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Geographic Coordinates
North Latitude 16° 52'
East Longitude 120° 47'
250 aerial kilometers north of Manila,
Philippines or
95 road kilometers north of Baguio City,
Philippines
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Topography
Rugged terrain with elevation reaching to about 1000-1500 meters
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Climate
Wet season (May to October)
Dry season (November to April)
Precipitation 340 cm/yr
Temperature 18° C (ave)
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HISTORY OF THE PROJECT
The discovery of the Far Southeast (FSE) ore body was the result of an exploration philosophy to search for porphyry copper deposits within the vicinity of Lepanto's operations.
The initial target area was the 80-hectare Mankayan Communal Forest Reserve located southeast of the company's mining claims.
In 1978, the company secured an endorsement for a prospecting permit from the Mankayan municipal government.
The following year, the necessary government permits from the Bureau of Mines were obtained.
This enabled the company to conduct an induced polarization (I.P.) survey in the area, which yielded an anomaly.
The communal forest reserve was released by the government and granted in 1980 to the company through PD 1676 which legalized the exploration, development and utilization of minerals found within the Communal Forest Parcel I.
In April 1980, the first surface drill hole (S-80-1) was collared at the center of the IP anomaly.
This hole and another surface hole drilled further west showed very lean mineralization.
A switch to underground drilling was done later that year with the collaring of U-80-23 which became the discovery hole.
An intensive underground grid drilling program of a total of 75 drill holes equivalent to 38 kilometers was undertaken until 1986.
In addition, underground level drives covering 7.6 kilometers were accomplished for exploration.
The results defined the gold-rich porphyry copper deposit.
During the same period, extensive metallurgical tests were conducted on the diamond drill core samples.
Rock mechanics, hydrogeological and geothermal studies were accomplished.
The opening of a test stope was also undertaken.
In 1987, the Far Southeast Gold Resources, Inc. was organized as a joint venture company of Lepanto Consolidated Mining Co. and Galactic Resources Ltd. to develop the FSE deposit.
A feasibility study by J.S. Redpath Corporation and Kilborn Engineering was completed in March 1988 which yielded positive results.
Several updates were done during the succeeding years.
However, due to depressed metal prices in the early 1990s, the project did not proceed.
An additional 39 holes were drilled from 1987 to 1994 which is equivalent to 14 kilometers of drilling to enhance the mineral resource and ore reserve of the deposit bringing the holes drilled to 114 or an equivalent of 52 kilometers.
LOCATION AND ACCESSIBILITY
The Lepanto mine site is located in the municipality of Mankayan, Province of Benguet, in the island of Luzon, Republic of the Philippines.
It is approximately 60 aerial kilometers or 100 kms by road north of Baguio City.
Geological Map of Mankayan and Vicinity
Flying time from Manila to the mine site is approximately one hour in a twin-engine aircraft.
Travel time from Baguio City along the newly concreted Halsema Highway is 3 hours.
The FSE ore body is located in a rugged mountain region with elevations ranging from 600 to 1,500 meters above sea level.
Temperature in the area is moderate year-round (10 to 25 degrees Celsius).
Rainfall is heavy from July to October.
BRIEF GEOLOGY: FAR SOUTHEAST PORPHYRY Cu-Au DEPOSIT
The Far Southeast deposit is located 1,500 meters southeast of the Enargite copper mine and 1,000 meters east of the Victoria gold mine.
The Far southeast orebody is a gold-rich porphyry copper deposit.
It is WNW-trending, longitudinally bell-shaped and deep seated (approximately from 900 meter elevation and extending down to a still undetermined depth below sea level).
At minus 100 meter elevation, it is approximately 1000 meters long, 500 meters at its widest section.
MMD District Geology Setting
The Far Southeast deposit is hosted by an ovoid quartz diorite porphyry stock of Late Pliocene to Pleistocene age which intrudes a Middle Miocene volcaniclastic sequence.
Centrally truncating the deposit is an intra-mineral dacitic diatreme which is bordered by a hydrothermally brecciated zone.
The deposit is structurally controlled at the intersection of the WNW-trending Lepanto Fault and the NNW-striking Cross Fault.
At a surface elevation of 1,500 meters which is the approximate elevation of a proposed Exhaust Shaft, the top to the deposit is overlain by 600 meters of rock cover.
Bornite, chalcopyrite, pyrite, magnetite, specular hematite, molybdenite and significant gold mineralization form part of a potassic silicate alteration assemblage that grades outward into argillic, then propylitic alteration.
A dense stockwork of quartz veinlets characterizes the main ore zone.
MINERAL RESOURCE AND ORE RESERVE
The mineral resource and ore reserve used in the March, 1988 feasibility study were estimated by LYNX Geosystems Inc. of Vancouver, Canada in 1987.
The reserve calculations were based on 75 subvertical drill hole data.
In 1995, the mineral resource and mining reserve estimate were updated by MINENCO PTY LIMITED of Melbourne, Australia based on a total of 114 drill holes.
Mineral Resource
The updated mineral resource of the Far Southeast porphyry copper deposit at a cut-off grade of 0.7% Cu equivalent is 657 million tonnes grading 0.65% Cu and 0.94 g/t Au.
At a cut-off grade of 1.5% Cu equivalent, the mineral resource is 180 million tonnes at 0.80% Cu and 1.70 g/t Au.
Ore Reserve
The estimated ore reserve at a cut-off grade of 1.5% Cu equivalent is 120 million tonnes grading 0.80% Cu and 1.5 g/t Au.
Note: Copper Equivalent (CuEq) was based on US$400/oz Au & 82% Recovery + US$0.75/lb Cu & 90% Recovery
EXPLORATION POTENTIAL
On a deposit-wide scale which includes the delineated FSE deposit and the FW deposit immediately south of the Lepanto Fault, the exploration potential is excellent considering that the FSE deposit is open to the NW and the SW.
The high grade core of the FSE ore body generally widens with depth.
The ore zone is undefined below -160 meter elevation.
Since mineralization is generally stockwork related, the presence of significant zones of bornite concentration in the lower portion of several of the deepest holes suggests improved grade at depth.
The deposit's southeast and northwest limits are yet undefined.
The FSE-FW prospect probably represents the southern portion of the FSE deposit which has been offset by the Lepanto Fault.
Of the two exploration holes completed, both intersected porphyry gold-copper mineralization.
One of the holes defined the southern extent of the hydrothermal breccia and diatreme.
Immediately above the diatreme, several high grade clasts (2.57% Cu and 2.91 g/t Au) were encountered within the Imbanguila dacite pyroclastics.
The clasts show intense silicate alteration and more amounts of secondary magnetite than has presently been encountered within the district.
The logical source of the fragments would be the lower portion of the FSE-FW adjacent to the diatreme.
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