Senior explorer Echo Bay Mines (TSE) and comparative upstart TVI Pacific (ASE) can acquire jointly the Kingking porphyry copper-gold deposit in the Philippines.
The Kingking porphyry, situated on the island of Mindanao, is estimated to contain 3.8 million oz. of minable gold and 2.2 billion lb. of minable copper, enough to produce 200,000 oz. gold and 110 million lb. copper for 15 years.
The partners acquired the option from two Philippine companies: Benguet and NADECOR. The former can buy back a 20% interest in the property, which, if exercised, would give Echo Bay a 65% interest and TVI 15%. NADECOR retains a smelter return royalty interest.
If the project enters production, Echo Bay and TVI expect they will have to pay Benguet up to US$97 million, plus any supplemental payments for additional gold reserves, for a possible total of US$115 million.
Echo Bay and TVI will operate the property and conduct a 2-year evaluation, which includes additional exploration drilling and environmental and metallurgical test work. With a final feasibility study completed by early 1997, gold and copper production could begin early in the year 2000.
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