Name and Location
King-king copper/gold/silver project, Mindanao, the Philippines.

Client
St Augustine Gold & Copper (SAGC) and Nationwide Development Corporation (Nadecor).

Project Description
Over the life of the operation, King-king is expected to produce about 3.16-billion pounds of copper, 5.43-million ounces of gold and 11.65-million ounces of silver.

The ore delivery and processing rate will be 100 000 t/d – 40 000 t will be delivered to on-off heap leach pad and 60 000 t to a flotation mill with agitated tails leach. The mining rate will total about 178 000 t/d for the 22-year mine plan.

Production from the heap leach process is expected to start one year ahead of starting the mill. The proposed openpit mine and processing plant will produce copper/gold/silver concentrate, copper cathode and gold doré bullion.

The average yearly output during the first five years of full production is expected to total 270-million pounds of copper, 360 143 oz of gold and 568 958 oz of silver, with an average gold-equivalent total cost of $454/oz.

Net Present Value/Internal Rate of Return
According to the prefeasibility study released in September 2013, the project has a pretax net present value (NPV), at an 8% discount rate, of $2-billion, with an internal rate of return (IRR) of 24.8% and a payback of 2.4 years.

The project has an after-tax NPV, at an 8% discount rate, of $1.76-million, with an IRR of 24% and a payback of 2.4 years.

Value
The project has an estimated initial capital cost of $2.04-billion, including the mine, mill, on/off leach pad, power plant and port facility, as well as $240-million in contingency costs.

Duration
Not stated.

Latest Developments
The Philippine Mines and Geosciences Bureau (MGB) has granted SAGC and Nadecor a renewed mineral production sharing agreement (MPSA) for the King-king project. The 25-year MPSA is an agreement under which the Philippine government grants an exclusive right to conduct mining activities under the contract area, with government receiving a share of the gross revenues.

The companies have all the major mine permits approved for the project and the MPSA renewal now paves the way for the next phase of King-king’s development.

SAGC has advised that it will provide the necessary financing, technology, management and personnel for the mine’s development, construction and operations through its joint venture (JV) partner Nadecor.

The MGB issued SAGC and Nadecor with the required declaration of mining project feasibility in January this year. This enables the JV partners to cooperatively advance the project to construction, followed by operation of the mine.

King-king is one of several significant Philippine mining projects that are unaffected by a moratorium on approvals for new production, as the project is already in an advanced stage before the ban came into effect.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
SAGC public relations Ethelinda Abarro, tel +6382 222 3877 or email labarro@kingkingproject.com.
Nadecor, tel +632 633 9466, fax +632 633 9463 or email nadecorocc@gmail.com.