Sur eyes gold in Phillipines

Hoping to outline a bulk-minable gold deposit, Sur American Gold (SUR-V) is sampling a large epithermal system in the Eastern Mindanao mineral belt of the Philippines.

Batoto sits at the southern end of a 15-km-long-by-3-km-wide zone of low-sulphidation, epithermal mineralization. At the time of its discovery, two decades ago, the owner had dug 7,000 metres of trenches and 460 metres of underground workings.

Mineralization is associated with a series of northeasterly trending quartz veins in an altered and porphyritic diorite. The veins vary from 0.5 to 2 metres in width. Sub-parallel veinlets between the veins also carry gold, as do intervening areas of pervasive silicification.

So far, Sur has taken 220 surface channel samples across 1,140 metres of the intrusion. The samples, which were taken in 15-by-15-cm sections, were combined every 10 metres. Results are pending.

Meanwhile, Sur is resampling the underground workings and mapping the intrusion to determine its limits. The efforts have so far resulted in a doubling of the zone’s vertical extent to 400 metres below the top of the hill that encloses it.

As well as Bagoto, Sur is sampling the similar Surigaonon and Panag targets, to the north. The former is about 1,600 metres long by 950 metres wide, and characterized by four northwesterly trending veins in an altered and silicified sub-volcanic diorite. Mapping at Panag has identified several new vein systems, and geochemical sampling continues.

Excluding the Bagoto veins, Sur has discovered 20 quartz-vein systems in the epithermal system. Some widen to 400 metres, but most occur as narrow swarms that extend for 500-1,000 metres in length.

Fine particles of gold have been obtained from crushed grab samples and local creek sediments.

Sur also is exploring near the past-producing Tagpura gold-porphyry deposit, which is situated to the south and thus thought to be the heat source for the low-sulphidation epithermal event. The deposit was mined between 1978 and 1981 at the daily rate of 10,000 tonnes, and headgrades reportedly averaged 0.5 gram gold per tonne and 0.7% copper — comparable to other known deposits in this region of the Philippines.

A recent reinterpretation of historic geophysical data suggests that a new zone may lie south of Tagpura. The theory is supported by recent mapping, which has traced mineral showings for 1,500 metres in that direction from the old pit. The induced-polarization anomaly is 400 metres wide and remains open to the south and at depth.

Sur can acquire a 70% stake in a 200-sq.-km portion of the eastern Mindanao belt by issuing 5 million shares, or an 11% equity stake, to a private Australian firm. Already, 1.5 million shares have been issued, and the remainder will be printed once exchange officials grant permission.

As part of the deal, Sur must try to spend $4 million on the properties over five years. It also must not dilute the vendor’s equity stake by the end of that period.

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