Mining Intelligence and News
Philippines

Mabilo Project

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Overview

Mine TypeOpen Pit
StagePermitting
Commodities
  • Copper
  • Gold
  • Silver
  • Pyrite
  • Iron Ore
Mining Method
  • Truck & Shovel / Loader
Mine Life... Lock
SnapshotThe Mabilo Project, with potential for direct shipping ore (DSO) operation, using open-pit mining, is under a Care and Maintenance Program to ensure regulatory compliance while preparing for future mining.

Key land properties for infrastructure are identified, with plans progressing for haulage roads, water management, and accommodation.

Permitting is underway for tree clearing, land conversion, and developing a private port. Legal and financing issues are also being addressed.

In H2 2024, the focus is on finalizing cost comparisons between "Owner Mining" and using a contractor, as the project advances towards production with having already secured the necessary mining permits.

Owners

SourceSource
CompanyInterestOwnership
TVI Pacific Inc. 18.4 % Indirect
RTG Mining Inc. 40 % Indirect
Mt. Labo Exploration and Development Corp. (operator) 100 % Direct
TVI Resource Development (TVIRD) holds a 60% indirect interest in the Mabilo Project through its acquisition of Sage Capital Partners, Inc., which owns 60% of Mt. Labo Exploration and Development Corporation (MLEDC). MLEDC operates the Mabilo mine. RTG Mining retains a 40% interest in MLEDC, making the Mabilo Project a joint venture between TVIRD and RTG Mining. Additionally, TVI Pacific Inc. holds a 30.66% interest in TVIRD.

Contractors

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Deposit type

  • Skarn

Summary:

The Mabilo Property hosts mineralization of copper-gold-magnetite skarn type. Skarn describes a rock dominated by calc-silicate or calcium-magnesium silicate minerals formed by metasomatic replacement of carbonate-bearing rocks rich in calcium and magnesium. Skarn forms as a result of interaction of carbonate-bearing host rock with hydrothermal fluids derived from an igneous intrusion.

Skarn copper-gold-magnetite is considered to be the primary target at the Mabilo Property. While the occurrence of copper-gold-magnetite skarn may suggest some potential for porphyry copper-gold mineralization, no indication of this type of mineralization has been encountered and no porphyritic intrusions have been identified. There may also be potential for epithermal gold mineralization, but this is also a secondary target; pyrite-quartz overprint of the known skarn is of epithermal style, but is not known to be gold-mineralized.

Quaternary lahar and tuff deposits of the Labo Volcanics cover the southern and eastern two-thirds of the Mabilo exploration license, thickening southward from Venida. In the deposit area, the Labo Volcanics vary from about 30 m to 50 m in thickness, reflecting both palaeotopography and stratigraphic thickness. As a result of the poor exposure, younger volcanic cover and limited drilling, the geology of the older rocks in the license area is not well constrained.

Beneath the Labo volcanic unconformity, Tumbaga Formation sediments and volcanic sediments are intruded by a quartz diorite stock. The sediments include variably calcareous siltstones, volcanogenic sandstone and wacke, clean limestone, and silty limestone. The quartz diorite intrusion that has been drilled under cover at Mabilo is probably equivalent to the diorite intrusion mapped immediately north of the license which is assigned to the late Miocene Tamisan Diorite suite. The sedimentary lithologies are hornfelsed and metasomatically altered in the contact zone of the intrusion. The extensive hornfels and the irregular extent of the diorite are suggestive of a roof zone of a mid-level intrusion.

In the area of the resource, the bedrock geology dips moderately to steeply to the southwest (typically 50 - 60 degrees). A robust lithostratigraphy has not been defined and original rock-types can be obscured by alteration and mineralization overprint. However, the main magnetite skarn is interpreted to replace a massive clean limestone unit that has been metamorphosed to marble in the contact aureole of the quartz diorite intrusion. The thickness of the unit is variable, from 15 - 20 m in the southern part of the South Mineralized Zone (SMZ) and up to 50 - 80 m in the North Mineralized Zone (NMZ). This is interpreted to reflect primary sedimentary thickness variation and lateral facies variation. The overlying stratigraphy includes variably calcareous siltstone and mudstone, minor argillaceous limestone replaced by skarn, and subordinate volcaniclastic wacke horizons. The underlying stratigraphy includes similar calcareous siltstone and mudstone with limestone units (or skarn), notably a cherty limestone in the north, all underlain by a thick volcanic sandstone.

The clastic sediments have been metamorphosed to biotite hornfels and the calcareous and dolomitic siltstone and mudstone have been metamorphosed to calc-silicate or magnesian silicate hornfels in the contact aureole of the quartz diorite.

The mineralized bodies occur on the eastern contact of the quartz diorite stock that has been intersected in several drillholes. The magnetic data suggest that the stock is at least 1 km in diameter and forms the magnetic low with the north magnetic anomaly, southeast magnetic anomaly, and NMZ and SMZ at its margins. Where drilled, the quartz diorite is relatively unaltered with hornblende partly altered to chlorite and weak feldspar retrogressive alteration. On the northeast margin of the SMZ, strongly altered porphyritic intrusive rock has been intersected in drilling. They have been interpreted as dykes in the contact zone of the main stock.

The SMZ and NMZ are cut by a significant northwest-trending northeast dipping normal fault with a throw of not more than 10 m. The NMZ is interpreted to be fault-offset from the SMZ along a later northeast- trending, probably steeply dipping, dextral fault. The Venida skarn body probably represents a further fault offset along a similar northeast-trending fault.

A number of magnetite skarn occurrences are known within the Tumbaga Formation north of the Mabilo block and north of the Labo Volcanic cover, including Binit, B1 and Mayaman. These are located close to the contact of mapped diorite intrusions. Binit is developed in weathered argillic-altered siltstone with abundant hematite veins and malachite staining. Garnet and wollastonite skarn rocks have been reported (JICA, 2002) but the mineralization that is currently being mined by artisanal miners is hosted by quartz veins and hematite-filled fault zones. The B1 mine is developed in strong hematite and manganese-altered breccia near the diorite margin. Samples from both are reported to be anomalous in Au, Cu, Ag, As, Fe and Mn (Sierra Mining, unpublished data).

The Venida artisanal mine is within the Mabilo Property. Magnetite mineralization with significant associated copper-gold-silver occurs in a garnet-magnetite skarn zone. The garnet-magnetite zone grades through garnet skarn to wollastonite skarn developed in hornfelsed andesite, both of which are anomalous in copper and gold. The garnet and wollastonite skarn rocks are anomalous but low grade whereas the garnet-magnetite skarn is highly mineralized.

Mineralized magnetite skarn and massive garnet skarn preferentially replaced a cleaner limestone or marble horizon within the stratigraphic sequence. Drilling indicates that the main mineralized skarn zone dips to the southwest at 50 to 60 degrees in both the SMZ and NMZ. The NMZ was previously interpreted to be shallow dipping or north dipping, but additional drilling shows that when the skarn, marble, and breccias in marble are treated as single unit, it dips southwest. Where not eroded, the drilled mineralized zone is estimated to have a true thickness from 20 m in the south of the SMZ to over 80 m within a thicker marble / limestone unit in the NMZ.

The main magnetite zone mineralization typically comprises massive magnetite intergrown with minor retrograde-altered calc-silicate minerals (mainly garnet with subordinate wollastonite and
pyroxene), chalcopyrite and late interstitial calcite. Copper and gold grades are closely correlated and commonly reach 5% Cu and 5 g/t Au in hypogene mineralization. The copper-gold grade of magnetite skarn is variable but averages about 1.7% Cu and 1.9 g/t Au with 7 g/t Ag and 40% Fe. In the deep southeast part of the SMZ, hypogene bornite in magnetite skarn is associated with high copper and gold grades (up to 3-8% Cu and 3-24 g/t Au).

There are indications of zonation within the skarn in time and space, with probably early barren magnetite, strongly mineralized magnetite showing equilibrium textures with chalcopyrite, and later barren magnetite. Typically magnetite skarn is in direct replacive contact with marble at the downdip contact of the skarn zone without any zonation. Locally however, magnetite skarn grades down-dip into garnet skarn. More typically, garnet skarn occurs stratigraphically above or below magnetite skarn and shows zonation from red to green garnet, with variable copper-gold mineralization which can be of significant grade. In the SMZ, a separate mineralized garnet skarn horizon occurs in the stratigraphic hangingwall of the main magnetite skarn.

Reserves

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Mining Methods

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Comminution

Crushers and Mills

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Processing

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Production

CommodityProductUnitsLOM
Copper Metal in ore M lbs 64
Copper Metal in concentrate M lbs 225
Copper Total M lbs 289
Copper Concentrate kt 373
Gold Metal in ore oz 42,433
Gold Metal in pyrite concentrate oz 134,639
Gold Metal in copper conc. oz 249,222
Gold Total oz 426,294
Silver Metal in copper conc. oz 1,219,233
Iron (magnetite) Concentrate kt 3,067
Pyrite Concentrate kt 1,262
Iron Metal in concentrate kt 1,994

Operational metrics

Metrics
Hourly processing capacity 125 t *
Annual ore mining rate 1 Mt *
Annual milling capacity 1 Mt *
Stripping / waste ratio 10 *
Waste tonnes, LOM 77.7 Mt *
Ore tonnes mined, LOM 7,792 kt *
Total tonnes mined, LOM 85,506 kt *
Tonnes milled, LOM 7,155 kt *
* According to 2016 study.

Production Costs

CommodityUnitsAverage
Credits (by-product) Copper USD -0.66 / lb *  USD
Credits (by-product) Gold USD -869.86 / oz *  USD
C1 cash costs Copper Equivalent USD 0.81 / lb *  USD
C1 cash costs Gold Equivalent USD 429.68 / oz *  USD
C1 cash costs Copper USD -0.12 / lb * **  USD
C1 cash costs Gold USD -413.35 / oz * **  USD
C2 total cash costs Copper USD 0.67 / lb * **  USD
C2 total cash costs Gold USD 126.73 / oz * **  USD
C3 fully allocated costs Copper USD 0.82 / lb * **  USD
C3 fully allocated costs Gold USD 228.48 / oz * **  USD
Assumed price Iron USD 50 / t *  USD
Assumed price Copper USD 2.27 / lb *  USD
Assumed price Silver USD 14 / oz *  USD
Assumed price Gold USD 1,200 / oz *  USD
* According to 2016 study / presentation.
** Net of By-Product.

Operating Costs

CurrencyAverage
OP mining costs ($/t mined) USD  ....  Subscribe
OP mining costs ($/t milled) USD  ....  Subscribe
Processing costs ($/t milled) USD  ....  Subscribe
G&A ($/t mined) USD  ....  Subscribe
Total operating costs ($/t mined) USD  ....  Subscribe
Total operating costs ($/t milled) USD  ....  Subscribe
* According to 2016 study.

Project Costs

MetricsUnitsLOM Total
Initial CapEx $M USD  ......  Subscribe
Sustaining CapEx $M USD  ......  Subscribe
Closure costs $M USD  ......  Subscribe
Total CapEx $M USD  ......  Subscribe
OP OpEx $M USD  ......  Subscribe
Processing OpEx $M USD 264.8
G&A costs $M USD 78.4
Total OpEx $M USD  ......  Subscribe
Total Taxes $M USD  ......  Subscribe
Gross revenue (LOM) $M USD  ......  Subscribe
EBITDA (LOM) $M USD  ......  Subscribe
Pre-tax Cash Flow (LOM) $M USD  ......  Subscribe
After-tax Cash Flow (LOM) $M USD  ......  Subscribe
Pre-tax NPV @ 5% $M USD  ......  Subscribe
After-tax NPV @ 5% $M USD  ......  Subscribe
Pre-tax IRR, %  ......  Subscribe
After-tax IRR, %  ......  Subscribe
Pre-tax payback period, years  ......  Subscribe
After-tax payback period, years  ......  Subscribe

Required Heavy Mobile Equipment

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Personnel

Mine Management

Job TitleNameProfileRef. Date
....................... Subscription required ....................... Subscription required Subscription required Sep 27, 2024

Aerial view:

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