Echo Bay says no-no to Kingking

Echo Bay Mines (ECO-T) has decided to not proceed with the acquisition of a 75% interest in the Kingking copper-gold porphyry deposit in the Philippines from Benguet (BE-N).

Echo Bay and its 25% partner, TVI Pacific (TVI-T), recently completed a initial feasibility that concluded the project would not be economical.

To exercise the purchase option, Echo Bay and TVI were required to pay a total of US$67 million. Alternatively, they could have paid US$10.5 to extend the option for another year.

Echo Bay is reviewing the carrying value of its four producing mines and of its exploration and development properties.

In the event the deposit is ever mined, TVI is retaining a 0.5% net smelter return royalty.

The deposit, situated on the southern island of Mindanao, contains 438 million tons grading 0.34% copper and 0.015 oz. gold per ton, based on a gold and copper price of US$375 per oz. and US90cents per lb., respectively.