Nickeliferous laterite deposit is very pervasive throughout Dinagat Island being the direct weathering product of the ultramafic fraction of the DOC.

An Open Pit mining method is employed to mine the nickel silicate ore.

In accordance with mining/stripping plans and designs, benches of 3-6 meters height are formed either by bulldozing or directly loading the laterite to dump trucks with the use of tract loaders or hydraulic excavators. The upper portion that is rich with organic matter is dumped in separate stockyards and will later be used in providing topsoil for the restoration/rehabilitation of mined-out areas. Floors of benches have 10 to 15 meters width to provide wider roads for the hauling trucks and heavy equipment.

Cagdianao Mining Corporation employs a highly engineered method of mining in its operating area. After rigorous drilling program, the mine is divided into shipment slices, programmed to optimize the recovery nickeliferous ores. This mining method is a result of the modernization of the company’s mine planning strategies. With the aid of advanced computer based mining models, it is now possible for the company to more accurately delineate areas with commendable nickel grades - ranging from 1.2% Ni to 1.8%Ni.