Leyte Copper Project Leyte Province, Philippines Philippine ......2009/10/22 · Technical Report:...
Transcript of Leyte Copper Project Leyte Province, Philippines Philippine ......2009/10/22 · Technical Report:...
Technical Report
and Proposed Exploration Program
for the
Leyte Copper Project Leyte Province, Philippines
prepared for
Philippine Metals Corporation Calgary AB
and
New Meridian Mining Corp. Calgary AB
by Daniel A. Beauchamp, P.Geol., M.B.A.
Consulting Geologist
Bill Dynes, P.Geol. Sierra Geological Corp.
Longitude: 124°56’18” E Latitude: 11°14'42” N Region: Eastern Visayas Province: Leyte Date: 22 October 2009
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page i
Table of Contents
1. Executive Summary ................................................................................ 1 2. Introduction ............................................................................................. 4 3. Reliance on Other Experts ...................................................................... 5 4. Property Description and Location .......................................................... 5 Mineral Exploration in the Philippines ................................................ 5 Mining Rights held by Philippine Metals Corporation ........................ 9 Leyte Copper Project....................................................................... 12 5. Access, Climate, Resources, Infrastructure and Physiography ...................................................... 17 6. History .................................................................................................. 23 7. Geological Setting ................................................................................. 27 Regional Geology ............................................................................ 27 Local Geology ................................................................................. 30 8. Deposit Types ....................................................................................... 38 9. Mineralization ........................................................................................ 40 10. Exploration ............................................................................................ 48 Geological Mapping ......................................................................... 48 Rock Sampling ................................................................................ 51 11. Drilling ................................................................................................... 62 12. Sampling Method and Approach ........................................................... 63 13. Sample Preparation, Analysis and Security .......................................... 63 14. Data Verification .................................................................................... 64 15. Adjacent Properties ............................................................................... 66 16. Mineral Processing and Metallurgical Testing ....................................... 66 17. Mineral Resources and Mineral Reserve Estimates .............................. 67 18. Other Relevant Data and Information .................................................... 67 19. Interpretation and Conclusions .............................................................. 68 20. Recommendations ................................................................................ 69 21. References ............................................................................................ 73 22. Date and Signature Page ...................................................................... 77
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page ii
List of Tables
Table 1. Mineral Rights in the Philippines ................................................... 6 Table 2. Property Holdings ....................................................................... 12 Table 3. Table of Formations ................................................................... 31 Table 4. Summary of Characteristics of Cyprus-type Mineralization ........ 50 Table 5. Sample Distribution .................................................................... 63 Table 6. Proposed Budget – Leyte Copper Project .................................. 72
List of Figures Figure 1. Project Location Map .................................................................. 11 Figure 2. Property Location Map ............................................................... 13 Figure 3. Zones of Mineralization .............................................................. 14 Figure 4. Road and Trail Access ............................................................... 19 Figure 5. Topography ................................................................................ 22 Figure 6. Geology - Philippines .................................................................. 28 Figure 7. Cross-Section of an Ophiolite Suite ............................................ 29 Figure 8. Local Geology............................................................................. 32 Figure 9. Schematic Section of the Tacloban Ophiolite Suite .................. 33 Figure 10. Cross Section of Cyprus-Type Mineralization ............................. 38 Figure 11. Palo - Curajo Area, Barangay San Jose, Mineralized Areas ...... 53 Figure 12. Plan Map - Palo Area ................................................................. 54 Figure 13. Cross-section - Palo Area A ....................................................... 55 Figure 14. Buen Suerte - Kambalantong Area ............................................. 57 Figure 15. Salvacion Area ........................................................................... 61 Figure 16. Proposed Geophysical Grid ........................................................ 70
Appendix Appendix Verification Analyses .................................................................. 81
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 1
1. Executive Summary
At the request of Philippine Metals Corporation and New Meridian Mining Corp. Daniel A. Beauchamp and Bill Dynes were commissioned to write an independent Technical Report to the standards of National Instrument 43-101 on the company’s Leyte Copper Project in the Philippines. The report is prepared for an anticipated reverse takeover of New Meridian Mining Corp by Philippine Metals Corporation (New Meridian Mining Corp, 2009a and 2009b). D.A. Beauchamp visited the property on May 25-26, 2009 and Bill Dynes visited the property on December 1-2, 2007.
The Leyte Copper Project is located about 600 km southeast of Manila and is composed of three blocks: the Taurus Block covers an area of 3606 ha on which the company was granted an Exploration Permit, and the Suhi 0059 and 0096 Blocks, that cover 6289 ha, for which applications for Exploration Permits have been submitted. Philippine Metals Corporation acquired the Leyte Copper Project, along with the Dilong Project and the Malitao Project, respectively located 280 and 380 km north of Manila in the Luzon Region, from companies based in the Philippines.
In the Philippines, all mineral rights are owned by the state and mineral exploration cannot proceed before an Exploration Permit has been issued. After a feasibility study the company can apply for one of several agreements with the government whereby the government can take a share in the property through an excise tax, participation in a joint venture or a co-production agreement.
The Leyte Copper Project is located five kilometres west of Tacloban City on Leyte Island which is accessible by daily flights from Manila, and also by road and ferry. A network of roads leads from Tacloban City where several trails provide good access to most parts of the property.
Several large industrial plants are present on Leyte Island within a two-hour driving distance from Tacloban City including a geothermal plant and one of Asia’s largest copper smelters. The average literacy rate in the country is 92.6%.
The topography on the property is rugged and the elevations rise from about 15m on the east side to 600m asl in the northern part of the project area. The area is covered by growth forest and the depth of weathering is estimated at 10-20m.
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 2
Copper sulphide mineralization has been known in the area since the 1930s and ore was mined from several areas. Many pits, trenches and adits, extending for 5-100m, were excavated on the property in the early 1970s. Government geologists performed geophysical surveys over small areas using earlier instruments and a soil survey was completed in one area. Resources have been calculated for a few areas but these are not to the standards of NI 43-101.
At least nine areas of sulphide mineralization have been identified over a strike length of about 17 km along several structures.
From 1968 to 1972 several geologists from the Bureau of Mines and Geology mapped parts of the area and characterized the area as an ophiolite suite that contains Cyprus-type copper mineralization.
The entire project area is underlain by an ophiolite suite consisting of ultramafic rocks that have been intruded by gabbro and sheeted diabase dykes, over which pillowed and massive basalt flows were later extruded. Marine pelagic sedimentary rocks, now metamorphosed to phyllite, occur along with the basalt.
The sulphide mineralization consists of chalcopyrite with associated bornite, covellite and chalcocite, all in association with pyrite in steeply-dipping fractures, breccia and fault zones that strike north-northwest. The mineralization is often massive and many channel samples report grades of 2-10% Cu and up to 1.7% Zn over 1-10m. A correlation between copper and zinc has not been established.
Disseminated sulphide mineralization often occurs as envelopes surrounding the massive sulphides and can extend for 5-10m in the country rock basalt and phyllite. Analyses of 0.2-0.9% Cu over 2-20m have been reported from this style of occurrence.
Massive sulphides are also present in subsidiary fault zones that strike to the east and that appear to have been active at a later time. Although the copper sulphide minerals are the same, the presence of hematite and marcasite indicate that the massive sulphide mineralization from these structures may have remobilized from the massive sulphides in structures that strike northwest.
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 3
In 2009 Philippine Metals Canada Philippines Inc., a wholly-owned subsidiary of Philippine Metals Corporation, undertook a six week field program on the Taurus Block of the Leyte Copper Project. The program consisted of geological mapping and channel sampling of adits, pits, trenches and stockpiles of ore in five known zones of mineralization, over a strike length of 12 km, to better characterize and understand the type of mineralization on the property.
Massive sulphide mineralization is present as lenses up to five metres wide that can extend for several tens of metres in length. The mineralization appears to pinch and swell along the major faults that strike northwest and east. The trace of the mineralization has been followed for at least six kilometres along strike.
The widespread occurrences of massive sulphides and the limited extent of exploration of the property using modern techniques of mineral exploration make the Leyte Copper Project a property of merit.
As part of Phase 1, a ground geophysical survey over an area 500m×1500m is recommended over the Kambalantong-Malayahay area to better assess the extent and size of the massive sulphide occurrences that have been identified in this corridor. The electromagnetic (EM) survey will identify the depth and extent massive sulphide zones while the magnetometer survey will outline structures and possible zones of alteration. A first round of diamond drilling to test the existing zones of mineralization that will have been better delineated is proposed for 2000m in ten drill holes. The total cost of the geophysical survey and the drilling is budgeted at CA$427,000.
Upon approval of the Exploration Permits on the Suhi Projects, a helicopter-borne EM and magnetometer survey should be carried out over the entire Leyte Project area to explore the property at a line spacing of 100m. The budgeted cost of this survey is estimated at CA$613,000. The total cost of Phase 1 is estimated at CA$1,040,000.
Upon the return of encouraging results from the first phase of drilling and of the airborne geophysical survey, a Phase 2 program is recommended, consisting of 4000m of drilling in 20 holes to further define the zones of mineralization in the Kambalantong-Malayahay corridor or in other parts of the property. The cost of Phase 2 drilling is budgeted at CA$760,000.
The total cost of Phase 1 and Phase 2 are budgeted at CA$1,800,000.
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 4
2. Introduction
Mr. Feisal Somji, Chief Executive Officer, President and Director of Philippine
Metals Corporation, of Calgary Alberta, contracted Daniel Beauchamp, P.Geol.
and Bill Dynes, P.Geol. to write this Technical Report for Philippine Metals
Corporation and for New Meridian Mining Corp.
This Technical Report is prepared in compliance with National Instrument 43-101
(NI 43-101), regulations published by the Canadian Securities Administrators, for
an anticipated reverse takeover by Philippine Metals Corporation of New
Meridian Mining Corp. of Calgary, Alberta.
The data in this report was compiled from a detailed review of historical
assessment and geological reports, and maps by companies and government
agencies, and from the recent exploration program carried out on the property by
Philippine Metals Canada Philippines Inc., a wholly-owned subsidiary of
Philippine Metals Corporation. The project was also discussed with other
geologists. This report includes a proposed exploration program and budget to
evaluate the mineral potential of the property.
As Qualified Person, D.A. Beauchamp has worked in mineral exploration for
more than 25 years. The author has worked as a geologist throughout Canada
and has supervised and managed projects in the field in many geological
environments including volcanogenic massive sulphides from the Archean to the
Phanerozoic carrying out geological mapping, geochemical and geophysical
surveys, diamond drilling and core logging.
D. Beauchamp carried out a property site visit from May 25 to May 28 2009. This
site inspection included the following:
May 25 Palanog area, Leyte Copper Project, Leyte Island May 26 Palo area, Leyte Copper Project, Leyte Island May 27 Malitao Project, Luzon Region May 28 Visit to McPhar Geoservices (Phil.), Inc. laboratory in Manila.
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 5
As Qualified Person to the Leyte Copper Project in contract with Philippine
Metals Corporation, Bill Dynes, P Geol carried out a property site visit to various
areas of the Leyte Copper Project on December 1st and 2nd, 2007 and has
overseen, in the capacity of a Qualified Person, the subsequent work program
completed on the Leyte Copper Project in 2009, as described in Section 10
herein. Bill Dynes is a director of New Meridian Mining Corp.
3. Reliance on Other Experts
This Technical Report contains information from government documents,
company reports, public documents and other technical reports. Most of these
reports are historic in nature and may not have been written by Qualified Persons
as currently defined by NI 43-101. The pertinent information has been reviewed
by the authors and although there do not appear to be significant discrepancies
in the information, the authors have not verified the assays or other technical
data from these reports by carrying out independent sampling.
Although the authors have visited the Leyte Copper Project site, not all sites
referred to in this report have been examined in the field.
The authors relied on Tom Vaillancourt, VP Operations for Philippine Metals
Corp. and on Jose S. Garcia, VP Exploration for Philippine Metals Corp. for
additional details and information on the legislation and operating environment in
the Philippines.
4. Property Description and Location
Mineral Exploration in the Philippines
The 1987 Philippine Constitution states that all natural resources in the
Philippines are owned by the state, and that the exploration, development and
use of these natural resources are under the control and supervision of the state.
Mineral rights in the Philippines are governed by The Philippine Mining Act of
1995, and of its partial revisions in 1996 and 1999, which describes the rules and
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 6
regulations whereby individuals and corporations can acquire mineral rights and
carry out mineral exploration in the country. In December 2004, in response to a
challenge, the Supreme Court of the Philippines confirmed the legality of the
1995 Philippine Mining Act, including the Financial Technical Assistance
Agreement (FTAA).
The Mining Act allows for several types of mining rights in the country (Table1).
The first is an Exploration Permit (EP) valid for a period of 2 years and is
renewable in two-year periods to a maximum of 8 years. The holder can then
apply for either one of the other mining rights, namely a Financial Technical
Assistance Agreement (FTAA) or a Mineral Production-Sharing Agreement
(MPSA).
Stage Title
Exploration Exploration Permit
Mining Financial Technical Assistance AgreementMineral Production‐Sharing Agreement (MPSA)Joint Venture Agreement (JVA)Co‐ProductionnAgreement (CPA)
Table 1Mineral rights in the Philippines
Both the Financial Technical Assistance Agreement (FTAA) and the Mineral
Production-Sharing Agreement (MPSA) are valid for a period of 25 years and can
be renewed for another 25 years.
Exploration Permits and the subsequent Financial Technical Assistance
Agreement or Mineral Production-Sharing Agreement are granted on condition
that the mining activities are managed in a technically, financially, socially,
culturally and environmentally responsible manner to enhance the national
growth and welfare of the Philippines.
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 7
Exploration Permits must be acquired by a Qualified Person or Entity prior to
carrying out mineral exploration. Qualified Persons are Filipino citizens and
Qualified Entities are domestic or foreign-owned corporations. The maximum
area that corporations as Qualified Entities can apply for or hold at any time
onshore is 16,200 ha in a province and a maximum of 32,400 ha in the country.
The latest posted list shows that there were 43 active of Exploration Permits
covering a total of 117,942 ha in the country in of June 2008.
An Exploration Permit Application must include location maps, a two-year
exploration work program with a corresponding two-year environmental
component, proofs of technical competence and financial capability, proof of the
articles of incorporation and an affidavit of undertaking from the corporation.
The Qualified Person or Entity is then subject to providing certification from the
National Commission of Indigenous Peoples attesting that the permit does not
infringe on ancestral land claims and that indigenous communities have given
their consent to the permit.
As part of the terms of the Exploration Permit the holder must provide a surety
bond equivalent to the expenditure requirement of the Exploration and
Environmental Work Program, and must submit reports within 30 days of the end
of each semester outlining the results of the exploration program including an
accounting of the costs incurred and proof that the proposed Exploration and
Environmental Work Program has been implemented.
If the original permit area is greater than 5000 ha, a minimum of 20% of the
permit area must be relinquished within the first two years, and then at least 10%
of the remaining permit area every year of the remaining exploration period.
Detailed geological reports, results of analyses and expenditures must be
submitted on the relinquished area. There is no requirement for relinquishing any
area if the original permit area is less than 5000 ha.
Upon relinquishing an Exploration Permit or at the time of conversion to a Mineral
Agreement, or a Financial or Technical Assistance Agreement, the holder must
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 8
submit a detailed geological report including the results of all analyses and
surveys, and of expenditures. For drilling programs, a quarter of the core
samples must be deposited in the Regional Office Core Library.
If the project is worthwhile, a feasibility study must be carried out in the term of
the Exploration Permit.
Upon the discovery of a mineral deposit that is technically and economically
mineable the holder of an Exploration Permit will have the exclusive right to enter
into a Mineral Production Sharing Agreement (MPSA), or in a Financial Technical
Assistance Agreement that can take the form of a Joint Venture Agreement
(JVA) or a Co-Production Agreement (CPA) with the Philippine government to
develop and mine the deposit. Certain conditions and terms apply to these
agreements. These agreements are valid for a period of 25 years and may be
renewed for another 25-year period.
Under a Mineral Production Sharing Agreement (MPSA), the government grants
the company an exclusive right to a mining operation over the project area. The
company provides the financing, technology, management and personnel
necessary for the implementation of the MPSA and the government of the
Philippines takes a share of the gross output of the mining operation as a 1%
excise tax, rising to 2% by the sixth year on all metallic minerals, except for gold
and for coal where it is 2% from the first year of operation.
This agreement can also take the form of a Co-Production Agreement where the
government provides inputs to the mining operation other than mineral resources
or a Joint Venture Agreement where the government and the company
participate in a joint venture, each of them owning equity in the project, to
develop and mine the deposit.
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 9
Mining Rights held by Philippine Metals Corporation
Philippine Metals Corporation has acquired the rights to three project areas in the
Philippines (see Figure 1):
1. The Leyte Copper Project located in Leyte Province in the East Visayas
region;
2. The Malitao Project, in the municipality of Calanasan, Province of Apayao,
Luzon Region;
3. The Dilong Project in the municipality of Tubo, Province of Abra, Luzon
Region.
The Leyte Copper Project is composed of three blocks, the Suhi 059 and 096
blocks and the Taurus block. The rights to the Suhi 059 and 096 blocks were
acquired from Canaan Richfield Inc., of Metro Manila, Philippines. The rights to
the Taurus block were acquired from Metex Mineral Resources Corporation and
from Citigroup Philippines Corporation, both based in Metro Manila, Philippines.
The rights to the Malitao Project were acquired from Al Magan Mining Exploration
Corporation, of Baguio City, Philippines, and from Metex Mineral Resources
Corporation of Metro Manila, Philippines. The Malitao Project covers an area of
972 ha. The property is accessible by a series of trails in a sparsely populated
area of northern Luzon.
The Malitao Project is underlain by basinal sedimentary rocks of shallow marine
origin and by volcaniclastic rocks of andesitic composition. A limestone cap
unconformably overlies all rocks. Extensive near-vertical dykes of diorite and
andesite composition are accompanied by sulphide alteration and replacement
over widths of tens of metres at the contact with the sedimentary rocks (Lueck .
2007a). Although the area was explored in the 1960s and several property visits
have been carried out since then, no exploration work has been carried out on
the property in about 35 years. An historical chip sample reported 3.5% Cu and
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 10
0.556 g/t Au in a 93.29m long, and recent chip sampling reported 14.8-34% Cu,
1.4-26.4% Zn, 1.18-1.57 g/t Au and 303-534 g/t Ag over about 8m (Lueck
2007a). Other historical work shows a sinuous anomaly of unknown intensity for
copper in soils has been outlined over an area of about 400×800m and seven
holes were drilled but there is no report of assays. Geological models of manto-
type and porphyry mineralization have been proposed for the property.
The rights to the Dilong Project were acquired from Metex Mineral Resources
Corporation Metro Manila, Philippines and the property has a surface area of
324 ha. The property is underlain by Late Cretaceous to Paleogene volcanic and
sedimentary rocks that have been intruded by dykes, stocks and plutons of
diorite and granodiorite, followed by later dykes of basalt, andesite and dacite
composition. Extensive faulting and fracturing have four general orientations.
Porphyry copper mineralization is reported in a quartz stockwork within diorite
and in nearby Cretaceous sedimentary rocks.
The Dilong Project was explored from 1970 to 1974 by geological surveys
including alteration mapping, by soil, stream and biogeochemical surveys, by an
induced polarization survey and 6160m of drilling in 29 holes. A resource of
45.35 million tonnes grading 0.5% Cu, 0.5 g/t Au and 0.006% Mo was estimated
(Motton, 2008). This resource was not calculated according to National
Instrument 43-101 regulations and should not be relied upon.
The object of this report is the Leyte Copper Project.
PhilippinesPhilippinesPhilippinesPhilippinesPhilippinesPhilippinesPhilippinesPhilippinesPhilippinesPhilippinesVietNam
Thailand
Cambodia
BruneiMalaysia
Laos
Taiwan
China130
E
125°E
120°E
115°E
110°E
105°E
Leyte CopperLeyte CopperLeyte CopperLeyte CopperLeyte CopperLeyte CopperLeyte CopperLeyte CopperLeyte CopperLeyte Copper
Malitao ProjectMalitao ProjectMalitao ProjectMalitao ProjectMalitao ProjectMalitao ProjectMalitao ProjectMalitao ProjectMalitao ProjectMalitao ProjectDilong ProjectDilong ProjectDilong ProjectDilong ProjectDilong ProjectDilong ProjectDilong ProjectDilong ProjectDilong ProjectDilong Project
15°N
10°N
5°N
20°N
25°N
135°E
130°E
r Projectr Projectr Projectr Projectr Projectr Projectr Projectr Projectr Projectr Project
Indonesia
400 0 400 800 1200
Kilometres
Date: 2009.09.21
Property Lo
Philippine Met
Philip
Revised: 2009.09.21
0°N
ocation Map
tals Corporation
ppines
By: D.A. Beauchamp, P.Geol.
Figure: 1
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 12
Leyte Copper Project
The Leyte Copper Property is composed of three contiguous mineral blocks
located in the northern part of Leyte Island in the East Visayas region (Figure 2).
The three blocks are covered by parts of Tacloban City, and the municipalities of
Babatngon, San Miguel, Alang-Alang, Santa Fe and Palo. Municipalities are
further subdivided into barangays, or local villages. A barangay is the current
term for what was known as a barrio. The properties include the Taurus block,
Suhi 0059 block and the Suhi 0096 block. The property boundaries are
determined by latitude and longitude and the total area of the properties is shown
in Table 2.
The Taurus Property is approximately 12 km long and 3 km wide and covers an
area of 3606.5 ha. The property hosts several zones of mineralization including
Palo, Palanog-Kambalantong, Salvacion A and B, Malayahay and San Roque
Prospect (Figure 3).
Property Parcel
Taurus 0049 3606.50 ha3606.50 ha
Suhi 0059 5031.44 ha5031.44 ha
Suhi 0096 North 503.13 haCentral 419.35 haSouth 335.52 ha
1258.00 ha9895.94 haTotal Area
Table 2Property Holdings
Area Total Area
125°00'E
124°50'E
SAN MIGUEL
ALANGALANG
TACLOBAN
BABATNGON
BABATNGON
TACLOBAN C
Taguite
Bagahupi
BagacayTaurusTaurusTaurusTaurusTaurusTaurusTaurusTaurusTaurusTaurus
0049004900490049004900490049004900490049ProjectProjectProjectProjectProjectProjectProjectProjectProjectProject
Suhi 0059Suhi 0059Suhi 0059Suhi 0059Suhi 0059Suhi 0059Suhi 0059Suhi 0059Suhi 0059Suhi 0059ProjectProjectProjectProjectProjectProjectProjectProjectProjectProject
Suhi 0096Suhi 0096Suhi 0096Suhi 0096Suhi 0096Suhi 0096Suhi 0096Suhi 0096Suhi 0096Suhi 0096ProjectProjectProjectProjectProjectProjectProjectProjectProjectProject
Samar IslaLeyte Island
11°20'N
CITY
and
SANTA FE
PALO
PALO
TANAU
Date: 2009.09.21
Revised: 2009.09.21
Philippine Met
Property Lo
Leyte Copper Pro
2 0 2 4 6
Kilometres
Legend
Road
Municipality/Barangay
11°10'N
UANtals Corporation
ocation Map
oject, Philippines
By: D.A. Beauchamp, P.Geol.
Figure: 2
Alangalang
San Miguel
Babatngon
2. Salvacion2. Salvacion2. Salvacion2. Salvacion2. Salvacion2. Salvacion2. Salvacion2. Salvacion2. Salvacion
3. Palanog - Kambalantong3. Palanog - Kambalantong3. Palanog - Kambalantong3. Palanog - Kambalantong3. Palanog - Kambalantong3. Palanog - Kambalantong3. Palanog - Kambalantong3. Palanog - Kambalantong3. Palanog - Kambalantong
7. Suhi Bacagay7. Suhi Bacagay7. Suhi Bacagay7. Suhi Bacagay7. Suhi Bacagay7. Suhi Bacagay7. Suhi Bacagay7. Suhi Bacagay7. Suhi Bacagay
5. San Roque Prospect5. San Roque Prospect5. San Roque Prospect5. San Roque Prospect5. San Roque Prospect5. San Roque Prospect5. San Roque Prospect5. San Roque Prospect5. San Roque Prospect
8. Cabalawan-Barrio Suhi8. Cabalawan-Barrio Suhi8. Cabalawan-Barrio Suhi8. Cabalawan-Barrio Suhi8. Cabalawan-Barrio Suhi8. Cabalawan-Barrio Suhi8. Cabalawan-Barrio Suhi8. Cabalawan-Barrio Suhi8. Cabalawan-Barrio Suhi
6. Caibaan6. Caibaan6. Caibaan6. Caibaan6. Caibaan6. Caibaan6. Caibaan6. Caibaan6. Caibaan
4. Malayahay4. Malayahay4. Malayahay4. Malayahay4. Malayahay4. Malayahay4. Malayahay4. Malayahay4. Malayahay
Tacloban
TACLOBAN CITY
Santa Fe
Palo
1. Palo - Curajo1. Palo - Curajo1. Palo - Curajo1. Palo - Curajo1. Palo - Curajo1. Palo - Curajo1. Palo - Curajo1. Palo - Curajo1. Palo - Curajo
2 0 2 4 6
Kilometres
Date: 2009.09.21
Revised: 2009.09.21
Leyte Copper Pr
Philippine Meta
Zones of Mi
Legend
Municipality/Barangay
Mineral Occurrence
Tacloban
Figure: 3
roject, Philippines
als Corporation
By: D.A. Beauchamp, P.Geol.
ineralization
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 15
The property was the object of a prior agreement between Citigroup Philippines
Corporation and Metex Minerals Resources Corporation (“Metex”) dated
15 March 2007, which Philippine Metals Corporation took over on 31 January
2008. Exploration Permit No. 00049-VIII on the Taurus property was approved on
17 April 2009. The terms of the agreement with Philippine Metals Corporation are
as follows:
Payable to Metex for the Taurus Block:
• 2,500,000 shares of Philippine Metals Corporation to be issued to Metex upon the approval of the Exploration Permit on Taurus;
• US$100,000 payable upon completion of the Initial Public Offering (IPO) by Philippine Metals Corporation on the Taurus Project;
Philippine Metals Corporation must also take over the responsibility for the
following payments to Citigroup for the Taurus Block:
• US$75,000 upon signing the deed of assignment on January 31, 2008;
• US$100,000 payable within 30 days of signing the deed of assignment;
• US$200,000 at each of the first three anniversary dates of the signing of the deed of assignment, less the cumulative US$5,000 in monthly payments made in that year;
• US$1,500,000 upon commencement of mining activities;
• NSR royalty 1.5% payable on production.
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 16
The two Suhi blocks extend over a length of about 20 km to the northwest, cover
6289.44 ha, and lie to the immediate east and north of the Taurus block. The
current known zones of mineralization include the Caibaan, Suhi Bagacay, San
and Cabalawan-Barrio Suhi areas. Exploration Permit Applications EXPA 00059-
VIII and EXPA 000096-VIII have been submitted for these properties but are not
yet approved. The properties were acquired from Canaan Richfield Inc. on
November 5, 2008 under the following terms:
• Total initial cash payments of US$75,000;
• US$37,500 payable and 46,875 shares of Philippine Metals Corporation to be issued to Canaan Richfield Inc. within 30 days from the from signing the deed of assignment on November 5, 2008; the current monthly payments of US$2500 will be deducted from the anniversary payment
• US$62,500 payable and 78,125 shares of Philippine Metals Corporation to be issued to Canaan Richfield Inc. at the one-year anniversary of the deed of assignment on November 5, 2009; the current monthly payments of US$2500 will be deducted from the anniversary payment;
• $100,000 payable and 125,000 shares of Philippine Metals Corporation to be issued on November 5, 2010 and again on November 5, 2011; monthly payments of US$2500 will be deducted from the anniversary payment;
• $1,500,000 to be paid upon the commencement of mining activities;
• 1.50% Net Smelter Royalty (NSR). Information on the payments required was provided by Philippine Metals Corp. There are currently no known environmental liability issues that are pending or foreseen for any of the three properties on the Leyte Copper Project.
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 17
5. Access, Climate, Resources, Infrastructure and Physiography
The Republic of the Philippines (“Philippines”) is a country located in the western
Pacific Ocean. It is now a self-governing commonwealth that became
independent in 1946. The population is estimated at 98,000,000 and the country
is composed of 7107 islands. At 300,000 km2 the total land area of the country is
slightly less than half the size of Manitoba, but dispersed over a much larger
area. The median age of the population is 22.5 years and the literacy rate was
estimated at 92.6% in 2000. Although there are many dialects spoken in the
country, the official languages are English and Filipino (Tagalog).
Access
The project area is located near Tacloban City, about 600 km southeast of
Manila, the capital. Tacloban City can be reached from Manila by the daily one-
hour flights made by Philippine Airlines, Air Philippines or Cebu Pacific Air. The
airport can accommodate aircraft up to the size of a Boeing 737 and is currently
undergoing an expansion.
Road access from Manila is along the Pan Philippine Highway, also known as
Asian Highway 26, from Manila toward the southeast; a ferry crosses 15
kilometres from Matnog, Province of Sorsogon on the Southern tip of the Luzon
Region to Allen, on Samar Island and from there the San Juanico Bridge crosses
over to Leyte Island. Travel time from Manila to Tacloban City by road is about
22 hours.
A national seaport, Tacloban City can also be accessed by ship from Manila in
36 hours, three days per week.
In the region the local road system is relatively good with pavement and
concrete-cement for the covered roads. Access to the eastern and southern
boundaries of the property is by a partly concrete-covered road 6 km west of
Tacloban City, from which several trails can be used to reach many areas on the
property.
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 18
A well-developed network of paths and trails is present in the southern and
central parts of the property (Figure 4). Some of these were used as roads in the
past and could be rehabilitated to bring machinery such as excavators or
diamond drilling equipment to areas of mineralization.
Climate
The region is classified as Type 2 climate which means that precipitation is fairly
evenly distributed throughout the year, although from November to January,
typhoons and cyclones are frequent. Average yearly precipitation is 247 cm. The
temperature ranges from 25°C to 28.8°C year round and the relative humidity is
usually 57% to 75%
Local Resources
Tacloban City, population 217,000, is the capital of Leyte Island and is located
3.5 km due east of the property boundary. Also the city of Ormoc, located a two-
hour drive to the southwest has a population of 180,000. The total population of
Leyte Island is about 1.5 million, averaging about 264 persons per square
kilometre.
The Tacloban City government ceased to be under the supervision of the
provincial government after it became a Highly Urbanized City in 2008 and is now
under the direct supervision of the national government.
Several major industrial developments, within 2½ hours by road from Tacloban
City, make the Leyte one of the more resource-rich provinces in the Philippines.
The Greater Tongonan Geothermal Field, located about 50 km southwest of
Tacloban City is operated by the Philippine National Oil Corporation’s Energy
Development Corporation division and generates about 700 MW of electricity.
This power represents 38% of the entire Philippine geothermal power capacity of
1,850 MW and is the source of the electricity for the province of Leyte.
Alangalang
Babatngon
San Miguel
2. Salvacion2. Salvacion2. Salvacion2. Salvacion2. Salvacion2. Salvacion2. Salvacion2. Salvacion2. Salvacion
3. Palanog - Kambalantong3. Palanog - Kambalantong3. Palanog - Kambalantong3. Palanog - Kambalantong3. Palanog - Kambalantong3. Palanog - Kambalantong3. Palanog - Kambalantong3. Palanog - Kambalantong3. Palanog - Kambalantong
7. Suhi Bacagay7. Suhi Bacagay7. Suhi Bacagay7. Suhi Bacagay7. Suhi Bacagay7. Suhi Bacagay7. Suhi Bacagay7. Suhi Bacagay7. Suhi Bacagay
5. San Roque Prospect5. San Roque Prospect5. San Roque Prospect5. San Roque Prospect5. San Roque Prospect5. San Roque Prospect5. San Roque Prospect5. San Roque Prospect5. San Roque Prospect
8. Cabalawan-Barrio Suhi8. Cabalawan-Barrio Suhi8. Cabalawan-Barrio Suhi8. Cabalawan-Barrio Suhi8. Cabalawan-Barrio Suhi8. Cabalawan-Barrio Suhi8. Cabalawan-Barrio Suhi8. Cabalawan-Barrio Suhi8. Cabalawan-Barrio Suhi
6. Caibaan6. Caibaan6. Caibaan6. Caibaan6. Caibaan6. Caibaan6. Caibaan6. Caibaan6. Caibaan
4. Malayahay4. Malayahay4. Malayahay4. Malayahay4. Malayahay4. Malayahay4. Malayahay4. Malayahay4. Malayahay
SI
LeyteIsland
Legend
Outline of Taurus and Suhi blocksOutline of Taurus and Suhi blocksOutline of Taurus and Suhi blocksOutline of Taurus and Suhi blocksOutline of Taurus and Suhi blocksOutline of Taurus and Suhi blocksOutline of Taurus and Suhi blocksOutline of Taurus and Suhi blocksOutline of Taurus and Suhi blocks
Bridge toBridge toBridge toBridge toBridge toBridge toBridge toBridge toBridge toSamar IslandSamar IslandSamar IslandSamar IslandSamar IslandSamar IslandSamar IslandSamar IslandSamar Island
Tacloban
TaclobanTaclobanTaclobanTaclobanTaclobanTaclobanTaclobanTaclobanTaclobanCityCityCityCityCityCityCityCityCity
SamarIsland
majormajormajormajormajormajormajormajormajorport cityport cityport cityport cityport cityport cityport cityport cityport city
Santa Fe
Palo
1. Palo - Curajo1. Palo - Curajo1. Palo - Curajo1. Palo - Curajo1. Palo - Curajo1. Palo - Curajo1. Palo - Curajo1. Palo - Curajo1. Palo - Curajo
2 0 2 4 6
Kilometres
Leyte Copper Pr
Philippine Meta
Date: 2009.09.21
Revised: 2009.09.21
Road and T
Legend
Road
Trail
Municipality/Barangay
Mineral Occurrence
Tacloban
roject, Philippines
als Corporation
By: D.A. Beauchamp, P.Geol.
rail Access
Figure: 4
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 20
Located in the Leyte Industrial Development Estate (LIDE), near Isabella about
70 km southwest of Tacloban City, is the largest phosphatic fertilizer
manufacturing complex plant in Asia. Operated by the Philippine Phosphate
Fertilizer Corporation, known as PHILPHOS, the plant started as a 50-50 joint
venture between the Philippines and the Republic of Nauru but was later
privatized in 2000. On a yearly basis it produces 1,000,000 tonnes of granulated
phosphate, 1500 tonnes of sulphuric acid, 12,000 tonnes of phosphoric acid and
172,000 tonnes of ammonium sulphate.
LIDE is also host to one of the largest copper smelters in the world. The PASAR
(Philippine Associated Smelting and Refining) smelter was originally built by the
government through the National Development Company (42%) and a
consortium of private companies, but in June 1999, a group of Philippine
investors and the Swiss metals trader Glencore International AG, purchased 90%
of the Philippine Government's shareholding, transforming the company into a
privately-owned corporation.
The smelter and refinery complex employs 1030 people. The refinery’s capacity
of Grade A electrolytic copper cathodes was expanded to 215,000 tonnes per
year in 2007. The plant produces electrolytic copper cathode, refined copper
anode, copper wire, doré metal, granulated slag, iron concentrate, selenium
powder and sulphuric acid.
In the Tacloban area the local labour produces raw material from the forest to be
used in industrial products such as rattan, bamboo, buri palm, wild vines and
ferns. In the northeastern part of the island the economy of Leyte Island is based
mostly on agriculture. Rice is farmed in the lower flat areas near Tacloban, and
coconut for coconut oil is the most important crop in the hills and mountainous
areas, but corn, sugar cane and pineapples are also produced. The provincial
government is making efforts to increase the processing of coconut and other
products in the area to raise employment.
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 21
Exports from the region include copra (the dried kernel of the coconut), rice,
maize, sugar cane and abacá, a type of banana native to the Philippines from
which fibre is extracted to make rope, but is now also used in specialty papers.
Fishing for shrimp and prawn is also an important source for the livelihood of
residents.
Local industrial occupations include small scale furniture making, ceramic
moulding, food preservation, various metal crafts and handicrafts such as toy
making, gift making and souvenirs.
Infrastructure
Tacloban City is the site of several large state-run educational institutions such
as the University of the Philippines Tacloban, Leyte Normal University, and the
Leyte Institute of Technology.
Other post-secondary educational institutions in the region are at Palo,
population 42,000, the site of UP Manila School of Health Sciences, St. Paul's
School of Business and Law, and the AMA St. Augustine School of Nursing.
Road access throughout the region is excellent and electricity is available
throughout the region.
Physiography
The island of Leyte shows generally flat to gently rolling hills with mountains
toward the centre that extend to the north northwest of the island. The property is
located in the northeastern part of the island where the Babatngon-Guindapunan
Range, about 32 km long and 8-10 km wide, extends to the north-northwest. On
the property the elevations are about 15m asl on the eastern edge rising to a
maximum of 600m asl at Bagahupi Peak in the northern part of the project area
(Figure 5).
Alangalang
Babatngon
San Miguel
2. Salvacion2. Salvacion2. Salvacion2. Salvacion2. Salvacion2. Salvacion2. Salvacion2. Salvacion2. Salvacion
3. Palanog - Kambalantong3. Palanog - Kambalantong3. Palanog - Kambalantong3. Palanog - Kambalantong3. Palanog - Kambalantong3. Palanog - Kambalantong3. Palanog - Kambalantong3. Palanog - Kambalantong3. Palanog - Kambalantong
7. Suhi Bacagay7. Suhi Bacagay7. Suhi Bacagay7. Suhi Bacagay7. Suhi Bacagay7. Suhi Bacagay7. Suhi Bacagay7. Suhi Bacagay7. Suhi Bacagay
5. San Roque Prospect5. San Roque Prospect5. San Roque Prospect5. San Roque Prospect5. San Roque Prospect5. San Roque Prospect5. San Roque Prospect5. San Roque Prospect5. San Roque Prospect
8. Cabalawan-Barrio Suhi8. Cabalawan-Barrio Suhi8. Cabalawan-Barrio Suhi8. Cabalawan-Barrio Suhi8. Cabalawan-Barrio Suhi8. Cabalawan-Barrio Suhi8. Cabalawan-Barrio Suhi8. Cabalawan-Barrio Suhi8. Cabalawan-Barrio Suhi
6. Caibaan6. Caibaan6. Caibaan6. Caibaan6. Caibaan6. Caibaan6. Caibaan6. Caibaan6. Caibaan
4. Malayahay4. Malayahay4. Malayahay4. Malayahay4. Malayahay4. Malayahay4. Malayahay4. Malayahay4. Malayahay
Legend
Leyte Island
Tacloban
TACLOBAN CITY
Samar Island
Santa Fe
Palo
1. Palo - Curajo1. Palo - Curajo1. Palo - Curajo1. Palo - Curajo1. Palo - Curajo1. Palo - Curajo1. Palo - Curajo1. Palo - Curajo1. Palo - Curajo
2 0 2 4 6
Kilometres
Date: 2009.09.21
Revised: 2009.09.21
Topog
Leyte Copper Pr
Philippine Meta
Legend
Road
Municipality/Barangay
Mineral Occurrence
Minor contours at 20m intervalsMajor contours at 100m intervals
Tacloban
graphy
roject, Philippines
als Corporation
By: D.A. Beauchamp, P.Geol.
Figure: 5
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 23
Topography is relatively steep and several rivers draining east and west have
deep v-shaped cross-sections indicating that they are relatively recent. The
Mainit, Palo and Sapanton rivers flow mainly to the west and then to the
northwest toward Santa Cruz. On the east the Barugwan, Diit and Tigbao rivers
flow a short distance to the San Juanico Straight that separates Leyte Island from
Samar Island to the east. The Palo River is somewhat wider and drains off the
property to the south.
Parts of the property are covered by thick vegetation consisting of palm trees,
and underbrush.
6. History
Mineralization was known in the area prior to the 1940s. In 1936 several test pits
and adits were excavated in the search for gold.
In 1961, near Caibaan, on the Suhi 0059 Block, the area was prospected and
staked by prospectors. The claims were transferred to Palo Consolidated Mines
Inc. on June 26, 1963. The company carried out 17 X-Ray drill holes at 10m
spacing for a total of 487.7m on the property and made three shipments of ore, of
approximately 1000 tons each, from three test pits. The rocks are intensely
faulted at 340°NW strike 80°NE dip. One tunnel was estimated to contain 51,000
tonnes of ore grading 5.09% Cu. This resource was not calculated according to
National Instrument 43-101 regulations and should not be relied upon.
In late 1963, Palo’s claims were transferred to Marcelino Collado who carried out
rock sampling of the Caibaan claims and also of the Palanog, San Jose and
Bagacay areas. He reported values of 0.13-11.2% copper from these samples.
He also reported 1.0 g/t Au and 78.5 g/t Ag from the sample that contained
11.2% Cu (Fortanos and Fajando, 1964).
In 1964, Mr. Collado requested an evaluation of the copper deposit at Caibaan
by Domingo Fajando, of the Mines Bureau in Manila, who recommended
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 24
additional work including detailed sampling of wall rock, and additional analyses
for silver.
In 1968 Francisco Garcia staked 168 claims in the Palanog area of the Taurus
Block and later sold them to Minero Chemical Corporation, which later turned its
rights over to Taurus Minerals and Oils Corporation in early 1970. Taurus
Minerals carried out geophysical and geological surveys and drilled several
holes. Test pits and trenches outlined significant sulphide mineralization.
In 1968, E. Gamus and J. Lauron, geologists with the Bureau of Mines in Manila,
carried out field investigations of the eight claims owned by Leyte Base Metals, at
Cabalawan, in the Barrio Suhi area. They reported copper mineralization in pods
and lenses or disseminated in veins, mainly as replacement along disturbed
zones in the green schist underlying the property. Mineralized sulphide bodies
were exposed by trenches and several lenses measuring 0.1m × 1m were
encountered. The rocks are faulted by two structural systems striking northeast
and northwest. In one section, the lenticular veins, sheets and pods of pyrite and
chalcopyrite contain an average of 0.45% Cu. One outcrop 0.35m × 6m averages
4.48% Cu, another schist area grades 1.07% Cu and in a third area a trench
grades 5.95% Cu (Gamus and Lauron, 1968).
In 1970 Taurus Minerals and Oils Corp. applied for a listing on the Philippine
Stock Exchange with its main asset being a resource of 4.5 million tonnes
grading 2.2% Cu at the Kambalantong area of the property. This resource has
not been mined and is still in place. This resource was not calculated according
to National Instrument 43-101 regulations and should not be relied upon.
Armando Paderes, Senior Geologist with the Bureau of Mines and Geology in
Manila, carried out a rapid surface geological mapping of the region in 1971 and
early 1972. He reported that at elevations above 200m, an ophiolite sequence is
present as dykes, sills and small bodies of ophiolitic intrusive rocks.
He reported that the property is underlain by a thick sequence of dynamo-
thermally mafic volcanic flows interbedded with metamorphosed sedimentary
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 25
rocks consisting of shale, sandstone and conglomerate. Porphyritic, variolitic and
veined spilite with meta-andesite, chert, greywacke, slate and phyllite are
extensively permeated by crisscrossing veinlets of quartz, chlorite and less
commonly epidote. The ophiolite consists of gabbro porphyry and diabase, with
cataclastic texture, cut in part by veinlets of epidote and carbonate.
Mineralization at Barrio Suhi occurs mostly in fractures striking 055° with
irregularly-shaped high grade sulphide bodies including a lens-shaped pod
4m × 1m that contains massive copper-bearing specular hematite enclosed in a
strongly pyritized host rock. The grade of the rock is 0.40-1.84% Cu (Paderes,
1972)
In early 1974, Rafael Zerda, Senior Geologist at the Bureau of Mines and
Geology in Manila carried out an appraisal of the Leyte Base Metal claims of the
Barrio Suhi area at the request of Argonaut Mineral Exploration Inc in connection
with its applications for a listing on the Philippine stock Exchange and reported
the presence of high grade copper mineralization in lenses and pods at the
intersections of fractures in the gabbro.
He reported that the property is underlain by an undifferentiated sequence of
metamorphosed sedimentary and volcanic rocks and minor gabbro that have
been metamorphosed to greenschist facies. Massive pyrite and chalcopyrite with
minor bornite, covellite and chalcocite occur as pods and lenticular bodies in
schistose sedimentary rocks. The resource was estimated at 2,025,000 tonnes
grading 2-3% Cu (Zerda, 1974). This resource was not mined and is still in place.
This resource was not calculated according to National Instrument 43-101
regulations and should not be relied upon.
Although the mineralization at Palo is along major faults striking northwest, at the
Leyte Base Metals property the mineralization is along structures that strike
northeast and east and are proposed as complementary faults to the main
northwest structures. Assay results of 2.2% Cu over 4m, and a grab sample of
8.37% Cu were obtained from a stockpile of ore visually estimated at 20 tonnes.
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 26
In 1979 the Bureau of Mines and Geology performed an electromagnetic dip
angle, ShootbackTM survey at 50m coil separation over 9075 line metres at the
Curajo Copper Prospect in Palo using a Crone EM instrument (Morante and
Ignacio, 1979). The depth of penetration was about 33m and several conductors
striking north and northwest were identified. The authors noted that although the
conductors could represent water-filled structures, several of the anomalies
coincide well with mineralized outcrops, geochemical anomalies and trace
mineralization in outcrop and one of them extends for 500m to the north and
north-northeast.
In 1981, a review of the geophysical results showed that only two of the five drill
holes showed an anomalous cross-over at a depth of 13m, whereas the core
intersected disseminated pyrite-chalcopyrite mineralization at a depth of 5-9m.
The mineralization was identified along fractures that trend northwest with
weaker northeastern components.
In 1997, L. Solkoski carried out a brief field visit of the Barrio Suhi area for
Homestake Mining, Canada. Although he noted ultramafic rocks, he believed that
rather than being of Cyprus-type origin, the mineralization appeared to be likely
of volcanogenic massive sulphide origin but was redeposited by faulting and
folding. He reported results of 149-22,600 ppm Cu from 12 rocks, rock-chips and
pyritic sand from stockpiled ore samples. Relatively high values of 170-580 ppb
Au were obtained from three of these samples (Solkoski, 1997).
In 2007, Brian Lueck wrote a summary report on the Taurus property for Metex
Mineral Resources Corporation. He reported that at Kambalantong the
mineralization appears to be syngenetic, but that it had been later sheared,
brecciated and steeply faulted into breccia-vein faults. The best exploration
targets for high grade mineralization are the intersection of structures that are a
few metres wide, up to 1.5 km long and strike 060°. He recommended a fence of
ten drill holes from five collars at an azimuth of 270° and at 40m spacing, to
minimum depths of 120m (Lueck, 2007b).
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 27
In 2009, Philippine Metals Corporation carried out a six-week field program
consisting of geological mapping, prospecting and rock sampling at five areas of
the Taurus Property (Paloma and Garcia, 2009). The results from this program
are documented and detailed later in this report in Section 10 Exploration.
7. Geological Setting
Regional Geology
The Philippines is part of a large volcanogenic and ophiolitic island arc located on
the western edge of the area known as the Circum-Pacific Rim of Fire.
The Philippines are a structurally complex combination of metamorphic terrains,
ophiolitic complexes, magmatic arcs, continental rocks and sedimentary basins
that have been subjected to collision, subduction and strike-slip faulting. Major
strike-slip faults trend mostly northwest and north-northwest.
On the eastern edge of the archipelago, the Philippine Trench dips west beneath
most of the country, except in the north where it extends as the East Luzon
Trench (see figure 6). On the western side of the country, from north to south, the
Manila, Negros and Cotabato trenches dip to the east. The Palawan and Sulu
trenches strike southwest and dip to the southeast but are inactive.
The North Palawan Block represents the continental rocks that have been dated
from late Permian to Jurassic in age. The remainder of the island is part of the
younger Philippine Mobile Belt.
Many areas of the Philippine Mobile Belt are composed of ophiolite complexes, of
Jurassic to early Paleogene age, that occur with pre-Cenozoic schist and phyllite.
At the base, the ophiolite complexes are usually composed of peridotite changing
to layered and isotropic gabbro, sheeted dyke complex, pillow basalts and finally
covered by pelagic sedimentary rocks. The ultramafic units contain chromite and
nickel occurrences, and the laterite soils that developed over the ultramafic rocks
may also contain lateritic nickel deposits.
P H I L I P P I
Man
ila T
renc
h
East
Luz
on T
renc
h
Palaw
an T
renc
h (in
activ
e)
Negros Trench
Malitao ProjectMalitao ProjectMalitao ProjectMalitao ProjectMalitao ProjectMalitao ProjectMalitao ProjectMalitao ProjectMalitao Project
Dilong ProjectDilong ProjectDilong ProjectDilong ProjectDilong ProjectDilong ProjectDilong ProjectDilong ProjectDilong Project
Philippine Fault
Philippine Fault
Philippine Fault
Philippine Fault
Philippine Fault
Philippine Fault
Philippine Fault
Philippine Fault
Philippine Fault
FaultFaultFaultFaultFaultFaultFaultFaultFault
FaultFaultFaultFaultFaultFaultFaultFaultFault
I N E
S E A
Philippine Trench
Leyte CopperLeyte CopperLeyte CopperLeyte CopperLeyte CopperLeyte CopperLeyte CopperLeyte CopperLeyte CopperProjectProjectProjectProjectProjectProjectProjectProjectProject
C E L E B E S S E A
S U L U S E A
Cotabato Trench
Sulu Tren
ch (in
activ
e)
Legend
Recent
Quaternary
Jurassic
Cretaceous
Basement Complex
Neogene
Paleocene to Eocene
Upper Miocene to Pliocene
Igneous rocks
Volcanic rocks
OligoceneVolcanic, sedimentaryand metamorphic rocks
Volcanic rocks
Sedimentary rocks
Volcanic, sedimentaryand metamorphic rocks
Sedimentary andvolcanic rocks
Sedimentary andmetamorphic rocks
Sedimentary andmetamorphic rocks
Leyte Copper Proje
Philippine Metals
Date: 2009.09.21
ByRevised: 2009.09.21
GeologPhilippin
Fi
100 0 100 200 300
Kilometres ect, Philippines
Corporation
y: D.A. Beauchamp, P.Geol.
gynes
gure: 6
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 29
The stratigraphic sequence observed in an ophiolite suite corresponds to the
lithosphere-forming processes at mid-oceanic ridges (see Figures 7). From
bottom to top, these units are as follows:
• Tectonized ultramafic rocks: harzburgite- and lherzolite-rich mantle rock, cumulate peridotite: dunite-rich layers that settled from a magma chamber;
• Layered isotropic gabbro high level intrusions, plagiogranite; • Sheeted dykes: vertical, parallel dykes which fed the pillow lavas below; • Extrusive sequence: basalt flows and pillow lava at magma/seawater
contact; • Massive sulphide mineralization occurs at this level; • Sedimentary rocks: mudstone and chert deposited after the crust formed. • Intermixed basalt flows, pillow lava, and pelagic sedimentary rocks.
Figure 7. Cross-section of an ophiolite suite
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 30
The sheeted diabase dykes and overlying basalts are formed along spreading
mid-oceanic ridges that, along with the rest of the ophiolite sequence are
obducted onto continental or island arc settings.
Other rock suites within the Philippine Mobile Belt include magmatic arcs that
contain thick sequences of volcanic flows and associated pyroclastic and
sedimentary rocks, and intrusions of diorite composition. More recent volcanic
flows and intrusions are the result of the active subduction event. Several
sedimentary basins have developed within the Philippines’ volcanic arcs.
Many large-scale faults strike north and northwest Including the Philippine Fault,
a major strike-slip left-lateral fault that is related to oblique subduction of the
Philippine Sea plate beneath the Philippine island arc. The fault zone extends
along the entire length of the country, for about 1300 km, from Luzon Island in
the north, southward to the island of Mindanao. The fault is currently active and
in the last 100 years there have been at least ten major earthquakes of more
than magnitude 7.0 on the Richter scale associated with it.
On Luzon Island, the Philippine Fault consists of four en-echelon fault strands
where a left-lateral slip rate of 8-13 mm/yr has been calculated. The Philippine
Fault trends north northwest along the central part of Leyte Island about 30 km
west of the Taurus Property.
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 31
Local Geology
The area to the west of Tacloban is underlain by part of a detached oceanic
crustal fragment known as the Tacloban Ophiolite consisting of gabbroic and
volcanic rocks (Figure 8 and 9).
In a geological report, Quiwa et al. (1978) described in some detail the
stratigraphy and geology of the area. Balce and Cabantog (2001) reviewed the
geology of the area and consolidated the units into a sequence that corresponds
to that of an ophiolite suite that has been overlain by a series of sedimentary
rocks. Much of the following description is based on their review (See Table 3).
Cretaceous: Tacloban Ophiolite Suite
The Tacloban Ophiolite Suite is the oldest package of rocks on the property and
underlies most of the Project area. Differential erosion has exposed the deep
parts of the ophiolite in the north part of the area since the rocks appear to be
tilted slightly to the south.
Quaternary ‐ HoloceneAlluvium
Late Miocene to Early PlioceneBagahupi Formation ‐ sedimentary rocks
Late MioceneTanauan ‐ ultramafic diapir
Middle to Upper MioceneSan Ricardo Formation ‐ sedimentary rocks
CretaceousPalanog ‐ pelagic sedimentary rocks
Ophiolite SuiteCaibaan ‐ pillow basaltPaglaum ‐ sheeted dykesTigbao ‐ gabbroTigawili ‐ ultramafic rocks
Table 3Table of Formations
Bagahupi
Bagacay
PALO
TACLOBAN CITY
LegendQuaternary - Holocen
Pliocene to Quaternar
Middle to Upper Mioc
A
Vo
TaclobanTaclobanTaclobanTaclobanTaclobanTaclobanTaclobanTaclobanTaclobanOphioliteOphioliteOphioliteOphioliteOphioliteOphioliteOphioliteOphioliteOphioliteSuiteSuiteSuiteSuiteSuiteSuiteSuiteSuiteSuite
Samar IsSamar IsSamar IsSamar IsSamar IsSamar IsSamar IsSamar IsSamar Is
ne
ry
cene
Alluvium
olcanic rocks
slandslandslandslandslandslandslandslandsland
Leyte Copper Pr
Philippine Meta
Date: 2009.09.21
Revised: 2009.09.21
GeoLeyte Coppe
Philippine Fault Zone
Philippine Fault Zone
Philippine Fault Zone
Philippine Fault Zone
Philippine Fault Zone
Philippine Fault Zone
Philippine Fault Zone
Philippine Fault Zone
Philippine Fault Zone
5 0 5 10 15
Kilometres
Fa
Cretaceous
Miocene to Pliocene
Oligocene to Miocene
Ro
Ta
Se
Vo
Sa
Mi
Se
Leyte IslandLeyte IslandLeyte IslandLeyte IslandLeyte IslandLeyte IslandLeyte IslandLeyte IslandLeyte Island
roject, Philippines
als Corporation
By: D.A. Beauchamp, P.Geol.
ologyr Project Area
Figure: 8
ult
e
oad
acloban Ophiolite Suite and Palanog Formation
edimentary and volcanic rocks
olcanic rocks
an Ricardo Formation Sedimentary rocks
neral occurrence
edimentary and volcanic rocks
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 33
• The Tigawili ultramafic rock occurs at the base of the Tacloban Ophiolite
Suite and is only exposed in the northern part of the area and is
composed of harzburgite and of occasional dunite lenses and bands of
pyroxenite.
• The Tigbao gabbro occurs as dykes, and as detached fragments within
the remobilized ultramafic bodies. It is isotropic near the upper part and
pegmatitic in the lower sections, where cumulate phases are present. It is
generally light-coloured but may be nearly black near the contact with the
underlying ultramafic rocks. Forming an elongated mass striking
northwest, gabbro intrudes the older formations and exhibits chilled
borders along the contact zones. It occurs as dark green to light-grey
sheeted dykes and pods and is dark brown on weathered surfaces. The
massive gabbro contains pyroxene and olivine and is chloritized,
sericitized and clay-altered.
• The Paglaum sheeted dykes of fine- to medium-grained gabbro, diabase
and minor basaltic dykes are generally 15-30 cm wide. The unit can be as
much as 500-800m thick, although thrust faulting may have thickened the
sequence. The foliation is parallel to the main orientation of the dykes but
the chill zones have been obliterated by tectonic deformation. The dykes
are composed of hornblende, plagioclase and minor pyroxene and have
been slightly altered to greenschist facies consisting of epidote, chlorite
and illite.
• The Caibaan basalts are predominantly basaltic and andesitic flows and
pillowed units that usually show layering parallel to the sedimentary
bedding of the overlying rocks. The flows are highly chloritized, epidotized
and cut by calcite veinlets.
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 34
Cretaceous Palanog pelagic sedimentary rocks
The pelagic sedimentary rocks are conformable to the underlying Caibaan basalt
and are composed of chert, red mudstone, shale, sandstone and possibly vitric
tuff but have been mostly eroded. Volcanic fragments make up a significant part
of all sedimentary rocks. They are in beds 0.5-10m thick and may extend laterally
for as much as several hundred metres.
The presence of these sedimentary rocks usually indicates the a termination of
the volcanic activity and a period of local quiescence in hydrothermal activity
Upper to Middle Miocene San Ricardo Formation
Unconformable to the ophiolite suite is a sequence of pelagic sedimentary rocks
composed of conglomerate, sandstone, dark orange to red radiolarian chert,
reddish mudstone and shale with occasional limestone beds that dip steeply
(Balce and Velchez, 2001).
On the property, the San Ricardo Formation has been mostly eroded and is now
exposed only on the eastern side of the Ophiolite Suite in low valleys but has
also been mapped in Tacloban City itself. The granule- to cobble-conglomerate
is highly compacted and composed of subangular to subrounded blocks of schist,
volcanic rock, limestone, shale, sandstone and andesite in a coarse-grained
matrix. These rocks are occasionally traversed by quartz veinlets 5-15cm wide.
This sequence may have been deposited in a shallow marine environment.
Late Miocene Tanauan ultramafic diapir
Ultramafic bodies, as cold diapiric intrusions of remobilized serpentinized
ultramafic rocks, have intruded along major faults from depth. As a result of
alteration from circulating fluids along deep penetrating faults, the medium-
grained ultramafic rocks have been serpentinized, decreasing their density
allowing them to rise along the lower pressure fault zones. They occur
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 35
elsewhere in northern Leyte along major fault zones such as the Philippine Fault
to the west but have not been recognized in the immediate project area.
Figure 9. Schematic section of the Tacloban Ophiolite Suite (Balce and
Cabantong, 1998)
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 36
Late Miocene to Early Pliocene Bagahupi Formation
Lying unconformably on the San Ricardo Formation, the Bagahupi Formation is
composed of pebble conglomerate, sandstone and marly tuffaceous shale. The
rounded to subrounded pebbles in the conglomerate are 1-10 cm and are
composed of andesite, basalt, schist, gabbro and limestone. The sandstone is
coarse and arkosic, and is present in the middle part of the formation.
The Bagahupi Formation may have been deposited in a shallow marine or
lacustrine environment.
Holocene Alluvium
West of the ophiolite suite, unconsolidated alluvial sediments are present on the
gentle slopes that dip west and north. The sediments consist of eroded
fragments from the Ophiolite Suite and are composed of clay, silt, sand, mud and
gravel in river beds and on valley floor and are derived from the weathering of the
surrounding rocks.
Structural Geology
The area has been strongly dissected by deep-seated faults and shear zones
that transect all lithologies. The faults are left-handed and strike 330-340°, dip
35-50°SW, mostly parallel to the Philippine Fault Zone that traverses the central
part of Leyte Island about 30 km to the west. The movement is accompanied by
extensive shearing and fracturing, and the faults appear to be thrust and shear
zones, possibly listric type, that host sulphide mineralization in several areas
including the Kambalantong and Salvacion prospects (see Figure 4). Another
parallel fault zone is located to the east on the island of Samar.
A certain number of sympathetic faults striking 050-090° and dipping 50-80°SE
have been mapped on the property. These structures may have been the feeder
zones for the early mineralizing fluids. They are the principal control for
mineralization at Barrio Suhi area.
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 37
The two major fault systems may be related to a change in the direction of the
primary stress from the west to the northwest when the Philippine Fault Zone
developed. They are characterized by intense brecciation and accompanied by
epidotization and chloritization. Both fault sets appear to have been active during
mineralization events and may have been reactivated to remobilize the
mineralization.
Metamorphism and Alteration
Intense dynamothermal alteration has affected most of the mafic and ultramafic
rocks on the property including the basaltic flows as a result of pressure
distributed along faults and shear zones.
Spilitic metamorphism affects most of the mafic rocks of the Tacloban Ophiolite
Suite and ranges from zeolite to greenschist and to amphibolitic facies. The
greenschist metamorphism has intensely altered the mafic sheeted dyke
complex in particular and appears in the assemblage of epidote-calcite-tremolite-
actinolite-albite.
Silicification is also common in association with the massive sulphide
mineralization whereas chloritization is more associated with the disseminated
mineralization and forms a broad halo around the massive sulphide horizon,
ranging from a few metres or more.
From work at the Troodos ophiolite complex in Cyprus there is evidence that low-
temperature silicification, from hydrothermal activity, continues late in the
process, even after the manganese- and iron-rich sediments have precipitated
some distance away from oceanic spreading axes and that gold may be
precipitated at that time (Prichard and Maliotis, 1998).
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 38
8. Deposit Type
In 2001, Balce and Velchez carried out an extensive literature search and field
studies, and proposed that the type of mineralization at the Leyte Copper Project
as Cyprus-type massive sulphide mineralization, the volcanogenic sulphide
deposit type found in ophiolite rocks.
An ophiolite is an assemblage of mafic and ultramafic rock from the ocean crust
that has been tectonically obducted onto a continental margin or island. It is
usually characterized by ultramafic rocks at the base that have been intruded by
gabbro and sheeted dikes and then overlain by pillow lavas, and deep-sea
sediments.
Cyprus-type massive sulphide mineralization is typically composed of one or
more lenses of massive pyrite and chalcopyrite that are hosted by mafic volcanic
rocks. These lenses are often underlain by a well-developed pipe-shaped
stockwork feeder zone (Figure 10).
Figure 10. Cross Section of Cyprus-type mineralization
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 39
The lenses of sulphides are often in marine pillowed basalts near the transition to
the overlying argillaceous marine sediments. Many of the lenses are structurally
controlled and are oriented parallel to steeply dipping normal faults. The
concordant massive sulphide lenses often overlie cross-cutting zones of intense
alteration with associated stockwork and disseminated mineralization. The ore is
usually composed of massive, occasionally brecciated, pyrite and chalcopyrite
and other associated copper sulphides. The overlying brecciated chert layers
often contain disseminated sulphides.
The ore lenses are structurally controlled and usually cluster or align along the
normal faults near the transition from mafic pillow basalts to the overlying
sedimentary rocks.
In geophysical surveys, the lenses of massive sulphides usually show an
electromagnetic signature while the disseminated sulphides can be identified in
induced polarization surveys (Hõy, 1995).
There is no particular characteristic age for these types of deposits. Other than in
Cyprus where they formed from the Triassic to the mid-Cretaceous, the deposits
have been identified in rocks of Ordovician to Recent age.
Cyprus-type deposits are present in Canada at Tilt Cove, Newfoundland and in
several locations such as at Chu Chua in British Columbia, at the Ice property in
the Yukon, and also at Turner-Albright in Oregon and in the East Pacific Rise off
the west coast of Mexico (Francheteau et al., 1979).
Although the median size of Cyprus-type deposits is reported to be 1.6 Mt
grading 1.7 % Cu, they can also contain 0-33 g/t Ag; 0-1.9 g/t Au and 0-2.1 % Zn
(Cox and Singer, 1986). Certain deposits contain larger resources such as the
Turner Albright area in Oregon where 3 million tonnes of ore grade 1.46% Cu,
3.33% Zn, 15 g/t Ag, 3.77 g/t Au and 0.06% Co (Kuhns and Baitis, 1987) and at
Tilt Cove in Newfoundland, where 6.7 million tonnes of ore grading 1.24% Cu
were extracted (Sangster, 1988). In Cyprus, 33 deposits have been documented
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 40
that range from 50,000 tonnes to 16 million tonnes, for a cumulative total of 105
million tonnes of ore (Hannington et al., 1998). These resources are not
compliant with NI 43-101 regulations and are not located on the Leyte Island
Copper Project. There is no guarantee that economic resources can be
discovered on the Leyte Island Copper Project.
9. Mineralization
Sulphide mineralization in the area west of Tacloban City and within the Leyte
Copper Project has been known since at least the 1930s. At least eight mineral
occurrences of copper sulphide mineralization have been documented over a
strike length of 17 km in this area (Figure 3).
Palo – Curajo, Barangay San Jose
C. Fortanos and D. Fajando (1964), Mining Engineers with the Mines and
Geosciences Bureau, described the presence of a mineralized vein, 0.1-1.2m
wide, from which a sample reported 11.52% Cu, 1.0 g/t Au and 78.5 g/t Ag. The
mineralization is reported to strike 290°SW.
Palo Consolidated Mines extracted some ore from an adit about 70m in length
and in an area 100m to the east, drilled 17 X-Ray drill holes, excavated three test
pits and two adits with lengths of 6m and 27m. A third occurrence is located
about 140m to the north.
In all areas, massive, blocky, dark green basalt, often sheared and described as
mafic schist in the field, is cross-cut by occasional quartz-epidote veinlets and is
intercalated with metasedimentary rocks usually described as phyllite but
represented by sandstone, conglomerate, shale and ferruginous chert. Much of
the mineralization is within fractures in the sedimentary rocks; the fractures are
filled with clay and breccia, and the wall rocks are chloritized.
A soil survey carried out in 1978 in the area showed that from 165 samples
collected, the background values are 120 ppm Cu and 130 ppm Zn and that
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 41
anomalous values are above of 290 ppm Cu and 280 ppm Zn (Quiwa et al.,
1978).
In 1997, Lawrence Solkoski quickly examined the Palo area in the search for gold
prospects for the account of Homestake Mining Canada. He was of the opinion
that the area resembled Kuroko-type volcanogenic massive sulphides rather than
Cyprus-type mineralization. Of 12 rock samples analyzed, four from the Palo
area reported 0.1-22.6% Cu and 110-580 ppb Au. The other eight samples with
background values for gold reported 0.01-0.33% Cu (Solkoski, 1997).
Sulphides include pyrite, chalcopyrite, bornite, chalcocite and covellite (Fortanos
and Fajando, 1964).
Salvacion Area
The Salvacion area is located about two kilometres northeast of Kambalantong
where an exploration adit is oriented at 065°. The numerous moderately- to
steeply-dipping faults present may have served as channel ways for mineralizing
fluids.
Where pyrite and chalcopyrite occur as disseminations and clustered aggregates
the rocks are intensely argillized and chloritized. Chloritization is extensive and is
also associated with post-ore faults, so should be used cautiously as a guide to
ore.
Mineralization is in the basalt, and copper-rich pyrite occurs with significant
specular hematite, magnetite and marcasite along the foliation planes or as
mineralization replacing the host rock.
Paderes (1970) noted that the mineralization at Salvacion is somewhat different
from other areas in that the pyrite occurs with marcasite along the foliation
planes, or occasionally as replacement along the host rock. The copper sulphide
content of these occurrences is low.
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 42
Palanog-Kambalantong
This area is underlain by rocks of the Tacloban Ophiolite Suite that have been
partially covered by the Palanog Formation. Intense silicification, chloritization
and epidotization are present at the contact between the volcanic and
sedimentary rocks.
Several exploratory tunnels and trenches are present at Palanog. As part of their
study of the area, Fortanos and Fajando (1964) reported the presence of a vein
about 2.0×23.0m which averaged 1.4% Cu and 12 g/t Ag, from samples of
massive sulphides composed of chalcopyrite, bornite, and chalcocite.
The area hosts two sulphide veins that strike 296° dip 25°N and strike 070° dip
15°SE and subsidiary faults that strike 065° with a dip of 50°SE and strike 350°
with dip of 90°. Highly silicified mafic schist, consisting of sheared volcanic rocks,
contains pyrite, chalcopyrite and chalcocite. (Quiwa et al, 1978).
The sulphides occur as infillings in breccias and as replacements of breccia
fragments. About 80% of the mineralization is spongy-textured chalcopyrite, 10%
is represented by pyrite, and gangue minerals represent the other 10%.
The copper mineralization on surface appears to be concentrated within the
mafic sections of the ophiolite and particularly the basaltic rocks. The
mineralization was emplaced at low to moderate temperature and consists of
chalcopyrite, chalcocite, covellite, bornite and pyrite-marcasite as fracture-filling
along faults and fractures that trend predominantly northwest. Minor replacement
occurs along the wallrock.
Sulphide mineralization was reported in the Kambalantong as early as in the
1930s. Surface prospecting was carried out, and test pits and adits were
excavated.
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 43
In 1970, Armando Paderes, a geologist with the Bureau of Mines and Geology
examined the occurrence in Kambalantong where it had been explored by test
pits, trenches and an adit at a bearing of about 060°. Paderes (1970) and Balce
and Velchez (2001) reported a resource of 4,530,000 tonnes of ore grading 2.2%
Cu. Although this resource is located on the Taurus Block of the Leyte Copper
Project, it was not calculated according to the standards of NI 43-101 and should
not be relied upon.
The mineralization is hosted by breccias consisting of coarse breccia fragments
in major faults that strike 320-340° and dip steeply to the southwest. Two
important, parallel, breccia-filled anastomosing structures are more than 30m
wide and the trend is traceable for at least 6 kilometres along strike to the south
toward the Palo–Barangay San Jose–Curajo region (Balce and Velchez, 2001).
Additional steeply-dipping tension fractures strike 060 to 070° and range from
two to four metres in width appear to be related to the major structures and
localize high grade fissure-filled replacement mineralization. They often occur as
tabular bodies but also occur as irregularly-shaped bodies. This structure is
accompanied by many steeply-dipping parallel faults that may have acted as
pathways for the mineralizing fluids.
The mineralization consists of low- to moderate temperature sulphides,
composed mostly of chalcopyrite, chalcocite, covellite and bornite. Quartz,
epidote, calcite and chlorite are the gangue minerals.
The orange to rusty red gossan associated with the mineralized faults is 10-20
metres thick and immediately below the gossan is a supergene sulphide
enrichment zone of chalcocite and covellite, partly or wholly replacing primary
sulphide minerals. A channel sample across one of the belts at Kambalantong
averaged 2.26% Cu (Paderes, 1970).
The country rock is composed of basalt and metamorphosed sedimentary rocks
including cyclically interbedded shale, limestone, graywacke, chert and possible
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 44
thin lenses of limestone that have been intensely sheared, brecciated and
mylonitized by tectonic periods since their deposition. Massive, thick and fine- to
medium-grained andesitic flows are occasionally identified within the sedimentary
sequence. Gabbro occurs in several varieties, from fine-grained, to ophitic to
pegmatitic. Hornblende andesite dykes are thought to be feeder zones for the
gabbro bodies.
The sulphides occur as infillings in the breccia interstices and as replacements of
breccia fragments, but also disseminated in the country rock.
Malayahay – Paglaum
The Malayahay prospect was explored with an adit by Taurus Mines in the early
1970s. The adit trends about 022° and extends about 37m to explore the
northwestern extension of vein from the Kambalantong area.
Massive to blocky basalt and the overlying strongly sheared phyllite are in
steeply dipping zones 0.1-4.0m wide. Limonite and hematite outline the breccia
fragments of the basalt.
The orientation of the shearing trends about 340°, but with associated steeply
dipping veins striking about 070°. A structure dips 25-35°W near the portal and
the copper-bearing sulphide zones range from 1 to 10 metres in width.
The 2-3% sulphide content occurs as interstitial filling and as disseminations in
the breccia and is composed of pyrite, and lesser quantities of chalcopyrite and
traces of bornite and covellite.
San Roque Prospect
This area was explored in the 1970s by Palo Mines Inc. which excavated four
adits and three test pits in a radius of 150m. Of the three adits that are still
accessible, one is oriented at 140°, the other at 320° and the third at 085°.
The area is underlain by basalt that is partially covered by Palanog chert and
phyllite. The adits were excavated along the contact between sheared phyllite
and basalt. Sulphides are represented by pyrite and minor chalcopyrite. A
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 45
stockpile of massive sulphide was noted a few metres from the adit. Quartz veins
contain few sulphides but contain hematite, chlorite and epidote.
Caibaan
The Caibaan area is part of the Suhi 0059 permit application. In the 1950s an
adit in the Caibaan area was high-graded and the sulphides were shipped
directly to the smelter. C. Fortanos and D. Fajando (1964) examined two
mineralized veins and three pits at Caibaan although only one vein had been
excavated at the time. They indicated that that they thought that there could be
more veins.
Six X-Ray drill holes intercepted one vein over a 100m strike length. The vein
strikes 080°, dips 55°N and is 1.5-4.5m wide. Three test pits did not expose the
full width of the vein. Mineralization consists of pyrite, chalcopyrite, bornite,
galena and quartz. Wall rocks assay 0.20% Cu (Fortanos and Fajando, 1964).
The area is underlain by the Tacloban Ophiolite Suite and by the later San
Ricardo Formation. The area has been sheared by two faults that trend
northwest and dip 30-40°SW. The volcanic sequence of the ophiolite suite is
highly chloritized and is intercalated with sandstone, shale and ferruginous chert.
Although Fortanos and Fajando could see no mineralization in outcrop, massive
copper mineralization consisting of fine-grained pyrite, chalcopyrite, chalcocite
and covellite was observed in the core and in a stockpile. The copper
mineralization at surface and in the shallow pits is supergene. Occasional
crystals of galena and quartz were also observed. In the drill core, sulphides
consist of pyrite, chalcopyrite, chalcocite and covellite
A group from the Geosciences Bureau re-examined the area in 1978 and
sampled the stockpile of ore near the adit and reported 7.47% Cu. A soil survey
in the area showed that from 69 samples collected, the background values are
130 ppm Cu and 90 ppm Zn, and anomalous values are above of 320 ppm Cu
and 230 ppm Zn (Quiwa et al., 1978).
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 46
Suhi Bacagay
In 1972, Armando Paderes carried out a geological verification of sulphide
mineralization at the Bagacay occurrence for Francisco Garcia the claim owner.
He reported that the test pits and trenches were unsystematically laid out and
sparsely distributed (Paderes, 1972).
The area is underlain by the Tacloban Ophiolite Suite; in the topographic lows on
the eastern side of the Leyte Copper Project Property the ophiolite suite is
covered by sedimentary rocks of the San Ricardo Formation consisting of chert,
greywacke, slate and phyllite. All rocks are tightly folded and structurally faulted,
sheared and fractured.
The mineralization occurs along a structure that strikes 055° and dips moderately
to the southeast. The sulphide mineralization was exposed by a series of test pits
and occurs disseminated and as irregularly-spaced stringers and lenses of pyrite,
hematite and chalcopyrite. Calcite, quartz and epidote occur as veinlets in the
host rock.
Analyses of the mineralized rock reported values of 0.40%, 1.52%, 1.84% and
5.39% Cu. Molybdenum was not detected in the rocks (Paderes, 1972).
Cabalawan-Barrio Suhi
Eleuterio Gamus, Supervising Geologist, and Jovito Lauron, Geologist, of the
Bureau of Mines in Manila, carried out a verification report on the Barrio Suhi
copper occurrences in 1968 for Leyte Base Metals. The Barrio Suhi area is
underlain by a complex assemblage of metamorphosed rocks with fine to coarse
clastic rocks that have been folded and faulted with accompanying volcanism.
The sedimentary rocks are composed of sandstone and tuffaceous shale.
Although difficult to establish because of the disturbed nature of the rocks, the
predominant trends in primary sedimentary bedding appear to be to the northeast
and northwest. The inferred folds appear to be asymmetric. Mineralization
consists of pyrite and chalcopyrite in veins, sheets, lenses and in erratic pod-
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 47
shaped bodies along the faults. The exposures were revealed by pits and
trenches. Seven outcrops are described in detail. One lens measures up to
0.35m × 6.0m grading 4.48% Cu and another lens is 0.5m × 8.0m with
5.95% Cu.
Additional work was recommended by Gamus and Lauron including geochemical
and geophysical surveys to identify additional occurrences in the area (Gamus
and Lauron, 1968).
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 48
10. Exploration
In 2009, Philippine Metals Canada Philippines, Inc., a subsidiary of Philippine
Metals Corporation, carried out a field exploration program of geological mapping
and rock and soil geochemical sampling on the Taurus Exploration Permit.
The principal objective was to document and confirm the mineralization in the
historical workings and to characterize the type of mineralization on the property.
The geological mapping is based on field examination of five areas on the
property.
Geological Mapping
The region is part of a complex geological environment that has undergone
extensive structural displacement, some of which is still ongoing.
The Tacloban Ophiolite suite has been classified as a Supra-Subduction Zone
(SSZ) type that has the geochemical characteristics of island arcs but has the
structure of oceanic crust. They are thought to form by sea-floor spreading
directly above a subducted oceanic lithosphere. SSZ ophiolite suites are more
common than the Mid-Ocean Ridge Basalt (MORB) ophiolite suite that has a
different origin and geochemistry (Pearce et al., 1984).
The SSZ ophiolite suites form during the early stage of subduction but prior to the
development of the volcanic arc. They are often associated with chromite
mineralization, with volcanic- and ultramafic-hosted nickel-copper sulphides and
with platinum group elements (Balce and Cabantog, 1998).
The exploration program has confirmed that massive sulphide mineralization is
present in many areas of the property. In general, the sulphide mineralization
encountered on the property occurs in faults, fractures and shear zones, and is
spatially associated with the basalt and the overlying sedimentary rocks of
pelagic origin.
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 49
Diligent geological work has identified and classified four types of mineralization
on the property (Paloma and Garcia, 2009). These types can be grouped in the
following categories:
Type 1: Disseminated and breccia fillings: stockwork and boxwork sulphide mineralization containing chalcopyrite, pyrite and occasionally bornite, chalcocite, covellite in silica-sulphide breccias and phyllite breccias.
This type is present at Kambalantong, Palo-Curajo and Malayahay. It represents higher grade mineralization and is associated with the footwall side of the geologic structures and largely controlled by faults with low to moderate dip and shear zones.
Type 2: Massive sulphides: as irregular pods or lenses that pinch and swell along a fault. Probably the most important economic mineralization.
Occurs at Kambalantong, Palo-Curajo and at Salvacion B. Chalcopyrite represents 60-80% of the sulphide by volume, pyrite about 10-30% and gangue at 10-20%; often surrounded by disseminated mineralization.
Type 3: Sheeted and fissure filling sulphide veins: in phyllite breccias, and occasionally in basalt in moderately- to steeply-dipping sulphide fractures; widths range from a few centimetres to more than 2 metres. Characterized by dark, thin sulphide bands along the shear plane. Fractures are filled with clay, crushed rock fragments and considerable amounts of ilmenite and hematite with copper and pyrite. The wall rock is chloritized, pyritic, and metamorphosed.
Typical ore zones are observed at Malayahay, Kambalantong and Palo-Curajo and form near major shear structures. This type sometimes overlaps with Type 1 at Palo-Curajo and at Kambalantong.
Type 4: Shear and fracture-filling sulphides in low- angled thrust faults.
Common at Palo-Curajo but may be of limited extent. Copper sulphide is restricted within the main shear zone, occurring as disseminations and fillings within the massive, competent host rock basalt.
This classification of the styles of mineralization can be compared with the
summary for Cyprus-type that Balce and Velchez (2001) prepared for the
Tacloban area (Table 4).
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 50
Genesis Magmatic
FumarolicOxidationSedimentary
Ore type Sulphidesand ironmudstones
Massive sulphides
Hydrothermal
Stockwork, cavity,fracture-fillingdisseminations
Mode of formation
Mode of deposition
Exhalative-sedimentary
Ore zone
Zone
1
Zone
2
Zone
2a
Orig
inal
lava
surfa
ce
Zone
3
Type
1
Type
2
Type
3
Type
4
Type
5
Type
of
min
eral
izat
ion
Min
eral
s ot
her t
han
pyrit
e
Mar
casi
te, s
phal
erite
, pyr
rhot
ite (v
. rar
e),
born
ite, (
v. ra
re),
gale
na (v
. rar
e), c
halc
opyr
ite
Mar
casi
te (r
are)
, cha
lcop
yrite
, sph
aler
ite (r
are)
,py
rrhot
ite (v
. rar
e), q
uartz
, jas
per,
chal
cedo
ny
Cha
lcop
yrite
, sph
aler
ite, q
uartz
, illi
te, j
aspe
r,ch
lorit
e
Cha
lcop
yrite
(rar
e), s
phal
erite
(v. r
are)
,ru
tile
(rare
), qu
artz
, illi
te, j
aspe
r, ch
lorit
e
Aver
age
ore
grad
e
%S
Frag
men
tary
ore
con
sist
ing
of a
ngul
aran
d ha
rd b
lock
s of
yel
low
ore
in a
mat
rix o
f bla
ck s
andy
ore
.
%C
u
0.5-
1.5
45-5
0
40-4
51.
0-4.
0
5-15
0.2-
0.5
15-3
00.
4-1.
2
30-4
00.
5-1.
5
Sedi
men
tary
rock
s: g
oeth
ite, s
ilica
, mon
tmor
illon
iteSu
lphi
des:
cov
ellit
e, s
phal
erite
, cha
lcop
yrite
,m
arca
site
Iron-
rich
and
silic
eous
mud
ston
e,
oxid
atio
n of
sul
phid
es; l
ense
s of
fria
ble
blac
k or
e. G
rade
d be
ddin
g w
ith g
rain
sof
pyr
ite a
nd s
lum
ping
. Bou
lder
s of
collo
form
sul
phid
e
Frag
men
tary
sul
phid
e, b
lock
s of
pyr
itein
sili
ceou
s m
atrix
with
dec
reas
ing
amou
nt o
f bla
ck fr
iabl
e su
lphi
de.
Mor
e co
arse
ly c
ryst
allin
e py
rite
asca
vity
-filli
ng w
ith m
uch
quar
tz a
ndja
sper
.
Dis
cret
e fra
ctur
e-fil
ling
with
pyr
ite,
quar
tz a
nd ja
sper
.D
isse
min
atio
ns o
f pyr
ite in
ves
icle
san
d cr
acks
.
Tabl
e 4.
Sum
mar
y of
cha
ract
eris
tics
of C
ypru
s-ty
pe m
iner
aliz
atio
n (B
alce
and
Vel
chez
, 200
1)
Des
crip
tion
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 51
Although there have been several phases of faulting, two or more important near-
parallel mineralized structures striking mostly 340-350° and dipping 40-60°W are
present on the property. The westernmost of these extends for at least six
kilometres from Palo northwest to Kambalantong and to Malayahay. Although
there may have been some tilting of the units to the south, the mineralization
could have a vertical extent of at least 135m, as measured from the difference in
elevation between Malayahay and the adit at Don Juan in the Kambalantong
area.
Mineralization also occurs in breccia along fractures and faults that strike
generally 045-075° and dip steeply. These faults are thought to be late in the
structural development of the area and may be sympathetic faults related to left-
handed movement along the Philippine Fault to the west. Major remobilization of
mineralization may have occurred along these structures, along which the
sulphides and gangue minerals appear to have been deposited at lower
temperature than along the major structure striking northwest.
The width of the mineralized structures ranges from less than one metre to
upwards of 20m at Kambalantong although it is possible that low-angled thrusting
may have duplicated the ore zones.
Low-grade greenschist metamorphism has affected the sheeted dyke complex
which has altered to calcite, epidote, actinolite and calcite. Epidote has also been
noted around the pyrite mineralization at Palo. Extensive silicification and
chloritization have been observed around some of the pyrite-chalcopyrite
mineralization.
Rock Sampling
A rock sampling program was carried out in five areas of the Taurus property.
The sampling consisted of chip sampling the rock face of many adits and
trenches.
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 52
Palo Area
Three areas of the Palo prospect were examined (Figure 11). Area 1 is the site of
an adit where mining occurred in the early 1970s. Mineralization occurs in widths
of 1-15m along a fault structure that trends 350-010° and dips 70-80°W. Of the
67 samples taken in this area, 15 were from one channel inside the adit where
results of 1.30% Cu and 0.11% Zn were reported over 9.3m from a sample of
fractured and sheared sulphide breccia. Other significant channel samples in the
adit reported 0.82% Cu over 2.5m from sulphide breccia, 0.30% Cu over 13.4m
from dark green basalt that contains no visible sulphides, and 0.23% Cu and
2.50% Zn over 11.4m from sheared phyllite that contains disseminated sulphides
(Figures 12 and 13).
Outside the adit, several trenches were excavated from which a total of 52
samples were sent for analysis. One series of chip samples average 0.60% Cu
over 9.3m from sheared metasedimentary rocks. This interval includes 1.17% Cu
over 1.9m where no visible sulphides were observed. Other intervals include
0.38% Cu over 7.6m, 1.32% Cu and 0.28% Zn over 0.9m and 0.11% Cu and
1.68% Zn over 3.4m.
In Area 2 to the east the five chip samples returned background values of 72-140
ppm Cu.
Located 140m further north, Area 3 may be an extension of Area 1 and was
tested with an exploratory tunnel. Seven chip samples were taken from two
trenches. Values of up to 0.40% Cu were reported over 1.7m from grey massive
siliceous sulphide. Another chip sample with no other adjoining sample reported
0.95% Cu and 1.70% Zn over 0.5m from a sample described as massive
sulphide in basalt. Several other occurrences of copper sulphides are present in
the area (Paloma and Garcia, 2009).
Area 2
Area 3
Municipality
of Palo
Municipality
of Santa Fe
Area 1Open Cast Mining
Area 2
Leyte Copper Pr
Philippine Meta
Date: 2009.09.21
Revised: 2009.09.21
Palo AMineralize
50 0 50 100 150
Metres
roject, Philippines
als Corporation
By: D.A. Beauchamp, P.Geol.
Areaed Areas
Figure: 11
Basalt
Sc
Basalt
Sch
Adit
Rock and ChipSamples
MassiveSulphides
DisseminatedSulphides
Trench
Cross-section
MassiveSulphides
Trench
DisseminatedSulphidesA
chist
ist
A'
Basalt
Basalt
PhylliteMetasedimentary rocks
DisseminatedSulphides
10m
Date: 2009.09.21
Revised: 2009.09.21
Leyte Copper Proj
Philippine Meta
Palo ArGeology and sam
modified from Paloma and Garcia, 2009
Figure: 12
oject, Philippines
als Corporation
By: D.A. Beauchamp, P.Geol.
rea 1mple locations
Dis
sem
inat
ed s
ulph
Zone L
Phy
llite
Met
ased
imen
tary
rock
s
Stru
ctur
ally
-con
trolle
d S
Pit Zo
ne O
Zone
A -
12 ro
ck c
hip
sam
ples
ave
rage
0.4
0 %
Cu
over
38m
Zone
L -
13 ro
ck c
hip
sam
ples
ave
rage
0.4
8 %
Cu
over
61.
2mZo
ne O
- 4
rock
chi
p sa
mpl
es a
vera
ge 0
.20
% C
u an
d 1.
99 %
Zn
over
18
Vie
w to
nor
th
Bas
alt
Adi
t
160m
150mA W
est
140m
Zone L
Zone O
A'
Eas
t
Zone A
hide
s
10mSch
ist
Sul
phid
es
8.9m
Zone A
Cm
odifi
ed fr
om P
alom
a an
d G
arci
a, 2
009
Leyt
e C
oppe
r Pro
ject
, Phi
lippi
nes
Phi
lippi
ne M
etal
s C
orpo
ratio
n
Dat
e: 2
009.
09.2
1
By:
D.A
. Bea
ucha
mp,
P.G
eol.
Rev
ised
: 200
9.09
.21Pa
lo A
rea
AC
ross
Sec
tion
Figu
re: 1
3
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 56
Salvacion Area
At Salvacion, the mineralization occurs as fissure-filling and to a lesser extent as
selective replacement of breccia fragments and certain wallrock areas.
Several test pits, collapsed adits and stockpiles of massive sulphides were
identified. The area is underlain by basalt that is capped by cherty sedimentary
rocks. Epidote and chlorite occur in veins filled with chalcedony.
Mineralization occurs as brecciated massive sulphides, finely-disseminated
sulphides and local replacement along shear zones trending 030° and dipping
50°NW.
At Salvacion A, three channel samples were collected, one of which returned a
value of 0.27% Cu over 1.5m from light green to grey phyllite that contains
hematite along fracture planes.
At Salvacion B eight separate channel samples were taken over widths of 1-2m.
At the northern pit where a massive sulphide lens was excavated, the 2009
exploration program reported significant assays of 0.98% Cu, 6.20% Cu and
5.65% Cu over 1m in three separate samples taken. A grab sample also reported
0.98% Cu .Other samples reported 0.98% Cu over 2.0m and 0.59% Cu over 1m,
both from sheared phyllite containing disseminated sulphides, and a grab sample
that reported 1.37% Cu from dark grey massive sulphides from a test pit.
At Salvacion B an open cut area 10m in diameter and several test pits were
identified. The area is underlain by the same massive basalt flows and
occasional metasedimentary rocks that are capped by thin beds of cherty
sedimentary rocks (Figure 14). Mineralization consists of finely disseminated
sulphide and sulphide replacement along the shear zones.
Basalt
Schis
DisseminatedSulphides
DisseminatedSulphides
DisseminatedSulphides
Structurally-controlledsulphidemineralization
Adit
st
Adit
Stockpiledore
10m Buen Kambalan
Plan
Date: 2009.09.21
Revised: 2009.09.21
Leyte Copper Pro
Philippine Met
modified from Paloma and Garcia, 2009
Stockpiledore
Suertentong Area View
oject, Philippines
tals Corporation
By: D.A. Beauchamp, P.Geol.
Figure: 14
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 58
Palanog – Kambalantong Area
Several areas of the Palanog-Kambalantong area were sampled and a total of
154 rock and channel samples were submitted for analysis from this area. The
mineralization extends over a length of at least 1200m along a structure that
strikes 335°.
At the Palanog East area, five rock samples and one grab sample were
submitted for analysis. All are from massive sulphides in breccia near a contact
with basalt. Results show values of 2.6% Cu and 5.4% Cu over one metre and a
grab sample from a muck pile reported 3.1% Cu. One sample from the footwall of
the fault zone near the contact with basalt reported 13.7% Cu over 2.2m in
massive sulphides.
Don Amado Adits
The Don Amado area contains three interconnected adits that were excavated by
Taurus Mineral and Oil Corporation. Two of the adits trend 270° and the third one
is at 010°. The three adits have a cumulative length of about 200m and average
2.5m in height and 2m in width.
The area is underlain by generally massive, chloritized, dark green to grey basalt
flows that have been chloritized and epidotized, and by sheared, brecciated and
fragmented sedimentary rocks that have been metamorphosed to phyllite.
The two shear zones have widths of 3-20m along low-angle possible thrust faults
that dip west. The massive sulphide lenses strike 020-030° and dip 35-50°W.
Mineralization appears to favour the areas of competency contrast at the contact
between the basalt and sedimentary rocks.
The sulphide mineralization occurs as infilling among the breccia fragments,
along the foliation and shear planes, and is disseminated in the breccia clast,
matrix and country rock. The copper sulphide is mostly chalcopyrite and minor
amounts of covellite and bornite are present. Limonite, hematite and jarosite are
present along the fractures.
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 59
A total of 80 samples were submitted for analysis from inside the adits and 16
from surface workings. Most of the surface samples reported values of 100-800
ppm Cu but three samples described as “intermixed oxidized and sulphide-
bearing muck material from historical workings” reported 0.56%Cu, 3.52% Cu
and 0.17% Zn, and 4.11% Cu and 0.35% Zn.
The samples from the underground workings are mostly from sulphide breccia
with occasional phyllite. The samples were taken from throughout the workings
but are mostly non-continous. The results show many intervals of 0.32-0.35% Cu
over 1m and several at 0.85-2.00% Cu over 2.0m. Several of the samples
contain 0.15-0.22% Zn over 1.1-1.6m and three samples from one area contain
0.40%, 0.52% and 1.44% Zn over 1.7-2.0m. Although some samples have high
contents of copper and zinc, there appears to be no correlation between the two
metals.
Buen Suerte Adit
The Buen Suerte adit was excavated to mine the northern extension of the Don
Amado zone of mineralization about 80m to the north. The mineralized widths for
the massive sulphides are 4-10m, principally aligned along the northwest
structures that strike 330-340° and dip 45°W.
The geology is very similar to the Don Amado area and is underlain by massive,
dark green to grey basalt and sedimentary rocks that have been metamorphosed
to phyllite. The sulphide mineralization is predominantly located in the more
competent sedimentary units, particularly along the shear zones and fractures.
The metasedimentary rocks are brecciated and fragmented.
The two principal directions of the structures are oriented at about 045° with a
steep dip and at 330-340° with dips of 40-45°SW.
Of the 49 rock samples submitted for analysis, 13 are from the muck pile,
consisting of oxidized sulphide-rich rock. Nine of the samples from the muck pile
reported 0.13-0.28% Cu.
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 60
The adit extends about 40m toward the north-northwest along one of the major
faults: the north extension of structure identified in the workings at the Don
Amado area. Most of the samples taken from the adit are from massive sulphide
breccia near the contact between basalt and sheared phyllite. The samples often
contain 0.2-0.95% Cu over 1.5-2.4m, and two contain 1.30% and 1.49% Cu over
1.5m. Two nearby samples reported 4.4% Cu over 5.4m and 10.8% Cu over
3.0m (Figure 14).
Overlying the breccia zone is a lens-shaped massive sulphide body, about 1.5m
thick, dipping gently and containing up to 60-70% sulphides represented by
chalcopyrite, pyrite, bornite and covellite.
Grades of mineralization encountered in the adit include several channel samples
with 0.11-0.95% Cu over 1.5-2.4m but also important intervals of 1.49% Cu over
1.5m, 4.40% over 5.4m and 10.83% Cu over 3.0m.
Don Juan Adit
At the Don Juan area three samples were submitted from the near the end of the
adit that extends for 105m. This adit may have been driven to intersect the
extension at depth of the Don Amado to the southwest. Results show 61, 64 and
380 ppm Cu over 1.2-1.8m from basalt and phyllite.
Located about 200m northeast of the Don Amado adits at an elevation of
61m asl, the Don Juan adit was oriented at 250° and extended for a distance of
105m. It may have been dug out to intersect the downdip extension of the
mineralized zone at Don Amado. The tunnel was excavated in pillowed basalt
that is overlain by metasedimentary rocks that have been metamorphosed to
phyllite and chert. No mineralization was identified in the adit.
BasaltPhylliteSedimentary rocks
PhylliteSedimentary rocks
Massivesulphidelens Disseminated
Sulphides
DisseminatedSulphides
10m
Date: 2009.09.21
Revised: 2009.09.21
SalvacioPlan
Leyte Copper Proj
Philippine Meta
Su p des
modified from Paloma and Garcia, 2009
on B Arean View
ject, Philippines
als Corporation
By: D.A. Beauchamp, P.Geol.
Figure: 15
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 62
Malayahay Area
All of the samples from Malayahay are from the adit that extends for 37m that
extends through phyllite and basalt. Of the 16 samples taken, two are field
duplicates. Four channel samples taken two on each side of the adit have
reported values 0.37% Cu and 0.54% Cu over 5.3m in sheared, brecciated and
oxidized phyllite.
San Roque Area
Eight channel samples and one grab sample were taken from the area. Four of
these channel samples were taken from the stockpile from the nearby adit and
reported 0.22-0.42% Cu over 5.8m but the channel sample from about ten
metres within the adit reported only 145 ppm Cu.
The other four samples taken from an abandoned exploratory tunnel in basaltic
lava and returned 0.16-0.36% Cu over 1-3m.
11. Drilling
Historical drilling was reported for some mineral occurrences mostly in the
Caibaan and Palo area. This drilling was carried out in the 1960s and early 1970s
with X-Ray core size and neither the drill logs nor the core is available. A map
showing the location of several of the drill holes in the Palo area is available.
Diamond drilling has not been carried out on the Leyte Copper Project since that
time.
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 63
12. Sampling Method and Approach
Philippine Metals has re-sampled several mineral occurrences on which historical
documents have reported anomalous values for copper, but also for a few
elements such as gold and silver. Every one of these re-sampled areas has
confirmed the mineralization originally identified.
A few grab samples were taken, but most samples are representative channel
samples that were chipped along tunnel faces or in trenches over 0.1-10.0m with
a few of them over as much as 14.0m. Including field duplicate samples, the
distribution of the samples is as shown in Table 4:
All sampling was carried out by field personnel hired by Philippine Metals Canada
and supervised in the field by the company project geologist.
13. Sampling Preparation, Analyses and Security
The samples were collected in the field by field employees of the company and
were carried out to the field office. The samples were then boxed and packaged
and shipped by truck directly to the laboratory in Manila. The security of the
handling of the rock samples is acceptable.
The samples were analyzed by McPhar Geoservices (Phil.) Inc. in Manila. The
laboratory has been in operation for more than 30 years. It was accredited under
ISO 9001 in 2000 and ISO 17025 accreditation is in progress. It was visited by
D.A Beauchamp and found to be clean, efficient and well-organized.
Area Number of samples
Palo 80Salvacion 15Palanog 154Malayahay 16San Roque 9Total 274
Table 5Sample Distribution
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 64
Laboratory Procedures
Upon arrival at the laboratory the samples are sorted, dried and crushed to -1/4”
to 1/8”. A pulp of the sample is then created by mixing, splitting and pulverizing
the rock fragments.
A sample of 0.25g of the pulp is digested in aqua regia, a combination of HNO3
and HCl acids to dissolve the minerals including sulphides. The sample is then
analyzed by Inductively Coupled Plasma (ICP).
Gold analysis is performed by fire assay. The pulp is weighed and mixed with a
flux. A reducing or oxidizing agent is added and the sample is fused at 1090°C.
The lead button is separated from the slag and a doré bead is prepared after
cupellation at 860-900°C. Parting of the gold occurs after adding HNO3 and the
prill is annealed at 800°. The prill is weighed to an accuracy of 0.001mg,
dissolved and analyzed in an Atomic Absorption Spectrometer (AAS).
14. Data Verification
Quality Assurance and Quality Control Program
As part of its rock sampling program, Philippine Metals Canada Philippines
implemented a Quality Assurance and Quality Control (QA/QC) Program. The
program consisted in adding analytical standard samples, requesting duplicate
analyses and inserting standard blank samples so that the accuracy and
precision of the results from the laboratory could be verified.
In addition to the 274 rock samples that the company submitted for analysis, 14
samples from three analytical standards were submitted at regular intervals to
verify that the results returned from the laboratory are accurate.
These standard samples were purchased from CDN Resource Laboratories Ltd.,
of Delta, BC. Standard samples are created, pulverized and homogenized by the
laboratory from rock samples which are then analyzed in 10-12 laboratories, from
which recommended values are established for certain elements such as copper,
gold, lead, zinc, etc. To be acceptable, it is recommended that the results from
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 65
the laboratory preferably be within the mean plus two standard deviations. Barry
Smee, Ph.D. consulting geochemist has suggested that the mean plus three
standard deviations is also acceptable (Pers. Comm. 2005).
Standard sample CDN-CGS-21 has been tested as a standard for copper and
gold. The four samples submitted for analysis were within the recommended
norms of mean plus or minus two standard deviations for these two elements.
Standard sample CDN-HZ-3 has been approved as a standard sample for gold,
silver, copper, lead and zinc and all four samples analyzed in this program
reported results within the mean plus two standard deviations.
Standard sample CDN-HC-2 is a standard for silver, copper, lead and zinc. All of
these were within the mean plus two or minus two standard deviations, except for
the results for lead, which were within the mean minus three standard deviations.
Since lead is not an important element in this type of mineralization and that the
results for lead from standard sample CDN-HZ-3 were acceptable, we can
accept the results for the other elements of this standard.
A total of 33 rock samples were analysed a second time to verify the repeatability
of the results. All repeated analyses correspond very well with the results of first
for all elements identified. Nine duplicate samples were also submitted. A
comparison between the original and the duplicate sample compared well for all
elements analyzed
To verify that the instrument and equipment were cleaned thoroughly between
samples and that there was no contamination from one analysis to another ten
blank samples were inserted in the series of rock samples. Of the elements
analyzed, only gold had a recommended value and only three of the standard
samples were analyzed for gold. The results are within the mean plus two
standard deviations for this sample. Of the other elements of interest, the results
for copper, lead, zinc and silver are very low, near background level and reported
very consistently. We can acknowledge with a certain confidence that the results
are within acceptable ranges and that there is little contamination from one
sample with another.
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 66
The QA/QC program implemented was carried out appropriately and interpreted
according to industry standards.
Independent verification
To verify independently the mineralization on the property at the Leyte Copper
Project, D.A. Beauchamp had two rock samples independently analyzed by
Loring Laboratories, a geochemical laboratory certified ISO 9001 that is located
in Calgary Alberta. PMC-1 is a sample of massive sulphide from the Palanog
area and PMC-2 is from the disseminated sulphides at the Palo area
The two samples were analyzed for 30 elements by ICP (Inductively Coupled
Plasma). PMC-1 reported more than the limit of 10,000 ppm Cu and was
assayed to obtain an accurate value.
Among the more significant results, PMC-1 reported 8.04% Cu, 2720 ppm Zn,
544 ppm Co, 16.9 ppm Ag and <1 ppb Au.
PMC-2 reported 5590 ppm Cu (0.56% Cu) 546 ppm Zn, 166 ppm Co, 3.4 ppm
Ag and <1 ppm Au. To verify the results PMC-2 was reanalyzed and gave similar
results for all elements.
These results are consistent with what was expected from these samples and
show geochemical profiles that are characteristic of Cyprus-type mineralization.
See Appendix 1 for the entire listing of results..
15. Adjacent Properties
There are no known properties in the area that are currently being explored or
over which applications for exploration permits have been requested at this time.
16. Mineral Processing and Metallurgical Testing
Not applicable to this property.
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 67
17. Mineral Resources and Mineral Reserve Estimates
Although some resource calculations have been made for a few areas on the
property, these are not compliant with the standards of NI 43-101 and are
therefore not reliable.
18. Other Relevant Data and Information
Not applicable to this property.
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 68
19. Interpretation and Conclusions
The Leyte Copper Project is underlain by an ophiolite suite that has been
overlain by later metasedimentary rocks. The ophiolite suite has been sheared
and structurally displaced.
From the 1930s to the 1970s, the area was explored intermittently. The
exploration consisted in prospecting and minor geological mapping, and a few
basic ground geophysical surveys were carried out on select areas of the
property. A few diamond drilling projects with X-Ray-size core were carried out
but the drill logs and core are not available. Massive sulphides were extracted
from a series of adits and pits and the ore was shipped directly from the property
without processing to smelters.
The outcrop exposure is generally poor in the region, and the terrain has
undergone surface weathering that has been estimated at 10-20m. Since the
massive sulphide mineralization often occurs along fractures and major shear
zones these areas are more difficult to identify in the field. The terrain is relatively
rugged and the forest cover, along with the weathering horizon, could severely
decrease the effectiveness of geochemical surveys.
The mineralization on the Leyte Copper Project exhibits many of the important
characteristics of the Cyprus-Type copper deposits whose type deposit is located
in Cyprus. Similar deposits have been discovered in older oceanic terrain in
many areas including Newfoundland, Oregon, Iran and in the Pacific Ocean off
the west coast of Mexico.
These deposits contain mostly copper as an economic resource but also contain
anomalous quantities of zinc and cobalt. The economic deposits are usually in
range of a few million tonnes grading 1.6-2.5% Cu and they often occur in
clusters (Cox and Singer, 1986).
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 69
The objective of the work carried out by Philippine Metals Canada Philippines
Inc. in 2009 was to re-sample and to confirm the mineralization and to develop a
better understanding of the geology and the mineralization on the property. This
objective has been achieved. The work was carried out competently and the
results are reliable.
The geology of the area and the work carried out in 2009 show that the Leyte
Copper Project is a property of merit that deserves additional work to further
explore its potential to host an orebody.
20. Recommendations
To further define and outline zones of massive sulphide mineralization on the
Leyte Copper Project it is recommended that two activities be carried out
simultaneously as part of Phase 1: a detailed evaluation of one of the corridors of
mineralization evaluated in the 2009 field program consisting of geophysics,
follow-up geological mapping and drilling, and an airborne geophysical survey
over the entire Leyte Project area. Upon the return of positive results a Phase 2
program of additional drilling is recommended. Details of the recommended
program are provided below.
Phase 1
The area from Kambalantong to Malayahay contains several zones of sulphide
mineralization that could be further defined and outlined by a ground EM and
magnetometer survey. This corridor extends over a width of 500m and a strike
length of about 1500m (Figure 16). New conductors hosting potential
mineralization should be mapped and prospected. Diamond drilling is
recommended on existing and new targets for a total of 2000m of drilling in ten
holes to better understand and define the extent of the mineralization. The cost
this part of the work is estimated at CA$427,000.
Don Amado Stope0.21% Cu over 1.7mOre stockpile 2.7 % Cu
Buen Suerte2.08% Cu40m long, 4-10m wide
MalayahayMalayahayMalayahayMalayahayMalayahayMalayahayMalayahayMalayahayMalayahayPaglaum AditPaglaum AditPaglaum AditPaglaum AditPaglaum AditPaglaum AditPaglaum AditPaglaum AditPaglaum Adit
Malayahay Tunnel 0.30 % Cuover 1.3 - 4.0m
Buen SurteBuen SurteBuen SurteBuen SurteBuen SurteBuen SurteBuen SurteBuen SurteBuen SurteTunnelTunnelTunnelTunnelTunnelTunnelTunnelTunnelTunnel
124°56'00"E
Interpreted outline of zone of mineralization
124°56'30"E
11°15'00"N
Don Amado0.37% Cu over 2.4m
Don Amado Cliff Area2.86% Cu over 3m
Don Juan TunnelDon Juan TunnelDon Juan TunnelDon Juan TunnelDon Juan TunnelDon Juan TunnelDon Juan TunnelDon Juan TunnelDon Juan Tunnel
Don AmadoDon AmadoDon AmadoDon AmadoDon AmadoDon AmadoDon AmadoDon AmadoDon AmadoTunnelsTunnelsTunnelsTunnelsTunnelsTunnelsTunnelsTunnelsTunnels
KambalantongKambalantongKambalantongKambalantongKambalantongKambalantongKambalantongKambalantongKambalantongMine AreaMine AreaMine AreaMine AreaMine AreaMine AreaMine AreaMine AreaMine Area
Don Amado Zone P0.66% Cu over 1.6m
100 0 100 200 300 400
MetresContour intervals are 20m
Revised: 2009.10.15
Date: 2009.09.21
Leyte Copper Pr
Philippine Me
Proposed GeKambalantong-M
Proposed GroundGeophysical Grid
Trail
Road
11°14'30"N
roject, Philippines
etals Corporation
By: D.A. Beauchamp, P.Geol.
Figure: 16
eophysical GridMalayahay Corridor
d
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 71
Once the approval of the Exploration Permits on the Suhi Projects has been
received (EXPA 00059VIII and EXPA 000096-VIII), a helicopter-borne EM and
magnetometer survey should be carried out over the entire Leyte Project area to
explore the property at a line spacing of 100m for a total of about 1100 line
kilometres at an estimated cost of CA$154 per line kilometre of survey plus the
cost of the helicopter. The results of the survey should be further evaluated by an
independent geophysicist to determine and prioritize anomalies on the property.
The cost of this survey is estimated at CA$613,000. The total cost of Phase 1 is
estimated at CA$1,040,000.
Phase 2
Upon the return of positive and encouraging results from the Phase 1
geophysical surveys and drilling, a second round of drilling consisting of 4000m
of drilling in 20 holes is recommended to further refine the zones of
mineralization in the Kambalantong-Malayahay corridor and to evaluate the new
targets that may have been identified in other parts of the property. The cost of
Phase 2 drilling is estimated at CA$760,000.
The total cost of Phase 1 and Phase 2 are budgeted at CA$1,800,000 and a
summary of the estimated work and costs is presented in Table 6.
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 72
Ground Geophysical surveyMobilization/Demobilization $2,500Line cutting and chaining $3,000Mag survey $3,600EM Survey $8,800Subtotal $17,900
Ground Geological surveyTrenching $7,500Mapping and sampling $1,750Rock analyses $1,250Subtotal $10,500
Diamond DrillingMob/Demob $30,000Drilling 2000 m @ $165 /m $330,000
Subtotal $360,000Airborne Geophysical SurveyMob/Demob $55,000Survey 1100 km @ $154 /m $169,400Helicopter 135 hrs @ $2,400 /hr $324,000Interpretation $10,000Subtotal $558,400
Contingency 10% $93,200Total $1,040,000
Diamond DrillingMob/Demob $30,000Drilling 4000 m @ $165 /m $660,000
$690,000Contingency 10% $70,000
Total $760,000
Grand Total Phase 1 and Phase 2 $1,800,000
Table 6Proposed Budget Leyte Copper ProjectPhase 1
Phase 2
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 73
21. References
Almogela, Dominador H. 1979: Electromagnetic Dip Angle (Shootback) Survey of Curajo Copper
Prospect, Curajo Saba Basin, Palo Leyte. Internal report submitted to the Director of Mines, Manila.
Balce, Cesar L. and Cabantog, Arnulfo U. 1998: Tacloban ophiolite massif – Basement of northeast Leyte
Physiographic Province. Mines and Geosciences Bureau Regional Office No. 8, Tacloban City, January 1998.
Balce, Cesar L. and Velchez, Alfred Ryan R. 2001: Copper Deposits of Tacloban City: Revisited. Mines and Geosciences
Bureau Regional Office No. 8, Nipa Hut Compound, Tacloban City. Constantinou, G. and Govett, J.G.S. 1973: Geology, Geochemistry and Genesis of Cyprus Sulfide Deposits.
Economic Geology, v. 68, pp. 843-858. Cox, D.P. and Singer, D.A., Editors 1986: Mineral Deposit Models; U.S. Geological Survey, Bulletin 1693, 379
pages. Fortanos, Conrado and Fajando, Domingo P. 1964: Report on the Evaluation of the Copper Deposit at Barrio Caibaan,
Tacloban City, Island of Leyte. Unpublished report. Francheteau, J. , Needham, H. D., Choukroune, P., , Juteau, T., Séguret, M, Ballard, R.D., Fox, P.J., Normark, W., Carranza, A., Cordoba, D., Guerrero, J., Ranguin, C., Bougault, H., Cambon, P., Hekinian, R. 1979: Massive deep-sea sulphide ore deposits discovered on the East
Pacific Rise, Nature v. 277, No. 5697, February 1979. Franklin, J.M., Lydon, J.W. and Sangster, D.F. 1981: Volcanic-Associated Massive Sulphide Deposits; Economic Geology,
75th Anniversary Volume, p. 485-627. Gamus, Eleuterio and Lauron, Jovito 1968: Report on Copper Occurrences at Barrio Suhi, Tacloban City, for
Leyte Base Metals. Internal report submitted to the Director of Mines, Manila.
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 74
Hannington, Mark D., Galley, Alan G., Herzig, Peter M., and Petersen, Sven 1998: Comparison of the Tag Mound and Stockwork Complex with Cyprus-
Type Massive Sulfide Deposits; in Proceedings of the Ocean Drilling Program, Scientific Results, Vol. 158 Herzig, P.M., Humphris, S.E., Miller, D.J., and Zierenberg, R.A. (editors).
Hõy, Trygve 1995: Cyprus Massive Sulphide Cu (Zn), in Selected British Columbia
Mineral Deposit Profiles, Volume 1 - Metallics and Coal, Lefebure, D.V. and Ray, G.E., Editors, British Columbia Ministry of Energy of Employment and Investment, Open File 1995-20, pages 51-52.
Huliganga, Segismundo 1963: Report on the investigation of the Economic Possibilities of the Sulfur
Deposits located at Barrio Caibibihan, Municipality of Caibiren, Biliran Island, Leyte. Internal unpublished report submitted to the Director of Mines, Manila.
Kuhns, Roger J. and Baitis, Hart W. 1987: Preliminary Study of the Turner Albright Zn-Cu-Ag-Au-Co massive
sulfide deposit, Josephine County, Oregon. Economic Geology v. 82, p. 1362-1676.
Lueck, B. 2007a: Summary report on the geology of the Malitao Massive Sulphide
Prospect, Municipality of Calanasan, Kalinga-Apayao Province, Northern Luzon , Philippines. Internal unpublished company report.
2007b: Summary report on the Taurus Massive Sulphide Project, EPA –
0049, Region VIII. Internal unpublished company report. Morante, Edgar M. and Gasano, Gorgonio B. 1981: A review on the Crone Dip Angle Electromagnetic Survey of the
Curajo Prospect, Curajo, Palo Leyte. Internal report to the Director, Bureau of Mines and Geo-sciences, Metro-Manila.
Morante, Edgar M. and Ignacio, Romeo J. 1979: Electromagnetic Dip Angle (Shootback) of Curajo Copper Prospect,
Curajo, Palo Leyte. Internal report to the Director, Bureau of Mines and Geo-sciences, Metro-Manila.
Motton, N.T. & Associates 2008: Dilong Project, Abra/Ilocos Sur Provinces, Luzon, Philippines: A
summary of the history and exploration potential of the area; Internal company report.
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 75
New Meridian Mining Corp. 2009a: New Meridian enters into letter of intent to purchase all of the shares
of Philippine Metals Corp. Press release 28 May 2009. http:\\www.sedar.com; accessed October 1, 2009.
2009b: New Meridian further defines the letter of intent to purchase all of the
shares of Philippine Metals Corp. Press release 29 July 2009. http:\\www.sedar.com; accessed October 1, 2009.
Paderes, Armando E. 1970: Mineral verification and geological appraisal of the Taurus copper
claims at Barrios Palanog and Salvacion, Tacloban City in Connection with their application for listing in the stock market. Geology, Bureau of Mines, Regional office VIII, Tacloban City.
1972: Memorandum for the director, thru the Chief geologist, Bureau of
Mines, Manila. Internal report submitted to the Director of Mines, Manila.
Paloma, Reinhold-Bobby M. and Garcia, J.S. 2009: Final Report for Leyte Copper Project (EP- 2009-0008-VIII) Fast Track
Exploration Program (FTEP); internal company report to Philippine Metals Corporation.
Pearce , J. A., Lippard, S. J. and Roberts, S. 1984: Characteristics and tectonic significance of supra-subduction zone
ophiolites. Geological Society, London, Special Publications; 1984; v. 16; p. 77-94
Prichard, H.M. and Maliotis, G. 1998: Gold mineralization associated with low-temperature, off-axis, fluid
activity in the Troodos ophiolite, Cyprus. Journal of the Geological Society; April 1998; v. 155; no. 2; p. 223-231
Quiwa, N.D., Javelosa, R.S., Danaynghirang, C.D., Jimenez, G.D.J. 1978: Semi-annual report on the detailed geological and geochemical survey
of the copper prospects situated within the territorial jurisdiction of SAB-A Basin, Tacloban City, Northern Leyte; internal government report.
Sangster, A.L. 1988: Mineral occurrences of the Betts Cove Complex Baie Verte Peninsula,
Newfoundland, Geological Survey of Canada; online paper http://cgc.rncan.gc.ca/mindep/metallogeny/gold/baieverte/pdf/metallogeny.gold.baie_verte.sangster.pdf accessed 2009.09.01.
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 76
Singer, D.A. 1968: Descriptive Model of Cyprus Massive Sulfide, Model 24a in Cox, D.P.
and Singer, D.A., (Editors), Mineral Deposit Models; U.S. Geological Survey, Bulletin 1693, p. 131-135.
Solkoski, Lawrence 1997: Property Examination of the Suhi Copper Prospect, Leyte Island –
Region VIII, Philippines. Copper Gold Silver. Unpublished report. Upadhyay H. D. and Strong D. F. 1973: Geological Setting of the Betts Cove Copper Deposits, Newfoundland:
An Example of Ophiolite Sulfide Mineralization. Economic Geology v.68, pp. 161-167.
Zerda, Rafael R. 1974: Report on the Verification and Geological Appraisal of the Leyte Base
Metal Copper Claims at Barrio Suhi, Tacloban City in connection with their application for Licensing and Listing in the Securities Exchange Commission. Report for the Director, thru the Chief geologist, Bureau of Mines, Manila. Internal report submitted to the Director of Mines, Manila.
Dated in Calgary AB, this 22nd of October 2009, ______________________________ Daniel A. Beauchamp, P.Geol., M.B.A. 24 Malibou Road SW Calgary AB T2V 1W6 ______________________________ Bill Dynes, P.Geol. Sierra Geological Corp. 2749 Douglasdale Blvd. SE Calgary AB T2Z 2A4
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 77
22. Date and Signature Page
I, Daniel A. Beauchamp of 24 Malibou Road SW, Calgary, AB, hereby certify
that:
1. I am an independent consulting geologist; 2. I graduated from the University of Ottawa in 1974 with an Honours B.Sc.
from the University of Ottawa; 3. I graduated from the University of Calgary in 1984 with a M.B.A. (Masters
in Business Administration) with specialization in finance; 4. I have been a registered member of the Association of Professional
Engineers Geologists and Geophysicists of Alberta (APEGGA) since 1980 and my membership number is M29299;
5. Except for two years of post-graduate studies and two years of work in the oil and gas industry I have practiced my profession as a geologist since graduation from university in 1974 with companies, both as an employee and as a consultant. I have worked throughout Canada and have managed mineral exploration projects from the grass roots level to early stages of mine development;
6. I have worked as a geologist directing and managing projects in the field in many geological environments including volcanogenic massive sulphides in rocks of Archean to Phanerozoic age carrying out geological mapping, supervising geochemical and geophysical surveys, diamond drilling programs and core logging.
7. I have read the definition of “Qualified Person” set out in National Instrument 43-101 (“NI 43-101”) and certify that by reason of my education, affiliation with a professional association and past relevant work experience, I fulfill the requirements to be a “Qualified Person” for the purposes of NI 43-101;
8. I personally examined and studied the literature, reports and company surveys on the property for Philippine Metals Corporation and I am familiar with the project area. I visited the property on May 25 and 26, 2009;
9. I have had no prior involvement with the property that is the subject of this Technical Report;
10. I am not aware of any material fact or material change with respect to the subject matter of the Technical Report that is not reflected in the Technical Report, the omission to disclose which would make the Technical Report misleading;
11. I am independent of the issuer applying all of the tests in section 1.4 of National Instrument 43-101. I do not own, directly or indirectly, nor am I under an agreement, arrangement or understanding or expect to acquire any securities of Philippine Metals Corporation or any affiliated entity of the
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 78
Company. I hold no interest, directly or indirectly, in the mineral properties that are the subject of the foregoing report or in any adjacent mineral properties in the area;
12. I have read the National Instrument 43-101 and Form 43-101F and this report has been prepared in accordance with these regulations;
13. I consent to the filing of the Technical Report with any Stock Exchange and other regulatory authority and any publication by them for regulatory purposes, including electronic publication in the public company files on their websites accessible by the public.
14. I am responsible for all sections of the report titled “Technical Report and Proposed Exploration Program for the Leyte Copper Project, Leyte Province, Philippines, prepared for Philippine Metals Corporation Calgary AB, and New Meridian Mining Corp. Calgary AB”, and dated 22 October 2009.
Dated in Calgary, AB, this 22nd day of October 2009, ______________________________ Daniel A. Beauchamp, P.Geol., M.B.A. 24 Malibou Road SW Calgary AB T2V 1W6
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 79
Date and Signature Page
I, Bill Dynes, of Sierra Geological Corp., 2749 Douglasdale Blvd. SE Calgary, AB,
hereby certify that:
1. I am a geologist consulting for Philippines Metals Corp. 2. I graduated from the University of British Columbia in 1994 with an
Honours B.Sc. degree in geology. 3. I have been a registered member of the Association of Professional
Engineers Geologists and Geophysicists of Alberta (APEGGA) since 2005 and my membership number is M80402.
4. I have practiced my profession as a mineral exploration geologist since graduation from university in 1994 with various companies, both as an employee and as a consultant. I have worked in Canada, Philippines, Tanzania, Indonesia and Mexico.
5. I have read the definition of “Qualified Person” set out in National Instrument 43-101 (“NI 43-101”) and certify that by reason of my education, affiliation with a professional association and past relevant work experience, I fulfill the requirements to be a “Qualified Person” for the purposes of NI 43-101.
6. I visited the Leyte Copper Project property area on December 1st and 2nd 2007.
7. I am not independent of the project and its corporate entities. I am a director of New Meridian Mining Corp that is currently in negotiations with Philippine Metals Corp concerning a merger of the two companies as described in the news release dated May 28, 2009.
8. I am not aware of any material fact or material change with respect to the subject matter of this Technical Report that is not reflected in the same, or of any omission to disclose that which would make this Technical Report misleading.
9. I have read the National Instrument 43-101 and Form 43-101F and this report has been prepared in accordance with these regulations.
10. I consent to the filing of this Technical Report with any Stock Exchange and other regulatory authority and any publication by them for regulatory purposes, including electronic publication in the public company files on their websites accessible by the public.
11. I am responsible for the quality of the work conducted in 2009 on the Leyte Copper Project as described in section 10 of this report titled “Technical Report and Proposed Exploration Program for the Leyte Copper Project, Leyte Province, Philippines, prepared for Philippine Metals Corporation Calgary AB, and New Meridian Mining Corp. Calgary AB”, and dated 22 October 2009.
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 80
Dated in Calgary, AB, this 22nd day of October 2009, ______________________________ Bill Dynes, P.Geol. Sierra Geological Corp. 2749 Douglasdale Blvd. SE Calgary AB T2Z
Technical Report: Leyte Copper Project
Philippines
22 October 2009 page 81
Appendix 1
Verification Analyses
Loring Laboratories Ltd. 629 Beaverdam Road N.E., Calgary Alberta T2K 4W7
Tel: 274-2777 Fax: 275-0541 ISO9001:2008 [email protected]
TO: Daniel Beauchamp FILE: 5 2 1 1 9
DATE: September. 15, 2009
30 ELEMENT ICP ANALYSIS
Sample Ag Al As Au B Ba Bi Ca Cd Co Cr Cu Fe K La Mg Mn Mo Na Ni P Pb Sb Sr Th Ti U V W ZnNo. ppm % ppm ppb ppm ppm ppm % ppm ppm ppm ppm % % ppm % ppm ppm % ppm % ppm ppm ppm ppm % ppm ppm ppm ppm
PMC-1 16.9 0.08 19 <1 3 6 <1 1.58 27 544 <1 >10000 >10 <0.01 22 0.02 287 9 0.05 25 <0.01 72 35 <1 <1 <0.01 <1 3 <1 2720PMC-2 3.4 0.21 <1 <1 <1 4 <1 0.72 24 166 6 5590 >10 <0.01 15 0.13 115 5 <0.01 31 <0.01 37 6 <1 <1 <0.01 <1 7 <1 546PMC-2 check 3.0 0.26 <1 <1 2 4 <1 0.79 24 170 13 5560 >10 <0.01 17 0.14 116 5 <0.01 35 <0.01 39 4 <1 <1 0.01 <1 8 <1 574blk <0.5 <0.01 <1 <1 <1 <1 <1 <0.01 <1 <1 <1 <1 <0.01 <0.01 <1 <0.01 <1 <1 <0.01 <1 <0.01 <1 <1 <1 <1 <0.01 <1 <1 <1 <1
0.500 Gram sample is digested with Aqua Regia at 95 C for one hour and bulked to 10 ml with distilled water. Partial dissolution for Al, B, Ba, Ca, Cr, Fe, K, La, Mg, Mn, Na, P, Sr, Ti, and W.
Certified by:
Loring Laboratories Ltd. 629 Beaverdam Road N.E., Calgary Alberta T2K 4W7
Tel: 274-2777 Fax: 275-0541 ISO9001:2008 [email protected]
TO: Daniel Beauchamp FILE: 5 2 1 1 9
Tel: 403-259-6734DATE: September. 17,
Certificate of AssayCu
No. %
"Assay Analysis"
PMC-1 8.04
Methodology: 0.5 gram Assay, with AA finish
I HEREBY CERTIFY that the above results are those assays made by me upon the herein described samples:
Assayer