T’Boli Gold Mine – Project Overview
Cadan Resources’ Philippines affiliate TMC has received approval on its declaration of mining project feasibility (DMPF) from the Mines and Geosciences Bureau (MGB), the Company has begun bulk processing of its ore from the T’Boli mine site in preparation for commercial production at the T’Boli gold-silver project. Cadan’s lateral mine development at T’Boli has recently been approved for permitting, and commercial mining and processing of up to 380 metric tons per day has commenced.
Exploration targets include extensions of the defined resource, and several areas, which may be structural repeats of the T’Boli mine within the largely unexplored tenement, including APSA No. 51-XI.
The deposit is a typical epithermal, high-grade, narrow vein system in similar style to several multi-million ounce deposits in the region, such as Barrick’s Porgera mine and Medusa’s Co-O mine. The T’Boli project is now fully equipped, including a trained local work force, a fully constructed and commissioned carbon-in-leach (CIL) gold-silver processing plant, gravity concentrator, electro-winning circuit, tailings storage facility and powerhouse.
The decision to become a gold producer is not based on a feasibility study of mineral reserves as defined by National Instrument 43-101 and there is no certainty the proposed operation will be economically viable. The T’Boli property hosts a reported inferred mineral resource for T’Boli of 2,400,000 tonnes at 5.5 grams per tonne (g/t) gold (Au) and 21.0 g/t silver (Ag), equivalent to 420,000 ounces (oz) of gold and 1.6 million oz of silver (independent technical report, Sabena and T’Boli properties, Philippines, dated Dec. 23, 2002, and filed on SEDAR on Feb. 12, 2003).
In connection with the issuance of the Declaration of Mining Project Feasibility (DMPF), the MGB reviewed and verified information on the property regarding available resources, in addition to considering the environmental, social and economic requirements of the Philippines. The Company is working to build the resource base by exploring the lateral and depth extensions of the current resource, as well as through the exploration of several targets throughout the large land package that have shown significant gold and silver mineralization.
Cadan Resources Corp.’s Philippines affiliate, Tribal Mining Corporation (TMC), has poured its first gold since the approval to commence commercial production at the T’Boli gold-silver mine (news release Oct. 18, 2012). The first gold bars were poured at the TMC-owned carbon-in-leach (CIL) processing plant in T’Boli, South Cotabato, Philippines. Between Oct. 10 and Nov. 30, the T’Boli CIL plant milled 1,881 dry metric tons of mineralized rock from existing stockpiles (news release Nov. 26, 2012). With assays of 98% Au, and weighing a total of 316 ounces, the average grade of gold produced from 1,881 DMT was 5.2 grams Au/DMT. Additionally, 497 ounces of silver were recovered; the average grade of silver produced from the 1,881 DMT was 8.2 grams Ag/DMT. The average prices for the metal sold were $1,680/oz Au and $32.50/oz Ag for a combined recovery of $547,032.
Cadan’s president and chief executive officer, Robert Butchart, commented:
“Cadan’s first gold pour is a fantastic milestone, reaching over half a million dollars in metal value. This confirms the mill is operational. We are very excited about what we have achieved.”
The mineralized rock stockpile was predominantly derived from the development of drives along veins in preparation of stopping operations during 2011 and 2012 (news release Nov. 26, 2012). The first of these drives is scheduled to commence mining operations during the first quarter of 2013, with daily production rates scheduled to rise up to 200 tonnes per day.