Friday, 11th February 2005 (2856 views)

UK-based mining group Crew Gold has announced that it has reached agreement, in a joint venture with local companies, to acquire 72.5 per cent of the issued capital of the Philippine- based Apex Mining Company.

The stake in Apex will cost Crew Gold $7 million in cash and the mining firm expects the purchase to be completed within a maximum period of four months, subject to the completion of satisfactory due diligence.

Apex is listed on the Manila stock exchange. The company's principal asset is the Masara Gold Mine in the south of Mindanao Island, which ceased production in March 2000.

The mine was previously operated as a small-scale underground operation and has a treatment plant with the capacity to process 1,200 tonnes of ore per day. Government agency, the Bureau of Mines and Geosciences (MGB), claims the mine is in "good working condition" and Crew has plans to rehabilitate it and expand its capacity.

According to the MGB, Masara has a gold reserve in the range of 500-600.000 tonnes at 9-10.grams/tonne (JORC) and an inferred resource of 1.7-1.9 million ounces at similar grades. Exploration at the site has been limited and Crew believes it has the potential to host a much larger gold resource.

Jan Vestrum, president and CEO of Crew Gold, said: "The acquisition of a majority stake in Apex will further strengthen Crew's presence in the Philippines, a country which the company believes is one of the world's most promising mineral provinces with significant development potential."

 

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