Anglo greases drills at Boyongan

Vancouver — Anglo American (AAUK-Q) is sending eight drill rigs to explore the Boyongan project in the sourthern Philippines. The property is held equally by Anglo American and Philex Gold (PGI-V).

Anglo discovered the deposit in September 2000, when hole 6 returned a 365-metre intercept grading 0.7% copper and 1.9 grams gold per tonne. Subsequent drilling yielded further impressive results, including 393 metres grading 1.58% copper and 2.39 grams gold in hole 15, and 896 metres of 0.49% copper and 1.57 grams gold in hole 18. However, the tonnage is unlikely to be sufficient to support a large-scale, long-life operation. Also, the deep-seated sulphide mineralization now appears to have an erratic grade distribution. For these reasons, Anglo has been seeking additional mineralization through drilling.

The latest results show the promise of another deposit. Collared from the same site as hole 32 (no significant values) and drilled in a westerly direction, hole 65 cut 124 metres grading 1.01% copper and 0.11 gram gold at a down-hill depth of 342 metres. Oxide mineralization comprises cuprite, azurite, malachite and trace chalcocite.

“We are delighted to see hole 65 intercept supergene enriched copper mineralization, which was previously indicated by hole 29”, says Philex CEO Gerard Brimo. “This intercept strongly indicates that a distinct porphyry system lies northwest of the Boyongan deposit.”

Hole 66 was collared at the same site as hole 62 (548 metres grading 0.26% copper and 0.27 gram gold) and drilled eastwards at 60. The hole intersected weak sulphide mineralization, which yielded no significant values.

Collared 100 metres southwest of hole 33 (no significant values) and drilled northwards at minus 60, hole 67 is still drilling at a depth of 920 metres. The hole intersected unaltered cover from collar to a depth of 318 metres before entering a “Bird’s Eye Porphyry.” Mineralization consists of pyrite, chalcopyrite, rare bornite and molybdenite. The hole returned 162 metres grading 0.15% copper and 0.15 gram gold at 499 metres down-hole and is interpreted to have intersected the eastern margin of a new porphyry.

Says Brimo: “Hole 67 intercepted what is interpreted to be the eastern margin of a possible third porphyry system, which was previously indicated by the presence of debris flows of Bird’s Eye porphyry in scout drilling west and south of Boyongan last year, as well as in the recently concluded hole JSD-9.”

Hole JSD-9 was was collared 400 metres west of JSD-3 and drilled westwards at minus 60. The hole cut a large slab of argillized and weakly mineralized Bird’s Eye Porphyry from 352 to 465 metres. Mineralization comprises pyrite and trace chalcocite. Assay results are pending.

Anglo plans on drilling 28,000 metres this year.

The major can expand its interest in the project to 80% from the current 50% by completing a bankable feasibility study.