TMC30 Apr 2012 08:37
Operations Report for the Berong Nickel Mine - First Quarter 2012
Toledo Mining Corporation plc is pleased to update shareholders on the operating activities of the Berong nickel mine for the quarter ended 31 March, 2012.
Production of run-of-mine ore* from Berong Nickel Corporation's ("BNC") Berong nickel mine in this quarter was 183,000 wmt at an average grade of 1.88% Ni.
Direct ore shipping operations resumed in early March when the shipping window reopened for the Berong port. This resulted in two shipments to China in Q1 2012:
M/V Jin Rong 48,700 wmt @ 1.82% Ni
M/V Mandarin Phoenix 54,000 wmt @ 1.63% Ni
As at 31 March, total coastal stockpiles of all ore grades including the two additional shipments where loading was under way during the end of March (shipments 3 and 4), amounted to 328,000 wmt with an average grade of 1.54% Ni.
With regard to ongoing permitting, whilst the Berong Mineral Production and Sharing Agreement (MPSA) covers 288 ha, the tree cutting permits are granted in sections, incrementally, as required. Owing to a delay in the granting of a new tree cutting permit, the mine currently has a limited mining area. This is impacting on the amount of high grade ore which can be produced as per the original mining plan.
The new tree cutting permit was expected to have been received during the first quarter of 2012, but on 29 March 2012, BNC received a letter from the Department of Environment and Natural Resources (DENR) stating that, despite its full compliance with the requirements for the application of the tree cutting permit, it has been decided that the application be referred to the Palawan Council for Sustainable Development (PCSD) for review, in relation to issues concerning mining activities and other environmental matters in Palawan. This decision is consistent with the ongoing discussions regarding a new mining policy to be implemented by the national government.
As a result of this new development, and to maximise the ore shipping tonnage, it was decided to revise the ore sales plan from a single 1.8% grade of nickel, to a combination of 1.8%, 1.6% and 1.5% grade shipments. This will allow BNC to maximise this year's revenue until a new tree cutting permit is granted.