Vancouver-listed Pacific Falcon Resources is set to launch a drilling program in an effort to delineate the Guinaoang deposit on the Philippine island of Luzon.
To date, 38 holes, totaling more than 30,500 metres, have succeeded in outlining a copper-gold porphyry deposit which contains about 500 million tonnes grading 0.37% copper and 0.37 grams gold per tonne. Within the deposit, a higher-grade core is estimated to contain 166 million tonnes of 0.52% copper and 0.54 grams gold. This inner core is open laterally to the north and west, and locally to the east.
Measuring 915 metres long by 550 metres wide, the zone extends from a depth of 275 metres to more than 915
metres.
The property lies within the Lepanto mining area and is believed to form part of a major mineralized system. It is situated 3 miles northwest of the Lepanto gold-copper lode mine and adjacent to the Far Southeast high-grade porphyry deposit, which is being developed by partners Lepanto Consolidated Mining and CRA.
An initial program of 2,000 metres will test the western extension of the deposit. If results are sufficiently encouraging, a second phase will be carried out, consisting of 8,000 metres.
The project is a joint venture between Pacific Falcon and Philippines-based Crescent Mining & Development. Pacific can acquire a 40% interest from Crescent by paying the latter $100,000 plus 150,000 shares, and spending US$325,000 on the property in the first year; issuing 50,000 shares and spending US$725,000 in the second year; and spending US$650,000 during the third (final) year.
Pacific can acquire an additional half interest by paying Crescent $3 million before the end of 1998.
The company has completed a $735,000 private placement and a public offering that raised $600,000.
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