(Alliance News) - Metals Exploration PLC on Monday said that a new resource estimate has revealed a depletion of overall tonnes at the Runruno gold project in Philippines, due to mining undertaken at the project over the past three years and a lower grade estimate.
The exploration company said an updated reserves report estimates total ore of 11.7 million tonnes with probable gold resource of 0.50 million ounces at 1.38 grammes per tonne.
A previous report in 2011 predicted total ore of 15.0 million tonnes with proved and probable gold resource of 0.87 million ounces at 1.86 grams per ton.
An additional 2.7 million tonnes of ore is inferred at 1.21 grammes per tonne for 0.10 million ounces of gold.
"While overall tonnes have been depleted at a rate consistent with the available tonnes as estimated in both the 2011 and 2020 reserve estimates, the grade in the 2011 reserve estimate has proven to be inaccurate. The 2020 updated reserve estimate is reflective of the mining dilutions achieved over the past 3 years," Metals Exploration said.
The company has a planned drilling programme, to be undertaken during the second half of 2020 and during 2021, which is expected to provide basis for updating the project's reserve estimate.
Shares in Metals Exploration have been suspended since March, as company was unable to reach an agreement on the continuation of a debt standstill agreement.
The company had been in talks over its debt position for some time, having asked lenders for a standstill on repayments in order to seek a restructuring of its senior debt facility.
By Tapan Panchal; tapanpanchal@alliancenews.com
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Metals Exploration (MTL)