Anglo active at Boyongan (March 18, 2002)

Vancouver — Drilling at the Boyongan copper-gold prospect in the Philippines has returned impressive values for partners Anglo American (AAUK-Q) and Philex Gold (PGI-V).

Hole 35 was drilled 80 metres southwest of the discovery hole (365 metres grading 0.7% copper and 1.9 grams gold per tonne) and cut oxide mineralization from 91 metres through to the end of the hole at 560 metres. The 469 metre section ran 0.67% copper and 1.09 grams gold per tonne. Included in this interval was a 230-metre portion averaging 0.92% copper and 1.61 grams gold.

Hole 36 was collared 140 metres south of hole 18 (896 metres grading 0.49% copper and 1.57 grams gold) and returned 1.44% copper and 1.96 grams gold over 215 metres from 129 metres down-hole.

Holes 32 and 33 were collared 230 metres east of hole 26 (71 metres grading 0.28% copper and 0.29 gram gold) and 210 metres west of hole 8 (no significant values), respectively. The holes were stopped as a result of poor ground conditions at 239 and 177 metres down-hole before hitting the favourable intrusive body. Despite failing to hit the mineralization, hole 32 stopped in clayey rock with argillized diorite fragments.

“We are pleased to see the excellent results from holes 35 and 36,” says Chief Executive Officer Gerard Brimo. “About 15,000 metres of resource definition drilling is planned in Boyongan this year, as well as scout drilling, primarily south of the deposit to test for other mineralized porphyry systems.”

Hole 37 was collared 200 metres east of hole 35 and drilled to the north at a 60 angle. The hole hit the mineralized body at 138 metres down-hole through to its final depth at 378 metres.

Hole 38 was collared 40 metres southeast of hole 18 and is being drilled to the north at 60. This hole cut intense stockwork mineralization at 50 metres down-hole to its current depth at 174 metres. Moving 60 metres northwest of the discovery hole, hole 39 cut mineralization from 99 metres down to its current depth of 338 metres. Hole 40 is being collared 100 metres north of hole 37. Assay results for these holes are pending.

Reconnaissance drilling 4 km to the south, at Magpayang, has failed to encounter any mineralization. Hole 1 cut 258 metres of Quaternary cover before being terminated. Holes 2 and 3 are currently at depths of 120 and 85 metres, respectively.

Anglo American discovered the blind deposit in September 2000, when hole 6 returned a 365-metre intercept grading 0.70% copper and 1.9 grams gold per tonne. Subsequent drilling throughout 2001 continued to yield impressive numbers, including 393 metres grading 1.58% copper and 2.39 grams gold in hole 15.

Situated on the northeastern side of the island in the historic Surigao gold district, the project covers part of a north-south-trending Pliocene volcano-magmatic arc, which hosts several known gold mines.

So far, some 38 holes have been completed, outlining a core of high-grade mineralization over a 400-by-300-metre area.

Five rigs are turning, with a sixth to be added shortly. Of these, four are slated for delineation drilling at Boyongan and two will be used for reconnaissance work to the south.

Late last year, Anglo American purchased an additional 10% equity stake in the project and surrounding ground from Philex for US$20 million. Additional payments of up to US$5 million will be required should the metal content of the deposit, or of any other discovery within the surrounding claims, contain more than 3.6 million tonnes copper-equivalent. The deal is expected to close early this year, at which point Philex and Anglo American will each hold a half-stake in the project. The major can then earn an additional 30% interest by completing a bankable feasibility study.