Results fail to impress market

Vancouver — Despite all the evidence of a significant find at the company’s Boyongan copper-gold prospect on the North property in the Philippines, shares of Philex Gold (PGI-V) headed lower following the release of the latest assay results.

The property is located on the island of Mindanao.

The junior’s partner on the project, mining giant Anglo American (AAUK-Q), has tabled complete assays results from holes 18 through 20 and released partial results from hole 21.

“Hole 18 has provided the deepest mineralized intercept to date, while hole 20 extended the high-grade mineralization west,” says Gerard Brimo, Philex’s CEO.

Hole 18 was collared from the same site as hole 14 (388 metres grading 1.07% copper and 2.03 grams gold per tonne) and drilled vertically. It returned 0.49% copper and 1.57 grams gold per tonne over 856 metres. Included in this section was a higher-grade mixed oxide-sulphide section that yielded an impressive 1% copper and 3.52 grams gold over 277 metres from 53 metres down-hole.

Collared from the same site as hole 16 (378 metres grading 0.64% copper and 0.46 gram gold from 184 metres down-hole) and drilled 60 to the west, hole 19 cut 315 metres grading 0.35% copper and 0.48 gram gold from 235 metres down-hole.

Moving 120 metres south of hole 17 (392 metres grading 0.65% copper and 0.44 gram gold) and drilled westward at 60, hole 20 returned 394 metres grading 0.77% copper and 1.51 grams gold from 92 metres down-hole. Included in this section was a higher-grade oxide portion that ran 1% copper and 2.22 grams gold over 205 metres from 113 metres down-hole.

Drilled from the same site but in the northerly direction, hole 21 cut the mineralized body at 87 metres down-hole and through to the end of the hole at 478 metres. The base of the oxidation was hit at 338 metres down-hole. Partial results yielded 0.6% copper and 0.29 gram gold over 218 metres from 166 metres down-hole.

One additional hole has been completed. Its results are pending. Hole 22 was collared from the same site as hole 19 and drilled to the north. It hit the mineralized body at 169 metres down-hole and terminated in weak pyrite mineralization at 335 metres.

The three rigs are turning near the original discovery area. Hole 23 is collared 20 metres north of hole 6 (365 metres grading 0.81% copper and 1.9 grams gold) and drilled vertically. This hole hit the mineralized diorite at 73 metres down-hole and is still in it at 385 metres.

Hole 24 is drilling 150 metres southwest of hole 6 in a northerly direction. It cut the mineralized diorite at 135 metres and is still in it at a depth of 262 metres.

Hole 25 is collared 200 metres south of hole 12 (97 metres grading 0.28% copper and 0.68 gram gold) and is still in unaltered cover at 137 metres.

To date, drilling has intercepted significant mineralization over a 750-by-400-metre area. Mineralization appears to consist of an earlier, gold-rich copper porphyry system with a significant oxide cap overprinted, or coupled, with a high-sulphidation copper-gold event.

Philex’s stock lost 21 on the opening of trading on Wednesday. By midday it was recovering slightly and trading at $1.25 per share.

Anglo American can earn 40% of the North property by spending $2.2 million. It can then earn 70% by completing a bankable feasibility study.

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