Name of the Project
Mankayan copper/gold project.

Location
The project is located on the Island of Luzon, in the Philippines.

Client
Bezant Resources.

Project Description
An independent study has shown that Mankayan supports an array of robust development routes for the future development of the project. The three main representative options taken from the 11 modelled scenarios comprise two block-caving (BC) scenarios and one sublevel caving (SLC) ‘stepping stone’ scenario. The two preferred BC routes include:

• Option 4, which envisages a medium production rate of 12-million tonnes a year and four BC footprints in two lifts. Each footprint is sized to meet the required production rate, with the first footprint in each lift located in the highest grade. This option has a 34-year mine life.

• Option 8, which envisages a staged production rate, starting at six-million tonnes a year for a small high-grade BC, before mining three larger footprints at 12-million tonnes a year. This option has a 38-year mine life.

The SLC intermediary route:

• Option 9 envisages a low production rate, starting with a six-million-tonne-a-year low capital expenditure (capex), high operating expenditure sublevel cave before mining three BC footprints (this option could also be ramped up to 12-million tonnes a year for the mining of the three BC footprints). This option has a 58-year mine life. The study also includes a BC comparator scenario, or

• Option 3, which envisages a high production rate, high rate of return and high startup cost, as well as two lift BC, where the full footprint of the BC is undercut to allow for a high production rate. This option has a 23-year mine life.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Option 4 of the BC routes has an estimated net present value (NPV), at an 8.5% discount rate, of $1.18-billion and an internal rate of return (IRR) of 27% before tax and royalties.

Option 8 has an NPV, at an 8.5% discount rate, of $797-million and an IRR of 21% before tax and royalties.

Option 9 has an NPV, at an 8.5% discount rate, of $361-million and an IRR of 14% before tax and royalties.

Option 3 has an NPV, at an 8.5% discount rate, of $1.59-billion and an IRR of 29% before tax and royalties.

Value
Option 4 will require $896-million in startup capex.

Option 8 will require $633-million in startup capex.

Option 9 will require $529-million in startup capex.

Option 3 will require $1.4-million in startup capex.

Duration
Under all four of the representative options selected for further analysis in the study, the time to initial production is about five years.

Latest Developments
Benzant has said that the project lends itself to potential future development by medium-sized mining companies and the majors aiming to secure a long-term source of physical copper and gold.

Key Contracts and Suppliers
Mining Plus (mining/economic study).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Bezant Resources, email info@bezantresources.com