The Asia Miner

OCT-DEC 2017

The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region

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18 | ASIA Miner | Volume 14 • Issue 4 | 2017 Philippines NICKEL producer Marcventures Holdings is merging with Asia Pilot Mining Philippines Corp and BrightGreen Resources Holdings in a deal valued at about US$22.1 million. Marcventures will remain as the sur- viving entity and operator. Marcventures will issue 1.125 billion shares at par value of P1 per share, 675 million in favour of Asia Pilot and the remaining 450 million to BrightGreen. Asia Pilot owns Alumina Mining Philippines and Bauxite Resources, which mine bauxite ore. Alumina Mining operates a 6694 hectare ten- ement at Motiong and Paranas in Samar province while Bauxite Re- sources has 5435 hectares of mining areas near the towns of Ganda- ra, San Jorge, San Jose de Buan and Matuginao also in Samar. Marcventures expects the merger to grow its business, diversify its products and expand its source of income. The company notes that bauxite has been more stable in prices compared to other com- modities, even during the slump of metal prices. BrightGreen Resources Holdings owns BrightGreen Resources Corp (BRC) that mines approximately 4860 hectares at Carrascal and Canti- lan, in Surigao del Sur. These tenements are adjacent to the operations of Marcventures' wholly-owned subsidiary Marcventures Mining and Development Corp (MMDC). This company is engaged in mineral pro- duction within 4799 hectares at Cantilan. Marcventures says its intention in acquiring BrightGreen is to gain control of BRC in order to increase its nickel reserves to facilitate a possible venture into nickel processing fed by both mining opera- tions. MMDC's main product for the past three years has been nickel ore. It has identified nickel ore as the primary mineral that will be extracted and sold to third parties due to the abundance and favorable characteristics of nickel within the mineral property. This product is direct shipped to China. Meantime, Marcventures Mining and Development Corp has ap- pointed Yulo Perez as its new president and chief executive, replacing Arsenio Sebial who retired on September 30. Yulo Perez was formerly president and COO of Silangan Mindanao Mining Company, and has 37 years of experience managing mining operations in the Philippines and abroad, including 11 years with PT INCO Indonesia, now called PT Vale Indonesia. RIZAL Resources continues to make slow but steady progress in re-establishing the T'Boli Gold Project in South Cotabato, Mindanao, and ramping up towards the intended Phase 1 daily production rate of 200 tonnes. Progress has been impacted by poor cashflow and a subsequent lack of funds. The main objective in commissioning the project this year has been de-bottlenecking the plant and commencing production, thus gener- ating cashflow. In the March quarter 18.16 ounces were produced and this increased to just over 346 ounces in the June quarter when the plant processed in excess of 7000 tonnes of low grade miner- alised material. Total revenue for the period was C$564,276. Plant availability for the quarter was 40% due mainly to commission- ing during April and a scheduled shutdown for the majority of May to replace ball mill liners and the primary crusher. In June, mechanical issues with the secondary crusher affected plant availability. The bulk of the issues associated with the plant have now been rectified, with availability in late June and July beyond 80%. During the second quarter, the mining operation delivered 12,257 tonnes of mineralised low-grade material to the mill. This was sourced primarily from low-grade stockpiles, the 545 drive development and a small quantity came from higher grade mineralised stope material. The development and low-grade mineralised material has been the primary source of material being treated during the commissioning phase. Decline and drive development for the June quarter in the new Min- ion decline achieved a total driven distance of 594 metres. In quarter three the mining operation was ready to access the 510 level, which is below all previous workings. Once the T'Boli operation is running at Phase 1 design, planning for Phase 2 development and implementation will begin. Once positive cashflow is sustained the company will commence restructuring of its balance sheet. Meantime, surface exploration at the company's Batoto-Tarale gold prospect in East Mindanao remains at minimum levels of expenditure and there has been no expenditure required at the Comval project, which is subject to a commercial arrangement with Metallum Limited. Marcventures gains bauxite and nickel assets Processing facilities at Rizal Resources' T'Boli Gold Project. Slow but steady progress at T'Boli

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