Philex suspends Bulawan

Philex Gold (PGI-T) has temporarily suspended operations at its Bulawan underground gold mine in the Philippines.

The suspension follows the depletion of reserves in the South block.

About 40% of the mine’s workforce has been laid off, though many workers will return when operations resume in mid-September.

Currently, Philex is focusing on surface support facilities and on rehabilitating workings in the Central block that were affected by poor ground conditions encountered in the first quarter.

Philex expects the higher-grade Central block to support production for the next two years. The prediction is based on reserves of 4 million tonnes grading 2.8 grams gold per tonne (the calculation assumes a gold price of US$300 per oz.).

As a result of the suspension, Philex no longer expects to produce 75,000 oz. by year-end. In the first quarter, only 11,555 oz. were produced, or half what was produced a year ago.

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