
(%)
Tot Cu
(%)
Sol Cu
(%)
Gold
(g/t)
10/4/2010
Eq Au
(g/t)
0.855
0.536
0.658
0.444
0.269
0.336
0.266
0.037
0.124
0.575
0.445
0.495
1.196
0.894
1.009
0.654
0.454
0.489
0.349
0.253
0.270
0.210
0.032
0.063
0.428
0.335
0.351
0.916
0.757
0.785
0.705
0.463
0.512
0.373
0.255
0.279
0.224
0.033
0.072
0.465
0.347
0.371
0.987
0.771
0.815
0.541
0.394
0.431
0.288
0.219
0.237
0.167
0.025
0.061
0.353
0.292
0.308
0.756
0.657
0.682
Measured Mineral Resource
Oxide
Sulfide
Total
40,879
66,402
107,281
Indicated Mineral Resource
Oxide
Sulfide
Total
120,443
563,800
684,243
Measured/Indicated Mineral Resource
Oxide
Sulfide
Total
161,322
630,202
791,524
Inferred Mineral Resource
Oxide
Sulfide
Total
31,915
93,548
125,463
Notes:
Eq Cu (oxide) = Total Copper + 0.715 x Gold, Cutoff = 0.27% Eq Cu
Eq Cu (sulfide) = Total Copper + 0.600 x Gold, Cutoff = 0.23% Eq Cu
Alternatively, as Equivalent Gold:
Eq Au (Oxide) = Gold + 1.399 x Total Copper, Cutoff = 0.37 g/t Eq Au
Eq Au (Sulfide) = Gold + 1.668 x Total Copper, Cutoff = 0.38 g/t Eq Au
Total Material in Cone Shell
1,429,845 Ktonnes
Waste:Ore Ratio
0.81 (Inferred as Waste)
Waste:Ore Ratio
0.56 (Inferred as Ore)
Measured and indicated mineral resource amounts to 791.5 million tonnes at 0.512% copper
equivalent, 0.279% total copper, 0.072% soluble copper, and 0.371 g/t gold. Inferred mineral
resource is an additional 125.5 million tonnes at 0.431% copper equivalent, 0.237% total
copper, 0.061% soluble copper, and 0.308 g/t gold. The last column of the table also shows
that with metal grades defined in terms of equivalent gold, instead of equivalent copper, the
equivalent gold grade of the measured and indicated mineral resource is 0.815 g/t gold
equivalent (0.99 g/t for the oxide resource and 0.77 g/t for the sulfide resource). The
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
107
measured and indicated mineral resource consists of 4.9 billion pounds of contained copper
and 9.4 million troy ounces of contained gold.
The resources are contained within a floating cone pit shell and are compliant with the
“reasonable prospects for economic extraction” clauses of Canada’s NI 43-101 regulations
and also Australia’s JORC code. The cone shell is based on a copper price of US$ 1.75 per
pound and a gold price of US$ 660 per troy ounce. Table 17-2 shows the cost and recovery
parameters used to develop the cone shell.
The mining related costs (base mining, mine capital replacement, and additional lift charges)
are preliminary IMC estimates. The process cost, G&A cost, SRF cost (smelting, refining,
and freight) were provided by Russell personnel. The average plant recoveries for oxide and
sulfide copper and gold were calculated by IMC based on recovery versus head grade
recovery curves provided by Russell personnel. The bottom of Table 17-2 shows gold
factors for copper equivalent calculations and also oxide and sulfide copper equivalent cutoff
grades. For $1.75 copper and $660 gold the copper equivalents are defined as:
Eq Cu (Oxide Ores) = Total Copper + 0.715 x Gold
Eq Cu (Sulfide Ores) = Total Copper + 0.600 x Gold
The NSR Factors ($US/t) shown on Table 17-2 for copper and gold represent the NSR (Net
Smelter Return) for 1 tonne of 1% copper and 1 tonne of 1 g/t gold respectively:
NSR Factor (Oxide Copper) = (1.75-0.26)(0.743)(0.964)(0.97)(22.046)=$22.822
NSR Factor (Oxide Gold) = (660)(0.834)(0.95)(0.97)/31.103 = $16.308
NSR Factor (Sulfide Copper)=(1.75-0.26)(0.859)(0.964)(0.97)(22.046)=$26.385
NSR Factor (Sulfide Gold) = (660)(0.809)(0.95)(0.97)/31.103 = $15.819
The 0.97 term in the above equations account for the 3% royalty.
The gold factors shown on Table 17-2 are calculated from the NSR factors as follows:
Gold Factor = NSR Factor for Gold / NSR Factor for Copper, so
Gold Factor (Oxide Ores) = 16.308 / 22.822 = 0.715
Gold Factor (Sulfide Ores) = 15.819 / 26.385 = 0.600
Equivalent copper cutoff grades are then calculated as:
Breakeven Cutoff (Eq Cu)=(Mining+Processing+G&A Costs)/Copper NSR Factor
Breakeven Cutoff (Oxides) = (1.10 + 0.15 + 4.20 + 0.60)/22.822 = 0.27% Eq Cu
Breakeven Cutoff (Sulfides) = (1.10 + 0.15 + 4.20 + 0.60)/26.385 = 0.23% Eq Cu
Internal Cutoff (Eq Cu) = (Processing + G&A Costs) / Copper NSR Factor
Internal Cutoff (Oxides) = (4.20 + 0.60) / 22.822 = 0.21% Eq Cu
Internal Cutoff (Sulfides) = (4.20 + 0.60) / 26.385 = 0.18% Eq Cu
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
108
Internal cutoff grade treats mining costs as sunk costs, i.e. it applies to blocks that have to be
removed from the pit.
Note also, to perform the analysis in terms of equivalent gold, instead of equivalent copper,
the relevant factors are:
Copper Factor = NSR Factor for Copper / NSR Factor for Gold
Copper Factor (Oxide Ores) = 22.822 / 16.308 = 1.399
Copper Factor (Sulfide Ores) = 26.385 / 15.819 = 1.668
Eq Au (Oxide Ores) = Gold + 1.399 x Total Copper
Eq Au (Sulfide Ores) = Gold + 1.668 x Total Copper
Using the gold NSR factors for the cutoff grade calculations, instead of the copper NSR
factor, results in breakeven gold equivalent cutoff grades of 0.37 g/t and 0.38 g/t equivalent
gold for oxide and sulfide ores respectively, and internal cutoff grades of 0.29 and 0.30 g/t
equivalent gold respectively for oxide and sulfide ores.
Only measured and indicated resource blocks were allowed to contribute to the development
of the floating cone shell used for the resource tabulation; inferred blocks were treated as
waste to develop the cone shell.
Total material in the cone shell is 1.4 billion tonnes. An overall slope angle of 45o was used
to develop the cone shell. Figure 17-1 shows the floating cone shell used for the resource
calculation.
The resource is based on an updated block model developed by IMC and Resource
Evaluation Inc. (REI) during June through August 2010. The mineral resource estimate was
developed by Michael G. Hester, FAusIMM of IMC, a qualified person. Mr. Hester is
independent of the issuer.
There is no guaranty that any of the mineral resource will be converted to mineral reserve.
There is also no guaranty that inferred mineral resource will be upgraded to measured or
indicated mineral resource or mineral reserves.
IMC does not know of any environmental, permitting, legal, title, taxation, socio-economic,
or marketing issue that may materially impact the mineral resource. There is however, some
degree of political risk associated with Mindanao. As of this writing, Foreign Affairs and
International Trade Canada warns of ongoing terrorist threats to Westerners and Western
interests in the Philippines, particularly in Mindanao. Particular threats cited include
bombings and kidnapping. The US Department of State posts similar warnings. It is
reported to IMC that political risk assessments will be conducted as part of on-going studies
(Section 23.4).
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
17.2
109
Mineral Reserve
It is not the intent of this Technical Report to report mineral reserves for the King-king
Project. A Preliminary Feasibility Study or Feasibility Study is required to determine
mineral reserves.
Table 17-2. Economic Parameters for King-king
Parameter
Copper Price Per Pound
Gold Price Per Troy Ounce
Base Mining Cost Per Tonne Material
Mine Replacement Capital Per Tonne
Lift Cost Per Bench Below 250
Process Cost Per Ore Tonne
G&A Cost Per Ore Tonne
Process Recovery of Copper (Average)
Process Recovery of Gold (Average)
Smelting/Refining Payable for Copper
Smelting/Refining Payable for Gold
SRF Cost Per Pound Copper
NSR Royalty
NSR Factor for Total Copper
NSR Factor for Gold
Gold Factor for Copper Equivalent
Total Copper Equivalent Cutoff Grades
Breakeven (without lift)
Internal
Copper Factor for Gold Equivalent
Gold Equivalent Cutoff Grades
Breakeven (without lift)
Internal
Technical Report / Form 43-101F1
Units
(US$)
(US$)
(US$)
(US$)
(US$)
(US$)
(US$)
(%)
(%)
(%)
(%)
(US$)
(%)
(US$)
(US$)
(none)
$1.75 Cu / $660 Au
Oxide/Mix Sulfide
1.750
1.750
660
660
1.100
1.100
0.150
0.150
0.015
0.015
4.200
4.200
0.600
0.600
74.3%
85.9%
83.4%
80.9%
96.4%
96.4%
95.0%
95.0%
0.260
0.260
3.0%
3.0%
22.822
26.385
16.308
15.819
0.715
0.600
(%Cu)
(%Cu)
(none)
0.27
0.21
1.399
0.23
0.18
1.668
(g/t)
(g/t)
0.37
0.29
0.38
0.30
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
110
Figure 17-1. Resource Cone
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
17.3
111
Description of the Block Model
17.3.1 General
The deposit was modeled as 15m by 15m by 15m blocks. The model is not rotated.
17.3.2 Cap Grades, Corrections and Compositing
As discussed is Section 11.0, the drillhole database provided to IMC consisted of 276 holes
which represented 89,922 meters of drilling. As discussed above, Benguet gold assays were
not used, however Echo Bay re-assays of Benguet samples amounted to 1493 assays that
were used. Gold assays were capped at 10 g/t, which affected six assays with original values
of 44.3, 18.6, 17.3, 14.3, 11.98, and 10.7 g/t.
Copper assays were not capped. The highest assay (3m) was 7.2%.
The assay database was composited to 15m bench composites for block grade estimation.
Based on the bench composites the data available for resource estimation consisted of
88,597m of sample with a total copper assay (5,672 composites with average length 15.6m)
and 57,315m of sample with a gold assay (3,607 composites with an average length of
15.9m). Samples with a retained gold assay represent about 64.7% of sample with a copper
assay.
17.3.2 Topography
The topography used for this project is the same as was used for the Echo Bay study. On
cross sections the topography matches the drill hole collars well.
Since the Echo Bay study was conducted small scale mining activity has altered the surface
and updated topography will be required for more advanced studies. The impact of the small
scale mining should not be material at the scale of the large scale open pit mine that is
envisioned for King-king.
17.3.4 Lithology Model
King-king lithology is quite complex. The original host rocks included sedimentary and
volcanic flows that were intruded by multiple intrusive events. For this study the rock types
were categorized as shown in Table 17-3. It can be seen that the multiple intrusions were
broadly categorized into pre-mineral/syn-mineral intrusions and post mineral intrusions.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
112
Table 17-3. Kinkking Lithology for Resource Modeling
Rock Code
Description
10
Overburden
20
Host Rocks
30
Pre-mineral / Syn-mineral Intrusions
40
Post Mineral Intrusions
50
Breccias
A cross sectional interpretation of lithology was developed by RMMI personnel. REI
personnel developed the interpretation on bench level maps from the sectional data. This
was then digitized, checked, and incorporated into the block model.
The Benguet core drilling generally recorded a depth of overburden. This was often only a
few meters, up to about 15m in some areas. IMC used this data to develop a surface to
represent depth of overburden and used it to code overburden in the model.
The original lithology codes in the drillhole data base (actually 15m bench composites) were
reconciled against the model geology. If the lithology code in the composites was not
reasonable given the new interpretation it was changed to match the code of the block it was
located in. Figures 17-2 and 17-3 show an example level map and cross section of model
lithology.
17.3.5 Ore Types
IMC developed ore type or oxide/sulfide domains in the drilling database and block model.
Table 17-4 shows how the ore type codes were initially assigned to the 15m drillhole
composites based on the ratio of soluble copper to total copper grades.
Table 17-4. General Ore Type Criteria
Ore Type
Name
Description
1
“Leached” Not used; reserved for low grade in oxide/mixed zone.
2
Oxide
Soluble copper / total copper > 0.40
3
Mixed
0.20 < soluble copper / total copper < 0.40
4
Primary
Soluble copper / total copper < 0.20
The codes for oxide, mixed, and primary ore types were first assigned to 15m composites
based on these criteria. The assignments were then reviewed on a hole by hole basis on data
listings and also on cross sections to develop a reasonable interpretation of the top of primary
mineralization in each hole.
An interpretation of the top of primary was then developed from the drilling data and
represented as a triangulated surface. Model blocks below the surface were coded as primary
and blocks above the surface as oxide. Once the block grade estimates were completed
(Section 17.3.9) the oxide zone was further segregated into oxide and mixed blocks based on
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
113
the soluble copper to total copper ratio of the block. Blocks below the top of primary surface
retained the primary coding though there are some areas where the soluble copper to total
copper ratio is higher than would normally be expected for primary mineralization, i.e. there
are local zones in the primary that might be considered as “mixed” based on the criteria of
Table 17-4.
Figure 17-2. Model Lithology – 325 Bench
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
114
Figure 17-3. Model Lithology on Section 10,300
17.3.6 “Structural” Zones
IMC also developed five “structural” zones for the model. These were actually based on
review of grade thickness maps of copper and gold mineralization rather than any identifiable
structures. Figure 17-4 shows the grade thickness map for copper with the zones. Zone 20 is
slightly anomalous; it is characterized as relatively low in copper grade, but also relatively
high in gold grade compared to the other zones. The outer boundary of the zones represents
an approximate 100m boundary outside of the drilling. Block grades were not estimated
outside the shown boundaries.
These zones also appear to correspond to historic regional names that were used to describe
the deposit as follows:
Zone
10
20
30, 40
50
Regional Name
Tiogdan
Casagumayan
Lumanggang
Bacada
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
115
Figure 17-4
17.3.7 Basic Statistics of Drillhole Composites
Due to the relatively large number of figures referenced in this section, they are located at the
end of this report in Section 25.0.
Figures 17-5 through 17-7 present box plots of total copper, soluble copper, and gold
respectively for 15m composites by rock type. Descriptive statistics for each population are
also shown along the bottom of the plots. Graphically, the plots show the representation of
the population minimum and maximum, the 25 and 75 percentiles (bottom and top of the
light gray boxes), median (middle of light gray box), and mean (middle of dark gray box).
The dark gray box represents a +95% confidence interval of the mean, based on classical
statistics. Figures 17-8 through 17-10 present probability plots of total copper, soluble
copper, and gold by rock type respectively.
For total copper, Figure 17-5 and 17-7 show, as expected, that the post mineral intrusives are
significantly lower in grade than the other rock types. It can also be seen that the box plots
and probability plots indicate relatively similarity in the other rock units. Figures 17-6 and
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
116
17-9 for soluble copper again show relatively low grades for the post mineral intrusion and,
as expected, higher soluble copper grade in the overburden. For gold, Figures 17-7 and 1710 indicate slightly elevated values in the pre-mineral intrusions. The probability plot for
gold has a significant kink just above the 50 percentile point for gold for the post mineral
intrusions. This appears to be a mixed population. Though depleted in copper, there are
portions of the post mineral intrusion that contain gold.
Figures 17-11 through 17-13 present box plots of total copper, soluble copper, and gold
respectively by the structural zones. Figures 17-14 through 17-16 show probability plots by
zone for total copper, soluble copper, and gold. Figures 17-10 and 17-12 show, for total
copper, that zones 30 and 40, the central portions of the orebody, have higher copper grades
than zones 10, 20, and 50. It can also be seen that the holes IMC excluded from the
structural zones are very low in grade. For gold, Figures 17-13 and 17-16, it can be seen that
Zones 10 and 20, on the west side of the orebody, are higher in gold grade than the other
zones. There is definite zoning in the deposit, with higher gold values occurring in different
locations than the higher copper values.
Figures 17-17 through 17-19 present box plots of total copper, soluble copper, and gold
respectively by oxide/sulfide domains. Figures 17-20 through 17-22 show the probability
plots by oxide/sulfide domain. Figures 17-17 and 17-20 show slightly elevated total copper
grades in the oxide zone. Figures 17-19 and 17-22 show gold grades are somewhat
independent of the domain. There are kinks in the probability plots for the oxide and mixed
gold just above the 50 percentile point which might indicate dual populations of gold
mineralization.
17.3.8 Variograms
A variogram analysis of total copper was done for host rocks and pre-mineral intrusive rocks
to establish search orientations for block grade estimation. First, about 60 direction
variograms were calculated to search the entire sphere in about 22.5 degree increments.
These were examined to find longest range, highest clarity, variograms that might be
considered to define the primary direction. Given a candidate, or candidates, for a primary
direction a series of eight variograms were calculated to search the plane perpendicular to the
primary direction, to look for the best secondary axis direction.
Figure 17-23 shows variograms for total copper for host rocks. The variograms represent the
primary and secondary direction as interpreted by IMC. The primary direction has an
azimuth of 300o and an upward plunge of 65o, or alternatively an azimuth of 120o with a
downward plunge of 65o. The secondary direction has an azimuth of 300o with a downward
plunge of 25o. The ranges of the two variograms are about 659m and 513m respectively
Figure 17-24 shows variograms for total copper for pre-mineral intrusive rocks. The
variograms represent the primary, secondary, and tertiary directions as interpreted by IMC.
The primary direction is at an azimuth of 45o with a downward plunge of 45o. The secondary
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
axis has an azimuth of 280o and downward plunge of 30o.
variograms are 410m, 346m, and 207m respectively.
117
The ranges of the three
All variograms were calculated by the pairwise relative method. It is also considered that the
directions are reasonable given the geology and perceived orientation of mineralization as
observed on sections.
17.3.9 Block Grade Estimation
General
Block grades of total copper, soluble copper, and gold were estimated by inverse distance
with a power weight of 3 (ID3). This was done to prevent over-smoothing of block grades.
Search radii were typically 200m in the primary and secondary axes directions and 50m in
the tertiary direction. For all estimations a maximum of 12 and a minimum of one composite
were used and a maximum of three composites per hole were allowed.
Post mineral intrusive rocks were considered a separate population for grade estimation and
only post intrusive composites were used to estimate post intrusive blocks. Host rocks, premineral intrusive rocks and the breccias were considered a single population for block grade
estimation. Though the pre-mineral intrusive rocks are slightly higher grade than host rocks,
an analysis of the boundary indicated the boundary was of no-significance for total copper
and only of slight significance for gold. Also, overburden blocks were not estimated. This
represents a very small amount of material as it generally occurs as only a thin veneer at the
surface.
The structural boundary was used as an outer boundary for grade estimation. Blocks not
coded as one of the five zones were not estimated and composites outside the zones were not
used. The boundaries between respective zones were not used as hard boundaries however.
Composites in Zone 20 could be used for Zone 10 blocks, etc. Note that the ID3 estimation
will tend to honor the data pretty closely regardless of boundaries.
The oxide/sulfide domain boundary was used as a hard boundary for total and soluble
copper, but not for gold.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
118
Figure 17-23. Total Copper Variograms. Host Rocks in Sulfide Zone
Technical Report / Form 43-101F1
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
119
Figure 17-24. Total Copper Variograms. Intrusive Rocks in Sulfide Zone
Technical Report / Form 43-101F1
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
120
Copper
For total and soluble copper the oxide/sulfide boundary was used as a hard boundary; i.e.
sulfide domain blocks were only estimated with sulfide domain composites and oxide/mixed
domain blocks were only estimated with oxide/mixed composites. The oxide/mixed
boundary was not a hard boundary however. Actually, the oxide/mixed block designations
were done after grade estimation based on soluble copper to total copper block grades.
A flat, circular search of 200m by 200m by 50m vertical was used for the estimation of total
copper and soluble copper grades in the oxide/mixed domain.
Based on the variogram analysis of total copper for host rocks in the sulfide zone, the
primary axis appears to be orientated with an azimuth of 120o (S60oE) and a plunge of 65o
and the secondary axis is oriented with an azimuth of 300o (N60oW) with a plunge of 25o.
The tertiary axis is oriented N30oE with no plunge. Note that this alignment is consistent
with the NW-SE trend in the area. In GSLIB convention the rotation angles are 120o,-65o,0o,
representing rotation of major axis, plunge of major axis, and rotation of secondary axis, etc.
For pre-mineral intrusive rocks in the sulfide the variogram analysis indicates a primary axis
orientation of N45oE with a plunge of 45o. The secondary axis is orientated about N80oW
with a plunge of about 30o. The GSLIB convention angles are 45o, -45o, 45o.
Due to the relatively small size and complex orientations of the post mineral intrusive rocks
the search radius was opened up to 200m by 200m by 200m to match post mineral intrusive
composites to blocks.
The Mitsubishi, Benguet, and Echo Bay total and soluble copper assays were used for block
grade estimation. Soluble copper was estimated with the same search parameters as total
copper in all cases. Figure 17-25 shows an example of the block grade estimations on a cross
section.
Gold
Gold was estimated with the same search orientations as sulfide zone copper for host and
pre-mineral intrusive rocks. The oxide/sulfide surface was not considered as a hard boundary
for gold. The search orientations for gold in the oxide zone were also orientated according to
directions established for primary copper.
Benguet gold assays were not used, except for the sample intervals that were re-assayed by
Echo Bay. Figure 17-26 shows an example of block grade estimations on a cross section.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
121
Figure 17-25. Copper Grades on Section 10,300
Technical Report / Form 43-101F1
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
122
Figure 17-26. Gold Grades on Section 10,300
Technical Report / Form 43-101F1
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
17.4
123
Resource Classification
The number of composites and the average distance to the composites were stored in the
block model and used for resource classification. This was done for both the total copper and
gold grade estimation. The following procedure was then used to establish the resource
classification for each:
All blocks with a grade estimate were set to inferred resource.
The following blocks were then upgraded to indicated resource.
Blocks estimated with 10, 11, or 12 composites and average distance < 150m
Blocks estimated with 7, 8, or 9 composites and average distance < 125m
Blocks estimated with 4, 5, or 6 composites and average distance < 100m
The following blocks were then upgraded to measured resource.
Blocks estimated with 7 or more composites and average distance < 75m
Note that the block grade estimation limited the number of composites to three per hole, thus
4+ composites indicates a minimum of two holes, 7+ composites a minimum of three holes,
and 10+ composites a minimum of four holes.
This procedure was done independently for total copper and gold. The final block
classification was taken as the lower confidence of the two classifications; i.e. as an example,
if the classification of a block was measured based on total copper and indicated based on
gold the final classification was indicated resource.
Though copper and gold grade estimates were done by inverse distance, IMC also did an
ordinary kriging estimate for total copper and gold to obtain a relative kriging standard
deviation to assist in establishing the resource classification. Figure 17-27 show a cross
tabulation of blocks by number of composites and average distance for total copper. The
cells of the figure show the number of blocks in the cell and also the average kriging standard
deviation for the blocks. Measured blocks generally correspond to a relative kriging standard
deviation less than 0.45 and indicated blocks less than 0.73. The standard deviations are
relative because they were calculated with a variogram with the sill normalized to 1 and a
nugget value of 0.15. Figure 17-28 shows a similar cross tabulation for gold. Figure 17-29
shows the resource classification on a cross section.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
124
Figure 17-27. Resource Classification for Total Copper
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
125
Figure 17-28. Resource Classification for Gold
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
126
Figure 17-29. Cross Section 10350 Showing Resource Classification
Technical Report / Form 43-101F1
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
17.5
127
Bulk Density
A specific gravity measurement, by the water immersion method, was performed on the 100
core samples selected for the RMMI check assay program described in Section 14. Figure
17-30 shows an xy plot of the specific gravity measurement versus soluble copper to total
copper ratio by the various rock types. It can be seen that specific gravities are lower for the
samples with a soluble copper to total copper ratio greater than about 40%, which would
also correspond to oxide/mixed ore types. Table 17-5 shows basic statistics of the data by
rock type and also by higher versus lower soluble copper to total copper ratio.
The values shown on Table 17-5 were incorporated into the model as dry bulk densities
without additional adjustments. Oxide and mixed blocks were assigned bulk density values
of 2.41 t/m3 and 2.36 t/m3 for host rocks and intrusive rocks respectively. Primary (sulfide)
blocks were assigned bulk densities of 2.54 t/m3 and 2.47 t/m3 for host and intrusive rocks
respectively. Breccia blocks were assigned a bulk density of 2.47 t/m3. IMC assigned
overburden blocks a bulk density of 2.0 t/m3.
The Echo Bay study was based on bulk densities of 2.69 t/m3 for oxide and 2.76 t/m3 for
sulfide, which are considerably higher than the new measurements. The report says these
were measurements done by Lakefield using picnometer readings of the metallurgical
samples. It did not say how many measurements were done. This is effectively the specific
gravity of a ground pulp, which is of interest for ore processing design, but would generally
not be considered an appropriate measurement method for ore reserve calculations because
small fractures and voids are removed.
Figure 17-25. Specific Gravity Vs Ascu/Tcu Ratio by Rock Type
2.80
2.70
2.60
SG
2.50
Host Rocks
Intrusives
Breccia
2.40
2.30
2.20
2.10
2.00
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
Ascu/Tcu (%)
Figure 17-30. Specific Gravity versus Ascu/Tcu Ratio
INDEPENDENT
MINING CONSULTANTS, INC.
Technical Report / Form 43-101F1
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
128
Table 17-5. Specific Gravity Measurements by Rock Type
Code
20
20
20
30
30
30
50
ALL
17.6
Description
Host Rocks
Ascu/Tcu < 40%
Ascu/Tcu > 40%
Intrusives
Ascu/Tcu < 40%
Ascu/Tcu > 40%
Breccia
All Rock Types
Number
49
40
9
45
37
8
6
100
Mean
2.52
2.54
2.41
2.45
2.47
2.36
2.47
2.48
Std Dev
0.109
0.100
0.088
0.105
0.086
0.135
0.068
0.109
Min
2.24
2.27
2.24
2.19
2.25
2.19
2.39
2.19
Max
2.70
2.70
2.51
2.57
2.57
2.55
2.56
2.70
Impact of Various Drilling Campaigns
IMC reviewed the various drilling campaigns to determine the data that was appropriate for
use in resource modeling. In particular the Echo Bay study indicated that the Benguet gold
assays were biased high compared with the Echo Bay results.
First, IMC tested the various drilling campaigns for total and soluble copper. Table 17-6
summarizes the results. Case 1 shows an ore tonnage and copper grades for the new
resource model developed using all available copper assays. The tabulation is inside a pit
design IMC developed for an August 2009 due diligence review of the project. The
tabulations are at 0.2% total copper cutoff grades and include only measured and indicated
resource blocks. This model resulted in 435.6 million tonnes at 0.358% total copper and
0.105% soluble copper.
Case 2 shows the results of removing the Benguet core holes from the estimation. Ore
tonnes and total copper results are very similar to Case 1. The soluble copper grade
increased 4.8% to 0.110%. This implies the Benguet core soluble copper grades tended to
be lower than Echo Bay results (since removing them increased the grade), but IMC deemed
the difference is not significant.
Cases 3 and 4 show the results of removing the Benguet RC data and Mitsubishi data
respectively. The differences with Case 1 are not significant. From this IMC concluded
that all the copper data was acceptable for the grade estimations.
For the 2009 due diligence review IMC did a similar analysis for gold, which was not
repeated for this current study. The analysis showed that excluding gold assays for Benguet
core holes decreased the gold grade 9.7%. The Benguet core data is higher than Echo Bay
data for gold since removing it caused a significant reduction in grade. From this 2009
analysis, IMC determined that the Benguet gold assays would not be used for resource
modeling. As noted previously, Benguet samples re-assayed for gold by Echo Bay were
used.
Recall that the Mitsubishi drilling did not have any gold assays.
INDEPENDENT
MINING CONSULTANTS, INC.
Technical Report / Form 43-101F1
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
129
Table 17-6. Comparison of Various Drilling Campaigns for Copper
Ore
Tot Cu
Sol Cu
Case
Description
Ktonnes
(%)
(%)
1
All Drilling Campaigns
435,620
0.358
0.105
2
Excluding Benguet Core Holes
%Difference Versus Case 1
430,765
-1.1%
0.360
0.6%
0.110
4.8%
3
Excluding Benguet RC Holes
%Difference Versus Case 1
435,609
0.0%
0.360
0.6%
0.106
1.0%
4
Excluding Mitsubishi Holes
%Difference Versus Case 1
435,978
0.1%
0.356
-0.6%
0.105
0.0%
Note:
Tabulation at 0.2% total copper cutoff inside pit designed for
August 2009 Due Diligence Review. Only measured and
indicated resource blocks.
INDEPENDENT
MINING CONSULTANTS, INC.
Technical Report / Form 43-101F1
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
18
130
Other Relevant Data and Information
18.1
Review of 1997 Kilborn SNC Lavalin Feasibility Report
The King-king Project Level I Feasibility Study, April 1997 report was commissioned by
Echo Bay for the purpose of a consolidated review of the feasibility of the King-king project
post exploration development work to that point in time. A summary review of the critical
points relevant to the evaluation and planning for further development of the project is
summarized in this section. The following areas of interest in this regard: parameters and
resource estimates, geology, mining and resource, processing, commodity prices and
operating costs, tailing management, infrastructure and environmental protection.
Table 18-1
Parameters and Resource Estimates for 1997 Kilborn Study and 2010 Technical
Report
Parameters & Resource Estimates for King-king
1997
2010
$0.90 Cu / $375 Au
$1.75 Cu / $660 Au
Parameter
Units
Oxide/Mix
Sulfide
Oxide/Mix
Sulfide
Copper Price Per Pound
(US$)
0.900
0.900
1.750
1.750
Gold Price Per Troy Ounce
(US$)
375
375
660
660
Base Mining Cost Per Tonne Material
(US$)
0.750
0.750
1.100
1.100
Mine Replacement Capital Per Tonne
(US$)
0.100
0.100
0.150
0.150
Lift Cost Per Bench Below 250
(US$)
0.000
0.000
0.015
0.015
Process Cost Per Ore Tonne
(US$)
3.990
2.800
4.200
4.200
G&A Cost Per Ore Tonne
(US$)
0.248
0.337
0.600
0.600
Process Recovery of Copper (Average)
(%)
80.0%
85.0%
74.3%
85.9%
Process Recovery of Gold (Average)
(%)
70.0%
70.0%
83.4%
80.9%
Smelting/Refining Payable for Copper
(%)
96.3%
96.3%
96.4%
96.4%
Smelting/Refining Payable for Gold
(%)
97.5%
97.5%
95.0%
95.0%
(US$)
0.291
0.291
0.260
0.260
(%)
4.5%
4.5%
3.0%
3.0%
87,600
310,500
161,323
630,199
SRF Cost Per Pound Copper
NSR Royalty
Oxide/Sulfide Ore
kTonnes
kTonnes
% Cu
%
0.477
0.303
0.373
0.255
g/t Au
g/t
0.738
0.453
0.465
0.347
Total Ore
kTonnes
% Cu
g/t Au
Strip Ratio
kTonnes
398,100
791,522
%
0.341
0.279
g/t
0.516
0.371
Unitless
1.12
0.806
Tonnes
446,700
638,324
Waste
kTonnes
INDEPENDENT
MINING CONSULTANTS, INC.
Technical Report / Form 43-101F1
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
131
18.1.1 Geology
Review of the 1997 study revealed that a 3D geological model had been initiated in 1997,
but not completed. For this Technical Report the data base for the Echo Bay drill holes
was updated with lithology codes. The previous geologic coding was simplified for this
update. Also the Benguet drill hole data base was updated with the new simplified geologic
codes.
Existing Benguet Corporation geologic cross sections were studied and refined and then
digitized into cross sections for a new 3D geologic model. Level maps were next prepared
and checked against the cross sections. Particular attention was paid to post mineral
intrusions that contained no mineral values. Then the geologic model was assembled and
tested for fit. The new geologic model was used for assembling the new block model
developed in August 2010 by Independent Mining Consultants.
Future refinement to this model will be made by new drilling for purposes of geotechnical,
hydrology and geologic interpretation of selected lithologic contacts. Also the existing core
logs will be examined for structural geology, recording the x,y and z coordinates for these
contacts. Structural boundaries will be added the geologic model based on these
interpretations. The block model will be updated with this new information in 2011.
18.1.2 Mining and Resources
The resource estimate in the 1997 study was 398.1 million tonnes of ore grading 0.341%
copper and 0.516 g/t gold. The strip ratio was 1.12 for the life of mine. Specific gravities
assigned to the oxide and sulfide ore were 2.69 and 2.76, respectively. Mining life was
estimated at 16 years.
Currently, the compliant resource to JORC and NI 43-101 standards is 792 million tonnes
of ore grading 0.279% copper and 0.371 g/t gold. The strip ratio (based on the resource
cone shell) is 0.81 for the life of mine. Bulk densities assigned to the oxide and sulfide
blocks were variable based on the relationships indicated by the recent density tests on 100
core samples. Oxide and mixed blocks were assigned bulk density values of 2.41 t/m3 and
2.36 t/m3 for host rocks and intrusive rocks respectively. Primary (sulfide) blocks were
assigned bulk densities of 2.54 t/m3 and 2.47 t/m3 for host and intrusive rocks respectively.
Breccia blocks were assigned a bulk density of 2.47 t/m3. IMC assigned overburden blocks
a bulk density of 2.0 t/m3. Mine and milling life are estimated at 23 years.
18.1.3 Commodity Prices and Operating Costs
The most significant changes since 1997 affecting the resource estimate have been the
copper and gold pricing. In 1997 $0.90/lb copper and $375/oz gold were used to develop
the resource. Metal prices of $1.75/lb copper and $660/oz gold were used to develop the
INDEPENDENT
MINING CONSULTANTS, INC.
Technical Report / Form 43-101F1
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
132
resource today. Current metal prices as of August 31, 2010 were $3.33/lb copper and
$1,248/oz gold (Kitco).
Operating costs in 2010 have escalated from those used in 1997 in some cases, such as
reagent and fuel costs. Decreases have been seen in smelting and refining, (smelting was
$95/tonne then and $80/tonne today, refining was $0.095/lb then and $0.080/lb today).
The basic mining practices remain the same today as then, though the sizes of individual
pieces of equipment have increased. Mining is by open pit methods in both cases, utilizing:
drilling blasting, loading and hauling. Valueless Rock Management Areas, such as PAG
and NAG have not been defined exactly at this stage but initial evaluations place them
closer to the pit limits than in the 1997 study.
18.1.4 Processing
The 1997 plans were to place the primary crushing and SAG milling near the open pit with
pipeline transport of SAG mill undersize from the open pit to the process site approximately
2.8 aerial kilometers. There were two processing streams in the 1997 study requiring
separation of oxide type ore from sulfide ore at the shovel face. There was an oxide ore mill
and a sulfide ore mill. The sulfide mill utilized standard crushing, grinding and copper
sulfide flotation techniques commercially used at other mines to produce a copper
concentrate; plant processing rate would be 35,000 tpd ore. The oxide circuit was not as
standard as the sulfide circuit. It was crush, grind, sulfide flotation producing a concentrate,
acid leach of tailing, precipitate the copper in solution with iron and re-float the precipitate
producing a concentrate; processing 47,500 tpd. Each circuit produced its own concentrate
for sale or treatment at a copper smelter. The oxide circuit was planned to be converted to a
sulfide circuit after depletion of the oxide material.
Preliminary investigations for the currently planned mine suggest a different approach is
more typical today and more cost efficient from both a capital and operating cost
perspective compared to the 1997 two mill processing scheme. Commercially applied
copper oxide mineral flotation reagents and flow sheets appear applicable at King-king due
to the copper oxide mineralogy (major mineral is malachite). This processing scheme
should allow application of a sequential flotation flow sheet as described above in the
section on metallurgy. The process would be crushing, grinding, gravity concentration for
additional gold recovery and sulfide flotation, oxide flotation on the sulfide tailing,
combined cleaner flotation of the rougher concentrates producing a copper-gold concentrate
for smelting and refining. Gravity concentrator circuits have been added, in the past 10
years, to several mining operations processing porphyry ore bodies like King-king and
showed significant improvements in gold recovery. Gold recovery is expected to improve,
with application of gravity concentrators in the grinding and flotation circuits at King-king,
from70% in the 1997 report to 80% today. Gravity gold concentrates would be treated on
site by hydrometallurgical means and a gold/silver Dore shipped out for refining.
Processing rate is expected to be 100,000 tpd.
INDEPENDENT
MINING CONSULTANTS, INC.
Technical Report / Form 43-101F1
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
133
Location of the processing plant down in the rolling lowland hills to the southwest of the
open pit was recommended in 1997 and it is still thought as the best location today for
seismic conditions, capital cost and access to transport large mill equipment. It is felt that
the 1997 plan of pipeline transport of SAG mill undersize from the open pit to the process
site approximately 2.8 aerial kilometers away is not practical and an overland conveyor
from the primary crushers at the open pit is practical and a commercially proven method at
several mines.
18.1.5 Tailings
In the 1997 study subsea tailings disposal was given serious consideration. At this time it is
expected that a subsea tailings disposal alternative may generate serious opposition to the
project.
Similarly to the 1997 study, it is believed today that a land based tailings management
system located west-southwest of the process plant is the best approach for seismic, capital
cost and environmental and social reasons. The current design thinking for embankment
construction of the Tailings Storage Facility (TSF) is to use local minable materials near the
tailing facility as opposed to the original plan of trucking waste from the mine (some 5.3
aerial kilometers away) as the 1997 report recommended.
Re-use of water from the tailing system in 1997 was not planned. Current planning is to use
this water. The re-use of tailings water could significantly reduce or eliminate most of the
make-up water needed, except during drier periods.
18.1.6 Environmental
In the 1997 study, potentially acid generating (PAG) valueless rock was seen as an
important environmental concern. It was recommended in 1997 that control of the PAG
rock would be achieved by damming the King-king River with non-acid generating
valueless rock; and, then submerging the PAG rock in the resultantly-formed lake to prevent
any acid from being generated. Though this same method may be a viable option today, a
current preferred alternative is to locate the waste on condemned ground (i.e., an area
outside of the ore-producing zone) near, but outside of, the ultimate pit limits. It would be
further planned to perform concurrent reclamation of the valueless rock pile to prevent acid
generation; divert clean water from the Valueless Rock Management Area (VRMA); and, to
re-use any run-off effluent in the process, or to treat and release any effluents from the final
pit perimeter and VRMA.
The 1997 report suggested using water for the process and mine from the water dammed up
on the King-king River. Considering the VRMA alternative described above, well-water
from the alluvium south-west of the mine, and near the mill site, is the preferred alternative
for fresh water for process water make up purposes.
INDEPENDENT
MINING CONSULTANTS, INC.
Technical Report / Form 43-101F1
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
18.2
134
Conservative Mineral Resource Calculation
It is the opinion of IMC that the stated mineral resource is a conservative estimate.
The decision to not use the Benguet gold assays for the current mineral resource estimate is
a conservative factor in the estimate, because the mineral resource classification for each
block was based on the least confident of the copper or gold classification. Because of this,
there are areas of the deposit that are reasonably well drilled, but are classified as inferred
resource due to lack of reliable gold assays in the vicinity. The implication is that there are
inferred resources with identified copper and gold mineralization that should be relatively
simple to convert to indicated resources with additional drilling or possibly additional reassaying of Benguet samples. In addition, significant portions of the indicated resource
should be upgraded to measured category with relatively little additional sampling.
The decision to base the resource cone on only measured and indicated resource blocks is
also a conservative factor in the mineral resource estimate. IMC generally permits inferred
resource blocks to also be used in the determination of the cone shell to define a mineral
resource. Using only the measured and indicated resource blocks means that the King-king
measured and indicated mineral resource should also be compliant with the “mineralized
material” designation under US reporting rules.
The commodity prices of $1.75 per copper and $660 per ounce gold used to develop the
resource cone shell are also conservative. As of this writing the three year backward
averages are about $2.90 for copper and $940 for gold.
18.3
Environment and Socioeconomic Issues
The King-King Project will be designed and operated by Ratel Gold Limited to comply with
Philippine regulatory requirements with respect to environmental and social/local
community standards. This will include the preparation of an “Environmental Impact
Study” (EIS) for the project, as required by Philippine law.
In addition, Ratel has voluntarily committed to conformance with commonly accepted
international environmental, social, health and safety standards in the construction,
operation and closure of the King-King Project. These latter standards are primarily
guidelines and Performance Standards (PS) of the International Finance Corporation (IFC),
a unit of the World Bank; and, the Equator Principles (EP), which are voluntary
international guidelines adopted by many commercial banks and other international lending
agencies known as Equator Principles Financial Institutions (EPFI). The IFC PS and EP
form the de facto standards applied to many major operations seeking investments and
guarantees from multilateral, bilateral and commercial financial institutions worldwide.
This Ratel commitment will also include the preparation of an International Social and
Environmental Impact Assessment (I-SEIA), based on IFC PS and other international
INDEPENDENT
MINING CONSULTANTS, INC.
Technical Report / Form 43-101F1
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
135
guidelines. This will serve as a complementary document to the National EIS to be
presented to the Government of the Philippines for project approval.
18.3.1 Philippine Regulatory Overview
Development of the King-King Project will require compliance with numerous national and
Philippine environmental laws, as well as local requirements. Philippine environmental laws
regulate emissions and discharges of waste into the environment; and, also specify how an
operator conducts a mining operation. Environmental laws are promulgated and
administered at the national level. Environmental regulation and enforcement of the mining
industry is mainly performed by bureaus within the Department of Environment and Natural
Resources (DENR). Within DENR, the Mines and Geoscience Bureau (MGB) and the
Environmental Management Bureau (EMB) possess the most authority in regulating the
mining industry.
At the local level, the three most important agencies and local governmental units that the
King-King Project will need to satisfy are various barangay captains, the Pantukan mayor's
office, and the Pantukan Municipal Planning and Development Department. [A barangay is
the smallest administrative division in the Philippines; and, is the native Filipino term for a
village, district or ward.] An important, but unquantifiable, aspect of the project permitting
will be the social acceptability during the Environmental Impact Assessment (EIA) process,
which provides for the development of the Environmental Impact Study (EIS) for the
project.
All large-scale mine developments in the Philippines are required to secure an
Environmental Compliance Certificate (ECC). The ECC is required before numerous other
authorizations are granted. The ECC is issued after completion of the EIA process. The EIA
process consists of the preparation of an EIS for public review and comment, and for
documenting social acceptability. To complete the EIA process, and before ECC issuance,
local government and non-governmental units must endorse the project as being in the best
interest of the community while balancing environmental impact. In many cases, the EMB
will require written project endorsement from these various groups.
After submission of the EIS, it is typically 6 to 12 months before an ECC is issued for largescale development projects. Once the EIS document is finalized, but prior to the ECC being
issued, the project proponent is also required to submit an Environmental Risk Assessment;
an Environmental Protection and Enhancement Program; and, a Community Relations
Program.
The Philippine environmental and social/community-related laws and regulations applicable
to the King-King Project are listed and discussed in Appendix 3.
18.3.2 International Environmental and Social Guidelines
There are a number of international standards and guidelines that will also be employed by
Ratel in the design, operation and closure of the King-King Project. These international
INDEPENDENT
MINING CONSULTANTS, INC.
Technical Report / Form 43-101F1
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
136
guidelines and standards include the following: IFC’s Performance Standards (IFC PS) on
Social and Environmental Sustainability (April 2006), including IFC PS Guidance Notes
(July 2007); IFC’s General Environmental, Health, and Safety Guidelines (April 2007);
IFC’s Environmental, Health, and Safety Guidelines for Mining (December 2007); IFC’s
Policy on Disclosure of Information (April 2006); the World Bank’s Anti-Corruption
Strategy (2008); the Voluntary Principles on Security and Human Rights (2000); and, the
Equator Principles (2006). These standards and guidelines are listed and discussed in
Appendix 3.
In summary, these international guidelines and standards provide a project owner with:
guidelines for conducting an SEIA study; a set of specific environmental quality standards,
including both “end of pipe” discharge limits and acceptable ambient levels for various
parameters; extensive operating management practices (known as “good international
industry practices” or GIIP); standards of performance for the construction, operation and
closure of a mine project standards; and, a system for formal documentation for
environmental and social studies, programs and practices. Ratel is committed to voluntary
conformance with these international guidelines and standards for the King-King project.
18.3.3 Ratel Commitments and Policies
The following statements, commitments and policies from Ratel have been conveyed to the
authors of this Technical Report; and, are included here to publically acknowledge these
commitments in relation to the King-king Project. Ratel Gold Limited stated that the
company believes that environmental, community and safety concerns are vital cornerstones
in the development of any project. To ensure that these matters receive the utmost attention
throughout the life-cycle of company projects, Ratel works with internationally-recognized
experts in the fields of environmental assessment and management; stakeholder
engagement; social and community development; as well as, world-class specialists in water
quality, air quality, waste management, hydrogeology, soils, geochemistry, ecology,
biodiversity issues and archaeology/cultural issues.
Ratel predominantly identifies and selects projects based on a cost effective, sustainable and
environmentally acceptable method of mining. Ratel stated that the company believes that
they are successful not only when their economic goals are achieved, but also when their
projects are developed and operated under the principles of sustainability, i.e. - meeting the
needs and aspirations of the present generation without compromising the opportunity of
future generations to fulfill their needs and aspirations.
Ratel has a strong commitment to sound environmental practices and community
involvement in its projects; to that end, the Company has strong, formal policies on these
matters as presented below.
INDEPENDENT
MINING CONSULTANTS, INC.
Technical Report / Form 43-101F1
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
137
18.3.4 Ratel Environmental Policy
“Ratel believes that, while production and costs are certainly critical to the well being of the
Company, these considerations must never take precedence over protection of the
environment in which we operate, and for the safety & health of the workplace environment
for our employees. As responsible corporate citizens, it is our commitment to: minimize
detrimental impacts to the environment from our operations; provide a safe and healthy
workplace environment for our employees; and, be a positive contributor to the social &
economic environment for the local people where we operate.
To achieve these Policy objectives, Ratel will:
•
•
•
•
•
•
Assess, and address in decision-making, the potential environmental impacts associated
with a project over its full life cycle --- including pre-development, construction,
operation, closure and post-closure.
Identify, assess, measure and manage environmental risks, and rigorously apply
accepted safeguards, at every stage of a project’s life cycle, including operational
products.
Comply with applicable governmental environmental laws and regulations; and in
jurisdictions where such are absent or inadequate, apply good international industry
practices to avoid, minimize, mitigate or remediate environmental impacts.
Communicate the importance of these environmental protection measures to our
employees, contractors, suppliers, investors, partners and other relevant stakeholders.
Review the effectiveness of environmental protection and management programs, and
act on the results, to achieve continual improvement in the Company’s environmental
performance.
Use resources efficiently; and, promote new, safe, efficient technology in the
Company’s operations.”
18.3.5 Ratel Policy on Social & Community Affairs and Stakeholder Engagement
“Communities are of paramount importance to Ratel’s operations, as they are most often
our first point of contact. They are also a vital source of employees for our workforce. In
keeping with the philosophies of accepted sustainable development practices, we pay close
attention to a community’s economic, social and environmental needs and expectations.
Respect for the communities in which we operate is demonstrated through our efforts to
build strong and long-term relationships with governments, suppliers, local partners,
neighbors and employees.
To promote a positive community environment, Ratel will:
•
•
Responsibly and ethically manage our relationships with the stakeholders in the projects
that we develop; and, in the local communities in which we operate.
Recognize that communities and the environment are inter-dependent; and, be
accountable for the effects and potential consequences our actions have on both.
INDEPENDENT
MINING CONSULTANTS, INC.
Technical Report / Form 43-101F1
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
•
•
•
•
•
•
138
Value cultural heritage; respect the traditional rights of indigenous peoples; and,
acknowledge and accommodate cultural differences, preferences, and lifestyles.
Promote open, honest communication with people in the communities where we
operate; and, consider their perceptions, opinions and concerns in our decision-making
throughout the life cycle of our operations.
Advance the sustainable development of host communities by forming local
partnerships and improving economic benefits.
Advocate the responsible use and management of our products and by-products
throughout the life of the project.
Support community-based projects that have a positive effect and are sustainable.
Review our social performance in the communities and communicate our progress to
local stakeholders and people.”
18.3.6 Permitting Road Map for the King-King Project
Ratel recognizes that the permitting effort for the King-King Project will be the most
important undertaking for developing the future mine. Ratel has devoted considerable time
and effort in research and confirmation of the required company and governmental stages in
this process. The results of this process are summarized in the “Permitting Roadmap”
diagram below.
INDEPENDENT
MINING CONSULTANTS, INC.
Technical Report / Form 43-101F1
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
139
Figure 18–1. Permitting Roadmap for the King-king Project
Technical Report / Form 43-101F1
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
140
Along with the assistance from the Philippines Department of Environment and Natural
Resources, and Filipino and international consultants, this Roadmap will guide Ratel to the
successful permitting of the King-King Project. The Roadmap provides for the protection of
the environment and socioeconomic fabric of the area for the life of the mine, and after its
closure.
18.3.7 Project Description
The King-King copper-gold project is envisioned as a large-scale, open-pit mine, with
downstream processing of the ore producing copper concentrates containing gold for sale to
copper smelters; or, possibly further on-site processing to cathode copper, and production of
gold concentrates requiring offsite refining. All valueless rock management areas from the
mining operations will be managed with environmentally acceptable methods. At the end of
mining, the project area will be reclaimed and left in an environmentally stable condition
suitable for other economically sustainable uses. More detailed descriptions of the potential
operations and processes were provided in Section 1.3, 1.4, 23.1 and elsewhere in this
Technical Report.
There have been previous exploration and other activities focused on the potential
development of the mineral deposit at King-King, at least since the early 1970s, when
explorational drilling took place by Mitsubishi Mining Corporation. In the early 1980s, the
Benguet Corporation formed a partnership with the Nationwide Development Corporation
(NADECOR) to explore and develop this property. In 1995-1997, Echo Bay Mines
conducted a number of exploration and environmental studies under an option agreement
with Benguet/NADECOR, but subsequently did not pursue development. See Sections 4 and
6 of this Report for more details on this project site history.
There has also been a significant amount of illegal small-scale mining activity on the KingKing site and general area over the last 20 years or more. This activity has resulted in
substantial removal of vegetation and resultant serious erosion of mountainsides. This has
caused subsequent heavy siltation of the local King-King River, including out to the Davao
Gulf, where an extensive sediment delta has formed (see the photographs below). These
matters are discussed in more detail below in the project environmental setting section.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
141
Figure 18-2. Illegal Small-Scale Mining at the King-King site; Substantial Erosion of
Mountainsides
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
142
Figure 18-3. View of Pantukan, Excessive Siltation in the King-King River and
Sediment Deposition at the River Mouth are Significant Impacts from the Illegal SmallScale Mining at the Project Site
18.3.8 Environmental and Social/Community Work Programs
The initial phase in the governmental approval process for the King-King project will involve
conducting environmental and social/community work programs, along with other feasibility
studies. The data and information from these studies will support development of the
required Declaration of Mining Project Feasibility (DMPF) document for submittal to
Philippines Department of Environment and Natural Resources/Mines and Geosciences
Bureau.
The work programs will be comprised of aerial surveys; water monitor well drilling; and,
baseline environmental and socio-economic studies. The aerial surveys will provide Ratel
with more precise mapping information to assist in the specific siting of facilities; and,
provide regional overviews of environmental and community conditions and infrastructure.
Data from monitor wells will be used to determine the background water quality; to study the
groundwater storage and conductivity of the project area; and, to understand the pore
pressure in the projected open mine walls.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
143
Environmental and socio-economic baseline studies will be used to document the current
environmental and social conditions at the proposed mine and operational sites, and the
general area. This will be particularly important for this project as there has been previous,
and currently on-going, significant illegal small-scale mining at the site, which has resulted
in significant environmental impacts and degradation of vegetation and stream water quality
in the area. These baseline studies will also provide Ratel with critical data and other
information for developing specific environmental and socio-economic management
practices to be employed at the mine. Other data collection or testing work may potentially
need to be performed as other feasibility studies progress.
It is estimated that it will take approximately 22 months for completion of these studies.
18.3.9 Description of the Existing Environment
History
The project site has had three distinct periods of land use; pre-logging (before 1975), logging
(1975 to 1985), and small-scale mining (1985 to present). Before 1975, the project area
consisted of original old growth tropical forest and the principal land use was subsistence
agriculture. Commercial logging commenced in the mid-seventies and resulted in the
elimination of the original ecosystem, loss of top soil, and siltation. Subsistence agriculture
increased within the area due to the removal of the old growth forest, population pressures,
and worsening economic conditions. The practice of slash and burn farming has limited the
re-growth of second growth forests and the re-establishment of the original and/or similar
ecosystems. Small-scale mining activity began during the later part of the eighties and has
caused extensive siltation to the King-King drainage and has impacted the marine
environment. Based on previous studies, mercury is present within the sediments of the
King-King drainage and has been identified in some of the aquatic fauna.
Land Environment
The King-King project is located on the island of Mindanao, Republic of the Philippines, in
the Pantukan municipality, which is generally characterized as mountainous with rugged
terrain and steep slopes. The flat lands that dominate the coastal zone are relatively small.
The dominant topography of the area is the criss-crossing mountain ranges between the
coastal and mountain barangays, and the very rugged terrain east of Araibo towards its
boundary at Banaybanay. This topography covers around 90% of the municipality. (Refer to
Sections 4 of this Report for a map showing the location of the King-King Project and the
mining concession area; and, Section 4 and 5 for more detailed information on the physical
environment setting for the project.)
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
144
The topography in the project area is steep and rugged with elevations ranging from 260m to
950m, and averaging 800m, above mean sea level. The porphyry copper-gold mineralization
outcrops between 400m and 700m elevations. The terrain gradually becomes moderately
rugged to rolling westward toward the Davao Gulf. The King-King River drainage system is
characterized as a moderate to steep-sided incised valley.
The present landscape of the general area consists mainly of residual old growth forest, slash
and burn ground cover, agricultural plots, bedrock exposures from small-scale mining and
secondary growth vegetation. It has been largely denuded of primary forests due to past
commercial logging, subsequent slash and burn farming, and finally small-scale mining.
Vegetables and fruit-bearing trees are grown in some places, but these are limited and
concentrated in localized flat or rolling terrain. Illegal logging activities supply the timber
requirements of small-scale miners in the area and vicinity.
The photographs below show the typical topographic landscape in the King-King area.
Figure 18-4. The King-King River in the Lowlands as It Enters the Davao Gulf
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
145
Figure 18-5 & 6. The King-King River in the Lowlands (Background)
and in the Low Mountains (Foreground)
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
146
Figure 18-7. The King-King River (in Foreground) and the High Mountains
Surrounding the King-King Project Site (Noted by the Eroded
Mountain Area in Background)
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
147
Figure 18-8 & 9. The King-King Project Site (Top and Bottom); Note
Extensive Illegal Small-Scale Mining and Severe Erosion;
Also Note Living Quarters and Processing Shacks
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
148
Geotectonic maps of Mindanao show several faults at the southern part of the active
Philippine Fault, which occur close to Pantukan. An intersection of two fault splays is within
Pantukan, one of which is the Mati Fault, which is a potential source of strong earthquakes.
This zone may be considered a seismic gap, though there are presently no recorded
earthquakes for the project area.
The Bureau of Mines in Davao City has noted in publications that the municipality of
Pantukan is rich in mineral deposits such as copper, gold and silver. This has been evidenced
by the migration of thousands of small-scale panning activities into these areas.
The climate in the Project area can be described as humid tropical, with a reported average
annual rainfall of about 2100mm. King-King is located south of the normal typhoon path
and, therefore, does not experience pronounced wet and dry seasons. Temperatures
reportedly range between 18 and 35°C.
Water Environment
The King-King River is the principal drainage within the project area. The length of the
watershed is nearly 20km, with the headwaters located upstream of the project area.
Tributaries of the King-King consist of the Casagumayan, Turnanggan, Binutaan, Maboros,
Tiogdan and Buko Buko perennial creeks. Dendritic to trellis drainage systems transect the
current exploration area. Draining from the project area are the upper tributaries of the KingKing River, which are the Mabaros and Binutaan creeks. Another prominent creek within the
Company’s exploration area is Diat Creek, also a tributary of the King-King River. These
watercourses flow southwestward to the Davao Gulf. Within the project area, the King-King
River waterway has undergone significant sedimentation from the activities of the illegal and
legal small-scale mining.
The average slope of the King-King River watershed is 0.058 meter per meter, with steeper
gradients in the upper portions of the watershed. In the upper watershed, the King-King River
is controlled by the existing topography; and, in the lower watershed, the river can be
characterized as meandering. The small-scale mining activity within the project area has
significantly changed the erosive conditions and sedimentation rates of the lower watershed.
Consequently, the lower watershed is in a dynamic condition. A significant impact to surface
water quality is the bacteriological impact from improper sewage disposal by the local
residents. Reports on sediment sampling also indicate the presence of high copper (Cu),
manganese (Mn), zinc (Zn), and iron (Fe) values. Mercury (Hg) has been visually identified
by placer mining operators in the sediments at the mouth of the King-King River. Within the
small-scale mining area, there are reported elevated mercury values within the aquatic life.
There are two ground water regimes within the project area, an alluvial aquifer along the
coastal plain and a bedrock, fracture-controlled aquifer within the mountains. The alluvial
aquifer supplies most of the drinking water for the residents of the area. The ground water
aquifer is used by residents from flowing springs and artesian bore holes. Ground water
quality is generally good within the mountains. The ground water quality within the alluvial
aquifer is adequate and is directly impacted by the number of people within a specific area.
Improper sewage disposal has directly impacted portions of this aquifer.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
149
The King-King operations plan could potentially entail usage of a large amount of water.
Water consumption and rights could become a significant permitting issue.
There is a reported large fishery within the Davao Gulf. It is primarily a shallow water multispecies fishery; and, a significant percentage of the local residents depend on this fishery for
their daily diet. No deep water fishery has been identified in the eastern portion of the Davao
Gulf.
Socioeconomic Environment
Due to unavailability of governmental demographic data for the specific project site parcel,
the municipality data in which the project is located is presented in this part of this Technical
Report. Documentation of the population numbers currently on the project site, in the town of
Pantukan, and in the municipality will be an important initial phase of the planned Ratel
social baseline studies for this project. Pantukan, a Cebuano speaking municipality, has the
third largest population among the municipalities of Compostela Valley (1995 census) with a
population of 56,780. Population increased by 10,480 from its last census of 1990, thus
having an annual average growth rate of 7.14%.
The project site is inhabited by local small-scale miners (operating illegally), and subsistence
farmers. There are no ancestral groups recognized as indigenous people under Philippine law
known to be located within the project boundaries. This will need to be confirmed during the
baseline studies.
The population is not evenly distributed among the barangays. The three barangays of KingKing, Napnapan, and Magnaga are occupied by 55% of the population. Understandably,
these are the barangays with existing small-scale mining activities.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
150
Figure 18-10 & 11. The King-King Project Site (Eroded Area, Top) with
Illegal Small-Scale Miners’ Living Quarters and Processing Facilities (Bottom)
Settlements are likewise situated where the livelihood sources of the town are located. The
majority of the population is living in the coastal and lowland agricultural areas of the
municipality. The upland farmers are practically clustered in the rolling rich valleys of
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
151
Tagugpo, Las Arenas and Araibo. The miners on the land are closely settled right at the
mining areas of the town.
The unemployment rate of 12.55% in the municipality is relatively high compared to
provincial, regional and national averages, which are 6.3% unemployment and 15.5%
underemployment for Compostela Valley.
18.3.10 Environmental and Socio-Economic Baseline Study
Ratel will develop a detailed “Environmental and Socio-Economic Baseline Study Plan” for
the King-King project. The purpose of the baseline study will be to characterize the current
physical, chemical, biological and social conditions in the project area. Data and information
gathered from this study will be used in the development of the Philippine EIS and the
international SEIA process; to assess the potential impacts to the environment and social
conditions from proposed mine and operational activities; and, to develop avoidance and/or
mitigation measures to minimize these potential impacts. The baseline study is intended to be
flexible, in order to respond to changing field conditions, changes in project layout and
processes, and other requirements.
As noted above, Ratel has voluntarily committed to conformance with generally-accepted
international standards in conducting this social and environmental baseline study. As a
result, the baseline study will conform to the Performance Standards of the International
Finance Corporation and the standards of the Equator Principles (these standards were also
discussed above). The baseline study will also comply with all relevant Philippine laws,
regulations and standards; and, the Environmental and Social Policies of Ratel.
An international team led by AATA International, Inc. (AATA), headquartered in Denver,
Colorado, USA, will conduct the baseline social and environmental study on behalf of Ratel.
AATA will be assisted in performing the baseline study by Philippine consultancies and
experts specializing in environmental & social baseline studies and impact assessments. The
study will be conducted under the supervision of AATA to ensure that the study meets all
international good practice standards and Philippine requirements, with respect to scope,
quality assurance/quality control (QA/QC), and documentation.
The “Environmental and Socio-Economic Baseline Study Plan” for the King-King project
will include a comprehensive “Terms of Reference” or “Scope” for the over-all baseline
study, as well as, specific individual “Work Packages” for each disciple to be studied. These
Work Packages, which will be developed by AATA and Ratel, will provide details on the
scope and methodologies that will encompass the following areas of study:
Work Package #1 – Meteorology and Air Quality
Work Package #2 – Geology, Soils, Sediments, and Natural Hazards (including
Geotechnical, Seismic, Landslides, and Volcanic)
Work Package #3 – Surface Water Hydrology and Quality
Work Package #4 – Groundwater Hydrology and Quality
Work Package #5 - Acid Rock Drainage and Advanced Geochemical Management Program
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
152
Work Package #6 – Visual and Aesthetics Analysis, Noise, and Traffic Surveys
Work Package #7 – Terrestrial Ecology – Vegetation, Wildlife, Threatened & Endangered
Species, Protected Areas
Work Package #8 – Aquatic Ecology – Fishes, Benthos, Plankton and Periphyton
Work Package #9 – Social and Economic Conditions, Public Consultation and Outreach
Work Package #10 – Archaeological and Cultural Resources
Work Package #11 – Biodiversity Offsets
Work Package #12 – Air Quality
Work Package #14 – Erosion Control
Work Package #15 – Water Management
As noted above, the results of the over-all environmental baseline studies will be included in
the Philippine EIS and the international SEIA reports; and, will assist Ratel in assessing the
potential impacts to the environment and social conditions from the proposed mine and
operational activities; and, to develop avoidance and/or mitigation measures to minimize the
potential impacts. In accordance with IFC Performance Standards and the Equator Principles,
formal individual documents (which include detailed work instructions) covering all aspects
of Environmental Management will also be developed by AATA and Ratel for the KingKing project (see below for similar plans on social matters). These will include the following,
as applicable:
•
•
•
•
•
•
•
•
•
•
•
Environmental Management System Framework (EMS)
Occupational Health and Safety Plan (OHSP)
Environmental Protection Plan (EPP)
Erosion and Sediment Control Plan (ESCP)
Environmental Monitoring Plan (EMonP)
Emergency Response Plan (ERP)
Hazardous Materials Management Plan (HMMP)
Waste Management Plan (WMP)
Site Water Management Plan (SWMP)
Reclamation and Closure Plan (RCP)
Biodiversity Management Plan (BMP)
18.3.11 Social Development and Management Program (SDMP)
A first, significant step by Ratel in the development of the “Environmental and SocioEconomic Baseline Study Plan” will be the implementation of a “Social Development and
Management Program” (SDMP) to provide initial guidance in this important aspect of the
King-King project. The SDMP is outlined here to provide the Government of the Philippines,
regulatory bodies, local communities, NGOs and other interested parties with a view of the
disciplined approach that Ratel will follow with regards to social development and
management of the King-King project area. This plan will initially focus on the small scale
(illegal) mining community that has arisen in the area, and on the local communities which
bear the brunt of the impacts from these activities, especially water quality impacts to the
river, and the estuarine and near-shore environments.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
153
The assessment of the local situation will be carefully conducted, to insure proper
identification, selection, and implementation of effective social management alternatives. In
the case of the King-king project, it is reported that there are perhaps up to 800-1,000 illegal
small-scale miners working in the area immediately on, or adjacent to, the Ratel
property/mining concession. A preliminary assessment of the current situation will be
conducted to identify the principal social elements and stakeholders; to evaluate how the
small-scale miners are organized; and, to document how the current economic system of the
area is organized. Stakeholder identification and mapping will be a critical function of this
social analysis.
This socio-economic evaluation will be utilized as a component of the baseline study to
document the social conditions related to small-scale mining in the project area prior to Ratel
developmental and mining activities. This initial baseline socio-economic evaluation will
also be used as a basis for developing management practices, including the following
considerations:
1)
2)
3)
4)
5)
6)
7)
8)
Management of the current situation, legal restrictions and identification of
available options.
Implementation of key health and safety measures to protect the population.
Transition of small-scale miners to direct employment opportunities.
Training and technology transfer, to prepare small-scale miners for employment.
Provision of cooperative or centralized mine management, central retort(s),
processing, marketing, sales.
Voluntary and/or involuntary resettlement alternatives.
Prohibition of illegal mining activities.
Creation of alternative sustainable options for replacing illegal mining activities.
Based on the results of the over-all social baseline studies, and in accordance with IFC
Performance Standards and the Equator Principles, formal reports and assessments covering
all aspects of Social and Community Management will be developed by Ratel. These will
include the following, as applicable: Resettlement Action Plan; Indigenous Peoples Plan;
Community Development Plan; Cultural Resource Management Plan; and, Public
Consultation and Disclosure Plan. Russell Mining and Minerals Inc. has stated that the
company has a strong commitment to being a good corporate neighbor, and will demonstrate
its commitment to the people of the area, region, and the country through these formal plans,
programs and practices.
The information presented in this section is a compilation of the projected baseline study to
be conducted, the permitting requirements to be fulfilled, and the development of
environmental and social management plans for the King-King project. Additional operating
information and environmental data will be collected in support of Feasibility Study and may
change the subsequent approach to permitting.
The environmental goals of the Feasibility Study are to:
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
•
•
•
•
154
Identify permitting and public consultation requirements.
Complete environmental studies and identify assumptions in relation to operating plan
cases.
Identify areas lacking in environmental information and the significance of these areas
for planning purposes.
Identify environmental related costs of permitting, compliance and management to within
plus or minus 20 percent accuracy.
18.3.12 Identification of Potential Environmental Impacts
There are two phases of environmental and socio-economics impacts that are of initial
interest for this project. There are the potential impacts associated with the exploration
program; and, the very preliminary estimated impacts from the potential future operation of
the mine and processing facilities. Assessments of these impacts are very preliminary at this
point, because the studies that will be conducted to more clearly define these are part of the
work program plan described in this current report.
18.3.12.1 Land impacts
Off-site
a.
Exploration Work Program: No additional off-site surface disturbances are expected
because the off-site property access roads already exist. This access would be used
and it is not planned to make new ones. No off-property storage areas are planned.
b.
Future mine and processing facilities: There would be multiple new access roads that
enter the property at various locations to facilitate reaching the various mining
facilities, for example, the open pit and mine maintenance facilities, the ore
processing facilities, the tailings management area, overland pipeline and conveyor
systems, etc. There would likely be a port facility in Pantukan, so off-mineral
property surface would be disturbed in its development. Depending upon the best
designs found in the future feasibility studies, there could be off mineral property
surface disturbed for pipeline and conveyor routes, process and tailings management
facilities, and infrastructure.
Planned baseline environmental studies, and ore/non-ore material characterization and
management studies, will identify the potential surface disturbance areas in detail.
On the Mineral Property
Surface disturbance on the mineral property would include:
•
•
•
Drilling - Planned Hydrological drilling of 2,600 meters of RC drilling for monitoring
wells
Living quarters and office areas previously utilized would need to be cleared of
vegetation to enable the rebuilding/replacement of these facilities.
Drill rig supply lay down and repair areas would be near the living quarters and would
need to be cleared of vegetation requiring minimal, if any, new disturbance.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
155
There would be two phases of land disturbances as follows.
a. Exploration Work Program: A few existing overgrown access and drill roads would be
cleared to reach the sites to place monitoring wells. Roads would be sloped to let storm
water run off the surface; and, culverts would be installed as needed to ensure proper
control during any rain events. Soil disturbed in ground preparation for the main work
program camp sites would be consolidated into a growth media stockpile for later use in
concurrent reclamation during mining activities or during closure.
b. Future mine and processing facilities: There would be multiple new access roads across
the mineral property to facilitate reaching the various mining facilities, for example, the
open pit and mine maintenance facilities, the ore processing facilities, the tailings
management area, overland pipeline and conveyor systems, etc. There would be large
surface disturbances for the open pit and non-ore material management area. Depending
upon the best designs found in the future feasibility studies, there could be mineral
property surface disturbed for: pipeline and conveyor routes; process and tailings
management facilities; and, infrastructure (power and water line corridors, for instance).
Planned baseline environmental studies, and ore/non-ore material characterization and
management studies, will identify the potential surface disturbance areas in detail.
18.3.12.2 Potential Hydrology and Water Quality Impacts
Generation of Acid Mine Drainage
a.
Exploration Work Program: None is expected
b.
Future mine and processing facilities: There are 3 mine facilities that are expected at
this early stage of analysis that would potentially be acid generating. These are the
walls of the open pit mine; the non-ore material management facility; and, the low
grade ore storage facility. The non-ore material and low grade storage facilities would
probably utilize compacted soil liners with very low permeability. The preliminary
expected quality of the drainage from these three facilities is poor with low pH in the
range of 3.5-5.5 and elevated levels of iron and copper sulfates. The volume of
drainage is expected to range from 100 to 500 m3/hr, increasing as the size of these
facilities grows over the life of the mine. (Tailings from the processing facility would
not be considered potentially acid generating because the management methods being
considered, at this early stage, for tailings disposal are expected to prevent acid
generation.)
Planned baseline environmental studies, and ore/non-ore material characterization and
management studies, will identify the potential acid generating drainages in detail. Tailings
disposal studies will confirm that the potential proposed methods to be used would be nonacid generating and conform to good international industry practice.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
156
Siltation of Surface Waters
a.
Exploration Work Program: The rehabilitated existing roads and new drill pads for
the monitoring wells would have potential for sediment surface run off and erosion
during rainfall. Measures will be taken to prevent this.
b.
Future mine and processing facilities: There are several potential areas for siltation
and pollution of surface waters by the future mine facilities, if appropriate run-off
collection ditch designs and sediment control structures are not incorporated in the
mine design. Possible problem areas could be mine roads, access roads along
pipelines, power lines and conveyor routes, erosion at non-ore material management
and low grade ore storage facilities, growth media stockpiles and open pit walls.
Measures will be taken to prevent this.
Planned baseline environmental studies, and ore/non-ore material characterization and
management studies, will identify the potential areas for siltation and pollution of surface
waters in detail.
Changes in Hydrology
a.
b.
Exploration Work Program: No changes in hydrology are expected as a result of these
activities.
Future mine and processing facilities: Potential locations of all mine facilities could
potentially change the current natural drainage systems that are very near these
facilities. It is probable that late in the mine life, the King-King River course may
need to be diverted. Ground water availability could be temporarily affected due to
draw down from water supply wells, though recharge rates appear quite high for the
on and off mineral property areas where these wells might be located. Good water
management practices will be employed; and, this will result in positive changes to
the local water quality by eliminating some of the current water quality problems
caused by the illegal small-scale mining operations on the mineral property (including
high siltation rates, possible mercury and other metals contamination, poor water
quality from uncontrolled/untreated sanitary wastes, etc.).
Planned baseline environmental studies and water management studies will identify the
potential changes in hydrology on and off the mineral property in detail. This work would
include a baseline of the current watershed and primary tributary courses to determine the
natural course prior to small-scale mining (legal and illegal) activities. It is apparent that the
current small-scale mining activity on and off the mineral property has significantly impacted
the water course, the hydrological regime, and water quality; and, has caused significant
sedimentation in the King-King River and downstream delta.
18.3.12.3 Potential Ecological Impacts
a.
Exploration Work Program: There are no expected long term effects to the local
ecology during exploration, as the natural form of the land should not be altered.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
157
Envisioned activities only include brush clearing and surface development of the
existing roads, drill pads and camp site.
b.
Future mine and processing facilities: There would be potentially several impacts on
the local ecological systems near the mining facilities (whether on or off the mineral
property). Large acreages of land would be affected by the mine operation,
particularly by the open pit, non-ore material and low grade ore management facilities
and tailing management facility.
There are several planned environmental baseline studies that will identify potential impacts
to the on and off mineral property ecosystems; some of these have been mentioned above and
others are listed below:
•
•
•
•
•
Soils
Wildlife
Flora and Fauna
Special Status Species
Air Quality
18.3.12.4 Potential Socioeconomic Impacts
a.
Exploration Work Program: Efforts would be made to avoid locating drill pads or
aerial survey ground markers, as much as practical, on areas where small miners and
farmers work or live. Therefore, impacts would probably be eliminated in most cases
or of very short duration in others. For example, the typical time at a drill pad would
be less than 15 days.
b.
Future mine and processing facilities: There would be socioeconomic impacts due to
mine development and operation to the local and nearby indigenous/ethnic
communities, particularly in Pantukan. For the most part, the impacts would be
positive because of the direct and indirect employment opportunities, increases in the
local government revenue from taxes, and subsequent improvements in government
supported programs in Pantukan. Improvement in local medical facilities would be
likely; these would be supported by both the mining company and the government.
These are but a few of the improvements that would likely occur due to the mine
development and operation.
Some negative impacts may potentially occur. Subsistence farming in the mine facility areas
would be eliminated. Small-scale mining activities inside (illegal) and outside the mineral
property would be reduced. Temporary disruptions could occur in the normal community life
during the construction phase due to the influx of construction tradesmen for 2 years.
Planned baseline socio-economic and indigenous peoples studies will identify and describe
the potential socio-economic effects in detail.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
158
18.3.12.5 Environmental Management and Mitigation Measures
The following is a discussion of the preliminarily estimated mitigation measures to be
employed at the King-King project, including estimated total costs to ensure effective
protection of the environment and adjoining areas from the exploration activities. These
mitigation measures and costs will be further refined as a result of the proposed baseline and
feasibility studies for the King-King project.
Progressive Rehabilitation/Restoration of Areas
Rehabilitation at the King-King project will be directed towards meeting stakeholder,
legislative, and corporate requirements. Rehabilitation at the King-King Project will consist
of concurrent rehabilitation as much as practical, which is the process of returning disturbed
land to a predetermined post-mining land use even while mining operations are on-going.
The post-mining land use will be established through consultation of all impacted
stakeholders during the EIS process. Rehabilitation will be conducted concurrently within the
existing operating plan, where possible, to minimize closure costs and environmental impacts
associated with mining in a wet tropical environment. Concurrent rehabilitation allows for
effective control of erosion, reduces siltation, and allows mine site personnel to modify and
improve the program from on-going experience. Short term objectives consist of meeting
operational requirements, such as stabilizing disturbed land to control erosion and siltation.
The long term objectives of the rehabilitation program will consist of:
•
•
•
•
•
•
Protecting the environment from the potential impacts of mining activities
Gaining regulatory acceptance and the release of any financial guarantees
Stabilizing all land forms created and/or effected during mining
Returning the area to an established post mining land use
Rehabilitation and closure being maintenance free and self sustaining
Closure being completed within 2 years of the succession of mining
Completion criteria will be established for the tailings storage facility (TSF), the valueless
rock management areas (VRMA), open pit workings, and other ancillary facilities as the
project baseline and feasibility studies are conducted.
To prevent or reduce erosion and siltation, progressive rehabilitation/restoration of areas
subject to exploration and related activities will be conducted by reforestation or by
undertaking civil structure programs such as rip rap, retaining walls, etc.
a.
Exploration Work Program: The drill pad sumps will be filled in after completion of
work activities. Native plants and grasses would be planted to prevent erosion and
restore the land to its former state. The camp site would continue to be used through
mine development, so there would be no reclamation of these facilities during this
work program duration.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
b.
159
Future mine and processing facilities: Planned baseline environmental studies,
ore/non-ore material and management studies, and reclamation studies will determine
good
international
industry
practices
to
employ
for
progressive
rehabilitation/restoration of areas affected by potential future mining activities. As
these baseline studies progress, additional studies may need to be added to more fully
address avoidance and mitigation of environmental impacts.
Management of Stockpiles
Stockpiles of excavated and removed earth will be managed to prevent dust and siltation
problems (e.g., revegetation of disposal areas) and reduce the impact of topographical
changes.
a.
Exploration Work Program: Any significant stockpiles of growth media material
would be preserved until reused for reclamation. These piles would be contoured to
reduce erosion and ditches placed around them to divert water from rain away from
the stockpile. If the stockpiles will be maintained for the long term, then native plants
and grasses would be planted on them.
b.
Future mine and processing facilities: Planned baseline environmental reclamation
studies will determine good international industry practices to employ for
management and re-use of stockpiles of excavated and removed earth generated
during mine development and future mine operation.
The cost of the study for the management of stockpiles was included in the section above.
Maintenance of Roads to Minimize Dust
a.
Exploration Work Program: A watering truck will be utilized as needed to wet down
drill roads to minimize dust. These are small drill roads and normal rainfall may
prove to be adequate for controlling dust.
b.
Future mine and processing facilities: Very large open pit mine roads will be
developed. A large scale watering truck will be used to depress dust. A smaller
watering truck will be used on other dirt access roads as needed.
Planned baseline environmental air quality studies will determine good international industry
practices to employ for dust control and estimate potential particulate emissions (PM10).
Handling of Toxic and Hazardous Materials
The handling of toxic and hazardous materials, if any, will be included in an Emergency
Response Program.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
160
a.
Exploration Work Program: No hazardous materials will be used during this program.
Earthen containments will be properly designed to hold 110% of the of the storage
volume for diesel/gas and lubricants. Incorporated in the containment will be a
drainage system to allow for removal of water that may accumulate after a storm
event.
b.
Future mine and processing facilities: There could potentially be a number of toxic
and hazardous materials that will be used in the future mine operation, including:
•
•
•
Sulfuric acid for copper oxide leaching
Analytical laboratory reagents
Explosives
Planned baseline environmental water pollution studies will determine good international
industry practices for handling toxic and hazardous materials identified in the feasibility
studies. Emergency response plans will be developed based on the study findings.
Accommodation of Other Economic Activities on the Project Area
a.
Exploration Work Program: Small-scale miners would be allowed to continue to
operate while exploration, environmental and socioeconomic programs are in
progress on the project area. Small-scale farming would also be allowed to continue
on the project area. These activities could continue until full scale mine development
begins.
b.
Future mine and processing facilities: Planned baseline socioeconomic and
indigenous peoples studies will identify the potential economic effects and describe
the methods to avoid or mitigate them. As these baseline studies progress, additional
studies may need to be undertaken to more fully address avoidance and mitigation of
socioeconomic and indigenous peoples impacts.
Alternative Plans if Special Habitat of Flora and Fauna are Affected
a.
Exploration Work Program: A threatened and endangered species survey was
conducted in the project area in January 1997. A total of five threatened or
endangered flora species and one faunal species were found at that time. The
conservation of the floral species can be accomplished by transference to protected
areas and maintenance in a reclamation nursery. Additional studies will be conducted,
as part of the baseline study program, to determine if these species are still in the
project area.
b.
Future mine and processing facilities: Planned baseline flora and fauna, and special
status species, studies will identify the potential impacts and methods for avoidance
and mitigation of those impacts to plants and wildlife. As these baseline studies
progress, additional studies may need to be undertaken to more fully address
avoidance and mitigation of flora and fauna impacts.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
161
Socioeconomic Mitigating Measures
a.
Exploration Work Program: No impacts would be expected, so no mitigation
measures are planned at this time. All regional and local safety regulations will be
adhered to. Personal protective gear will be provided and utilization enforced.
b.
Future mine and processing facilities: In the case of the King-King project, it is
reported that there are small-scale miners working in the area immediately on
(illegal), or adjacent to (perhaps legal), the property/mining concession. A fast-track
preliminary assessment of the current situation will be conducted: to identify the
principal social elements and stakeholders; to evaluate how the small-scale miners are
organized; and, to document how the current local economic system is organized. The
socio-economic evaluation will be utilized as a baseline condition that will be
documented in detail prior to the proponent activities.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
19
162
Interpretation and Conclusions
This study has developed an updated measured and indicated mineral resource for the Kingking deposit that amounts to 791.5 million ore tonnes at 0.28% total copper and 0.37 g/t gold.
This amounts to 4.9 billion contained pounds of copper and 9.4 million contained ounces of
gold. A conservative estimate of inferred mineral resource amounts to 125.5 million tonnes
at 0.24% copper and 0.31 g/t gold.
The results of the resource estimate indicate that the King-king Copper-Gold project has the
potential to become an economic producer of copper-gold and gold concentrates for shipment
to a copper smelter/refiner and a gold refinery if planned feasibility studies confirm projected
mine and mill designs are practical and economical.
There is potential to add resource tonnage to the King-king deposit as there are significant
quantities of inferred resource, particularly at depth, to the north and west of the presently
defined open pit, where drilling has not found the limits of the mineralization. The additions
could be in the range of 100’s of millions of tons.
Based on the known information provided to date, AATA sees no environmental issues that
would prevent the permitting of the proposed operations. After review of the laws of the
Philippines and the planned project, this project should apply generally under the MINING
ACT OF 1995, however, several other laws and regulations may apply; these are listed in
Appendix 3 of the above listed section 18.3- Environmental. Although AATA currently does
not see any permitting issues that would prevent the operation of the proposed King-king
Gold-Copper Mine, AATA cannot predict all the concerns or issues the permitting agencies
may have with the proposed project during the permitting process, nor can AATA control
how long the agencies will take to issue the necessary permits. At this time, quantification of
all the environmental impacts of the proposed facilities and operations is not possible. A
better understanding of these will be developed during the permitting process.
There is potential to increase metal recoveries, particularly for precious metals, with newer
technologies introduced to processing in recent years. Gravity concentration methods and
non-cyanide leaching of gold and silver from copper sulfides, pyrite and arsenopyrite
concentrates are a few processes of merit to investigate. It is also reported to IMC that
production of a separate molybdenum concentrate may also be practical given the levels of
molybdenum in the ore and the demand for molybdenum, though the current drilling
database does not include molybdenum assays. Molybdenum assays were included on most
of the Echo Bay assay certificates and this data could be added to the database.
The goal of this study was to develop an NI 43-101 compliant mineral resource for the
project. The study has met that goal.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
20
163
Recommendations
The results of this study indicate that the King-king Project has the potential to become an
economic producer of copper and gold. However, more information will be required to move
the project forward to a prefeasibility study.
IMC recommends an initial re-assaying of a about 200 Benguet drill hole pulps and their
corresponding remaining half of core for total copper and gold. The purpose is to determine
if the bias observed in the Benguet gold assays was due to sample preparation or the
analytical work (or both). Based on the outcome of this, additional Benguet pulps and/or
core will be assayed to supplement the existing database and improve the confidence of
mineral resource and mineral reserve estimates.
IMC and REI recommend an initial drill program of 16 diamond drill holes (6900 m of
drilling) that will provide the following:
•
Increased confidence in the current Indicated resource estimate in areas where current
drill hole spacing is wider than average;
•
Additional gold data in areas where drilling currently consists mostly of pre-Echo
Bay holes that do not have reliable gold assays. This should also upgrade some
inferred resource inside the current design pit to Indicated resource;
•
Better definition of lithology contacts and interpretations in certain areas of the
deposit.
IMC and REI emphasize that the 16 drill holes are not designed to address issues related to
metallurgy or process testwork, acid rock characteristics, geotechnical issues (including slope
stability), or other technical questions. Though not particularly designed for these purposes,
these holes will provide information for a broad range of topics at King-king such as
metallurgy, acid rock characteristics, and some geotechnical issues, etc. Table 20-1 and
Figure 20-1 show the details of this proposed drilling program.
Acid rock characterization studies are planned on the available core and core from new
drilling.
A new topographic survey of the mine, VRMA’s, plant, and tailings storage areas will also
be required. The last survey was conducted in 1997. Significant artisanal mining activity
and also natural erosion have impacted the surface topography.
Process testing on new core should address the following items:
 Optimum primary grinding size for various ore zones and lithology types
 Geo-statistical analysis of grinding and flotation
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
164
 Copper oxide mineral response to flotation with recently developed and
commercialized oxide flotation reagents and flow sheets
 A thorough study of regrind product size
 Optimized cleaner flotation reagent schemes and flow sheet for ore variations
 Evaluate centrifugal gravity and flash flotation recovery of gold from the primary
grinding circuit and from tailing streams in flotation
 Evaluate concentrate processing by hydrometallurgical methods to recover gold and
copper at site
 Rheology studies on tailing for settler design and tailing dam design
 Settling and filtration studies on concentrates for dewatering purposes
The additional drilling should apply a highly accurate down hole survey method such as a
Maxi-bore unit. Geotechnical data should be logged along with the geologic logging
process. Some geotechnical testing will also be required on the new core. Some
hydrogeological testing of the finished core holes will be required.
A Quality Assurance/Quality Control program will also have to be established for the new
drilling.
The proposed budget for the additional drilling, analysis of the drill results and above
mentioned studies is: $3.4 million USD (See Table 20-2 for details). Ratel currently plans to
implement the drill program during the fourth quarter of 2010.
Table 20-1. Proposed Drill Holes
Hole No. Cross Section Northing Easting Elevation Azimuth
1
10150
794,974 608,306
520
196˚
2
10250
795,329 608,361
610
205˚
3
10650
795,127 607,826
600
184˚
4
10750
795,217 607,769
610
205˚
5
10800
795,519 607,843
550
190˚
6
11000
795,550 607,654
430
188˚
7
11100
795,578 607,561
405
188˚
8
11250
795,560 607,367
370
205˚
9
11700
795,611 606,895
460
205˚
10
12000
795,644 606,577
320
192˚
11
11500
795,715 607,161
400
205˚
12
10450
795,302 608,128
740
205˚
13
10700
795,051 607,736
560
205˚
14
10900
795,038 607,510
600
205˚
15
11200
795,227 607,266
505
205˚
16
12100
795,555 606,427
250
205˚
TOTAL
Technical Report / Form 43-101F1
Dip
-73˚
-78˚
-71˚
-65˚
-79˚
-64˚
-60˚
-55˚
-56˚
-68˚
-70˚
-66˚
-70˚
-70˚
-75˚
-70˚
Depth (m)
500
500
500
600
450
600
500
300
500
400
300
650
350
300
300
150
6900
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
165
Figure 20-1. Proposed Holes
Technical Report / Form 43-101F1
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
166
Table 20-2. Additional Drilling and Study Cost
Description
Mobilization and Demob
Number
Units
Cost per Unit Cost, USD
2
each
USD45,000
90,000
Confirmation Drilling
6,900
meters
USD76
524,400
Engineering Drilling
2,700
meters
USD76
205,200
Hydrology Drilling, DDH
1,980
meters
USD76
150,480
Hydrology Drilling, RCH
800
meters
USD32
25,600
Drilling Supplies
1 lot
each
USD486,000
486,000
Drilling Geologists/Techs
1 lot
each
USD106,150
106,150
Sample Prep and Assaying
3,767
each
USD35
131,845
Metallurgical Studies
1 lot
each
USD735,000
735,000
Pit Slope Studies
1 lot
each
USD271,000
271,000
Acid Rock Drainage
1 lot
each
USD468,000
468,000
Geology Studies
1 lot
each
USD150,000
150,000
Satellite and Ground Surveys
1 lot
each
USD75,000
75,000
Total
Technical Report / Form 43-101F1
3,418,675
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
21
167
References
Feasibility Reports
King-king Project Level I Feasibility Study Volume 1 of 3 - Technical Description, April
1997, Prepared by: Kilborn International, Inc / 5775 DTC Boulevard, Suite 200 /
Englewood, Colorado 80111-3227 for King-king Mines Inc.
King-king Project Level I Feasibility Study Volume 2 of 3 Appendix I – Project Maps and
Drawings, April 1997, Prepared by: Kilborn International, Inc / 5775 DTC Boulevard, Suite
200 / Englewood, Colorado 80111-3227 for King-king Mines Inc.
King-king Project Level I Feasibility Study Volume 3 of 3 Appendix 2 – Design Criteria,
April 1997, Prepared by: Kilborn International, Inc / 5775 DTC Boulevard, Suite 200 /
Englewood, Colorado 80111-3227 for King-king Mines Inc.
Updated Pre-Definitive Feasibility Study for King-king Copper – Gold Project, March 1994,
by Benguet
Independent Review of Data relating to the King-king Copper – Gold Project, December
2007, Prepared by: SRK Consulting (Australasia) Pty Ltd (Reg’d No ABN 56 074 271 720)
for Benguet Corporation and Nationwide Development Corporation
Geology
Geological report on the Phase I exploration of the King-king porphyry copper-gold Project,
1992, by Benguet Corporation (Tejada, F. A. C, and Malihan, T.)
Report on the result of the 11 DDH of the phase II-B drilling in King-king Project, 1995,
Malihan, T. D.
Benguet Sample & Assay Procedure and Results/Comparison of Benguet Re-assay
Certificates and Submittals, December 1996, Malihan, T. D.
Final Report on King-king Project, Pantukan, Davao del Norte, Philippines, Cities Service
Minerals Co. – Internal Report, 1977, C. K. Burton
The Exploration and Geology of the Hijo Gold Prospect, Mabini, Davao del Norte: Gold
1987 in the Philippines Setting, August 1987, Culala, L. R.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
168
Note: Mineralogy Studies are reported in the Lakefield Research Ltd. Metallurgical reports
shown below under Metallurgy references. Progress reports 1, 2, 4 and 5 contain mineralogy
studies in their appendices.
Metallurgy
Benguet Corporation King-king Project preliminary flotation investigation of mixed oxidesulfide and sulfide ore types, December 1993, by: METCON Research Inc., Tucson, Arizona
for Benguet Corporation
Benguet Corporation King-king Project Column Leach Study Acid Cure Test Series Interim
Report, December 1993, by: METCON Research Inc., Tucson, Arizona for Benguet
Corporation
Benguet Corporation King-king Project Column Leach Study Acid Cure Test Series Interim
Report, January 1994, by: METCON Research Inc., Tucson, Arizona for Benguet
Corporation
An investigation of the recovery of copper and gold from King-king sulfide ore samples
submitted by Echo Bay Management Corporation, Progress Report No. 1, April 2,
1997, Lakefield Research Limited, Lakefield, Ontario
An investigation of the recovery of copper and gold from King-king oxide ore samples
submitted by Echo Bay Mines, Progress Report No. 2, March 31, 1997, Lakefield Research
Limited, Lakefield, Ontario
An investigation of the leaching of copper and precious metals from King-king ore samples
submitted by Echo Bay Mines, Progress Report No. 3, April 10, 1997, Lakefield Research
Limited, Lakefield, Ontario
An investigation of the recovery of copper and gold from King-king sulfide ore samples
submitted by Echo Bay Mines, Progress Report No. 4, July 30, 1997, Lakefield Research
Limited, Lakefield, Ontario
An investigation of the recovery of copper and gold from King-king oxide ore samples
submitted by Echo Bay Mines, Progress Report No. 5, July 10, 1997, Lakefield Research
Limited, Lakefield, Ontario
An investigation of the recovery of copper and gold from King-king sulfide ore samples
submitted by Echo Bay Mines, Progress Report No. 6, August 10, 1997, Lakefield Research
Limited, Lakefield, Ontario
Mined products made Responsibly - Clean Processing - Base Metal Tailing, International
Mining October 2006, John Chadwick
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
169
Amended Technical Report for Kamoto Copper Company, Kolwezi, Katanga Province,
Democratic Republic of the Congo, June 23, 2006, by: McIntosh RSV LLC
Flotation of mixed copper oxide and sulfide minerals with xanthate and hydroxamate
collectors, September 2008, by: K. Lee a, D. Archibald b, J. McLean c, M.A. Reuter ,
Ausmelt Limited, AMML, West Gosford, NSW, Australia, Minto Explorations Ltd.,
Whitehorse, YT, Canada , Ausmelt Limited, Dandenong, Victoria, Australia
The Application of Ausmelt’s AM28 Alkyl Hydroxamate Flotation Reagent to Fox
resources’ West Whundo Copper Ore at Radio Hill, Western Australia, October 2006, K.
Lee, G. Sheldon, J. Bygrave and L. Mann, Ninth Mill Operator’s Conference, Fremantle,
WA, 19-21 March 2007
AM2 – a hydroxamate flotation collector reagent for oxides and oxidized mineral systems,
June 2005, By Dr Terry C Hughes, Ausmelt Chemicals Pty Ltd., Australian Journal of
Mining July/August 2005 – Flotation Technical Paper
Social and Environmental
Environmental Work Program for King-king Copper-Gold Porphyry Mineral Property,
Pantukan, Compostela Valley (Eastern Mindanao), February 2010, by Russell Mining and
Minerals, Inc. / NADECOR for Republic of the Philippines Department of Environment and
Natural Resources Mines and Geoscience Bureau, North Avenue, Diliman, Quezon City
Plan to Address Small-Scale Illegal Mining in the King-king Mineral, Pantukan, Compostela
Valley (Eastern Mindanao), February 2010, by RMMI / NADECOR for Republic of the
Philippines Department of Environment and Natural Resources Mines and Geoscience
Bureau, North Avenue, Diliman, Quezon City
The environmental appendix contains the list of Philippine laws and regulations which may
be applicable to the King-King project; and, a list and discussion of international
environmental and social guidelines & standards that may be employed at the King-King
project.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
22
170
Date and Signature Page
Signed this 12th day of October, 2010
“Michael G. Hester”
Michael G. Hester, FAusIMM
Vice President and Principal Mining Engineer
Independent Mining Consultants, Inc.
“Donald F. Earnest”
Donald F. Earnest, P.G.
President
Resource Evaluation, Inc.
“John G. Aronson”
John G. Aronson
President
AATA International, Inc.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
23
23.1
171
Additional Requirements for Technical Reports on Development Properties
Mining Operations
The mining operation will be open pit, bulk, mining conducted with mining shovels in the 40
cubic meter class or larger and trucks in the 200 metric tonne class or larger. The ore
production rate is expected to be 100,000 metric tonnes per day (36.5 million tonnes per
year) or higher.
IMC has also developed a preliminary mining production schedule (i.e. production forecast)
for the King-king Project). Seven mining phases were designed to do the scheduling. The
phases include haulage roads and adequate working room for large mining equipment.
Figure 23-1 shows the final pit design. The final pit design was based on economic
parameters used for the mineral resource estimation (Table 17-2), including commodity
prices of $1.75 per pound copper and $660 per ounce gold. Only measured and indicated
mineral resource was allowed to contribute to the design.
Table 23-1 shows the mine production schedule. Ore production varies by year because it is
based on 8766 plant hours per year with an oxide/mixed ore processing rate of 48,300 ktpy
(0.1815 hrs/kt) and a sulfide processing rate of 36,500 ktonnes per year (0.2402 hrs/kt). Ore
mined during preproduction and Year 1 amounts to 36,800 ktonnes or about 80% of nominal
plant capacity. The copper equivalent cutoff grade varies by year to balance the mine and
plant production rates.
Preproduction stripping requirements are minimal at 12.7 million tonnes. Total material is
scheduled at 51.2 million tonnes for Year 1. Years 2 through 16 total material requirements
are about 72 million tonnes per year.
This schedule results in 812.5 million ore tonnes at 0.275% total copper, 0.367 g/t gold and
0.506% copper equivalent. This is measured and indicated resource only, inferred resource is
considered waste. Total material is 1.46 billion tonnes.
The table also shows that between a potential low-grade cutoff grade of 0.2% copper
equivalent and the operating cutoff grade for each year there is the potential to stockpile 49.7
million ore tonnes at 0.160% copper and 0.132 g/t gold.
The table also shows a proposed plant production schedule. Year 1 is shown as the ore
mined during preproduction and Year 1 and Years 22 and 23 include the low grade.
Including the low grade, total plant production amounts to 862.2 million ore tonnes at
0.268% total copper, 0.354 g/t gold, and 0.491% copper equivalent.
Total plant production is about 9% more ore tonnes than the measured/indicated mineral
resource. The mineral resource was tabulated at breakeven cutoff grades of 0.27% Eq Cu for
oxide and 0.23% Eq Cu for sulfide. Operating cutoff grades for the production schedule
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
172
were allowed to go down to 0.21% Eq Cu (internal cutoff) for oxide/mixed material and
0.20% Eq Cu for sulfide.
23.2
Recoverability
Section 16.3 presented preliminary head grade versus recovery equations for sulfide copper,
oxide copper, and gold. By applying the equations to the various grade increments contained
in the 2009 design pit developed by IMC, IMC estimated average copper and gold recoveries
of 74% and 83% respectively in the oxide zone and 86% and 81% for the sulfide zone.
These are the values presented on Table 17-2 and used for development of the mineral
resource. They are, however, preliminary estimates.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
173
Table 23-1. Proposed Mine and Plant Production Schedule
Mining
Year
PP
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
TOTAL
Mine Production Schedule
Cu Eq
Ore
Cu Eq Tot Cu Sol Cu
Cutoff (%) Ktonnes
(%)
(%)
(%)
0.32
4,830
0.642
0.492
0.275
0.32
31,970
0.791
0.466
0.299
0.36
43,874
0.875
0.412
0.226
0.30
42,410
0.802
0.392
0.154
0.26
42,700
0.556
0.227
0.082
0.26
39,190
0.568
0.256
0.058
0.25
40,490
0.483
0.332
0.094
0.23
36,740
0.457
0.323
0.033
0.20
37,300
0.506
0.326
0.050
0.20
37,670
0.497
0.304
0.048
0.20
37,770
0.444
0.300
0.043
0.24
36,880
0.438
0.274
0.033
0.24
36,630
0.436
0.245
0.029
0.24
36,590
0.446
0.227
0.029
0.24
36,510
0.468
0.227
0.029
0.20
36,590
0.432
0.205
0.029
0.20
36,690
0.419
0.210
0.032
0.20
36,510
0.349
0.185
0.031
0.20
36,500
0.373
0.205
0.033
0.20
36,500
0.385
0.206
0.031
0.20
36,500
0.408
0.217
0.027
0.20
36,500
0.393
0.189
0.025
0.20
15,112
0.458
0.244
0.038
812,456
0.506
0.275
Technical Report / Form 43-101F1
0.069
Low Grade Stockpile
Gold
Ore
Cu Eq Tot Cu Sol Cu
(g/t)
Ktonnes
(%)
(%)
(%)
0.212
2,363
0.263
0.166
0.101
0.459
1,427
0.282
0.203
0.060
0.676
9,871
0.295
0.228
0.138
0.623
2,743
0.258
0.161
0.088
0.492
6,353
0.233
0.116
0.037
0.490
6,956
0.231
0.135
0.034
0.241
5,416
0.227
0.172
0.048
0.223
2,624
0.216
0.153
0.013
0.297
0.318
0.235
0.270
3,896
0.223
0.148
0.016
0.317
3,252
0.222
0.137
0.012
0.364
2,586
0.222
0.124
0.015
0.401
2,215
0.222
0.113
0.015
0.378
0.348
0.273
0.280
0.299
0.318
0.340
0.357
0.367
49,702
0.245
0.160
0.058
Gold
Waste
(g/t)
Ktonnes
0.135
5,500
0.120
17,841
0.097
17,750
0.141
26,847
0.176
22,947
0.156
25,854
0.086
26,094
0.105
32,636
34,700
34,330
34,230
0.123
31,224
0.142
32,118
0.163
32,824
0.182
33,275
35,410
35,310
30,991
25,321
19,668
14,994
15,293
8,458
0.132
Total
Tonnes
12,693
51,238
71,495
72,000
72,000
72,000
72,000
72,000
72,000
72,000
72,000
72,000
72,000
72,000
72,000
72,000
72,000
67,501
61,821
56,168
51,494
51,793
23,570
593,615 1,455,773
Waste:
Ore
0.76
0.53
0.33
0.59
0.47
0.56
0.57
0.83
0.93
0.91
0.91
0.77
0.81
0.84
0.86
0.97
0.96
0.85
0.69
0.54
0.41
0.42
0.56
0.69
Ore
Ktonnes
36,800
43,874
42,410
42,700
39,190
40,490
36,740
37,300
37,670
37,770
36,880
36,630
36,590
36,510
36,590
36,690
36,510
36,500
36,500
36,500
36,500
39,058
25,756
862,158
Cu Eq
(%)
0.771
0.875
0.802
0.556
0.568
0.483
0.457
0.506
0.497
0.444
0.438
0.436
0.446
0.468
0.432
0.419
0.349
0.373
0.385
0.408
0.393
0.327
0.245
0.491
Proposed Plant Schedule
Tot Cu Sol Cu
Gold
Hours/
(%)
(%)
(g/t)
Ktonne
0.469
0.412
0.392
0.227
0.256
0.332
0.323
0.326
0.304
0.300
0.274
0.245
0.227
0.227
0.205
0.210
0.185
0.205
0.206
0.217
0.189
0.193
0.160
0.268
0.296
0.226
0.154
0.082
0.058
0.094
0.033
0.050
0.048
0.043
0.033
0.029
0.029
0.029
0.029
0.032
0.031
0.033
0.031
0.027
0.025
0.050
0.058
0.068
0.427
0.676
0.623
0.492
0.490
0.241
0.223
0.297
0.318
0.235
0.270
0.317
0.364
0.401
0.378
0.348
0.273
0.280
0.299
0.318
0.340
0.219
0.132
0.354
0.1897
0.1998
0.2067
0.2053
0.2237
0.2165
0.2386
0.2350
0.2327
0.2321
0.2377
0.2393
0.2396
0.2401
0.2396
0.2389
0.2401
0.2402
0.2402
0.2402
0.2402
0.2244
0.2145
0.2280
Plant
Hours
6,979
8,766
8,766
8,766
8,767
8,766
8,766
8,766
8,766
8,766
8,766
8,766
8,767
8,766
8,767
8,765
8,766
8,767
8,767
8,767
8,767
8,766
5,524
196,597
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
174
Figure 23-1. Final Pit Design
Technical Report / Form 43-101F1
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
23.3
175
Markets
The products will be a fairly conventional copper-gold concentrate that should be readily
marketable on world markets. There are several smelting/refining facilities in east Asia,
particularly in Japan, Indonesia, China, and India.
Some of the free gold might be collected in a gold concentrate that can be shipped directly to
various gold refiners. The King-king economic analysis will be based on the conservative
copper and gold prices,
According to BHP Billiton, the copper supply is expected to open up in the future. Figure
23-2 below illustrates the global copper supply breakdown, 2008 to 2020 from BHP
Billiton’s presentation dated September of 2009.
While the supply of copper is expected to decline in the future, copper prices have
experienced a significant increase from the lows of early 2009. The slope of the price chart
below indicates a substantial copper price upside since January of 2009 (see Figure 23-3).
This chart was generated by Freeport-McMoran for a Basic Materials Conference in June of
2010 and is currently published in Freeport’s web-site.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
176
Figure 23-3. Copper Supply, Mt Contained Copper (from BHP-Billiton)
Figure 23-3. Copper Prices and Inventories (from Freeport-McMoRan)
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
23.4
177
Project Approach
This section describes the execution plan for advancing the King-king Copper-Gold Project
from the current Resource Estimate Technical Report stage to the feasibility stage (+/- 15%
capital and operating cost estimate).
A preliminary Master Project Schedule is in place. It will require refinement as engineering
and social and environmental contracts are awarded and detail schedules are agreed to with
each sub consultant. It is expected these contracts will be awarded within three weeks or
sooner of project funding
Social (SDMP) and environmental (EPEP) work will begin with several baseline studies
occurring in series and parallel. Most of these studies and reports will be short in duration,
2-5 months. But, the ARD characterization of VR (valueless rock) and tailing, and regional
ground and surface water studies will take upwards to 16 months. Flow charts of these
studies are shown below.
SDMP to EIS Flow Sheet
The SDMP will also assess the current political conditions in the affected area, assess the
affects the project could have on political matters and vice versa it would assess effects to the
project from them as hazards, risks and opportunities. An example of an important current
political condition is the King-king project is supported at the municipal (Pantukan),
provincial (Compostela Valley) and federal government levels.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
178
EPEP to EIS Flow Sheet
The 2010 resource estimate suggests that a 100,000 tpd concentrator is a probable design
level to start with. Preliminary metallurgy, mining, processing and economics studies will
define optimum mining and processing levels. From these study results the next steps in the
development will be decided. Assuming the information generated recommends proceeding
to the mine feasibility stage more accurate studies will follow for metallurgy, mining and
processing. As in the social and environmental studies some of these studies will occur in
series and some in parallel.
Mine Feasibility Flow Sheet
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
179
Finally the Project Feasibility Report culminates in an economic analysis to determine
project feasibility from a combined engineering, social and environmental point of view.
It is currently estimated that the project will be at the Mine Feasibility Report stage in 13
months from funding and the EIS submittal will occur in 17 months from funding.
23.5
Taxes and Other Payments
Owners of mining claims for land to be mined are permitted royalties in accord with their
operating agreement. The agreement between NADECOR and RMMI allows NADECOR
the option of either funding and retaining a 40% interest in the project or retaining a 3.5%
royalty, subject to a sliding scale based on the price of copper, and adjusted annually to the
commodity price index.
The Philippines Government takes an excise tax on metallic minerals. This excise tax is set
by Section 151 (A) (3) of Republic Act (RA) No. 8424 or the National Internal Revenue
Code of 1997 (1997 Tax Code), as amended by RA No. 9337 effective July 1, 2005. The
Code states that excise tax on metallic minerals would be “…based on the actual market
value of the gross output thereof at the time of removal,…in agreement with the following
schedule (for the King-king Gold-Copper Project): Gold and copper, two percent (2%).”
To calculate the tax base, no deductions are allowed for mining, milling, refining,
transporting, handling, marketing and other expenses. If the minerals are sold or consigned
overseas, costs of sea freight and insurance are deductible.
In addition, the Philippines Government collects the value-added tax (VAT) as a form of
sales tax. It is a tax on consumptions levied on the sale, barter, and exchange or lease of
goods or services in the Philippines and on importation of goods into the Philippines. It is an
indirect tax, which may be shifted or passed on to the buyer, transferee or lessee of goods,
properties or services. The value-added tax rate in Philippines is twelve percent (12%) of
the gross selling price of the goods or properties sold, bartered or exchanged or gross receipts
derived from the sale or exchange of services, including the use or lease of the properties.
Furthermore, corporations are required to file BIR Form 1702, annual income tax return.
Income tax is a tax on corporate income specified in Tax Code of 1997, as amended, less the
deductions and/or exemptions authorized for such type of income, by the Tax Code or other
special laws. Effective January 1, 2009, corporate income tax rate in Philippines for
domestic corporations is 30% of net taxable income from all sources.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
23.6
180
Capital and Operating Costs, Economic Analysis
It is not the intent of this study to develop capital and operating cost estimates or economic
analyses. This will be done during upcoming preliminary feasibility studies or feasibility
studies. The operating costs presented in Section 17, particularly Table 17-2, are preliminary
estimates to determine the portion of the King-king deposit that might be amenable to
economic extraction, and thus qualify to be stated as a mineral resource. It is the opinion of
IMC that the estimates are consistent with industry standards, but they are not based on
detailed engineering.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
24
181
Certificates of Qualified Persons
Attached are the certificates of the Qualified Persons.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
182
CERTIFICATE OF QUALIFIED PERSON
As an author of this report on certain mineral properties of Ratel Gold Limited in the
Republic of the Philippines, I Michael G. Hester, do hereby certify that:
•
•
•
•
•
•
•
•
•
•
•
•
I am employed by the consulting firm of Independent Mining Consultants, Inc. in the
capacity of Vice President and Principal Mining Engineer. The office of Independent
Mining Consultants, Inc. is located at 3650 E Gas Road, Tucson, Arizona, 85714, USA.
This certificate applies to the Technical Report title “King-king Copper-Gold Project –
Mindanao, Philippines – Technical Report”, dated October 12, 2010.
I hold the following academic qualifications:
B.S. Mining Engineering, University of Arizona, 1979
M.S. Mining Engineering, University of Arizona, 1982
I am a Fellow of The Australasian Institute of Mining and Metallurgy (AusIMM,
#221108), a professional society as defined by NI 43-101. As well, I am a member in
good standing for other technical associations and societies including: Society of Mining,
Metallurgy and Exploration, Inc. (SME Member #1423200), and The Canadian Institute
of Mining, Metallurgy and Petroleum (CIM Member #100809).
I have practiced my profession as a mining engineer continually since my graduation in
1979, about 31 years.
I am familiar with NI 43-101 and by reason of education, experience, and professional
registration I fulfill the requirements of a Qualified Person as defined in NI 43-101. I am
a founding partner, Vice President, and Principal Mining Engineer for Independent
Mining Consultants, Inc. (IMC), a position I have held since 1983. I have also been
employed as an Adjunct Lecturer at the University of Arizona (1997-1998) where I
taught classes in mine planning and mine economic analysis. I was employed as a staff
engineer for Pincock, Allen & Holt, Inc. from 1979 to 1983.
I am the primary author and am responsible for portions of Section 1, Sections 2-4, 14-20
(except 18.3), and 23 of the Technical Report.
I have not visited the King-king property. I also not had any previous involvement with
the project.
I am independent of the issuers for which this report is required, other than providing
consulting services.
I have read NI 43-101 and the Technical Report has been prepared in compliance with NI
43-101.
As of the date of this certificate, to the best of my knowledge, information and belief, the
Technical Report contains all the scientific and technical information that is required to
be disclosed to make this Technical Report not misleading.
I consent to the filing of this report with any Canadian stock exchange or securities
regulatory authority, and any publication by them of the report.
Dated this 12th day of October, 2010
”Michael G. Hester”
Michael G. Hester, FAusIMM
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
183
CERTIFICATE OF QUALIFIED PERSON
As an author of this report on certain mineral properties of Ratel Gold Limited in the
Republic of the Philippines I, Donald F. Earnest, P.G. do hereby certify that:
•
•
•
•
•
•
•
•
•
•
•
•
•
I am a Mining Geologist and President of Resource Evaluation Inc., residing at 11830 N.
Joi Drive, Tucson, Arizona 85737 USA.
This certificate applies to the Technical Report title “King-king Copper-Gold Project –
Mindanao, Philippines – Technical Report”, dated October 12, 2010.
I am a graduate with a Bachelor of Science, Geology degree from The Ohio State
University, 1973.
I am a Registered Professional Geologist (P.G.) in the States of Arizona (#36976) and
Idaho (#746), and a member of the Society of Mining Engineers (SME).
I have 37 years experience in mining and exploration geology, mineral resource and
mineral reserve estimation, mine management, and consulting, which includes more than
five years related to porphyry-style deposits.
I have read the definition of “qualified person” set out in National Instrument 43-101
(“NI 43-101”) and certify that by reason of my education and professional registration (as
defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a
“qualified person” for the purposes of NI 43-101.
I am responsible for preparation of all of Sections 5, 6, 7, 8, 9, 10, 11, 12, 13 and portions
of Sections 1, 19, and 20 of the report titled, “King-king Copper-Gold Project –
Mindanao, Philippines – Technical Report”, dated October 12, 2010.
I visited the King-king project site on June 4 through June 7, 2010.
I have not had prior involvement with the King-king Copper-Gold Project that is the
subject of the Technical Report.
I have read NI 43-101 and fully believe that this report has been written in complete
compliance with that Instrument.
I am not aware of any material fact or material change with respect to the subject matter
of the Technical Report that as of the date hereof, to the best of my knowledge,
information and belief, contains all scientific and technical information that is required to
be disclosed to make the Technical Report not misleading.
I am independent of Russell Mining and Minerals Inc., applying all of the tests in Section
1.4 of National Instrument 43-101.
I consent to the filing of this Technical Report with any Canadian stock exchange or
securities regulatory authority, and any publication by them of this report.
Dated this 12th day of October, 2010
”Donald F. Earnest”
Donald F. Earnest, P.G.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
184
CERTIFICATE OF QUALIFIED PERSON
As an author of this report on certain mineral properties of Ratel Gold Limited in the
Republic of the Philippines, I, John G. Aronson, do hereby certify that:
•
•
•
•
•
•
•
•
•
•
•
•
I am employed by the consulting firm of AATA International, Inc., in the position of
President and CEO. The office of AATA International, Inc. is located at 2240 Blake
Street, Suite 210, Denver, Colorado,USA, 80205.
This certificate applies to the Environmental and Social components of the Technical
Report title “King-king Copper-Gold Project – Mindanao, Philippines – Technical
Report”, dated October 12, 2010.
I hold the following academic qualifications:
B.S. Biological Sciences, Nebraska Wesleyan University, Lincoln, NE 1971
M.S. Zoology, Limnology, Minor Civil Engineering, Univ. Nebraska Lincoln, NE, 1973
Post Graduate Education, Colorado State University, Fort Collins, Colorado, 74-84.
I am a Certified Senior Ecologist with the Ecological Society of America, and a Certified
Fisheries Scientist with the American Fisheries Society. As well, I am a member in good
standing for other technical associations and societies including: Society of Mining
Engineers (SME), Colorado Mining Association (CMA), Northwest Mining Association
(NMA), Society of Environmental Toxicology and Chemistry (SETAC), Phycological
Society of America (PSA), American Society of Limnology and Oceanography (ASLO),
North American Diatom Symposium (NADS), and many other scientific organizations.
I have practiced my profession as an environmental scientist continually since my
graduation in 1973, approximately 37 years.
I am familiar with NI 43-101 and by reason of education, experience, and professional
registration I fulfill the requirements of a Qualified Person as defined in NI 43-101. I am
the founder, President, and Principal In Charge for AATA International, Inc. a position
that I have held since 1989. I was employed as President and Director of Riverside
Technology Inc. from 1985 to 1989, and as Senior Aquatic Scientist for Environmental
Research and Technology, Inc. (ERT) from 1974-1985.
I am responsible for Sections on Social and Environmental science.
I have not visited the King-king property. I also not had any previous involvement with
the project.
I am independent of the issuers for which this report is required, other than providing
consulting services.
I have read NI 43-101 and this Technical Report has been prepared in compliance with
NI 43-101.
As of the date of this certificate, to the best of my knowledge, information and belief, the
Technical Report contains all the scientific and technical information that is required to
be disclosed to make this Technical Report not misleading.
I consent to the filing of this report with any Canadian stock exchange or securities
regulatory authority, and any publication by them of the report.
Dated this 12th day of October, 2010
”John G. Aronson”
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
25.0
185
Figures
The figures included in this section are referenced from Section 17.3.7 and represent
statistical analyses of 15m drillhole composites by rock type, structural zone, and
oxide/sulfide domains.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
186
Figure 17-5
Technical Report / Form 43-101F1
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
187
Figure 17-6
Technical Report / Form 43-101F1
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
188
Figure 17-7
Technical Report / Form 43-101F1
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
189
Figure 17-8
Technical Report / Form 43-101F1
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
190
Figure 17-9
Technical Report / Form 43-101F1
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
191
Figure 17-10
Technical Report / Form 43-101F1
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
192
Figure 17-11
Technical Report / Form 43-101F1
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
193
Figure 17-12
Technical Report / Form 43-101F1
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
194
Figure 17-13
Technical Report / Form 43-101F1
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
195
Figure 17-14
Technical Report / Form 43-101F1
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
196
Figure 17-15
Technical Report / Form 43-101F1
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
197
Figure 17-16
Technical Report / Form 43-101F1
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
198
Figure 17-17
Technical Report / Form 43-101F1
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
199
Figure 17-18
Technical Report / Form 43-101F1
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
200
Figure 17-19
Technical Report / Form 43-101F1
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
201
Figure 17-20
Technical Report / Form 43-101F1
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
202
Figure 17-21
Technical Report / Form 43-101F1
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
203
Figure 17-22
Technical Report / Form 43-101F1
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
204
Appendix 1
Head Assay Analysis Log and Report of Spectrographic Analysis
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
Technical Report / Form 43-101F1
205
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
Technical Report / Form 43-101F1
206
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
207
Appendix 2
Pertinent Legal Documents
Exhibit 1. Mining Occupancy Fee Receipt
Exhibit 2. Performance Bond Receipt
Exhibit 3. Land Ownership Certification
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
208
Exhibit 1
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
209
Exhibit 2
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
Technical Report / Form 43-101F1
210
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
Technical Report / Form 43-101F1
211
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
Technical Report / Form 43-101F1
212
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
Technical Report / Form 43-101F1
213
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
Technical Report / Form 43-101F1
214
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
Technical Report / Form 43-101F1
215
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
Technical Report / Form 43-101F1
216
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
217
Exhibit 3
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
Technical Report / Form 43-101F1
218
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
Technical Report / Form 43-101F1
219
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
220
Appendix 3. Environmental
This Appendix 3 contains the list of Philippine laws and regulations which may be
applicable to the King-King project; and, a list and discussion of international
environmental and social guidelines & standards that may be employed at the King-King
project.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
221
Philippine Laws and Regulations
The following is a list of laws and regulations in The Philippines that may be applicable
to the development of the King-King Project. Ratel will retain Philippine counsel to guide
the company in its commitment to compliance with all applicable legal requirements for
the King-King Project.
MINING AND RELATED POLICIES
I. MINING ACT OF 1995
II. REVISED IRR OF MINING ACT OF 1995
III.AMENDMENTS TO REVISED IRR OF MINING ACT OF 1995
1. DENR ADMINISTRATIVE ORDERS
DENR ADMINISTRATIVE ORDER NO 97-06
Prescribing A Uniform Rate For Area Clearance Fees Of DENR Sectors Other Than The Mines And
Geosciences Bureau For Mining Rights Applications
DENR ADMINISTRATIVE ORDER NO 97-07
Authorizing The Director Of Mines And Geosciences Bureau To Operationalize The Interim organizational
Units
DENR ADMINISTRATIVE ORDER NO. 97-10
Standard Costs and Fees For Various Services of the Mines and Geosciences Bureau
DENR ADMINISTRATIVE ORDER NO. 97-11
Providing A Line Organization Of The Mines And Geosciences Bureau And For Other Purposes
DENR ADMINISTRATIVE ORDER NO. 97 - 30
Small-Scale Mine Safety Rules And Regulations
DENR ADMINISTRATIVE ORDER NO. 97-38
Chemical Control Order For Mercury And Mercury Compounds
DENR ADMINISTRATIVE ORDER NO. 97-39
Chemical Control Order For Cyanide And Cyanide Compounds
DENR ADMINISTRATIVE ORDER NO. 98-67
Guidelines For The Identification, Declaration And Award Of Areas Suitable For Salt Production Section I.
Statement of Policy
DENR ADMINISTRATIVE ORDER NO. 99-03
Guidelines Governing the Utilization and Disposition of the Sand and Lahar Materials in the Areas
Declared as Mineral Reservation Established Under Proclamation No. 66 and Other Lahar-Affected Areas
in the Provinces of Pampanga, Tarlac and Zambales
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
222
DENR ADMINISTRATIVE ORDER NO. 99-07
Amendment to Item No. 1.0 of DAO No.97-10 re: Standard Costs and Fees for Various Services of the
Mines and Geosciences Bureau Relative to Mining Rights
DENR ADMINISTRATIVE ORDER NO. 99-08
Amending DENR Administrative Order No. 98-67
DENR ADMINISTRATIVE ORDER NO. 99-09
Adopting Revised Statistical Reporting Forms and Amending Certain Sections of Dao 10, Series of 1994
DENR ADMINISTRATIVE ORDER NO. 99-33
Submission By Subdivision / Housing Project Proponents Of Engineering Structural Ecological
Assessment As Additional Requirement For ECC Applications
DENR ADMINISTRATIVE ORDER NO. 99-56
Guidelines Establishing The Fiscal Regime Of Financial Or Technical Assistance Agreements
DENR ADMINISTRATIVE ORDER NO. 99-57
Amendments To Department Administrative Order No. 96-40 Or The “Revised Implementing Rules And
Regulations Of Republic Act No. 7942, Otherwise Known As The ‘Philippine Mining Act Of 1995’”
DENR ADMINISTRATIVE ORDER NO. 2000-16
Rates Of Fees For Certain Administrative Services Rendered
DENR ADMINISTRATIVE ORDER NO. 2000-25
Implementing Rules and Regulations on Executive Order No. 153 - “Authorizing the Utilization of
Offshore Areas Not Covered by Approved Mining Permits and Contracts as Sources of Dredgefill
Materials for Government Reclamation Projects and for Other Purposes”
DENR ADMINISTRATIVE ORDER NO. 2000-28
Implementing Guidelines on Engineering Geological and Geohazard Assessment as Additional
Requirement for ECC Applications covering Subdivision, Housing and other Land Development and
Infrastructure Projects
DENR ADMINISTRATIVE ORDER NO. 2000-39
Rules and Regulations in the Issuance of Onshore Special Minerals Extraction Permits (SMEP) to
Qua1ified Government Entities/Instrumentalities for Government Projects
DENR ADMINISTRATIVE ORDER NO. 2000-61
Amendment To Department Administrative Order No. 99-57, Entitled “Amendments To DAO No. 96-40
or The Revised Implementing Rules And Regulations Of Republic Act No. 7942, Otherwise Known As
The ‘Philippine Mining Act Of 1995’
DENR ADMINISTRATIVE ORDER NO. 2000-71
Standard Costs And Fees For Various Services Of The Mines And Geosciences Bureau
DENR ADMINISTRATIVE ORDER NO. 2000-98
Mine Safety and Health Standards
DENR ADMINISTRATIVE ORDER NO. 2000-99
Amendments to Sections 134-136 of DENR Administrative Order No. 96-40, the Revised Implementing
Rules and Regulations of Republic Act No. 7942, otherwise known as the “Philippine Mining Act of 1995”
DENR ADMINISTRATIVE ORDER NO. 2000-101
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
223
Mindanao, Philippines
October 2010
Amendments to the Rules and Regulations of the National Pollution Control Commission (1978)
Incorporating Permit Regulations Governing Mine Wastes and Mill Tailings Storage Structures\
DENR ADMINISTRATIVE ORDER NO. 2001-17
Guidelines For Delineating / Delimiting Municipal Water
DENR ADMINISTRATIVE ORDER NO. 2001-35
Guidelines In The Declaration And Establishment Of Communal Extraction Area For Sand, Gravel,
Ordinary Earth And/Or Related Materials In Each Province Or Highly Urbanized Independent Component
City For Housing And/Or Other Personal Construction Needs
DENR ADMINISTRATIVE ORDER NO. 2002-01
Amending Section 4 (Program Management) of DENR Administrative Order (DAO) No. 2000–102
Entitled “Establishing the National Support Program on Local Environment and Natural Resources
Planning And Management (ENRPM)”
DENR ADMINISTRATIVE ORDER NO. 2002-04
Rules and Regulation Governing the Issuance of Permits for Treasure Hunting, Shipwreck/ Sunken Vessel
Recovery and Disposition of Recovered Treasures/Valuable Cargoes, Including Hoarded Hidden Treasures
DENR ADMINISTRATIVE ORDER NO. 2002-07
Establishment of PENRO Office in Ipil, Zamboaga Sibugay Province
DENR ADMINISTRATIVE ORDER NO. 2002-08
Strengthening the Coastal Environment Program (CEP) Through the Establishment of the Coastal and
Marine Management Office (CMMO) as the National Coordinating Office For All Coastal and Marine
Environment Activities
DENR ADMINISTRATIVE ORDER NO. 2002-16
DENR-EMB National Environmental User’s Fee of 2002
DENR ADMINISTRATIVE ORDER NO. 2002-17
Defining the Organizational Structure and Major Responsibilities of the Environmental Management
Bureau as a line Bureau by virtue of Section 34 of the Philippine Clean Air Act of 1999 (RA 8749)
DENR ADMINISTRATIVE ORDER NO. 2002-18
Declaring an Emergency Situation in the Diwalwal Gold Rush Area and Providing the Interim Guidelines
to Address the Critical Environment and Social Consequences Therein
ADMINISTRATIVE ORDER NO. 2002-34
Amendment of DAO 98-67 To Expand Its Section 7 To Include Reporting Of Salt Production, Sales And
Employment
DENR ADMINISTRATIVE ORDER NO. 2002-35
Guidelines Governing The Management Of The Diwalwal Mining Areas And Vicinity As Mineral
Reservation And Environmentally Critical Area Pursuant To Proclamation No. 297 And For Other
Purposes
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
224
2. DENR MEMORANDUM CIRCULARS
DENR MEMORANDUM CIRCULAR NO. 97-05
Procedural Guidelines in the Creation of Provincial/City Mining Regulatory Boards
DENR MEMORANDUM CIRCULAR NO. 97-06
Issuances Of Free Patents, Mining Concessions, Leases And Certificates Of Stewardship In Areas Covered
By The Cagayan Economic Zone Authority (CEZA)
DENR MEMORANDUM CIRCULAR NO. 98-02
Interim Guidelines In The Processing Of Mining Applications Consistent With Republic Act No. 8371
DENR MEMORANDUM CIRCULAR NO. 98-03
Guidelines In The Issuance Of Area Status And Clearance Or Consent For Mining Applications
DENR MEMORANDUM CIRCULAR NO. 98-11
Moratorium On Approval Of FTAA’s
DENR MEMORANDUM CIRCULAR NO. 2000-01
Errata to Some Provisions of the DENR Memorandum Order. No. 99-32 (DMO 99-32) on Policy
Guidelines and Standards for Mine Wastes and Mill Tailings Management dated November 24, 1999
DENR MEMORANDUM CIRCULAR NO. 2000-10
List Of Classified Water Bodies In 1999
DENR MEMORANDUM CIRCULAR NO. 2001-09
List Of Classified Water Bodies In 2000
DENR MEMORANDUM CIRCULAR NO.2002-01
Initial Designation Of Airshed For Metro Manila
DENR MEMORANDUM CIRCULAR NO. 2002-03
Interim Guidelines for the Designation of an Airshed
DENR MEMORANDUM CIRCULAR NO. 2002-04
List of Classified Water Bodies In 2001
DENR MEMORANDUM CIRCULAR NO. 2002-07
Implementation of EO 103 Dividing Region IV Into Region IV-A And Region IV-B and Transferring the
Province of Aurora to Region III
3. DENR MEMORANDUM
DENR MEMORANDUM Dated September 17, 2002
Additional Guidelines In The Implementation Of The Mandatory September 15, 1997 Deadline For The
Filing Of Mineral Agreement Applications By Holders Of Valid And Existing Mining Claims Of
Lease/Quarry Applications And For Other Purposes
4. DENR MEMORANDUM ORDERS
DENR MEMORANDUM ORDER NO. 97-03
Policy In Rationalizing The Diwalwal Gold Rush Mining Operations
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
225
Mindanao, Philippines
October 2010
DENR MEMORANDUM ORDER NO. 97-07
Guidelines In The Implementation Of The Mandatory September 15, 1997 Deadline For The Filing Of
Mineral Agreement Applications By Holders Of Valid And Existing Mining Claims And Lease/Quarry
Applications And For Other Purposes
DENR MEMORANDUM ORDER NO. 98-01
Moratorium On All Mining And Mining-Related Activities In The Diwalwal Gold Rush Area
DENR MEMORANDUM ORDER NO. 98-03
Guidelines in the Issuance of Area Status and Clearance or Consent for Mining Applications
DENR MEMORANDUM ORDER NO. 98-06
Moratorium on the Acceptance of All New Applications and the Approval of All Pending Applications for
Small-Scale Mining Permits, Quarrying Permits, Mining Contracts/ Agreements, and Corresponding ECCs,
in the Municipality of Rodriguez (formerly Montalban), Province of Rizal
DENR MEMORANDUM ORDER NO. 98-08
Amending Memorandum Order No. 98-06 Regarding The Moratorium On The Acceptance Of all New
Applications For Small Scale Mining Permits, Quarrying Permits, Mining Contracts, Agreements And
Corresponding ECC’s In The Municipality Of Rodriguez, Province Of Rizal
DENR MEMORANDUM ORDER NO. 98-11
Moratorium On The Acceptance Of All New Application And The Approval Of All Pending Applications
For Sand And Gravel Permits Along Lagnas River And Its Tributaries At Sariaya, Quezon
DENR MEMORANDUM ORDER NO. 98-19
Interim Authority to Transport Ores Already Extracted and not Included in the Writ of Injunction Issued by
the Court of Appeals in CA-G.R. SP No. 47293, Entitled Mt. Diwata Upper Ulip Tribal Association, Et Al.,
Vs. Monkayo Integrated Small-Scale Miner’s Association (MISSMA)
DENR MEMORANDUM ORDER NO. 98-20
Suspending DENR Memorandum Order No. 98-19 and Directing the Enforcement of the Presidential
Memorandum of September 23, 1998 for the Stoppage of Illegal Mining Operations in Diwalwal
DENR MEMORANDUM ORDER NO. 99-03
Procedural Guidelines in the Processing and Issuance of Special Quarry Permit and Sand and Gravel Permit
to Extract Sand and Lahar Materials in the Mineral Reservations Established and Declared Under
Proclamation No. 66 and Other Lahar-Affected Areas in the Provinces of Pampanga, Tarlac, and Zambales
DENR MEMORANDUM ORDER NO. 99-08
Rationalization of the Mining/Quarrying Operations in Rodriguez and San Mateo, Province of Rizal
DENR MEMORANDUM ORDER NO. 99-10
Guidelines in the Determination of Qualified Persons for Mining Applications and Mining Rights
DENR MEMORANDUM ORDER NO. 99-11
Amending Section 4d of Memorandum Order No. 99-03 “The Procedural Guidelines in the Processing and
Issuance of Special Quarry Permit and Sand and Gravel Permit to Extract Sand and Lahar Materials in the
Mineral Reservation Established and Declared under Proclamation No. 66 and Other Lahar-Affected Areas
in the Provinces of Pampanga, Tarlac and Zambales
DENR MEMORANDUM ORDER NO. 99-16
Special Task Force On Priority Programs And Economic Affairs Action Plan For The Rehabilitation,
Development, Protection And Maintenance Of The Marikina Watershed Reservation And The MarikinaWawa River Basin; The Creation Of Task Force Marikina Watershed Development Center And Providing
Funds For The Purpose
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
226
DENR MEMORANDUM ORDER NO. 99-26
Amending Certain Provisions Of Memorandum Order No. 96-04 Re: Publication And Submission To The
UP Law Center Of Rules And Regulations Adopted By The Department
DENR MEMORANDUM ORDER NO. 99-32
Policy Guidelines and Standards for Mine Wastes and Mill Tailings Management
DENR MEMORANDUM ORDER NO. 99-34
Clarificatory Guidelines In The Implementation Of DENR Administrative Order No. 96-40 Or “Revised
Implementing Rules And Regulations Of Republic Act No. 7942 Otherwise Known As The ‘Philippine
Mining Act Of 1995’ “
DENR MEMORANDUM ORDER NO. 2000-01
Compliance With The Transitory Provision Of DMO No. 99-10
DENR MEMORAMDUM ORDER NO. 2000-03
Final Extension Of Deadline For Compliance With The Transitory Provision Of DENR Memorandum
Order No. 99-10 And For Other Related Purposes
DENR MEMORANDUM ORDER NO. 2002-09
Coverage of Administrative Order No. 2002-18 and the Diwalwal Gold Rush Area in Mt. Diwata,
Monkayo, Compostela Valley Province
DENR MEMORANDUM ORDER NO. 2002-11
Guidelines In The Collection And Allocation Of Share Of The Natural Resources Development
Corporation And Service Fee Of Service Contractors In Connection With The Diwalwal Direct State
Development Project
5. DENR SPECIAL ORDERS
DENR SPECIAL ORDER NO. 98-83
Amendment To Special Order No. 96-874 Dated September 4, 1996 Designating Atty. Danilo D. Luna As
Chief, MAB Secretariat and Additional Members To The MAB Secretariat As Legal Officers And
Technical Support
DENR SPECIAL ORDER NO. 99-378
Creation of a Task Force to Inspect the Area Covered by the Small Scale Mining Permit of Mati Small
Scale Miners Association in Connection with their Application for a Timber Cutting Permit
DENR SPECIAL ORDER NO. 99-461
Amendment To Special Orders 97-218 And 98-83 Reconstituting The Secretariat Support Of The Mines
Adjudication Board (MAB)
DENR SPECIAL ORDER NO. 99-473
Redefining the Functions/Assignments of DENR Senior Officials
DENR SPECIAL ORDER NO. 99-942
Designation Of Personnel To The DENR Geohazards Assessment Team
DENR SPECIAL ORDER NO. 99-983
Amendment To DENR Special Order No. 98-02 Amending Special Order No. 96-1101, Further Amending
Special Order No. 95 1585 Creating The Regional Panel Of Arbitrators
DENR SPECIAL ORDER NO. 99-984
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
227
Mindanao, Philippines
October 2010
Amending Special Order No. 99 473 Re: Redefining The Functions/Assignments Of DENR Senior
Officials
DENR SPECIAL ORDER NO. 99-1495
Reassignment of Regional Directors and OIC-Regional Directors of the Mines and Geosciences Bureau
DENR SPECIAL ORDER NO. 2000-915
Creation of a Team to Conduct Reconnaissance Survey and Assessment of Priority Sites in Connection
with the MGB and ERDB Joint Research Project on Rehabilitation of Mining-Affected Lands
DENR SPECIAL ORDER NO. 2000-961
Amending Department Order No. 98-1096, Series of 1998
Re:Creation of the Compostela Valley Provincial Mining Regulatory Board Pursuant to R.A. 7076 and
R.A. 7942 and Their Implementing Rules and Regulation
DENR SPECIAL ORDER NO. 2002-619
Diwalwal Technical Working Group
DENR SPECIAL ORDER NO. 2002-638
Designating Horacio C. Ramos, Director, Mines & Geosciences Bureau, as Project Director of the
Diwalwal Direct State Development Project
DENR SPECIAL ORDER NO. 2002- 660
Creation of A Special Team to Evaluate the Social and Environmental Implication and Sustainability of the
Pebble Picking Activities in Brgy. Caruan, Pasuquin, Ilocos Norte
6. MGB MEMORANDUM ORDER
MGB MEMORANDUM ORDER NO. 97-02
Procedural Guidelines For The Withdrawal Of Mining Applications And Relinquishment Of Areas
Covered By Approved Mining Rights
7. MGB MEMORANDA
MGB MEMORANDUM dated September 11, 1997
Clarification on DENR Memorandum Order No. 97-07
MGB MEMORANDUM dated September 22, 1997
Application Fee For Request Of Certification For Environmental Management And Community Relations
Record (CEMCRR) dated
MGB MEMORANDUM
Transmitting And Further Clarifying MGB Memorandum Order NO. 97-02
MGB MEMORANDUM dated October 7, 1998
Clarifying Additional Documents To Be Submitted In Connection With The Approval Of The IRR Of The
Indigenous Peoples Right Act to support of mining applications
MGB MEMORANDUM dated November 10, 1998
Transmitting NCIP Administrative Order No. 3 Providing Supplemental Guidelines in the Issuance of
NCIP Certification and Free and Prior Informed Consent in Connection with Application for Lease, permit,
License and Order Forms of Concessions in Ancestral Domains
MGB MEMORANDUM dated February 3, 2000
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
Extension Of Compliance With And Other Clarifications To DENR Memorandum Order No. 99-10
228
MGB MEMORANDUM dated February 28, 2000
Clarification On Section 12 Of DAO No. 99- 57 Re: Maximum Areas For Large-Scale Quarry Operations
MGB MEMORANDUM dated April 13, 2000
Amendment Fee
MGB MEMORANDUM dated May 5, 2000
Conversion Fee Of Mineral Agreement Application To Exploration Permit Application
8. MGB MEMORANDUM CIRCULARS
MGB MEMORANDUM CIRCULAR NO. 97-24
Delegation Of Authority On Deputation/ Arrest/ Confiscations
MGB MEMORANDUM CIRCULAR NO. 98-01
Delegation Of Authority On The Cancellation Of Mining Applications
MGB MEMORANDUM CIRCULAR NO. 98-25
Acceptance, Processing and Evaluation of Mining Applications Over Mineral Reservation Areas
MGB MEMORANDUM CIRCULAR NO. 2000-33
Guidelines and Outline/Checklist for the Preparation of an Engineering Geological and Geohazard
Assessment Report (EGGAR) as per DAO No. 2000-28
MGB MEMORANDUM CIRCULAR NO. 2000-38
Guidelines in the Denial of Mining Applications pursuant to DENR Memorandum Orders No. 99-10 and
2000-03
9. MGB SPECIAL ORDERS
MGB SPECIAL ORDER NO. 4190
Creation of the Diwalwal Feasibility Study and Management Group in the Mines and Geosciences Bureau
(MGB) to Provide Technical Assistance to the Over-All Diwalwal Technical Working Group Created
Under the Department of Environment and Natural Resources (DENR)
MGB SPECIAL ORDER NO. 2002-4196
Creation of the Program Steering Committee and Teams for the MGB-CO Greening Program
IV. OTHER RELEVANT POLICIES AND DECISIONS
1. EXECUTIVE ORDERS
EXECUTIVE ORDER NO. 45
Prescribing Time Periods For Issuance of Housing Related Certifications, Clearances and Permits, and
Imposing Sanctions For Failure To Observe the Same
EXECUTIVE ORDER NO. 96
Creating the Atlas Commission and Defining Its Powers and Functions
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
229
EXECUTIVE ORDER NO. 98
Directing All Government Agencies, Instrumentalities, Local Government Units, And Government Owned
And/Or Controlled Corporations (GOCCs) To Include The Taxpayer Identification Number (TIN) As Part
Of The Essential Requirements In All Applications For A Government Permit, License, Clearance, Official
Paper Or Document
EXECUTIVE ORDER NO. 153
Authorizing The Utilization Of Offshore Areas Not Covered By Approved Mining Permits And Contracts
As Sources Of Dredgefill Materials For Government Reclamation Projects And For Other Purposes
EXECUTIVE ORDER NO. 109
Streamlining the Rules and Procedures on the Review and Approval of All Contracts of Departments,
Bureaus, Offices and Agencies of the Government, Including Government-Owned or Controlled
Corporations and Their Subsidiaries
EXECUTIVE ORDER NO. 200
Authorizing The Issuance Of Onshore Special Minerals Extraction Permits To Qualified Government
Entities / Instrumentalities For Government Projects
EXECUTIVE ORDER NO. 406
Institutionalizing The Philippine Economic-Environmental And Natural Resources Accounting System &
Creating Units Within The Organizational Structure Of The Dept. Of Environment & Natural Resources
(DENR) , National Economic And Development Authority (NEDA), and National Statistical Coordination
Board (NSCB)
2. MALACAÑANG MEMORANDUM ORDER
MEMORANDUM ORDER NO. 460
Providing For The Creation Of A Task Force On Mt. Diwalwal
3. PROCLAMATION ORDERS
PROCLAMATION ORDER NO. 66
Declaring the Lahar Affected Rivers and Embankment Areas in the Provinces of Pampanga, Tarlac and
Zambales as Environmentally Critical Areas and as Mineral Reservation Under the Direct Supervision and
Control of the Department of Environment and Natural Resources
PROCLAMATION NO. 72
Establishing Safety And Exclusion Zones For Offshore Natural Gas Wells, Flowlines, Platform, Pipelines,
Loading Buoy And Other Related Facilities For The Malampaya Deep Water Gas-To-Power Project Over
Certain Waters And Submerged Lands Adjacent To, Batangas, Mindoro And Palawan
Rules and Operating Guidelines To Implement And Enforce The Safety And Exclusion Zones Established
Under Proclamation No. 72, Series Of 2001
PROCLAMATION NO. 183
Revoking Proclamation No. 66, Series Of 1999, Declaring the Lahar-Affected Rivers and Embankment
Areas in the Provinces of Pampanga, Tarlac and Zambales as Environmentally Critical Areas and as
Mineral Reservation Under the Direct Supervision and Control of the Department of Environment and
Natural Resources
PROCLAMATION NO. 297
Excluding A Certain Area From The Operation Of Proclamation No. 369 Dated February 27, 1931, And
Declaring The Same As Mineral Reservation And As Environmentally Critical Area
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
230
PROCLAMATION NO. 1250
Exclusion Of Mineral Resource-Rich Areas Of Cagraray Island, Albay From The Bicol Region Tourism
Master Plan
4. REPUBLIC ACT
REPUBLIC ACT NO. 7076
An Act Creating A People’s Small-Scale Mining Program And For Other Purposes
REPUBLIC ACT NO. 8371
An Act To Recognize, Protect And Promote The Rights Of Indigenous Cultural Communities/ Indigenous
Peoples, Creating A National Commission On Indigenous Peoples, Establishing Implementing
Mechanisms, Appropriating Funds Therefore, And For Other Purposes
5. PRESIDENTIAL DECREE
PRESIDENTIAL DECREE NO. 1899
Establishing Small-Scale Mining As A New Dimension In Mineral Development
6. OTHER RELATED POLICIES
DENR-DOT MEMORANDUM CIRCULAR 98-02
Guidelines For Eco-tourism For Development Of The Philippines
MEMORANDUM OF AGREEEMENT BY/BETWEEN DENR, RIZAL PROVINCIAL GOVT.
AND PNP-RIZAL
Memorandum of Agreement by/between DENR, Rizal Provincial Government and PNP-Rizal Relative to
DENR Memorandum Order No. 99-08
MEMORANDUM OF AGREEEMENT
Memorandum Of Agreement Between DOTC/ DENR/DA/DILG
SOCIAL SECURITY SYSTEM CIRCULAR No. 13-A
Implementing Rules And Regulations On Processing Of Applications For Retirement Of Underground
Mine Workers
NCIP ADMINISTRATIVE ORDER NO. 3, Series of 2002
Revised Guidelines For The Issuance Of Certification Precondition And The Free And Prior Informed
Consent In Connection With Applications For License, Permit, Agreement Or Concession To Implement
And Or Operate Programs/Projects/Plans/Business Or Investments Including Other Similar Or Analogous
Activities Or Undertaking That Do Not Involve Issuance Of License, Permit, Agreement Or Concession
But Requires The Free And Prior Informed Consent Of ICC/IP Community In Ancestral Domain Areas In
Accordance With R.A. 8371
7. MINES ADJUDICATION BOARD RESOLUTIONS
Resolution
Approved & Signed: May 22, 1997
Rules on Pleading, Practice and Procedure
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
Significant Provisions
231
Resolution
Approved & Signed: May 6, 1999
8. OTHER ORDERS
Order Lifting the Suspension of the Quarrying Operation of Huang Construction Corporation at Sta.
Barbara, Iba, Zambales Covered By ISGP No. III-01-97
Temporary Suspension of Processing of All Mining Applications Covering Offshore Areas
Deputizing General Hermogenes E. Ebdane, Jr., Chief, Philippine Natonal Police, and Other Pnp Officers
and Personnel He May Designate Under His Command, To Implement the DENR Stoppage Order and
Other Instructions/ Issuances on the Diwalwal Gold-Rush Area
Stoppage of the Diwalwal Mining Operations
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
232
International Standards and Guidelines
The following is a discussion of the international standards and guidelines that will also
be employed in the design, operation and closure of the King-King Project.
IFC Guidelines, Standards and Policies
IFC Performance Standards
The International Finance Corporation (IFC), a unit of the World Bank, updated and
consolidated existing policies and guidelines for private sector operations in its
“Performance Standards on Social and Environmental Sustainability” (Performance
Standards) in April 2006 (2006a). Meeting the requirements of the Performance
Standards is generally viewed as meeting good international practice in the context of
private sector operations. The eight Performance Standards are as follows:
Performance Standard 1:
Performance Standard 2:
Performance Standard 3:
Performance Standard 4:
Performance Standard 5:
Performance Standard 6:
Performance Standard 7:
Performance Standard 8:
Social and Environmental Assessment and Management System
Labor and Working Conditions
Pollution Prevention and Abatement
Community Health, Safety and Security
Land Acquisition and Involuntary Resettlement
Biodiversity Conservation and Sustainable Natural Resource
Management
Indigenous Peoples
Cultural Heritage
The key elements of the Performance Standards are highlighted below.
Performance Standard 1: Social and Environmental Assessment and Management
Systems
This performance standard broadens social considerations from involuntary resettlement,
indigenous peoples and cultural property to all relevant social issues. Social
considerations and potential positive and negative impacts are to be integrated into a
Social and Environmental Impact Assessment (SEIA). It emphasizes the need to identify
vulnerable or disadvantaged groups and to provide appropriate engagement of potentially
affected communities.
Performance Standard 1 also utilizes the recommendations and conclusions from the
SEIA to establish Action Plans to be covenanted and implemented through a Social and
Environmental Management System. Furthermore, it requires a more comprehensive and
on-going engagement with local communities commensurate with the nature and extent
of potential impacts, and introduces the concept of Free, Prior and Informed Consultation
(FPIC).
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
233
It should be note that Ratel is committed to conducting a SEIA for its King-King Project
that meets all applicable aspects of this IFC Performance Standard, as well as, the
requirements of the Equator Principles (described below). At the end of this section on
international standards, Ratel has developed a draft “Table of Contents” for the
prospective SEIA for the King-King Project that shows the broad scope and
comprehensiveness of such a SEIA study and report. This will be further refined as more
preliminary studies are conducted at the project site.
Performance Standard 2: Labor and Working Conditions
This performance standard is developed around the “Core Labor Standards” defined by
the International Labor Organization (ILO). It covers forced labor, child labor, nondiscrimination, and freedom of association and collective bargaining. It also addresses
any involuntary or compulsory labor, such as, indentured or bonded labor that might be
prevalent in certain sectors.
Provisions in Performance Standard 2 include human resources policy and grievance
mechanisms appropriate to the project sponsors’ size and workforce. It supports workers’
right to organize and bargain collectively in a manner consistent with national law. It
requires non-discriminatory practices in employment relationships and addresses largescale retrenchment and fair treatment of contract labor. This performance standard also
deals with occupational health and safety issues, and specifies working conditions and the
need to inform workers about terms of employment, such as wages, benefits, and hours of
work.
Performance Standard 3: Pollution Prevention and Abatement
This performance standard raises the principles of the Pollution Prevention and
Abatement Handbook (PPAH) to the policy level, explicitly requiring project sponsors to
design and operate projects in compliance with the host country regulations and the IFC
Environmental, Health and Safety (EHS) Guidelines, whichever is more stringent. In
summary, Performance Standard 3:
•
•
•
•
•
emphasizes pollution prevention, including issues of waste management, energy
efficiency measures and use of renewable energy sources;
requires quantification and monitoring of significant greenhouse gas (GHG)
emissions (more than 100,000 tons per annum);
expands the current pollution prevention focus on direct project emissions to address
project impacts on ambient conditions, as these impacts have a direct effect on the
environment and community health;
requires sponsors to be prepared for responses to process upsets, accidents and
emergency situations; and,
clarifies an approach to, and provides new guidance on, integrated pest and vector
management and persistent organic pollutants (POPs).
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
234
Performance Standard 4: Community Health, Safety and Security
This performance standard is in recognition of the need to manage the risks that project
activities can pose to the public, including public health, public safety and emergency
preparedness. It also introduces the human rights dimension associated with security
considerations; and, seeks to ensure that sponsors are aware of issues outside of their
project boundaries.
Performance Standard 4 specifies that an individual at senior-management level should
be assigned with the responsibility and authority for the client’s continuing commitment
to, and support and improvement of, community health and safety, community
engagement on health and safety issues, and security considerations. It specifies the
following requirements in a manner appropriate to the size and nature of project
activities:
•
•
•
•
to design, construct, operate, and decommission projects such that risks to public
health and safety are as low as reasonably practicable;
to ensure structural elements are certified or approved by appropriate competent
professionals;
to address public use of project equipment and infrastructure as well as production
and use of hazardous materials including pesticides, emergency plans, and priority
health issues in the community; and,
to inform local communities of potential hazards and assist with their emergency
preparedness.
With Performance Standard 4, the Safety of Dams directive [World Bank’s Operational
Policy (OP) 4.37] is no longer a freestanding policy of a 15-meter threshold for dam
height. Instead, the structural safety of dams is addressed through a risk-based approach
to the design, construction and operation of all project equipment and infrastructure.
Performance Standard 4 also addresses community health and safety aspects of
pesticides, including their transport, storage and application, and community exposure to
communicable diseases. The sponsor is required to assess the risks within and outside of
the project site that may be posed by its security arrangements.
In addition, the sponsor is expected to make reasonable inquiries: to ensure that those
providing security are not implicated in past abuses; to train security staff adequately in
the use of force (and where applicable, firearms) and appropriate conduct toward workers
and the local community; and, to require those providing security to act within the
applicable law. The sponsor is also expected not to sanction any use of force except when
used for preventive and defensive purposes in proportion to the nature and extent of the
threat. A grievance mechanism should allow the affected community to express concerns
about the security arrangements and acts of security personnel.
For operations employing government personnel for security services, the sponsor should
assess the risks arising from such use and communicate its intent to such use to security
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
235
personnel. The sponsor should encourage the relevant public authorities to publicly
disclose the security arrangements of the facilities, subject to any overriding security
concerns.
The sponsor is also expected to investigate any credible allegations of unlawful or
abusive acts of security personnel, to take action (or urge appropriate parties to take
action) to prevent recurrence, and to report unlawful and abusive acts to public authorities
when appropriate.
Performance Standard 5: Land Acquisition and Involuntary Resettlement
This performance standard refers to physical and/or economic displacements that may be
associated with the operation. Resettlement is considered involuntary when affected
individuals or communities do not have the right to refuse land acquisition that results in
displacement. Performance Standard 5 also refers to loss of collectively owned assets.
FPIC is required prior to resettlement of Indigenous Peoples.
Performance Standard 5 applies to legal landowners with recognizable claims to land as
well as informal settlers. For informal settlers, the sponsor is expected to offer
opportunities to settle legally in areas where they do not face the risk of eviction. Overall,
resettlement should be designed to improve the livelihoods of those affected.
Performance Standard 5 requires that project sponsors explore project alternatives to
minimize the need for resettlement activities and take the lead in the resettlement process
wherever possible. It clarifies that cash compensation can be an acceptable alternative to
the normally preferred land-for-land compensation. Cash compensation for lost assets can
be appropriate where, for example, livelihoods are not land-based or where active
markets exist for land, housing and labor.
The sponsor is not required to compensate or assist opportunistic settlers who encroach
on the project area after the cut-off date. However, the sponsor is expected to set up a
grievance mechanism consistent with Performance Standard 1 to receive and address
specific concerns about compensation and relocation that may be raised by displaced
persons or members of host communities, including a recourse mechanism designed to
resolve disputes in an impartial manner.
Performance Standard 6: Biodiversity Conservation and Sustainable Natural Resource
Management
Performance Standard 6 is designed to combine the principles of the World Bank’s
Natural Habitats and Forestry (OP 4.36) Policies and expands the existing Safeguard
Policies’ focus on pristine natural habitats to address all levels of biodiversity through an
approach consistent with the Convention on Biological Diversity. The sponsor is required
to assess the significance of potential adverse impact to biodiversity in the project’s area
of influence. The assessment will focus on major threats to biodiversity, which include
habitat destruction and introduction of invasive species.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
236
Performance Standard 6 identifies Critical Habitat as a subset of both natural and
modified habitat that deserves particular attention. Critical Habitat includes areas with
high biodiversity value, including habitat required for the survival of critically
endangered or endangered species; areas having special significance for endemic or
restricted-range species; sites that are critical for the survival of migratory species; areas
supporting globally significant concentrations or numbers of individuals of congregatory
species; areas with unique assemblages of species or which are associated with key
evolutionary processes or provide key ecosystem services; and areas having biodiversity
of significant social, economic or cultural importance to local communities. The IUCN
Red List of Threatened Species and national legislation can assist in defining such areas.
Performance Standard 6 also identifies mitigation measures to achieve “no net loss” of
biodiversity where feasible. These measures may include a combination of activities,
such as the post-operation restoration of habitats, offset of losses through the creation of
an ecologically comparable area(s) managed for biodiversity, and compensation to direct
users of the impacted flora and fauna.
Performance Standard 7: Indigenous Peoples
This performance standard presupposes that indigenous peoples are often among the most
marginalized and vulnerable segments of the population. Information disclosure,
consultation and informed participation should be conducted in a culturally appropriate
manner. Performance Standard 7 details the process of FPIC with Indigenous Peoples.
Project sponsors are required to inform affected Indigenous Peoples and natural-resourcedependent communities of their options, rights and responsibilities vis-à-vis the project
and its potential impacts --– and obtain broad community support for the project.
The sponsor is required to foster participation of affected Indigenous Peoples in the
assessment of relevant project alternatives, planning, and implementation of mitigation
and development measures. Performance Standard 7 emphasizes ties to unique natural
resources. The sponsor is also expected to seek to identify, through the process of FPIC
with affected communities of Indigenous Peoples, opportunities for culturally appropriate
development benefits. Indigenous peoples adversely affected by the project, but no longer
dependent on natural resources, will be covered in the ESIA process pursuant to
Performance Standard 1.
Performance Standard 7 moves away from a requirement for a free-standing Indigenous
Peoples Plan to a more flexible and broader community development plan with
components for indigenous peoples, where appropriate. This approach aims to extend
opportunities and benefits to all the affected communities, regardless of whether some are
indigenous or not.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
237
Performance Standard 8: Cultural Heritage
This Performance Standard is based on the Convention Concerning the Protection of the
World Cultural and Natural Heritage (which aims to protect irreplaceable cultural
heritage) and, in part, on standards set by the Convention on Biological Diversity. It
requires clients to, as a minimum, follow national law and share the benefits of project
use (e.g., commercialization) of indigenous peoples or local community knowledge,
innovations, and/or practices with the indigenous peoples or local communities.
Performance Standard 8 requires the application of internationally recognized practices
for the protection, field-based study, and documentation of cultural heritage where
international conventions on cultural heritage are not part of host country laws.
IFC General EHS Guidelines
The IFC General EHS Guidelines, dated April 2007, contain the performance levels and
measures that IFC has determined are generally considered to be achievable at reasonable
costs by existing technology. The application of these guidelines should be tailored to the
hazards and risks established for each project on the basis of the results of the
environmental assessment, in which site-specific variables, such as the host country
context, assimilative capacity of the environment, and other project-specific factors, are
taken into account. For example, the environmental assessment process may provide
justification for alternative project-specific standards or requirements, such as project
location, processes, or mitigation measures.
These General EHS Guidelines are technical reference documents with general and
industry-specific examples of Good International Industry Practice (GIIP). These general
guidelines are designed to be utilized in conjunction with relevant industry-sector EHS
guidelines. The General EHS Guidelines are organized as follows:
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Environmental
Air Emissions and Ambient Air Quality
Energy Conservation
Wastewater and Ambient Water Quality
Water Conservation
Hazardous Materials Management
Waste Management
Noise
Contaminated Land
Occupational Health and Safety
General Facility Design and Operation
Communication and Training
Physical Hazards
Chemical Hazards
Biological Hazards
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
•
•
•
•
•
•
•
•
•
•
•
•
•
•
238
Radiological Hazards
Personal Protective Equipment
Special Hazard Environments
Monitoring
Community Health and Safety
Water Quality and Availability
Structural Safety and Project Infrastructure
Life and Fire Safety
Traffic Safety
Transport of Hazardous Materials
Disease Prevention
Emergency Preparedness and Response
Construction and Decommissioning
Community Health and Safety
Effective management incorporates EHS issues into corporate- and facility-level business
processes in an organized, hierarchal approach. This involves:
•
•
•
identifying EHS project hazards and associated risks as early as possible in the
facility development or project cycle;
utilizing EHS professionals with the experience, competence, and training necessary
to assess and manage EHS impacts and risks, and carry out specialized environmental
management functions; and,
understanding the likelihood and magnitude of EHS risks based on:
the nature of the project activities,
the potential consequences to workers, communities, or the environment if
hazards are not adequately managed;
prioritizing risk management strategies with the objective of achieving an
overall reduction of risk to human health and the environment;
favoring strategies that eliminate the cause of the hazard at its source;
incorporating engineering and management controls to reduce or minimize the
possibility and magnitude of undesired consequences when impact avoidance
is not feasible;
preparing workers and nearby communities to respond to accidents, including
providing technical and financial resources to effectively and safely control
such events, and restoring workplace and community environments to a safe
and healthy condition; and,
improving EHS performance through a combination of ongoing monitoring of
facility performance and effective accountability.
The specific EHS Guidelines for Mining, to be utilized in conjunction with the General
EHS Guidelines, are described in the following section.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
239
IFC EHS Guidelines for Mining
The IFC EHS Guidelines for Mining, dated December 2007, provide for inclusion of
results from the SEIA process. Although some specific performance standards are
provided, these levels and measures can be adjusted and customized for each particular
project.
The EHS Guidelines for Mining include the following topics:
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Industry-Specific Impacts
Environmental
Water use and quality
Wastes
Hazardous materials
Land use and biodiversity
Air quality
Noise and vibrations
Energy use
Visual impacts
Occupational Health and Safety
General workplace health and safety
Hazardous substances
Use of explosives
Electrical safety and isolation
Physical hazards
Ionizing radiation
Fitness for work
Travel and remote site health
Thermal stress
Noise and vibration
Specific hazards in underground mining
Community Health and Safety
Tailings dam safety
Water storage dams
Land subsidence
Emergency preparedness and response
Communicable diseases
Specific vector control and prevention strategies
Mine Closure and Post-Closure
Financial feasibility
Chemical integrity
Ecological habitat integrity
Performance Indicators and Monitoring
Emissions and effluent guidelines
Environmental monitoring
Occupational Health and Safety Performance
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
•
•
•
240
Occupational health and safety guidelines
Accident and fatality rates
Occupational health and safety monitoring
Certain aspects of the IFC EHS Mining Guidelines are described in further detail below.
Performance Indicators and Monitoring
The following discusses certain performance indicators and monitoring noted in the IFC
General EHS Guidelines and the IFC EHS Guidelines for Mining. Monitoring of direct
and indirect indicators of emissions, effluents and resource use is typically projectspecific; and, therefore, specific monitoring conditions will be incorporated into the
King-King design and operation, as applicable. Monitoring will be conducted by trained
individuals implementing appropriate monitoring procedures, utilizing properly
calibrated and maintained equipment. The monitoring records will be frequently
reviewed, updated and maintained; and will be compared with the applicable standards to
ensure adequate measures are promptly performed when necessary to minimize adverse
impacts to the environment and humans. These guidelines act as a powerful tool to avoid
mistakes, reduce development cost and improve project sustainability.
These guidelines are intended to provide a standard against which the Project’s
performance will be monitored. Ratel is committed to conformance with these guidelines,
in addition to compliance with applicable local and national laws.
Air Quality
Air emissions will be designed not to exceed the relevant ambient air quality guidelines
and standards by applying national legislated standards or the current World Health
Organization (WHO) Air Quality Guidelines (2006a). Ambient air quality is to be
monitored at the Project boundary and/or off-site, at locations to be determined by
scientific modeling. The current WHO Air Quality Guidelines are provided in the Table
below.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
241
WHO Ambient Air Quality Guidelines
Parameter
Particulate Matter (PM) 2.5
PM10
Ozone (O3)
Nitrogen dioxide (NO2)
Sulfur dioxide (SO2)
Averaging
Period
Guideline
Value
(µg/m3)
annual mean
24-hour mean
annual mean
24-hour mean
8-hour maximum
annual mean
1-hour mean
24-hour mean
10
25
20
50
100
40
200
20
10-minute mean
500
The air quality of the workplace will follow the time-weighted average threshold limit
values (e.g., eight hours per day, 40 hours per week) of the American Conference of
Governmental Industrial Hygienists (ACGIH).
Water Use and Quality
Water used for drinking will meet the local and national standards or, in their absence,
WHO Guidelines for Drinking Water Quality (2006b). WHO provides microbial and
chemical water quality targets to protect the health of humans. The Table below lists and
describes the waterborne pathogens (WHO, 2006b). However, only a portion of the
waterborne pathogens listed may be present at the Project area. Per WHO Guidelines for
Drinking Water Quality, all water directly intended for drinking must not have E. coli or
thermo-tolerant coliform bacteria detected in any 100-milliliter sample (2006b).
WHO-Waterborne Pathogens and their Significance in Water Supplies
Pathogen
BACTERIA
Burkholderia
pseudomallei
Campylobacter jejuni,
C. coli
Escherichia coli –
Pathogenic
E. coli –
Enterohaemorrhagic
Legionella spp.
Health
Significance
Persistence in
Water Supplies
Resistance
to Chlorine
Relative
Infectivity
Important
Animal
Source
Low
May multiply
Low
Low
No
High
Moderate
Low
Moderate
Yes
High
Moderate
Low
Low
Yes
High
Moderate
Low
High
Yes
High
Multiply
Low
Moderate
No
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
Pathogen
Non-tuberculous
mycobacteria
Pseudomonas
aeruginosa
Salmonella typhi
Other salmonellae
Shigella spp.
Vibrio cholerae
Yersinia
enterocolitica
VIRUSES
Adenoviruses
Enteroviruses
Hepatitis A virus
Hepatitis E virus
Noroviruses and
sapoviruses
Rotaviruses
PROTOZOA
Acanthamoeba spp.
Cryptosporidium
parvum
Cyclospora
cayetanensis
Entamoeba histolytica
Giardia intestinalis
Naegleria fowleri
Toxoplasma gondii
HELMINTHS
Dracunculus
medinensis
Schistosoma spp.
242
Health
Significance
Persistence in
Water Supplies
Resistance
to Chlorine
Relative
Infectivity
Important
Animal
Source
Low
Multiply
High
Low
No
Moderate
May multiply
Moderate
Low
No
High
High
High
High
Moderate
May multiply
Short
Short
Low
Low
Low
Low
Low
Low
Moderate
Low
No
Yes
No
No
High
Long
Low
Low
Yes
High
High
High
High
Long
Long
Long
Long
Moderate
Moderate
Moderate
Moderate
High
High
High
High
No
No
No
Potentially
High
Long
Moderate
High
Potentially
High
Long
Moderate
High
No
High
Long
High
High
No
High
Long
High
High
Yes
High
Long
High
High
No
High
High
High
High
Moderate
Moderate
May multiply
Long
High
High
High
High
High
High
High
High
No
Yes
No
Yes
High
Moderate
Moderate
High
No
High
Short
Moderate
High
Yes
The Chemical Abstracts Service has more than 36 million registered chemicals
(Chemical Abstracts Service, 2007). As such, parameters or chemicals specific to the
Project operations as well as the Project environment will be selected for monitoring.
WHO utilizes six categories to identify the sources of chemical constituents (2006b):
•
•
•
•
•
•
Naturally occurring;
Industrial sources and human dwellings;
Agricultural activities;
Water treatment or materials in contact with drinking water;
Pesticides used in water for public health; and,
Cyanobacteria.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
243
Drinking-water guidelines are provided in the following two Tables based on the WHO
Guidelines for Drinking Water Quality (2006b).
WHO Drinking Water Guideline Values Significant to Health
Chemical
Guideline Value
NATURALLY OCCURRING
Arsenic
0.01 milligrams per liter (mg//L)
Barium
0.7 mg/L
Boron
0.5 mg/L
Chromium (total)
0.05 mg/L
Fluoride
1.5 mg/L
Manganese
0.4 mg/L
Molybdenum
0.07 mg/L
Selenium
0.01 mg/L
Uranium
0.015 mg/L
INDUSTRIAL SOURCES AND HUMAN DWELLINGS
Benzene
10 micrograms per liter (μg/L)
Cadmium
0.003 mg/L
Carbon tetrachloride
4 μg/L
Cyanide
0.07 mg/L
Di(2-ethylhexyl)phthalate
8 μg/L
Dichlorobenzene, 1,21,000 μg/L
Dichlorobenzene, 1,4300 μg/L
Dichloroethane, 1,230 μg/L
Dichloroethene, 1,250 μg/L
Dichloromethane
20 μg/L
Dioxane, 1,450 μg/L
Edetic acid (EDTA)
600 μg/L
Ethylbenzene
300 μg/L
Hexachlorobutadiene
0.6 μg/L
Mercury (inorganic)
0.006 mg/L
Nitrilotriacetic acid (NTA)
200 μg/L
Pentachlorophenol
9 μg/L
Styrene
20 μg/L
Tetrachloroethene
40 μg/L
Toluene
700 μg/L
Trichloroethene
20 μg/L
Xylenes
500 μg/L
AGRICULTURAL ACTIVITIES
Nitrate
50 mg/L (short-term exposure)
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
Chemical
Nitrite
Alachlor
Aldicarb
Aldrin and dieldrin
Atrazine
Carbofuran
Chlordane
Chlorotoluron
Cyanazine
2,4-dichlorophenoxyacetic acid (2-4-D)
2,4-DB
1,2-Dibromo-3-chloropropane
1,2-Dibromoethane
1,2-Dichloropropane (1,2-DCP)
1,3-Dichloropropene
Dichlorprop
Dimethoate
Endrin
Fenoprop
Isoproturon
Lindane
MCPA
Mecoprop
Methoxychlor
Metolachlor
Molinate
Pendimethalin
Simazine
2,4,5-T
Terbuthylazine
Trifluralin
WATER TREATMENT
Acrylamide
Antimony
Benzo[a]pyrene
Bromate
Bromodichloromethane
Bromoform
Chlorate
Technical Report / Form 43-101F1
244
Guideline Value
3 mg/L (short-term exposure)
0.2 mg/L (long-term exposure)
20 μg/L
10 μg/L
0.03 μg/L
2 μg/L
7 μg/L
0.2 μg/L
30 μg/L
0.6 μg/L
30 μg/L
90 μg/L
1 μg/L
0.4 μg/L
40 μg/L
20 μg/L
100 μg/L
6 μg/L
0.6 μg/L
9 μg/L
9 μg/L
2 μg/L
2 μg/L
10 μg/L
20 μg/L
10 μg/L
6 μg/L
20 μg/L
2 μg/L
9 μg/L
7 μg/L
20 μg/L
0.5 μg/L
20 μg/L
0.7 μg/L
10 μg/L
60 μg/L
100 μg/L
700 μg/L
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
Chemical
Chlorine
1
Chlorite
Chloroform
Copper
Cyanogen chloride
Dibromoacetonitrile
Dibromochloromethane
Dichloroacetate
Dichloroacetonitrile
Epichlorohydrin
Lead
Monochloramine
Monochloroacetate
Nickel
Trichloroacetate
Trichlorophenol, 2,4,6Trihalomethanes
245
Guideline Value
5 mg/L
700 μg/L
300 μg/L
2,000 μg/L
70 μg/L
70 μg/L
100 μg/L
50 μg/L
20 μg/L
0.4 μg/L
10 μg/L
3 mg/L
20 μg/L
70 μg/L
200 μg/L
200 μg/L
See note below.2
Vinyl chloride
0.3 μg/L
PESTICIDES USED IN WATER FOR PUBLIC HEALTH
Chlorpyrifos
30 μg/L
DDT and metabolites
1 μg/L
Permethrin
300 μg/L
Pyriproxyfen
300 μg/L
CYANOTOXIN
Microcystin-LR
1 μg/L
1 For effective disinfection, a concentration of free chlorine of≥ 0.5 mg/L after at least 30 minutes at pH <
8 standard units should be residual.
2 The sum of the ratio of the concentration of each to its respective guideline value should not exceed 1.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
246
WHO Acceptable Consumer Drinking Water Guideline Values (Not Significant to
Health)
Chemical
Guideline Value
Aluminum
0.2 mg/L
35 mg/L (taste)
1.5 mg/L (odor)
250 mg/L
15 true color units (TCUs)
0.05 to 0.1 mg/L
0.3 mg/L
6.5 to 9.5 standard units
0.1 mg/L
200 mg/L
250 mg/L
Not observable
Cooler
100 to 300 mg/L
Ammonia
Chloride
Color
Hydrogen sulfide
Iron
pH
Silver
Sodium
Sulfate
Taste and odor
Temperature
Total hardness
Total
solids
Turbidity
Zinc
dissolved
1,200 mg/L
5 nephelometric turbidity units
(NTUs) (appearance)
0.1 NTU (effective
disinfection)
3 mg/L
Wastewater quality will be managed by collecting and treating liquid effluent. Liquid
effluent includes storm water, process effluents, drainage (from the active mine, disposal
sites for overburden, valueless rock, etc.), surface runoff from paved or unpaved areas,
and sanitary wastewater. In addition to the mining effluent guidelines, guidelines exist for
accidental discharge and prevention of groundwater pollution.
The IFC EHS Guidelines for Mining contain limitations for such parameters as pH, fiveday BOD, oil and grease, TSS, and temperature. The Table below displays the IFC
Liquid Effluent Guidelines, which summarize the maximum contaminant concentrations
in liquid effluent under normal operating conditions.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
247
IFC EHS Mining Effluent Guidelines
Parameter1
TSS
pH
Chemical oxygen demand
Five-day BOD
Oil and grease
Arsenic
Cadmium
Chromium, hexavalent
Copper
Cyanide
Cyanide free
Cyanide WAD
Iron
Lead
Mercury
Nickel
Phenols
Zinc
Temperature2
Guideline Value
50 mg//L
6 to 9 standard units
150 mg/L
50 mg/L
10 mg/L
0.1 mg/L
0.05 mg/L
0.1 mg/L
0.3 mg/L
1 mg/L
0.1 mg/L
0.5 mg/L
2.0 mg/L
0.2 mg/L
0.002 mg/L
0.5 mg/L
0.5 mg/L
0.5 mg/L
< 3 degrees Celsius (ºC) differential
1 Metal concentration represents total metals.
2 Effluent temperatures should not result in an increase of more than
3ºC of the ambient temperature at the edge of the scientifically
established mixing zone which accounts for ambient water quality,
receiving water use, and assimilative capacity among other
considerations.
Waste
Waste management will be planned, designed and implemented such that geotechnical
risks and environmental impacts are addressed throughout the life of the mine. Wastes
may include valueless rock, tailings, workshop scrap, household waste, non-process
related industrial waste, and waste oils and chemicals.
Solid waste disposal will be performed in an environmentally secure manner. Recycling
or reclaiming material will be encouraged, and, if not practical, the waste will be
disposed in an environmentally acceptable manner that complies with local laws and
regulations.
Valueless Rock Management Areas (VRMA) for materials with high potential for
generating acid leachate from oxidation or percolating water will be engineered to
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
248
minimize inflow of clean water to them; and, to collect and re-use and/or treat out-flow
water from these facilities. Solvents and other hazardous materials will not be disposed of
in a manner likely to result in soil, surface water, or groundwater contamination.
Illumination
The following Table shows the minimum average illumination limits for travel paths and
work areas of the Project area.
IFC Mining EHS Standards for Minimum Average Illumination for Designated Mine
Locations and Activities
Minimum Average Illumination
(Lux)
Location/Activity
Emergency lighting
Walkways and passages
5
5 - 10
Dynamic locations (production
and development areas)
5 - 50
Areas with occasional
simple manual tasks
and
50 - 100
Workstations and areas with
medium to high precision
manual tasks
150 - 400
IFC General EHS Noise Guidelines
One-Hour LAeq (dBA)
Receptor
Day
(07:00 to
22:00)
Night
(22:00 to
07:00)
Residential, institutional,
educational
55
45
Industrial, commercial
70
70
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
249
WHO Noise Level Guidelines
Specific Environment
Indoor
dwelling
school class room
and
Outdoor living area
Industrial,
commercial
shopping and traffic areas,
indoors and outdoors
Laeq
(dBA) a
Time
Base
(hours)
LAmax
fast
(dBA) b
30 to 35
variable
variable
50 to 55
16
--
70
24
110
Source: WHO, 1999
a LAeq (dBA) = long-term A-weighted sound pressure level equivalent
b LAmax fast (dBA) = maximum A-weighted sound pressure level at
the “fast” meter setting
IFC General EHS Noise Limits for Various Working Environments
Eight-Hour
LAeq (dBA)
LAmax fast
(dBA)
85
110
Light industry (decreasing need for oral
communication)
50 to 65
110
Open offices, control rooms, service counters, or
similar
45 to 50
--
Individual offices (no noise disturbance)
Classrooms, lecture halls
Hospitals
40 to 45
35 to 40
30 to 35
--40
Location/Activity
Heavy industry (no need for oral communication)
Workers will utilize hearing protection capable of reducing sound levels at the ear to at
least 85 dBA when:
•
•
•
exposed to a sound pressure level above 85 dBA more than eight hours per day;
exposed to an instantaneous peak sound pressure level of more than 140 Cweighted sound pressure level (dBC); and,
the average maximum sound pressure level is equal to or more than 110 dBA.
Large equipment may be equipped with soundproof cabs. Workers exposed to high noise
levels will have periodic hearing assessments.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
250
Vibration
Typically, blasting activities produce the most significant vibrations at a mine. Vibrations
may be minimized by: utilizing mechanical ripping instead of explosives; developing a
blast design based on the results from a blasting-surfaces survey and a drill-hole survey;
utilizing specific blasting pans, correct charging procedures and blast ratios; utilizing
delayed/micro-delayed or electronic detonators, and specific in-situ blasting tests;
implementing good vibration and overpressure control; and, adequately designing the
foundations of vibrating equipment. Vibration threshold limit values are provided by the
ACGIH. Exposure levels will be monitored and recorded on a daily basis.
Occupational Health and Safety Monitoring
As part of an established occupational health and safety program, monitoring will be
performed by accredited professionals (e.g., certified industrial hygienists, registered
occupational hygienists, certified safety professionals). These accredited professionals
will design, implement, monitor, and audit health and safety throughout the workplace.
Proper occupational health and safety records will be maintained throughout the life of
the Project.
Emergency Preparedness and Response
An Emergency Response Plan will be established in accordance with the United Nations
Environment Program (UNEP) Awareness and Preparedness for Emergencies at the
Local Level (APPEL) for Mining (2001). Workers, as well as community emergency
response personnel, will be trained to apply the Emergency Response Plan.
IFC’s Disclosure of Information Policy
IFC adopted its current Policy on Disclosure of Information in April 2006 (2006b). The
policy stipulates public consultation and disclosure requirements (including timing) for
projects requesting IFC funding. Ratel has voluntarily committed to following this policy
for the King-King Project.
World Bank Policies
Anti-Corruption Strategy
The World Bank states that corruption undermines development by distorting laws and
weakening the institutional foundation on which economic growth depends. Therefore,
the World Bank has identified corruption as one of the greatest obstacles to the Bank’s
mission and purpose, which is:
•
•
to promote open and competitive markets in developing countries;
to support companies and other private sector partners;
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
•
•
251
to generate productive jobs and deliver basic services; and,
to create opportunity for people to escape poverty and improve their lives.
Ratel will be supportive of this World Bank Policy at its King-King Project in The
Philippines.
The World Bank’s anticorruption policy comprises five key elements:
•
•
•
•
•
increasing political accountability;
strengthening civil society participation;
creating a competitive private sector;
establishing institutional restraints on power; and,
improving private sector management.
Increasing Political Accountability
Political accountability is defined as the constraints placed on the behavior of public
officials by organizations and constituencies that are able to apply sanctions. This largely
depends on the effectiveness of the sanctions and the monitoring of public officials by
accountability institutions. Sanctions can be more effective by: maintaining political
competition that exposes corruption and holds candidates accountable; establishing a
well-designed mechanism for political party financing; promoting the transparency of
political activities through free and vibrant media; as well as establishing and enforcing
rules and legal instruments to deter corrupt behavior.
Strengthening Civil Society Participation
Civil society is composed of, but not limited to, citizens groups, NGOs, trade unions,
business associations, think tanks, academia, religious organizations and the media. Civil
society mediates between the state and the public with a stake in good governance. When
adhering to high standards of accountability, transparency and democratic management,
civil society effectively: increases public awareness, adds pressure to politicians, and
incorporates the various sectors which may otherwise lack representation.
Creating a Competitive Private Sector
Broad-based economic development is supported by a fair, competitive, honest and
transparent private sector. However, a few powerful economic interests can, at times,
strongly influence the decisions and policies of the state. Economic policy liberalization,
enhanced competition, regulatory reform, good corporate governance, transnational
cooperation, and the promotion of business associations, trade unions, and concerned
parties may be utilized to balance economic interests.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
252
Establishing Institutional Restraints on Power
The state, in particular, may be institutionally restrained from committing abuses by the
separation of powers (e.g., executive, legislative, judicial) and the establishment of
checks and balances among these powers. Several components need be established to
create an institutionally restrained state.
A system of rules is fundamental to a functioning society. As such, an independent,
competent, and clean judicial system is necessary to avoid corruption. Once established,
this judicial system upholds the daily rule of law. Anti-corruption laws then deter
corruption and prosecute corruptors. In addition, corruption is deterred through
predictable, transparent, and accountable government decision-making as well as audits
by government-supported organizations with a core of strong, independent, and credible
professionals in the judicial, prosecutorial, and police arms of the state. By enforcing the
anti-corruption laws, the principle of justice is instilled amongst society.
Improving Private Sector Management
Another anti-corruption strategy is to reform the internal management of public resources
and administration to minimize or eliminate the incentive and opportunities for
corruption. Public sector finance and management reform requires:
•
•
•
•
the institution of meritocratic systems for appointment, promotion, and performance
evaluation that promote adequate pay and regularize benefits;
enhanced transparency and accountability with respect to budget management, taxes,
and customs;
sectoral-service-delivery policy reforms; and,
service delivery decentralization held accountable through pre-established systems of
financial management and auditing.
Equator Principles
The Equator Principles are voluntary international guidelines adopted by the Equator
Principles Financial Institutions (EPFI) 1. These include many financial institutions
involved in project finance in the extractive sector around the world. The Equator
Principles are intended to help investors manage environmental and social risks, which
may be associated with international project financing. In general, the Equator Principles
are derived from the IFC/World Bank requirements, particularly IFC’s Performance
Standards. Some of the conditions of the Equator Principles are as follows:
1
EP Financial Institutions include: ABN AMRO Bank, N.W., Banco Bradesco, Banco do Brasil, Banca
Intesa, Banco Itau BBA, Bank of America, BMO Financial Group, Barclays plc, BBVA, BES Group, Caja
Navarra, Calyon, COBC, Citigroup Inc., Credit Suisse Group, Dexia Group, Dresdner Bank, EKF, FMO,
HBOS, HSBC Group, HVB Group, ING Group, JPMorgan Chase, KBC, Manulife, MCC, Mizuho
Corporate Bank, Nedbank Group, Rabobank Group, Royal Bank of Canada, Scotiabank, Standard
Cahrtered Bank, The Royal Bank of Scotland, Unibanco, Wells Fargo, WestLB AG, Westpac Banking
Corporation
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
•
•
•
•
•
253
The project risk must be categorized following the environmental and social
screening criteria of IFC.
An Environmental Assessment must be completed for all Category A and Category B
projects.
The Environmental Assessment report must address compliance with applicable host
country laws, regulations, and permits required by the project; and, at least reference
the guidelines and safeguard policies applicable under the World Bank and IFC
PPAH guidelines.
Where appropriate, an Environmental Management Plan must be prepared to address
mitigation, action plans, monitoring, management of risk and schedules.
Where appropriate, public consultation must be conducted to make the Environmental
Assessment (or its summary) available to the public for a reasonable period.
Therefore, investors who adopt the voluntary Equator Principles are making a
commitment to promote environmental stewardship and socially responsible
development. At the same time, investors believe that following the Equator Principles
will help reduce the financial and reputational risk of the projects they wish to finance.
Ratel is committed to employing the Equator Principles into the design, operation and
closure of its King-King Project in The Philippines.
The Equator Principles are described as follows:
Principle 1 - Review and Categorization: EPFI will, as part of its internal social and
environmental review and due diligence, categorize the project based on potential
impacts and risks in accordance with the environmental and social screening criteria of
IFC.
Principle 2 - Social and Environmental Assessment: For a project assessed as being a
Category A (with potential significant adverse social or environmental impacts that are
diverse, irreversible, or unprecedented), or Category B (with potential limited adverse
social or environmental impacts that are fewer in number, generally site-specific, largely
reversible and readily addressed through mitigation measures), the borrower is expected
to conduct a Social and Environmental Assessment process to address relevant social and
environmental impacts and risks, and propose relevant mitigation and management
measures.
Principle 3 - Applicable Social and Environmental Standards: For projects located in nonmember countries of the Organization for Economic Cooperation and Development
(OECD), as well as OECD countries not designated as high-income, the ESIA will refer
to the then applicable IFC Performance Standards and applicable industry-specific EHS
Guidelines. The ESIA will establish overall compliance with, or justified deviation from,
the respective Performance Standards and EHS Guidelines. In addition, the ESIA process
will address compliance with relevant host country laws, regulations and permits that
pertain to social and environmental matters.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
254
Principle 4 - Action Plans and Management System: For all Category A and Category B
projects located in non-OECD countries, and those located in OECD counties not
designated as high-income, the borrower will prepare an Action Plan to address the
relevant findings and conclusions of the ESIA, and describe and prioritize the actions
necessary to implement mitigation measures, corrective actions, and monitoring
measures. The borrower will build on, maintain or establish a Social and Environmental
Management System that addresses the management of these impacts, risks, and
corrective actions required to comply with applicable host country social and
environmental laws and regulations, and requirements of the applicable IFC Performance
Standards and EHS Guidelines.
Principle 5 - Consultation and Disclosure: For all Category A and, as appropriate,
Category B projects located in non-OECD countries, and those located in OECD
countries not designated as high-income, the government, borrower, or third-party expert
will consult with project-affected communities in a structured and culturally appropriate
manner. For projects with significant adverse impacts on affected communities, the
process will ensure their free, prior, and informed consultation and facilitate their
informed participation as a means to establish whether a project has adequately
incorporated the affected communities’ concerns. This requires that the ESIA
documentation and Action Plans, or non-technical summaries thereof, be accessible to the
public for a reasonable minimum period in the relevant local language and in a culturally
appropriate manner. The borrower will record and address the process and results of the
consultation, including agreements. For projects with adverse social and environmental
impacts, disclosure should occur early in the ESIA process and, in any event, before
project construction commences, and on an ongoing basis.
Principle 6 - Grievance Mechanism: For all Category A and, as appropriate, Category B
projects located in non-OECD countries, and those located in OECD countries not
designated as high-income, the borrower will, scaled to the risks and adverse impacts of
the project, establish a grievance mechanism as part of the management system to ensure
that consultation, disclosure and community engagement continues throughout
construction and operation of the project. The borrower will inform the affected
communities about the mechanism in the course of its community engagement process
and ensure that the mechanism addresses concerns promptly and transparently, in a
culturally appropriate manner, and is readily accessible to all segments of the affected
communities.
Principle 7 - Independent Review: For all Category A and, as appropriate, Category B
projects, an independent social or environmental expert not directly associated with the
borrower will review the ESIA, Action Plans and consultation process documentation in
order to assist EPFI's due diligence and assess compliance with the Equator Principles.
Principle 8 - Covenants: For Category A and B projects, the borrower will covenant in
financing documentation: (a) compliance with all relevant host country social and
environmental laws, regulations and permits in all material respects; (b) compliance with
the Action Plans, where applicable, during the construction and operation of the project
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
255
in all material respects; and (c) delivery on at least an annual basis of periodic reports that
are prepared by in-house staff or third party experts and that (i) document compliance
with the Action Plans, where applicable, and (ii) provide representation of compliance
with relevant local, state and host country social and environmental laws, regulations and
permits; and (d) decommissionment of the facilities, where applicable and appropriate, in
accordance with an agreed decommissioning plan.
Principle 9 - Independent Monitoring and Reporting: For all Category A and, as
appropriate, Category B projects, EPFI will require appointment of an independent
environmental and/or social expert, or require that the borrower retain qualified and
experienced external experts to verify its monitoring information that would be shared
with EPFI.
Principle 10 - EPFI Reporting: Relating to EPFI’s own reporting commitments under the
Equator Principles, each EPFI adopting the Equator Principles commits to report publicly
at least annually about its implementation processes and experience of the Equator
Principles, taking into account appropriate confidentiality considerations.
Voluntary Principles on Security and Human Rights
The Voluntary Principles on Security and Human Rights were developed to “guide
companies in monitoring the safety and security of their operations within an operating
framework that ensures respect for human rights and fundamental freedoms.” These
voluntary principles were developed by the governments of the United States, the United
Kingdom, Norway and the Netherlands, plus companies operating in the extractive and
energy sectors and non-governmental organizations, all with an interest in human rights
and corporate social responsibility. The criteria for participation were finalized in 2007.
Ratel will maintain its own security staff to provide security for the King-King Project
site, its activities and workers. The potential sensitivities associated with the possible
presence of informal land users within the Project boundaries, and potential for land-use
conflicts, indicate the need to consider and adhere to good international practices on
security and human rights. This includes a commitment by Ratel to follow the “Voluntary
Principles on Security and Human Rights.”
The Voluntary Principles recognize that governments have primary responsibility to
promote and protect human rights and that all parties to a conflict are obliged to observe
applicable international humanitarian law. Applicable international standards include the
United Nations Code of Conduct for Law Enforcement Officials and the United Nations
Basic Principles on the Use of Force and Firearms by Law Enforcement Officials.
The Voluntary Principles regarding security and human rights in the extractive sector fall
into three categories: risk assessment, relations with public security, and relations with
private security, as detailed below.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
256
Risk Assessment
Accurate and effective risk assessments should consider the following factors:
Identification of security risks. Security risks can result from political, economic, civil or
social factors. Moreover, certain personnel and assets may be at greater risk than others.
Identification of security risks allows a company to take measures to minimize risk and to
assess whether company actions may heighten risk.
Potential for violence. Depending on the environment, violence can be widespread or
limited to particular regions, and it can develop with little or no warning. Civil society,
home and host government representatives, and other sources should be consulted to
identify risks presented by the potential for violence. Risk assessments should examine
patterns of violence in areas of company operations for educational, predictive, and
preventative purposes.
Human rights records. Risk assessments should consider the available human rights
records of public security forces, paramilitaries, local and national law enforcement, as
well as the reputation of private security. Awareness of past abuses and allegations can
help companies to avoid recurrences as well as to promote accountability. Also,
identification of the capability of the above entities to respond to situations of violence in
a lawful manner (i.e., consistent with applicable international standards) allows
companies to develop appropriate measures in operating environments.
Rule of law. Risk assessments should consider the local prosecuting authority and
judiciary's capacity to hold accountable those responsible for human rights abuses and for
those responsible for violations of international humanitarian law in a manner that
respects the rights of the accused.
Conflict analysis. Identification of and understanding the root causes and nature of local
conflicts, as well as the level of adherence to human rights and international humanitarian
law standards by key actors, can be instructive for the development of strategies for
managing relations between the company, local communities, company employees and
their unions, and host governments. Risk assessments should also consider the potential
for future conflicts.
Equipment transfers. Where companies provide equipment (including lethal and nonlethal equipment) to public or private security, they should consider the risk of such
transfers, any relevant export licensing requirements, and the feasibility of measures to
mitigate foreseeable negative consequences, including adequate controls to prevent
misappropriation or diversion of equipment which may lead to human rights abuses. In
making risk assessments, companies should consider any relevant past incidents
involving previous equipment transfers.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
257
Interactions between Companies and Public Security
In an effort to reduce the risk of abuses and to promote respect for human rights
generally, the following Voluntary Principles can guide relationships between companies
and public security regarding security provided to companies:
Security Arrangements
•
•
•
Companies should consult regularly with host governments and local communities
about the impact of their security arrangements on those communities.
Companies should communicate their policies regarding ethical conduct and human
rights to public security providers, and express their desire that security be provided
in a manner consistent with those policies by personnel with adequate and effective
training.
Companies should encourage host governments to permit making security
arrangements transparent and accessible to the public, subject to any overriding safety
and security concerns.
Deployment and Conduct
The primary role of public security should be to maintain the rule of law, including
safeguarding human rights and deterring acts that threaten company personnel and
facilities. The type and number of public security forces deployed should be competent,
appropriate and proportional to the threat.
Equipment imports and exports should comply with all applicable law and regulations.
Companies that provide equipment to public security should take all appropriate and
lawful measures to mitigate any foreseeable negative consequences, including human
rights abuses and violations of international humanitarian law.
Companies should use their influence to promote the following principles with public
security: (a) individuals credibly implicated in human rights abuses should not provide
security services for companies; (b) force should be used only when strictly necessary
and to an extent proportional to the threat; and (c) the rights of individuals should not be
violated while exercising the right to exercise freedom of association and peaceful
assembly, the right to engage in collective bargaining, or other related rights of company
employees as recognized by the Universal Declaration of Human Rights and the ILO’s
Declaration on Fundamental Principles and Rights at Work.
In cases where physical force is used by public security, such incidents should be
reported to the appropriate authorities and to the company. Where force is used, medical
aid should be provided to injured persons, including to offenders.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
258
Consultation and Advice
Companies should hold structured meetings with public security on a regular basis to
discuss security, human rights and related work-place safety issues. Companies should
also consult regularly with other companies, host and home governments, and civil
society to discuss security and human rights. Where companies operating in the same
region have common concerns, they should consider collectively raising those concerns
with the host and home governments.
In their consultations with host governments, companies should take all appropriate
measures to promote observance of applicable international law enforcement principles,
particularly those reflected in the United Nations Code of Conduct for Law Enforcement
Officials and the United Nations Basic Principles on the Use of Force and Firearms.
Companies should support efforts by governments, civil society and multilateral
institutions to provide human rights training and education for public security as well as
their efforts to strengthen state institutions to ensure accountability and respect for human
rights.
Responses to Human Rights Abuses
•
•
•
Companies should record and report any credible allegations of human rights abuses
by public security in their areas of operation to appropriate host government
authorities. Where appropriate, companies should urge investigation and that action
be taken to prevent any recurrence.
Companies should actively monitor the status of investigations and press for their
proper resolution.
Companies should, to the extent reasonable, monitor the use of equipment provided
by the company and to investigate properly situations in which such equipment is
used in an inappropriate manner.
Every effort should be made to ensure that information used as the basis for allegations of
human rights abuses is credible and based on reliable evidence. The security and safety of
sources should be protected. Additional or more accurate information that may alter
previous allegations should be made available as appropriate to concerned parties.
Interactions between Companies and Private Security
Where host governments are unable or unwilling to provide adequate security to protect a
Company’s personnel or assets, it may be necessary to engage private security providers
as a complement to public security. In this context, private security may have to
coordinate with state forces, (law enforcement, in particular) to carry weapons and to
consider the defensive local use of force. Given the risks associated with such activities,
the following Voluntary Principles can guide private security conduct.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
•
•
•
•
259
Private security should observe the policies of the contracting company regarding:
ethical conduct and human rights; the law and professional standards of the country in
which they operate; emerging best practices developed by industry, civil society and
governments; and promote the observance of international humanitarian law.
Private security should maintain high levels of technical and professional proficiency,
particularly with regard to the local use of force and firearms.
Private security should act in a lawful manner. They should exercise restraint and
caution in a manner consistent with applicable international guidelines regarding the
local use of force, including the United Nations Principles on the Use of Force and
Firearms by Law Enforcement Officials and the United Nations Code of Conduct for
Law Enforcement Officials, as well as with emerging best practices developed by
companies, civil society, and governments.
Private security should have policies regarding appropriate conduct and local use of
force (e.g., rules of engagement). Practice under these policies should be capable of
being monitored by companies or, where appropriate, by independent third parties.
Such monitoring should encompass: detailed investigations into allegations of
abusive or unlawful acts; the availability of disciplinary measures sufficient to
prevent and deter; and procedures for reporting allegations to relevant local law
enforcement authorities when appropriate.
All allegations of human rights abuses by private security should be recorded. Credible
allegations should be properly investigated. In those cases where allegations against
private security providers are forwarded to the relevant law enforcement authorities,
companies should actively monitor the status of investigations and press for their proper
resolution.
Consistent with their function, private security should provide only preventative and
defensive services and should not engage in activities exclusively the responsibility of
state military or law enforcement authorities. Companies should designate services,
technology and equipment capable of offensive and defensive purposes as being for
defensive use only.
Private security should: (a) not employ individuals credibly implicated in human rights
abuses to provide security services; (b) use force only when strictly necessary and to an
extent proportional to the threat; and (c) not violate the rights of individuals while
exercising the right to exercise freedom of association and peaceful assembly, to engage
in collective bargaining, or other related rights of company employees as recognized by
the Universal Declaration of Human Rights and ILO’s Declaration on Fundamental
Principles and Rights at Work.
In cases where physical force is used, private security should properly investigate and
report the incident to the company. Private security should refer the matter to local
authorities and/or take disciplinary action where appropriate. Where force is used,
medical aid should be provided to injured persons, including offenders.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
260
Private security should maintain the confidentiality of information obtained as a result of
its position as security provider, except where to do so would jeopardize the principles
contained herein.
To minimize the risk that private security exceeds the authority as providers of security,
and to promote respect for human rights generally, the following additional Voluntary
Principles and guidelines have been developed:
•
•
Where appropriate, companies should include the principles outlined above as
contractual provisions in agreements with private security providers and ensure that
private security personnel are adequately trained to respect the rights of employees
and the local community. To the extent practicable, agreements between companies
and private security should require investigation of unlawful or abusive behavior and
appropriate disciplinary action. Agreements should also permit termination of the
relationship by companies where there is credible evidence of unlawful or abusive
behavior by private security personnel.
Companies should consult and monitor private security providers to ensure they
fulfill their obligation to provide security in a manner consistent with the principles
outlined above. Where appropriate, companies should seek to employ private security
providers that are representative of the local population.
International SEIA/SEMMP
Ratel is committed to conducting an international SEIA/SEMMP for its King-King
Project that meets all applicable aspects of this IFC Performance Standard, as well as, the
requirements of the Equator Principles. Ratel has developed a draft “Table of Contents”
(TOC) for the prospective King-King Project that shows the broad scope and
comprehensiveness of such an SEIA/SEMMP study and report. This draft TOC is
included below.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
261
King-King Project
Republic of the Philippines
Preliminary Recommended Report Structure
International Social & Environmental Impact Assessment
(SEIA) &
Social and Environmental Management and Monitoring
Plan (SEMMP)
with Key Figures, Tables, and Appendices
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
262
Executive Summary
1.0
Introduction
1.1
Background
1.2
Methodology
1.3
General Structure
1.4
Contributors to the I-SEIA
2.0
Project Description
2.1
Overview
2.2
Property Description and Ownership
2.2.1
Mineral Rights, Contracts, and Easements
2.2.2
Land Clearing Assumptions
2.3
Project Geology
2.3.1
Regional and Local Geology
2.3.2
Mineralization
2.3.3
Exploration
2.3.4
Resource Modeling
2.3.5
Resource Statement
2.3.6
Reserve Estimate
2.4
Metallurgy
2.4.1
Testwork
2.5
Regional Infrastructure
2.6
Local Infrastructure
2.6.1
Electric Power
2.6.2
Roads and Transportation
2.6.3
Schools/Education Facilities
2.6.4
Medical/Hospital Facilities
2.6.5
Water Supplies
2.6.6
Other
2.7
Mine Design
2.7.1
Design Summary
2.7.2
Mine Operations
2.8
Project Infrastructure
2.8.1
Support Infrastructure
2.8.1.1 Electric Power
2.8.1.2 Roads
2.8.1.3 Administration Building
2.8.1.4 Plant Warehouse and Maintenance Building
2.8.1.5 Camp Facilities
2.8.1.6 Mine Truck Shop and Maintenance Building
2.8.1.7 Construction Laydown Area
2.8.1.8 Reagent Storage Building
2.8.1.9 Fueling Stations
2.8.1.10 Guardhouse for Explosive Storage
2.8.1.11 Explosive Storage
2.8.1.12 Water Supplies
2.8.1.13 Water Diversions
2.8.1.14 Sewage Treatment
2.8.1.15 Solid Waste Disposal
2.8.1.16 Topsoil Management Facilities
2.8.1.17 Merchantable and non-merchantable timber stockpiles
2.8.1.18 Ancillary Facilities
2.8.1.19 Safety and Fire Protection
2.8.1.20 Security
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
2.8.2
Operational Infrastructure
2.8.2.1 Open Pit
2.8.2.2 Overburden/Valueless Rock Storage
2.8.2.3 Ore Stockpiles
2.8.2.4 Processing Facilities
2.8.2.5 Tailings Management Facility
263
2.9
Open Pit
2.9.1
Location
2.9.2
Design
2.9.3
VRMA and Water Management
2.10
Overburden/Valueless Rock Storage
2.10.1 Location
2.10.2 Design
2.10.3 Storage Capacity
2.10.4 Management
2.11
Ore Stockpiles
2.11.1 Location
2.11.2 Design
2.11.3 Storage Capacity
2.11.4 Management
2.12
Processing Facilities
2.12.1 Location
2.12.2 Design
2.12.3 Capacity
2.12.4 Management
2.13
Tailings Disposal and Management
2.13.1 Tailings Management Facility (TMF) Site Location
2.13.2 TMF Design
2.13.3 Storage Capacity
2.13.4 TMF Water Management
2.14
Site Water Management
2.14.1 Site Water Management Analysis Methodology
2.15
Management Practices
2.16
Owner’s Implementation Plan for Social and Environmental Matters
2.17
Mine Reclamation and Closure Plan
Tables
• Primary Production Parameters
• Estimated Project Footprint
• Mineral Resources
• Metallurgical Process Design Summary
• Project Schedule
Figures
• Location Map
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
• Area of Land Clearing
• Project Area Geology Map
• Project Area Geologic Cross-Sections
• Infrastructure and Facility Layout
• Infrastructure and Facility Layout at Project Completion
• Process Flow Sheet
• TMF Structure Design
• Valueless Rock Storage Design
3.0
264
Area of Influence
3.1
Affected Area
3.2
Affected Public
Figures
• Map of Potentially Affected Area
• Landowners within Project Boundaries
• Potentially Affected People in the Local Area of Influence
4.0
Regulatory Framework
4.1
Introduction
4.2
Republic of the Philippines Legal and Institutional Framework
4.2.1
Background
4.2.1.1 Government Overview
4.2.1.2 Constitution
4.2.1.3 Key Laws and Regulations Related to Mining
4.2.1.4 Environmental Laws, Policies, Programs and EIA Process
4.2.2
Laws and Regulations by Key Issues and Project Activities
4.2.2.1 Public Consultation
4.2.2.2 Indigenous Peoples
4.2.2.3 Forest Clearing
4.2.2.4 Earth Moving
4.2.2.5 River Diversion and Sedimentation
4.2.2.6 Road Building
4.2.2.7 Water
4.2.2.8 Air Quality
4.2.2.9 Explosives
4.2.2.10 Toxic and Hazardous Substances and Wastes
4.2.2.11 Conventional Waste Disposal
4.2.2.12 Noise
4.2.2.13 Transportation and Shipping
4.2.2.14 Worker Health and Safety
4.2.2.15 Biodiversity
4.3
International Performance Standards and Principles
4.3.1
IFC Standards, Guidelines and Policies
4.3.1.1 IFC Performance Standards
4.3.1.2 IFC General EHS Guidelines
4.3.1.3 IFC EHS Guidelines for Mining
4.3.1.4 IFC’s Disclosure of Information Policy
4.3.1.5 IFC Performance Indicators and Monitoring
4.3.2
World Bank Policies
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
4.3.2.1 Anti-Corruption Strategy
4.3.3
Equator Principles
4.3.4
Voluntary Principles on Security and Human Rights
4.3.4.1 Risk Assessment
4.3.4.2 Interactions between Companies and Public Security
4.3.4.3 Security Arrangements
4.3.4.4 Deployment and Conduct
4.3.4.5 Consultation and Advice
4.3.4.6 Responses to Human Rights Abuses
4.3.4.7 Interactions between Companies and Private Security
265
Tables
• Republic of the Philippines Government and Regulatory Agencies
• Republic of the Philippines Environmental Laws
• Republic of the Philippines Environmental Standards
• World Health Organization (WHO) Ambient Air Quality Guidelines
• WHO Waterborne Pathogens and their Significance in Water Supplies
• WHO Drinking Water Guideline Values
• IFC EHS Mining Effluent Guidelines
• IFC Mining EHS Standards for Illumination
• IFC and WHO Noise Guidelines
• Guidelines for Ground Vibrations and Mine Blasting
Figures
Republic of the Philippines Administrative Units
Republic of the Philippines Permitting and EIA Process Schematic
•
•
5.0
Social and Cultural Baseline Conditions
5.1
Background
5.2
Areas of Influence
5.3
Indigenous Communities
5.3.1
Demographics
5.3.2
Governance Structures
5.3.3
Use of the Natural Resources
5.3.4
Sacred Places
5.3.5
Economic Activities
5.3.6
Vulnerable Groups
5.4
Social Infrastructure and Services
5.4.1
Housing
5.4.2
Transportation
5.4.3
Education
5.4.4
Health
5.4.5
Potable Water & Sewerage Facilities
5.4.6
Electricity
5.4.7
Solid Waste Removal & Disposal
5.4.8
Communications
5.5
Regional and National Context
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
5.6
Consultation and Needs Assessments
5.6.1
Background
5.6.2
Public Consultation
5.6.3
Surveys and Needs Assessments
5.7
266
Archaeological Resources
5.7.1
Site History
5.7.2
Literature Survey
5.7.3
Pedestrian Survey
5.7.4
Management Plan
Tables
• Regional Demographic Summary
• Predominant Indigenous Groups in the Area of Influence
• Natural Food Sources: Fish, Game and Plant Species
• Natural Resources Used for Handicrafts and Shelter
• Sacred Places
• Traffic Load near Project Area
• Social and Educational Infrastructure in the Local Area
• Key Issues Raised During Public Consultation Meetings
• Positive and Negative Project Expectations of Local People
Figures
Location Map of Indigenous Peoples
•
6.0
Environmental Baseline Conditions
6.1
Physical Conditions
6.1.1
Geology and Mineral Resources
6.1.1.1 Project Geology
6.1.1.2 Mineral Resources
6.1.2
Topography and Geomorphology
6.1.3
Seismicity
6.1.4
Soils
6.1.5
Sediment
6.1.6
Meteorology and Air Quality
6.1.6.1 Meteorology
6.1.6.2 Air Quality
6.1.7
Surface Water Hydrology
6.1.7.1 Project Area Fluvial Geomorphology
6.1.7.2 Stream Gaging
6.1.8
Groundwater
6.1.8.1 Groundwater Hydrology
6.1.8.2 Numerical (or Conceptual) Groundwater Flow Model
6.2
Chemical Conditions
6.2.1
Soil Chemistry
6.2.2
Sediment Chemistry
6.2.3
Air Quality
6.2.4
Water Quality
6.2.4.1 Surface Water Quality
6.2.4.2 Water Quality Associated with Acid Rock Drainage (ARD)
6.2.4.3 Groundwater Quality
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
6.3
267
Biological Conditions
6.3.1. Terrestrial Ecology
6.3.2
Aquatic Ecology
6.3.3
Threatened and Endangered Species
Tables
• Seismic Hazard Analysis
• Soil Particle Size Analysis and Organic Contents
• Sediment Particle Size Analysis and Organic Content
• Monthly Average Climate Data
• Rainfall Frequency Analysis
• Monthly Evaporation Data
• PM10 Measurements
• Streamflow Measurements
• Aquifer Hydraulic Parameters in the Project Area
• Soil Chemistry Analysis Results
• Sediment Chemistry Analysis Results
• Summary of International and Republic of the Philippines Water Quality Standards
• Surface Water Quality Results
• Groundwater Quality Results
• Flora Species in the Project Area
• Fauna Species in the Project Area
• Periphyton Sampling Results
• Benthic Macroinvertebrate Sampling Results
• IUCN Conservation Status of Flora and Fauna
Figures
• Project Area Geology Map
• Representative Stratigraphic Column
• Project Area Topographic Map
• Regional Seismic Hazard Map
• Soil and Sediment Sampling Locations
• Meteorological Stations Map
• Average Monthly Rainfall
• Monthly Wind Roses
• Air Quality Sampling Locations
• Rivers and Streams in the Project Area
• Stream Gaging and Surface Water and Groundwater Sampling Locations
• Conceptual Geologic and Hydrogeologic Models
• Hydrographs for Selected Boreholes or Wells
• Potentiometric Surface Map
• Pit Rock Sample Analytical Results
• Vegetation Communities in the Project Area
• Major Fauna Habitat Types in the Project Area
• Fish and Aquatic Biological Sampling Locations
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
268
Mindanao, Philippines
October 2010
7.0
Alternatives – Identification, Analysis, and Selection
7.1
General Project Configuration and Infrastructure
7.1.1
Power Lines
7.1.2
Access Roads
7.1.3
Support Facilities
7.1.3.1 Design Change Based on Republic of the Philippines EIA or International
SEIA Process
7.1.3.2 Effects on Impacts
7.1.3.3 Net Results of Design Change
7.1.4
Conveyor System and Processing Plant
7.2
Tailings Management Facility (TMF)
7.2.1
Siting Location
7.2.2
TMF Design Alternatives
7.2.2.1 Design Change Based on Republic of the Philippines EIA or International
SEIA Process
7.2.2.2 Design Concepts of Preferred Alternative
7.2.2.3 Effects of Design Change on Impacts
7.3
Valueless Rock Management Areas (VRMA)
7.3.1
Siting Location
7.3.2
Design Alternatives
7.3.2.1 Design Change Based on Republic of the Philippines EIA or International
SEIA Process
7.3.2.2 Design Concepts of Preferred Alternative
7.3.2.3 Effects of Design Change on Impacts
7.4
Ore Stockpiles
7.4.1
Siting Location
7.4.2
Design Alternatives
7.4.2.1 Design Change Based on Republic of the Philippines EIA or International
SEIA Process
7.4.2.2 Design Concepts of Preferred Alternative
7.4.2.3 Effects of Design Change on Impacts
7.5
Reclamation and Mine Pit Closure
7.6
Operational and Management Alternatives
7.7
Water Treatment Alternatives
7.7.1
Acid Rock Drainage (ARD) Treatment Alternatives
7.7.1.1 ARD Treatment Design Basis
7.7.1.2 Cost Estimation Basis
7.7.1.3 Analysis of Alternatives
7.7.2
TMF Treatment Alternatives
7.8
Sediment Control Alternatives
7.8.1
Design Change Based on Republic of the Philippines EIA or International SEIA
Process
7.8.2
Effects on Impacts
7.8.3
Net Results of Design Change
7.9
No Action Alternative
Tables
• Tailings Management Facility Location Evaluation
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
• Valueless Rock Management Areas Impact Comparisons
• ARD Treatment Alternative Comparisons
269
Figures
• Major Infrastructure Alternatives
• Tailings Management Facility Location Alternatives
• TMF Design Alternatives
• Valueless Rock Management Area Alternatives
• Mine Pit and Valueless Rock Management Areas (VRMA)Cross-Section at Closure
• ARD Treatment Alternatives
• TMF Treatment Alternatives
• Sediment Control Alternatives
• Typical Sedimentation Pond Schematic
8.0
Evaluation of Potential Impacts
8.1
Introduction
8.2
Socioeconomic Impacts
8.2.1
Introduction
8.2.2
Description of Impacts
8.2.2.1 Physical and/or Economic Relocation
8.2.2.2 Pressure on Natural Resources
8.2.2.3 Basic Infrastructure and Services
8.2.2.4 Community and Public Health Challenges
8.2.2.5 Crime and Security Problems
8.2.2.6 Changes in Settlement Patterns
8.2.2.7 Traditional Cultures, Languages and Customs
8.2.2.8 Ethnic, Cultural and Social Tensions
8.2.2.9 Unemployment and Economic Contraction
8.2.2.10 Landscape Quality
8.3
Environmental Impacts
8.3.1
Topography, Land Disturbance, and Soils
8.3.2
Air Quality
8.3.2.1 Source Inventory
8.3.2.2 Air Impacts
8.3.2.3 Secondary Air Impacts
8.3.3
Impacts to Surface Water Hydrology & Quality
8.3.3.1 Construction
8.3.3.2 Operations
8.3.3.3 Impacts of Reclamation and Closure
8.3.4
Groundwater Hydrology and Quality
8.3.4.1 Groundwater Hydrology
8.3.4.2 Groundwater Quality
8.3.5
Terrestrial Ecology
8.3.5.1 Flora
8.3.5.2 Fauna
8.3.6
Aquatic Ecology
8.3.7
Impacts to Threatened, Endangered, Sensitive, and Endemic Species
8.3.7.1 Flora
8.3.7.2 Fauna
8.3.8
Other Potential Impacts
8.3.8.1 Noise and Vibration
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
8.3.8.2 Light and Illumination
8.4
270
Regional, Cumulative, and Induced Impacts
8.4.1
Introduction
8.4.2
Methodology
8.4.3
Social Impacts
8.4.3.1 Existing Conditions
8.4.3.2 Potential Cumulative Impacts
8.4.4
Water Quality
8.4.4.1 Existing Conditions
8.4.4.2 Potential Cumulative Impacts
8.4.5
Groundwater Hydrology
8.4.5.1 Existing Conditions
8.4.5.2 Potential Cumulative Impacts
8.4.6
Traffic Impacts in the Region
8.4.6.1 Existing Conditions
8.4.6.2 Potential Cumulative Impacts
8.4.7
Biodiversity Impacts
8.4.7.1 Existing Conditions
8.4.7.2 Potential Cumulative Impacts
8.4.8
Summary of Impacts
Tables
• Socioeconomic Impact Matrix
• Anticipated Cumulative Traffic Load in Local Area
• Estimated Project Footprint
• Estimated Emissions and Greenhouse Gas Emissions from Operations
• Ambient Air Quality Impacts Compared to Applicable Standards
• 24-hour Design Storm Rainfall Depths
• Mine Pit Discharge, Receiving Water Quality and Relevant Standards
• TMF Discharge, Receiving Water Quality and Relevant Standards
• Species List of Aquatic Receptors
• Distances from Local Villages to Estimated Cone of Depression
• Approximate Affected and Unaffected Areas of Forest Types
• Loss of Aquatic Habitat Associated with Project Infrastructure
• Endangered or Vulnerable Species Potentially Found in Project Area
• World Bank Noise Guidelines
• Guidelines for Ground Vibrations and Airblast for Mine Blasting
• Impact Assessments Matrix
Figures
Stream Diversion, Groundwater Discharge, and Changes to Local Streams
Predicted Migration of Acid Rock Drainage at Valueless Rock Management Area
Post-Mining Conceptual Groundwater Flow Schematic
Potentiometric Surface Map at the End of Mining Operations
•
•
•
•
9.0
Proposed Preventative and Mitigative Measures
9.1
Introduction
9.2
Socioeconomic Mitigation Measures
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
9.3
Air Quality
271
9.4
Water Quality
9.4.1
Site Water Management
9.4.1.1 Management Practices
9.4.1.2 Design Approach
9.4.1.3 Water Management Design
9.4.2
Point Source Discharges
9.4.2.1 TMF Effluent
9.4.2.2 PAG Rock Stockpiles
9.4.2.3 Sewage Treatment and Disposal
9.4.3
Non-Point Source Discharges
9.4.4
Accidents and Spills of Mine Reagents or Process Solutions
9.5
Reclamation and Re-Vegetation
9.5.1
General
9.5.2
Reclamation Planning Strategy
9.5.3
Reclamation and Closure Approach
9.5.4
Tailings Management Facility
9.5.4.1 Tailings Impoundment Closure and Reclamation Plan
9.5.4.2 Tailings Embankment Closure and Reclamation Plan
9.5.5
Open Pit
9.5.5.1 Pit Closure and Reclamation Plan
9.5.6
Valueless Rock Management Areas
9.5.6.1 Valueless Rock Management Areas Closure and Reclamation Plan
9.5.7
Sediment Control Ponds
9.5.7.1 Sediment Control Pond Closure and Reclamation Plan
9.5.8
Roadways
9.5.8.1 Roadway Closure and Reclamation Plan
9.5.9
Reclamation and Closure Plan Implementation
9.5.10 Progressive Reclamation
9.5.11 Forest Clearing and Re-Vegetation Plan
9.5.11.1 Clearing
9.5.11.2 Stabilization of Slopes
9.5.11.3 Re-Vegetation of Slopes
9.5.11.4 Re-Forestation
9.5.11.5 Costs
9.5.12 Post-Closure Monitoring
9.5.12.1 Timeframes
9.5.12.2 Reporting
9.5.12.3 Closure Monitoring Objectives
9.5.12.4 Reclamation Period Monitoring
9.5.12.5 Abandonment Period Monitoring
9.6
Erosion and Sediment Control
9.6.1
Pre-Construction Phase
9.6.2
Construction Phase
9.6.3
Operation Phase
9.6.4
Reclamation Phase
9.7
Protection of Flora and Fauna
9.7.1
Inventories of Biodiversity
9.7.1.1 Updating the Baseline - Standardized Inventory Methodology
9.7.1.2 Impacts Targeted
9.7.1.3 Costs
9.7.2
Monitoring Biodiversity Issues- Biodiversity Management Plan
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
9.7.2.1 Impacts Targeted
9.7.2.2 Costs
9.7.3
Specific Mitigation Strategy for Each Biological Component
9.7.3.1 Mammals and Reptiles
9.7.3.2 Birds
9.7.3.3 Fish
9.7.3.4 Amphibians
9.7.3.5 Reptiles
9.7.3.6 Others
9.7.3.7 Strategy for Sensitive Species
9.8
Waste Treatment, Storage, and Disposal
9.8.1
Waste Minimization
9.8.2
Waste Treatment and Disposal Facilities
9.8.2.1 Liquid Wastes
9.8.2.2 Solid Waste
9.8.2.3 Hazardous Wastes
9.9
Occupational Health and Safety Measures
9.9.1
Republic of the Philippines Health and Safety Regulations
9.9.2
Ratel Company Policy
9.9.3
General Safety Features
9.9.4
Employee Training
9.9.5
Workplace Noise
9.9.6
General Health Features
9.10
Hazard Prevention and Emergency Response
9.10.1 Preventative Maintenance
9.10.2 Fire, Rescue, and Emergency Support
9.10.3 Accident Prevention, Control and Countermeasures
9.10.4 Hazardous Material Handling
272
Tables
• Socioeconomic Impact Matrix with Actions, Impacts and Proposed Preventive and/or Mitigative Measures
•
•
Summary Matrix of Impacts and Mitigation Strategies
Matrix of Impacts and Mitigation Strategies for Flora and Fauna
Figures
• Sediment Control Management Plan
• General Water Management Plan and Project Water Balance Flow Sheet
• Reclaimed Facilities at Closure Site Plan
• Cross Section of Ultimate Tailings Embankment Dam at Closure
10.0
Projected Net Social and Environmental Impacts
11.0 References
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
273
Appendix 1: Social Information
1.1
Republic of the Philippines Regulations/Laws
1.2
Traffic Survey
1.3
Minutes of Public Hearings
1.4
Implementation Plan
Appendix 2: Physical Information
2.1
Well Sampling Logs
2.2
Stream Discharge Logs
Appendix 3: Chemical Information
3.1
Chain-of-Custody Forms
3.2
Surface Water and Groundwater Quality, Air Quality, Soil, and Sediment Analysis Results
Appendix 4: Biological Information
4.1
Flora Biodiversity of the Local Area
4.2
Fauna Biodiversity Inventory of the Local Area
4.3
Ichthyofauna Inventory of the Local Area
4.4
Vegetation Photolog
Appendix 5: Social and Environmental Management and Monitoring Program (SEMMP)
5.1
5.2
5.3
5.4
5.5
5.6
5.7
5.8
5.9
5.10
5.11
5.12
5.13
5.14
5.15
5.16
5.17
Social and Environmental Management System (SEMS)
Public Consultation and Disclosure Plan (PCDP)
Community Development Plan (CDP)
Resettlement Action Plan (RAP)
Land Acquisition Action Plan (LAAP)
Artisanal & small-Scale Mining Plan (ASMP)
Cultural Resources Management Plan (CRMP)
Environmental Protection Plan (EPP)
Environmental Management and Monitoring Plan (EMMP)
Storm Water Management Plan (SWMP)
Erosion and Sediment Control Plan (ESCP)
Biodiversity Management Plan (BMP)
Waste Management Plan (WMP)
Hazardous Materials Management Plan (HMMP)
Occupational Health and Safety Plan (OHSP)
Emergency Response Plan (ERP)
Reclamation and Closure Plan (RCP)
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
Abbreviations
ARD
Acid Rock Drainage
BMP
Biodiversity Management Plan
CDP
Community Development Plan
CRMP
Cultural Resources Management Plan
EPP
Environmental Protection Plan
ERP
Emergency Response Plan
EMMP
Environmental Management and Monitoring Plan
ESCP
Erosion and Sediment Control Plan
HMMP
Hazardous Materials Management Plan
I-SEIA
International Social and Environmental Impact Assessment
IFC
International Finance Corporation
OHSP
Occupational Health and Safety Plan
PAG
Potentially Acid Generating
PCDP
Public Consultation and Disclosure Plan
RAP
Resettlement Action Plan
RCP
Reclamation and Closure Plan
SEMS
Social and Environmental Management System
SWMP
Storm Water Management Plan
TMF
Tailings Management Facility
WBG
World Bank Group
VRMA
Valueless Rock Management Area
WHO
World Health Organization
WMP
Waste Management Plan
Technical Report / Form 43-101F1
274
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
275
Appendix 4. Relevant Samples
The following represent samples from the drilling database with a length of 15m or greater of
total copper greater than or equal to 0.4% or gold greater than or equal to 0.4 g/t.
Technical Report / Form 43-101F1
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
276
Significant Mineralized Intercepts - Intercepts with 15m or Greater Length and Total Copper > 0.4% or Gold > 0.4 g/t
Gold Assay of -9 Represents No Acceptable Assay
HoleId
BC-1
BC-1
BC-1
BC-1
BC-10
BC-10
BC-11
BC-11
BC-13
BC-13
BC-14
BC-14
BC-16
BC-16
BC-16
BC-17
BC-17
BC-17
BC-17
BC-17
BC-17
BC-18
BC-18
BC-19
BC-2
BC-2
BC-2
BC-2
BC-20
BC-20
BC-20
BC-21
BC-21
BC-21
BC-23
BC-23
BC-3
BC-3
BC-7
BC-7
BN-12
BN-14
BN-14
BN-16
BN-16
BN-16
BN-16
BN-17
BN-18
BN-18
BN-18
BN-18
BN-18
BN-18A
BN-18A
BN-19
BN-19
BN-19
BN-19A
From
3
60
309
333
3
30
30
96
12
96
39
63
12
36
141
0
18
120
147
183
234
54
192
219
123
150
186
243
15
57
99
66
84
111
0
87
3
66
30
60
84
48
189
42
69
90
243
57
6
54
111
174
264
0
33
48
216
264
15
To
27
87
327
357
27
54
45
147
27
129
57
84
33
54
159
15
69
135
171
210
252
75
219
234
147
174
231
258
42
84
144
81
108
126
84
102
18
87
57
87
99
66
210
57
84
240
258
75
51
99
171
252
342
30
51
213
246
302
69
Length
24
27
18
24
24
24
15
51
15
33
18
21
21
18
18
15
51
15
24
27
18
21
27
15
24
24
45
15
27
27
45
15
24
15
84
15
15
21
27
27
15
18
21
15
15
150
15
18
45
45
60
78
78
30
18
165
30
38
54
Elev
419
364
133
108
257
232
462
388
449
362
321
297
409
387
288
499
466
389
361
326
284
388
255
254
264
239
194
154
167
128
80
425
404
383
449
399
478
416
303
275
388
543
400
590
563
474
389
536
426
378
314
242
152
442
422
503
426
386
575
Technical Report / Form 43-101F1
North
795,653
795,635
795,559
795,551
795,542
795,533
795,693
795,657
795,369
795,340
795,562
795,553
795,479
795,472
795,441
795,259
795,245
795,214
795,203
795,189
795,172
795,328
795,285
795,417
795,532
795,525
795,513
795,502
795,288
795,283
795,276
795,249
795,242
795,235
795,310
795,294
795,510
795,489
795,491
795,481
795,321
795,037
795,037
795,215
795,215
795,215
795,215
795,023
795,373
795,373
795,373
795,373
795,373
795,375
795,385
795,063
795,000
794,968
795,118
East
606,819
606,812
606,783
606,780
606,528
606,524
607,066
607,050
607,197
607,184
607,321
607,317
607,517
607,514
607,498
607,513
607,506
607,491
607,485
607,478
607,470
607,518
607,497
607,583
606,725
606,721
606,715
606,710
607,451
607,438
607,422
607,554
607,551
607,547
607,427
607,419
606,867
606,857
607,119
607,119
607,556
607,662
607,662
607,824
607,824
607,824
607,824
607,508
607,473
607,473
607,473
607,473
607,473
607,461
607,447
607,422
607,405
607,397
607,436
Tot Cu
0.252
0.305
0.270
0.213
0.437
0.288
0.399
0.459
0.120
0.151
0.303
0.204
0.754
0.616
0.611
0.600
0.621
0.715
0.526
0.711
1.061
0.598
0.605
0.595
0.252
0.222
0.366
0.335
0.587
0.638
0.601
0.611
0.694
0.623
0.875
0.664
0.272
0.122
0.203
0.202
0.432
0.945
0.547
0.824
0.924
0.782
0.662
0.563
0.823
0.652
0.873
0.854
0.657
0.491
0.540
0.765
0.322
0.231
0.842
Sol Cu
0.114
0.194
0.060
0.039
0.175
0.040
0.147
0.327
0.069
0.078
0.055
0.037
0.246
0.147
0.065
0.470
0.488
0.078
0.056
0.156
0.078
0.055
0.090
0.059
0.041
0.033
0.027
0.046
0.486
0.547
0.165
0.302
0.082
0.126
0.743
0.620
0.190
0.050
0.051
0.038
0.036
0.117
0.023
0.364
0.064
0.047
0.050
0.352
0.618
0.123
0.061
0.088
0.079
0.335
0.338
0.606
0.060
0.018
0.766
Gold
Company
4.334 Benguet
1.152 Benguet
0.848 Benguet
0.630 Benguet
0.994 Benguet
0.837 Benguet
0.596 Benguet
0.943 Benguet
0.603 Benguet
1.532 Benguet
0.926 Benguet
0.551 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
0.777 Benguet
0.984 Benguet
0.937 Benguet
0.777 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
0.909 Benguet
0.588 Benguet
1.201 Benguet
1.167 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
0.349 Benguet
0.308 Benguet
0.591 Benguet
0.841 Benguet
1.622 Benguet
-9.000 Benguet
-9.000 Benguet
1.052 Benguet
1.194 Benguet
1.520 Benguet
-9.000 Benguet
Type
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Lithology
Host
Pre-Intrus
Pre-Intrus
Host
Pre-Intrus
Host
Host
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Host
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Host
Breccia
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Host
Host
Host
Pre-Intrus
Pre-Intrus
Host
Host
Pre-Intrus
Pre-Intrus
Host
Host
Host
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Host
Pre-Intrus
Breccia
Pre-Intrus
Breccia
Pre-Intrus
Post Intrus
Host
Host
Host
Host
Host
Oretype
Oxide
Oxide
Mixed
Sulfide
Oxide
Sulfide
Mixed
Oxide
Oxide
Oxide
Mixed
Mixed
Mixed
Mixed
Sulfide
Oxide
Oxide
Sulfide
Sulfide
Mixed
Sulfide
Sulfide
Sulfide
Sulfide
Sulfide
Sulfide
Sulfide
Sulfide
Oxide
Oxide
Sulfide
Oxide
Sulfide
Sulfide
Oxide
Oxide
Oxide
Mixed
Mixed
Sulfide
Sulfide
Sulfide
Sulfide
Oxide
Sulfide
Sulfide
Sulfide
Oxide
Oxide
Sulfide
Sulfide
Sulfide
Sulfide
Oxide
Oxide
Oxide
Sulfide
Sulfide
Oxide
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
277
Significant Mineralized Intercepts - Intercepts with 15m or Greater Length and Total Copper > 0.4% or Gold > 0.4 g/t
Gold Assay of -9 Represents No Acceptable Assay
HoleId
BN-19A
BN-20
BN-20A
BN-21
BN-21
BN-22
BN-23
BN-23B
BN-24
BN-25
BN-25
BN-25
BN-25
BN-25
BN-25B
BN-25B
BN-25B
BN-28A
BN-29
BN-29
BN-29
BN-30
BN-30
BN-30
BN-30
BN-30
BN-30B
BN-30B
BN-4
BN-7
NH-3
NH-3
PQ-1
PQ-1
PQ-1
PQ-1
PQ-3
PQ-4
PQ-5
PQ-5
M15-11R
M15-11R
M25-3R
M25-3R
M25-3R
M27-10R
M27-10R
M27-10R
M39-4R
M50-12R
M52-7R
PQ1-8R
PQ3-13R
EB-100
EB-100
EB-100
EB-100
EB-101
EB-102
EB-102
From
72
72
81
48
78
204
0
30
189
0
39
66
87
117
0
96
138
0
186
204
321
6
36
72
159
177
12
45
18
87
117
279
3
27
147
180
75
306
99
258
0
74.5
153.5
186.5
213.5
0
31.5
65.5
147.5
104.5
0.5
27.6
98.5
282
345
381
423
39
21
69
To
93
93
108
66
108
240
18
48
234
30
57
81
114
138
30
126
165
36
201
231
348
21
69
156
174
195
27
93
36
102
135
297
21
75
174
198
180
321
117
276
21.5
92.5
177.5
212.5
228.5
30.5
64.5
84.5
162.5
173.5
73.5
53.6
115
297
378
402
438
63
51
87
Length
21
21
27
18
30
36
18
18
45
30
18
15
27
21
30
30
27
36
15
27
27
15
33
84
15
18
15
48
18
15
18
18
18
48
27
18
105
15
18
18
21.5
18
24
26
15
30.5
33
19
15
69
73
26
16.5
15
33
21
15
24
30
18
Elev
544
436
432
501
465
392
495
468
342
534
501
475
448
421
543
470
439
552
272
248
131
291
252
190
138
118
290
252
628
649
292
130
637
598
489
460
525
428
575
416
611
538
582
548
526
548
515
488
558
516
604
609
546
120
59
34
2
545
337
298
Technical Report / Form 43-101F1
North
795,094
795,681
795,656
795,201
795,201
795,118
795,312
795,327
795,338
795,202
795,202
795,202
795,202
795,202
795,205
795,225
795,234
795,201
795,785
795,785
795,785
795,621
795,621
795,621
795,621
795,621
795,629
795,642
795,443
795,296
794,589
794,589
795,173
795,173
795,173
795,173
795,028
795,341
795,217
795,217
795,260
795,260
795,262
795,262
795,262
795,224
795,224
795,224
795,348
795,074
794,918
795,172
795,029
795,664
795,627
795,611
795,590
795,147
795,629
795,615
East
607,426
606,964
606,956
607,579
607,579
607,544
607,368
607,345
607,750
607,342
607,342
607,342
607,342
607,342
607,339
607,281
607,256
607,385
606,893
606,893
606,893
606,645
606,645
606,645
606,645
606,645
606,661
606,689
607,962
608,059
607,992
607,992
607,847
607,847
607,847
607,847
608,175
608,106
608,205
608,205
607,803
607,803
608,129
608,129
608,129
607,394
607,394
607,394
607,998
608,171
608,120
607,846
608,173
606,737
606,726
606,722
606,716
607,651
607,215
607,208
Tot Cu
0.576
0.504
0.503
0.570
0.655
0.535
0.507
0.510
0.645
0.769
0.572
0.542
0.456
0.744
0.605
0.810
0.536
0.747
0.370
0.242
0.196
0.732
0.446
0.439
0.186
0.143
0.422
0.727
0.545
1.240
0.550
0.723
0.703
0.762
0.636
0.548
0.864
0.480
0.573
0.588
0.919
0.994
0.952
1.113
0.849
1.109
0.753
0.594
0.562
1.845
1.417
0.988
0.743
0.496
0.376
0.200
0.110
1.712
0.375
0.182
Sol Cu
0.434
0.081
0.387
0.425
0.558
0.069
0.355
0.427
0.026
0.732
0.522
0.518
0.416
0.250
0.501
0.712
0.461
0.665
0.054
0.019
0.014
0.400
0.032
0.062
0.028
0.022
0.106
0.041
0.322
0.292
0.033
0.029
0.678
0.281
-9.000
-9.000
0.269
0.052
0.235
0.020
0.853
0.248
0.843
0.447
0.097
0.859
0.722
0.543
0.137
0.244
1.285
0.346
0.512
0.173
0.103
0.044
0.018
0.869
0.053
0.039
Gold
Company
-9.000 Benguet
1.054 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
1.259 Benguet
1.176 Benguet
0.679 Benguet
1.668 Benguet
1.242 Benguet
1.664 Benguet
0.672 Benguet
0.804 Benguet
0.851 Benguet
1.283 Benguet
0.311 Benguet
0.045 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
-9.000 Benguet
0.447 EchoBay
1.269 EchoBay
0.692 EchoBay
0.557 EchoBay
0.362 EchoBay
0.557 EchoBay
0.691 EchoBay
Type
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
RC
RC
RC
RC
RC
RC
RC
RC
RC
RC
RC
RC
RC
Core
Core
Core
Core
Core
Core
Core
Lithology
Host
Pre-Intrus
Pre-Intrus
Host
Host
Host
Pre-Intrus
Pre-Intrus
Host
Host
Host
Host
Host
Host
Host
Pre-Intrus
Host
Host
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Host
Host
Pre-Intrus
Breccia
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Breccia
Pre-Intrus
Pre-Intrus
Pre-Intrus
Host
Host
Host
Host
Host
Host
Host
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Host
Pre-Intrus
Pre-Intrus
Pre-Intrus
Host
Host
Pre-Intrus
Oretype
Oxide
Sulfide
Oxide
Oxide
Oxide
Sulfide
Oxide
Oxide
Sulfide
Oxide
Oxide
Oxide
Oxide
Mixed
Oxide
Oxide
Oxide
Oxide
Sulfide
Sulfide
Sulfide
Oxide
Sulfide
Sulfide
Sulfide
Sulfide
Sulfide
Sulfide
Oxide
Mixed
Sulfide
Sulfide
Oxide
Mixed
oxsulf?
oxsulf?
Sulfide
Sulfide
Sulfide
Sulfide
Oxide
Mixed
Oxide
Sulfide
Sulfide
Oxide
Oxide
Oxide
Sulfide
Sulfide
Oxide
Sulfide
Oxide
Mixed
Mixed
Mixed
Sulfide
Oxide
Sulfide
Sulfide
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
278
Significant Mineralized Intercepts - Intercepts with 15m or Greater Length and Total Copper > 0.4% or Gold > 0.4 g/t
Gold Assay of -9 Represents No Acceptable Assay
HoleId
EB-103
EB-103
EB-104
EB-105
EB-107
EB-109
EB-109
EB-11
EB-11
EB-11
EB-110
EB-110
EB-112
EB-112
EB-112
EB-114
EB-114
EB-115
EB-115
EB-116
EB-116
EB-118
EB-118
EB-118
EB-118
EB-119
EB-119
EB-119
EB-119
EB-12
EB-12
EB-12
EB-121
EB-121
EB-122
EB-122
EB-122
EB-123
EB-123
EB-123
EB-124
EB-124
EB-125
EB-125
EB-13
EB-14
EB-15
EB-17
EB-17
EB-17
EB-18
EB-18
EB-18
EB-18
EB-18
EB-20
EB-21
EB-21
EB-21
EB-21
From
171
210
0
21
474
33
102
66
126
172
135
177
30
144
210
21
90
432
477
189
375
0
51
108
135
9
48
108
135
44
147
270
33
72
234
441
474
225
270
336
33
78
84
135
414
0
146
330
363
399
0
22
70
104
228
74
82
134
224
272
To
189
228
42
69
489
60
123
124
170
190
165
225
138
207
261
69
189
474
492
291
393
15
81
132
255
30
99
132
303
60
177
297
54
171
249
465
504
267
333
387
75
195
129
153
429
28
161
345
381
456
18
68
92
156
244
94
98
216
270
334
Length
18
18
42
48
15
27
21
58
44
18
30
48
108
63
51
48
99
42
15
102
18
15
30
24
120
21
51
24
168
16
30
27
21
99
15
24
30
42
63
51
42
117
45
18
15
28
15
15
18
57
18
46
22
52
16
20
16
82
46
62
Elev
369
339
345
551
-116
520
458
535
485
454
509
460
472
387
330
517
445
228
199
522
413
623
578
537
480
538
487
443
349
498
395
280
634
561
451
250
216
182
139
94
515
453
536
504
246
565
586
327
295
242
485
451
416
369
268
562
447
367
299
246
Technical Report / Form 43-101F1
North
795,686
795,665
795,507
795,178
795,688
795,190
795,169
794,892
794,877
794,868
795,056
795,041
795,189
795,161
795,142
795,188
795,133
795,337
795,328
795,003
794,916
794,919
794,885
794,854
794,810
795,193
795,176
795,161
795,131
795,306
795,272
795,236
794,990
794,967
795,543
795,487
795,478
795,664
795,631
795,596
795,168
795,120
794,875
794,857
795,211
794,930
795,179
795,309
795,300
795,285
795,329
795,319
795,310
795,298
795,271
795,134
795,098
795,109
795,118
795,125
East
606,922
606,912
607,185
607,709
606,564
607,604
607,594
608,059
608,052
608,048
608,153
608,147
607,473
607,459
607,451
607,472
607,446
607,930
607,924
608,131
608,094
608,064
608,048
608,033
608,012
607,535
607,529
607,524
607,513
607,733
607,717
607,700
608,116
608,102
608,085
608,049
608,044
606,702
606,687
606,670
607,522
607,496
608,086
608,092
607,789
608,232
608,130
607,862
607,857
607,849
607,353
607,348
607,343
607,335
607,320
607,784
608,269
608,242
608,220
608,204
Tot Cu
0.530
0.364
0.281
0.820
0.337
0.604
0.534
0.723
0.590
0.655
0.637
0.597
0.564
0.510
0.320
0.929
0.538
0.308
0.164
1.187
0.407
1.144
0.989
0.571
0.657
0.625
0.598
0.571
0.708
1.210
0.658
0.586
0.845
1.395
0.686
0.640
0.733
0.401
0.324
0.234
0.616
0.836
0.458
0.635
0.316
1.779
0.550
0.464
0.517
0.377
0.459
0.329
0.241
0.119
0.249
0.563
1.717
0.720
0.664
0.474
Sol Cu
0.155
0.077
0.179
0.378
0.061
0.525
0.395
0.668
0.479
0.074
0.383
0.090
0.487
0.180
0.045
0.850
0.416
0.049
0.022
0.398
0.070
1.122
0.943
0.383
0.128
0.487
0.513
0.383
0.121
0.563
0.063
0.052
0.779
0.911
0.028
0.031
0.036
0.111
0.059
0.052
0.530
0.583
0.375
0.573
0.028
0.527
0.310
0.037
0.020
0.043
0.411
0.295
0.061
0.033
0.064
0.472
0.205
0.114
0.063
0.091
Gold
Company
1.066 EchoBay
0.833 EchoBay
0.891 EchoBay
0.195 EchoBay
0.954 EchoBay
0.100 EchoBay
0.083 EchoBay
0.725 EchoBay
0.135 EchoBay
0.207 EchoBay
0.143 EchoBay
1.655 EchoBay
0.505 EchoBay
1.696 EchoBay
1.573 EchoBay
0.432 EchoBay
1.392 EchoBay
0.719 EchoBay
0.765 EchoBay
1.431 EchoBay
0.708 EchoBay
2.232 EchoBay
0.572 EchoBay
0.477 EchoBay
1.008 EchoBay
0.135 EchoBay
0.247 EchoBay
0.477 EchoBay
1.214 EchoBay
0.166 EchoBay
0.465 EchoBay
0.635 EchoBay
1.335 EchoBay
1.346 EchoBay
0.040 EchoBay
0.341 EchoBay
0.928 EchoBay
0.662 EchoBay
1.225 EchoBay
0.905 EchoBay
0.449 EchoBay
1.155 EchoBay
0.945 EchoBay
0.165 EchoBay
0.686 EchoBay
0.213 EchoBay
0.378 EchoBay
0.561 EchoBay
0.608 EchoBay
0.947 EchoBay
1.866 EchoBay
1.095 EchoBay
1.078 EchoBay
0.975 EchoBay
0.782 EchoBay
0.291 EchoBay
0.954 EchoBay
1.146 EchoBay
1.273 EchoBay
1.363 EchoBay
Type
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Lithology
Pre-Intrus
Pre-Intrus
Pre-Intrus
Host
Pre-Intrus
Host
Host
Host
Host
Host
Pre-Intrus
Pre-Intrus
Pre-Intrus
Host
Host
Pre-Intrus
Host
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Ovburden
Pre-Intrus
Host
Host
Host
Host
Pre-Intrus
Host
Host
Host
Host
Pre-Intrus
Pre-Intrus
Pre-Intrus
Host
Host
Pre-Intrus
Pre-Intrus
Pre-Intrus
Host
Host
Pre-Intrus
Pre-Intrus
Pre-Intrus
Host
Host
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Host
Host
Host
Pre-Intrus
Host
Pre-Intrus
Oretype
Mixed
Mixed
Oxide
Oxide
Sulfide
Oxide
Oxide
Oxide
Oxide
Sulfide
Oxide
Sulfide
Oxide
Sulfide
Sulfide
Oxide
Oxide
Mixed
Sulfide
Oxide
Sulfide
Oxide
Oxide
Oxide
Sulfide
Oxide
Oxide
Oxide
Sulfide
Oxide
Sulfide
Sulfide
Oxide
Oxide
Sulfide
Sulfide
Sulfide
Mixed
Sulfide
Mixed
Oxide
Oxide
Oxide
Oxide
Sulfide
Mixed
Oxide
Sulfide
Sulfide
Sulfide
Oxide
Oxide
Sulfide
Mixed
Mixed
Oxide
Sulfide
Sulfide
Sulfide
Sulfide
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
279
Significant Mineralized Intercepts - Intercepts with 15m or Greater Length and Total Copper > 0.4% or Gold > 0.4 g/t
Gold Assay of -9 Represents No Acceptable Assay
HoleId
EB-22
EB-23
EB-24
EB-24
EB-24
EB-26
EB-26
EB-27
EB-28
EB-28
EB-28
EB-32
EB-32
EB-33
EB-34
EB-34
EB-35
EB-35
EB-35
EB-37
EB-39
EB-39
EB-39
EB-40
EB-40
EB-40
EB-40
EB-41
EB-42
EB-43
EB-43
EB-43
EB-43
EB-44
EB-47
EB-47
EB-49
EB-49
EB-5
EB-5
EB-5
EB-52
EB-53
EB-53
EB-54
EB-54
EB-54
EB-55
EB-55
EB-55
EB-56
EB-59
EB-59
EB-59
EB-59
EB-6
EB-6
EB-6
EB-60
EB-60
From
309
87
159
210
270
0
90
264
24
75
216
279
363
243
348
483
0
30
66
153
276
357
393
90
111
132
174
0
15
0
27
189
240
102
39
99
0
45
21
363
391
57
0
132
12
51
117
105
222
321
210
327
390
435
486
238
284
340
177
324
To
324
102
186
228
294.6
15
111
291
72
174
240
351
378
270
384
498
27
57
81
213.7
324
390
420
108
126
156
210
36
30
21
186
237
291
123
84
114
21
81
39
381
407
96
129
171
39
78
138
123
237
351
225
342
423
456
507
254
304
376
195
342
Length
15
15
27
18
24.6
15
21
27
48
99
24
72
15
27
36
15
27
27
15
60.7
48
33
27
18
15
24
36
36
15
21
159
48
51
21
45
15
21
36
18
18
16
39
129
39
27
27
21
18
15
30
15
15
33
21
21
16
20
36
18
18
Elev
130
572
322
278
218
373
286
482
448
374
276
384
331
310
395
277
356
328
300
147
366
297
266
660
642
618
573
363
452
445
354
253
203
448
591
549
326
276
460
134
108
463
272
190
376
339
280
535
419
313
220
399
331
293
245
334
288
227
360
220
Technical Report / Form 43-101F1
North
795,312
795,171
794,844
794,830
794,811
795,530
795,501
795,323
795,309
795,289
795,261
795,222
795,208
795,014
795,413
795,378
795,537
795,527
795,518
795,617
795,104
795,082
795,071
795,299
795,293
795,285
795,270
795,503
795,530
795,356
795,327
795,297
795,283
795,048
795,222
795,236
795,441
795,424
795,286
795,197
795,191
795,179
795,595
795,568
795,474
795,462
795,444
795,203
795,203
795,203
795,513
795,231
795,211
795,200
795,187
795,339
795,326
795,308
795,111
795,072
East
607,533
607,930
608,308
608,301
608,292
607,427
607,414
608,068
607,444
607,434
607,420
608,157
608,149
608,195
608,117
608,097
607,299
607,294
607,290
606,540
608,196
608,186
608,181
608,073
608,070
608,067
608,060
607,251
607,760
607,448
607,434
607,419
607,411
608,404
608,249
608,255
607,039
607,032
607,634
607,587
607,583
608,318
606,663
606,650
607,395
607,390
607,381
608,240
608,237
608,233
606,978
607,922
607,911
607,905
607,898
607,735
607,728
607,720
608,309
608,287
Tot Cu
0.331
0.638
0.496
0.524
0.521
0.614
0.319
0.711
0.517
0.512
0.293
0.782
0.413
0.264
0.722
0.436
0.417
0.264
0.159
0.606
1.028
0.352
0.257
0.499
0.856
0.658
0.928
0.266
0.642
0.375
0.578
0.466
0.287
0.863
0.679
0.544
0.278
0.269
0.790
0.387
0.396
0.796
0.729
0.373
0.211
0.318
0.139
0.609
0.599
0.551
0.281
0.438
0.504
0.391
0.162
0.559
0.533
0.569
0.592
0.462
Sol Cu
0.068
0.446
0.102
0.067
0.072
0.586
0.068
0.069
0.460
0.192
0.050
0.196
0.041
0.047
0.154
0.083
0.359
0.049
0.030
0.144
0.137
0.041
0.048
0.379
0.562
0.286
0.424
0.230
0.206
0.319
0.219
0.121
0.089
0.062
0.608
0.051
0.241
0.076
0.589
0.064
0.086
0.161
0.424
0.151
0.171
0.090
0.039
0.235
0.136
0.058
0.020
0.034
0.032
0.073
0.022
0.039
0.037
0.051
0.114
0.068
Gold
Company
0.665 EchoBay
0.151 EchoBay
0.270 EchoBay
0.263 EchoBay
0.268 EchoBay
0.749 EchoBay
0.756 EchoBay
0.467 EchoBay
0.386 EchoBay
0.739 EchoBay
0.778 EchoBay
0.814 EchoBay
0.706 EchoBay
0.603 EchoBay
0.193 EchoBay
0.630 EchoBay
0.843 EchoBay
1.081 EchoBay
0.626 EchoBay
1.137 EchoBay
1.812 EchoBay
0.958 EchoBay
0.578 EchoBay
0.205 EchoBay
0.115 EchoBay
0.089 EchoBay
0.348 EchoBay
0.924 EchoBay
0.102 EchoBay
0.479 EchoBay
0.694 EchoBay
1.345 EchoBay
0.775 EchoBay
0.068 EchoBay
0.274 EchoBay
0.139 EchoBay
0.849 EchoBay
0.676 EchoBay
0.067 EchoBay
0.651 EchoBay
0.871 EchoBay
0.366 EchoBay
2.204 EchoBay
0.792 EchoBay
0.599 EchoBay
0.586 EchoBay
0.730 EchoBay
0.338 EchoBay
0.161 EchoBay
0.627 EchoBay
2.498 EchoBay
0.398 EchoBay
0.761 EchoBay
0.724 EchoBay
0.564 EchoBay
0.368 EchoBay
0.346 EchoBay
0.415 EchoBay
0.529 EchoBay
0.770 EchoBay
Type
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Lithology
Pre-Intrus
Host
Pre-Intrus
Post Intrus
Pre-Intrus
Ovburden
Pre-Intrus
Host
Pre-Intrus
Host
Host
Pre-Intrus
Pre-Intrus
Pre-Intrus
Host
Pre-Intrus
Pre-Intrus
Host
Host
Pre-Intrus
Breccia
Breccia
Host
Host
Host
Host
Host
Pre-Intrus
Host
Pre-Intrus
Breccia
Pre-Intrus
Pre-Intrus
Host
Pre-Intrus
Host
Ovburden
Host
Host
Breccia
Host
Host
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Breccia
Pre-Intrus
Host
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Host
Host
Host
Host
Pre-Intrus
Oretype
Mixed
Oxide
Mixed
Sulfide
Sulfide
Oxide
Sulfide
Sulfide
Oxide
Mixed
Sulfide
Mixed
Sulfide
Sulfide
Mixed
Sulfide
Oxide
Sulfide
Sulfide
Mixed
Sulfide
Sulfide
Sulfide
Oxide
Oxide
Oxide
Oxide
Oxide
Mixed
Oxide
Mixed
Mixed
Mixed
Sulfide
Oxide
Sulfide
Oxide
Mixed
Oxide
Sulfide
Sulfide
Mixed
Mixed
Oxide
Oxide
Oxide
Sulfide
Oxide
Mixed
Sulfide
Sulfide
Sulfide
Sulfide
Sulfide
Sulfide
Sulfide
Sulfide
Sulfide
Mixed
Sulfide
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
280
Significant Mineralized Intercepts - Intercepts with 15m or Greater Length and Total Copper > 0.4% or Gold > 0.4 g/t
Gold Assay of -9 Represents No Acceptable Assay
HoleId
EB-60
EB-63
EB-64
EB-65
EB-66
EB-66
EB-68
EB-68
EB-68
EB-69
EB-69
EB-7
EB-7
EB-7
EB-7
EB-70
EB-71
EB-75
EB-77
EB-77
EB-77
EB-78
EB-8
EB-80
EB-81
EB-83
EB-83
EB-83
EB-84
EB-84
EB-84
EB-84
EB-84
EB-86
EB-86
EB-86
EB-86
EB-87
EB-88
EB-88
EB-88
EB-88
EB-88
EB-88
EB-88
EB-89
EB-89
EB-89
EB-9
EB-9
EB-90
EB-90
EB-92
EB-92
EB-92
EB-92
EB-93
EB-93
EB-93
EB-95
From
405
0
21
186
231
381
0
33
117
234
315
0
34
158
212
309
84
0
192
225
249
0
120
144
258
0
84
111
0
21
66
162
210
0
24
384
432
0
36
66
126
174
198
255
456
246
288
312
36
108
231
270
348
441
459
504
0
51
72
0
To
447
198
39
204
246
417
27
51
177
252
330
32
146
204
248
327
147
72
213
246
321
63
140
180
273
36
108
126
15
51
159
204
258
21
72
411
456
51
57
84
156
195
252
324
510
279
306
336
80
196
267
288
363
456
480
528
36
69
159
39
Length
42
198
18
18
15
36
27
18
60
18
15
32
112
46
36
18
63
72
21
21
72
63
20
36
15
36
24
15
15
30
93
42
48
21
48
27
24
51
21
18
30
21
54
69
54
33
18
24
44
88
36
18
15
15
21
24
36
18
87
39
Elev
132
233
677
467
237
107
387
360
260
72
-4
637
568
482
436
251
296
364
183
150
100
398
556
103
452
456
379
357
488
466
404
346
304
420
391
112
75
403
658
631
569
528
489
429
245
361
326
299
585
496
105
77
354
267
247
203
452
412
360
476
Technical Report / Form 43-101F1
North
795,048
795,615
795,262
795,541
795,556
795,541
795,351
795,343
795,313
795,577
795,557
795,006
794,984
794,957
794,942
795,174
795,496
795,355
795,561
795,561
795,561
795,637
795,011
795,546
795,314
795,391
795,379
795,376
795,325
795,314
795,285
795,259
795,240
795,644
795,635
795,570
795,560
795,433
795,392
795,383
795,363
795,350
795,338
795,318
795,262
794,577
794,577
794,577
795,246
795,219
795,648
795,639
795,403
795,375
795,368
795,354
795,353
795,341
795,324
795,298
East
608,265
606,669
608,050
607,976
606,869
606,776
607,110
607,106
607,092
606,475
606,467
608,175
608,163
608,150
608,143
608,349
606,694
607,112
606,727
606,727
606,727
607,070
608,061
606,405
608,204
607,352
607,346
607,345
607,359
607,345
607,312
607,281
607,259
607,069
607,046
606,846
606,819
607,235
608,011
608,007
607,997
607,991
607,986
607,978
607,957
608,512
608,511
608,510
607,829
607,816
606,587
606,583
608,027
608,013
608,009
608,002
607,231
607,226
607,221
607,444
Tot Cu
0.353
0.624
0.810
2.053
0.273
0.171
0.189
0.093
0.321
0.271
0.320
0.636
2.714
0.534
0.318
0.419
0.382
0.210
0.232
0.279
0.270
0.262
0.702
0.560
0.578
0.141
0.116
0.195
0.438
0.409
0.179
0.295
0.250
0.402
0.351
0.157
0.151
0.190
0.556
0.466
0.852
0.589
0.671
0.957
0.289
0.545
0.586
0.789
1.421
0.689
0.411
0.265
0.660
0.367
0.437
0.234
0.284
0.154
0.179
0.826
Sol Cu
0.025
0.263
0.327
0.117
0.036
0.036
0.178
0.054
0.052
0.069
0.087
0.603
1.060
0.080
0.035
0.033
0.152
0.185
0.057
0.035
0.029
0.235
0.599
0.154
0.058
0.122
0.039
0.036
0.415
0.388
0.109
0.056
0.063
0.316
0.325
0.051
0.030
0.164
0.467
0.384
0.468
0.048
0.101
0.116
0.043
0.045
0.036
0.057
0.571
0.061
0.095
0.079
0.059
0.026
0.038
0.017
0.235
0.155
0.107
0.754
Gold
Company
0.988 EchoBay
2.267 EchoBay
0.063 EchoBay
0.164 EchoBay
0.822 EchoBay
0.632 EchoBay
0.963 EchoBay
1.004 EchoBay
1.172 EchoBay
0.580 EchoBay
0.475 EchoBay
0.151 EchoBay
1.462 EchoBay
0.831 EchoBay
0.727 EchoBay
0.492 EchoBay
0.892 EchoBay
2.243 EchoBay
0.973 EchoBay
1.621 EchoBay
1.286 EchoBay
0.876 EchoBay
0.125 EchoBay
1.484 EchoBay
0.337 EchoBay
0.800 EchoBay
0.669 EchoBay
0.870 EchoBay
1.556 EchoBay
1.334 EchoBay
1.454 EchoBay
1.076 EchoBay
0.842 EchoBay
1.143 EchoBay
1.811 EchoBay
1.078 EchoBay
0.673 EchoBay
2.292 EchoBay
0.477 EchoBay
0.544 EchoBay
0.204 EchoBay
0.151 EchoBay
0.466 EchoBay
1.357 EchoBay
0.859 EchoBay
0.261 EchoBay
0.213 EchoBay
0.281 EchoBay
0.351 EchoBay
0.438 EchoBay
1.029 EchoBay
0.854 EchoBay
0.307 EchoBay
0.494 EchoBay
0.714 EchoBay
0.625 EchoBay
0.752 EchoBay
1.054 EchoBay
1.750 EchoBay
0.348 EchoBay
Type
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Lithology
Host
Pre-Intrus
Host
Pre-Intrus
Host
Host
Host
Breccia
Host
Pre-Intrus
Host
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Host
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Host
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Host
Host
Host
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Post Intrus
Host
Host
Host
Host
Pre-Intrus
Pre-Intrus
Pre-Intrus
Host
Pre-Intrus
Pre-Intrus
Host
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Breccia
Oretype
Sulfide
Mixed
Oxide
Sulfide
Sulfide
Sulfide
Oxide
oxsulf?
Sulfide
Mixed
Mixed
Oxide
Oxide
Sulfide
Sulfide
Sulfide
Oxide
Oxide
Mixed
Sulfide
Sulfide
Oxide
Oxide
Mixed
Sulfide
Oxide
oxsulf?
Sulfide
Oxide
Oxide
Oxide
Sulfide
Mixed
Oxide
Oxide
Mixed
Mixed
Oxide
Oxide
Oxide
Oxide
Sulfide
Sulfide
Sulfide
Sulfide
Sulfide
Sulfide
Sulfide
Oxide
Sulfide
Mixed
Mixed
Sulfide
Sulfide
Sulfide
Sulfide
Oxide
Oxide
Oxide
Oxide
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
281
Significant Mineralized Intercepts - Intercepts with 15m or Greater Length and Total Copper > 0.4% or Gold > 0.4 g/t
Gold Assay of -9 Represents No Acceptable Assay
HoleId
EB-95
EB-95
EB-95
EB-96
EB-97
EB-98
EB-98
EB-99
EB-99
EB-99
EB-99
EB-99
DDH-10
DDH-10
DDH-10
DDH-10
DDH-11
DDH-11
DDH-12A
DDH-15
DDH-15
DDH-20
DDH-21
DDH-22
DDH-22
DDH-23
DDH-25
DDH-27
DDH-27
DDH-28
DDH-28
DDH-28
DDH-29
DDH-3
DDH-3
DDH-30
DDH-30
DDH-30
DDH-31B
DDH-31B
DDH-33
DDH-36
DDH-37
DDH-37
DDH-38
DDH-38
DDH-38
DDH-39
DDH-39
DDH-39
DDH-4
DDH-40
DDH-41
DDH-42
DDH-47
DDH-48
DDH-48
DDH-48
DDH-49
From
51
102
186
33
33
0
63
0
141
174
198
225
9
45
87
114
45
69
96
3
39
15
21
0
156
24
195
3
54
177
210
243
294
60
84
51
171
231
231
309
0
27
144
249
0
27
54
162
195
270
0
126
87
0
0
63
96
234
36
To
87
174
222
51
54
45
90
120
171
192
216
246
36
63
108
138
66
84.7
114.8
33
84
33
36
129
174
39
276
33
93
192
240
258
345
78
123
102
189
249
246
342
18
42
159
270
15
51
75
180
225
291
150.4
156
102
108
84
78
117
252
57
Length
36
72
36
18
21
45
27
120
30
18
18
21
27
18
21
24
21
15.7
18.8
30
45
18
15
129
18
15
81
30
39
15
30
15
51
18
39
51
18
18
15
33
18
15
15
21
15
24
21
18
30
21
150.4
30
15
108
84
15
21
18
21
Elev
438
385
332
347
383
340
290
423
350
329
311
289
642
611
567
539
524
503
610
604
561
312
459
582
482
639
512
548
493
459
419
393
371
488
453
614
511
451
524
437
592
633
525
417
649
617
592
542
503
433
569
501
498
598
607
539
503
366
606
Technical Report / Form 43-101F1
North
795,269
795,229
795,192
795,575
795,630
795,512
795,496
795,323
795,268
795,252
795,238
795,221
795,256
795,256
795,256
795,256
795,159
795,159
795,266
795,266
795,266
795,468
795,300
794,945
794,945
795,286
795,262
795,227
795,227
795,123
795,123
795,123
795,254
795,059
795,059
795,053
795,053
795,053
795,337
795,337
794,925
795,200
795,222
795,222
794,957
794,957
794,957
795,350
795,350
795,350
794,938
795,155
794,867
794,938
794,923
795,219
795,219
795,219
795,037
East
607,431
607,413
607,398
607,101
607,379
607,188
607,180
607,217
607,191
607,184
607,177
607,169
608,241
608,241
608,241
608,241
607,385
607,385
607,993
607,802
607,802
607,083
607,636
608,166
608,166
608,229
608,131
607,391
607,391
608,188
608,188
608,188
607,906
607,795
607,795
608,109
608,109
608,109
608,117
608,117
608,024
607,994
608,212
608,212
608,094
608,094
608,094
608,000
608,000
608,000
608,147
607,796
608,093
608,174
608,157
607,768
607,768
607,768
608,194
Tot Cu
0.573
0.384
0.105
0.183
0.755
0.234
0.253
0.323
0.419
0.462
0.195
0.402
0.554
0.503
0.779
0.764
0.547
0.641
0.735
0.908
1.291
0.470
0.698
2.292
0.620
0.698
0.766
0.688
0.838
0.776
0.757
0.888
0.668
0.588
0.588
0.811
0.510
0.605
0.682
0.680
1.022
0.470
0.722
0.836
0.986
1.532
1.837
0.570
0.747
0.804
2.348
0.957
0.670
1.776
1.627
1.290
0.694
0.555
0.776
Sol Cu
0.493
0.235
0.058
0.110
0.279
0.145
0.023
0.302
0.172
0.127
0.049
0.078
0.386
0.443
0.664
0.045
0.414
0.482
0.026
0.808
0.393
0.027
0.266
1.218
0.038
0.372
0.064
0.607
0.615
0.114
0.065
0.042
0.065
0.037
0.028
0.788
0.482
0.097
0.028
0.119
0.920
0.396
0.260
0.184
0.980
1.510
1.667
0.050
0.040
0.054
1.468
0.130
0.586
1.359
1.440
0.218
0.080
0.028
0.713
Gold
0.369
1.031
0.854
0.663
0.179
1.178
2.168
1.625
1.134
0.599
0.675
0.751
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
Company
EchoBay
EchoBay
EchoBay
EchoBay
EchoBay
EchoBay
EchoBay
EchoBay
EchoBay
EchoBay
EchoBay
EchoBay
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Type
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Lithology
Breccia
Host
Host
Pre-Intrus
Host
Pre-Intrus
Pre-Intrus
Breccia
Host
Host
Host
Host
Pre-Intrus
Pre-Intrus
Pre-Intrus
Host
Pre-Intrus
Host
Host
Pre-Intrus
Pre-Intrus
Pre-Intrus
Host
Pre-Intrus
Pre-Intrus
Host
Pre-Intrus
Host
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Host
Host
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Host
Host
Pre-Intrus
Host
Pre-Intrus
Pre-Intrus
Pre-Intrus
Host
Host
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Oretype
Oxide
Oxide
Oxide
Oxide
Mixed
Oxide
Sulfide
Oxide
Oxide
Mixed
Mixed
Mixed
Oxide
Oxide
Oxide
Sulfide
Oxide
Oxide
Sulfide
Oxide
Mixed
Sulfide
Oxide
Oxide
Sulfide
Oxide
Sulfide
Oxide
Oxide
Sulfide
Sulfide
Sulfide
Sulfide
Sulfide
Sulfide
Oxide
Oxide
Sulfide
Sulfide
Mixed
Oxide
Oxide
Mixed
Mixed
Oxide
Oxide
Oxide
Sulfide
Sulfide
Sulfide
Oxide
Sulfide
Oxide
Oxide
Oxide
Sulfide
Sulfide
Sulfide
Oxide
INDEPENDENT
MINING CONSULTANTS, INC.
King-king Copper-Gold Project
Mindanao, Philippines
October 2010
282
Significant Mineralized Intercepts - Intercepts with 15m or Greater Length and Total Copper > 0.4% or Gold > 0.4 g/t
Gold Assay of -9 Represents No Acceptable Assay
HoleId
DDH-49
DDH-5
DDH-5
DDH-5
DDH-50
DDH-50
DDH-51
DDH-52
DDH-53
DDH-53
DDH-53
DDH-54
DDH-54
DDH-54
DDH-6
DDH-9
DDH-9
From
66
3
24
78
78
102
0
3
42
69
90
24
111
162
18
3
123
To
183
18
39
174
99
204
213
114
57
87
180.3
108
156
180
36
114
153.15
Length
117
15
15
96
21
102
213
111
15
18
90.3
84
45
18
18
111
30.15
Elev
530
640
619
524
564
500
544
578
589
561
504
583
515
478
527
447
368
Technical Report / Form 43-101F1
North
795,037
795,037
795,037
795,037
795,076
795,076
794,987
794,912
795,216
795,216
795,216
795,173
795,173
795,173
794,352
795,263
795,263
East
608,214
608,182
608,182
608,182
608,172
608,172
608,177
608,126
607,825
607,825
607,825
607,842
607,842
607,842
607,951
607,478
607,478
Tot Cu
1.058
0.556
0.576
0.988
0.640
1.516
1.504
1.454
0.714
0.820
0.863
0.828
0.901
0.512
0.965
0.950
0.702
Sol Cu
0.387
0.326
0.354
0.291
0.527
0.104
0.627
1.205
0.336
0.038
0.026
0.100
0.033
0.018
0.713
0.655
0.089
Gold
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
-9.000
Company
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Mitsubishi
Type
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Lithology
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Pre-Intrus
Oretype
Sulfide
Oxide
Oxide
Sulfide
Oxide
Sulfide
Sulfide
Oxide
Oxide
Sulfide
Sulfide
Sulfide
Sulfide
Sulfide
Oxide
Oxide
Sulfide
INDEPENDENT
MINING CONSULTANTS, INC.