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
The project is expected to recover 1.43 million tonnes of copper, 169 t of gold and 362 t of silver over its 25-year mine and process life.

The proposed openpit mine and processing plant will produce copper/gold/silver concentrate, copper cathode and gold doré bullion.
Oxide ore containing significant gold and all sulphide ore will be treated in a concentrator at 60 000 t/d. The concentrator process will consist of crushing, grinding, gravity concentration of free gold and flotation of sulphide copper.

An agitated leach circuit will leach oxide copper from flotation tails.

Oxide ore containing little or no gold will be treated in a heap leach at 40 000 t/d. The heap leach process will consist of crushing, agglomeration and leaching using on/off cells.

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, the mill, the on-off leach pad, the power plant and the port facility, and $240-million in contingency costs.

Duration
Not stated.

Latest Developments
The Philippine Mines and Geosciences Bureau (MGB) has given SAGC’s joint venture (JV) partner , Nadecor, its approval to proceed with the development of the King-king project. The bureau’s approval of the declaration of mining project feasibility (DMPF) was the last step before development could start.

Under the order, Nadecor has been authorised to proceed with the develop-ment and operating stages of its mineral production sharing agreement, which includes the extraction and sale of copper, gold and associated minerals within the 1 548 ha area. SAGC is the exclusive technical services provider of Nadecor.

After five years in the making, the DMPF represents comprehensive technical, environmental, social and community engagement efforts completed by the JV partners and relevant advisers.

With the approval of the DMPF, Nadecor and SAGC will work cooperatively to advance the project to construction, followed by operation of the mine.

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.