Drilling is under way on the Taysan copper-gold project in the Philippine province of Batangas. Chase Resources (VSE) has an option to acquire a 59.9% interest in the project by making a cash payment of US$2.1 million by May 10, 1993, or US$2.9 million by May 10, 1994.
The company has already issued the vendors 1.8 million treasury shares as stipulated in the deal.
Chase is conducting a 2-phase program, with the initial phase comprising 12-15 holes representing more than 16,000 ft. The first phase, budgeted at about US$500,000, will concentrate on confirming and enhancing previous reserve estimates as well as delineating a high-grade reserve within the Taysan deposit.
Based on more than 88,000 ft. of previous drilling, preliminary reserves are estimated to be in excess of 600 million tons grading 0.3% copper and 0.009 oz. gold per ton in the Taysan main zone.
Consultant Fluor Daniel Wright calculated an open pit minable reserve (all classifications) of 257 million tons grading 0.32% copper and 0.009 oz. gold. The estimate is based on a 50,000-ton-per-day operation and a 0.2% cutoff grade for an average strip ratio of 0.85-to-1.
A number of the previously drilled holes on the property returned higher average grades in the upper portions of the deposit and the company sees excellent potential in outlining a high-grade starter pit with the first-phase drilling.
The drilling is also expected to boost reserves and lower the overall strip ratio by confirming geologic and grade continuity between previously drilled sections.
Previous work on the deposit concentrated on its copper potential with relatively little gold sampling done.
Chase hopes to confirm that gold grades are higher than current estimates as suggested by the Fluor Daniel Wright study.
The initial phase of drilling is expected to continue into January, 1993, and will also include metallurgical analysis of the drill core as part of the company’s ongoing feasibility program.
Second-phase work next year will test the continuity of the main Taysan zone into the Taysan West zone as well as the extent of third zone, Bacal Hill, to the south of Taysan.
Chase is well funded for the program after raising more than $3 million through a unit financing this summer.
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