Philex Gold posts maiden resource on Bayugo

The Bayugo copper-gold prospect in northwestern Mindanao island in the Philippines has its first resource estimate, Philex Gold (PGI-V) reports.

The porphyry-hosted copper-gold occurrence is in the province of Surigao del Norte and about 1 km northwest of Philex Gold’s Boyongan copper-gold deposit.

The two deposits are part of a joint-venture in which Philex Gold holds a 50% stake and Philex Mining Corp., a company listed in the Philippines, holds the remaining 50%stake. Philex Mining Corp. purchased its share of the joint-venture from Anglo American (AAUK-Q, AAL-L) in February 2009.

At an economic cut-off grade of 0.4% copper, the Bayugo deposit has an indicated resource of 85.72 million tonnes grading 0.88% copper and 0.73 gram gold per tonne and an inferred resource of 32.74 million tonnes grading 0.75% copper and 0.63 gram gold per tonne.

The resource estimate was based on verified drill results from 43 exploration holes available to Sept. 30 and a lithological model was created through the interpretation of geological, structural and assay information on sections and plans.

Exploration continues at Bayugo and Philex says it will update its resource model to incorporate more results as they come in.

In terms of its more advanced Boyongan deposit, Philex Gold published the results of a prefeasibility study in November 2008 based on a measured and indicated resource of 105.4 million tonnes grading 0.80% copper and 0.98 gram gold per tonne.

At presstime Philex was trading at 50¢ per share. The junior has traded between 15¢ and 60¢ over the last year and has 40.61 million shares outstanding.