The Balabag gold-silver mineralization is interpreted as a low-sulphidation epithermal vein system hosted in andesitic lava flows and pyroclastics. Multiple-stage massive to crustiform banded fracture-fill and breccia cement assemblages mostly comprising of chalcedonic to mosaic quartz, in paragenetic association with less abundant adularia, chlorite, illite and carbonate enclosing and dispersed with only minor amounts of sulphide, define a lowsulphidation epithermal environment of precious metal mineralization. The hydrothermal fluid flow and resulting mineralization have taken place at around 220 to 240°C.

Three major quartz vein systems identified in the Balabag Hill area are the Tinago-Unao-UnaoYoyon veins to the north, Miswi veins in the east and Lalab veins to the south. The veins exhibit various epithermal quartz vein textures such as colloform, crustiform, massive, drusy, vuggy, comb and cockade textures. Multiphase brecciation textures are also dominant probably because of several pulses of rising hydrothermal fluids. Quartz stringers and quartz stockworks also occur adjacent to most quartz veins ranging from hairline to centimeter sizes. The geometry of the veins and the associated stockworks is generally subhorizontal at the Tinago and Miswi areas while a sub-vertical attitude of veins is exhibited in the Lalab area.

The known mineralization zones at Balabag Hill area either have an east-north-east (Tinago and Unao-Unao), northeast (Miswi) or ........

The deposit will be mined using the side cut mining method. It is conceived that the mining unit operations of drilling, blasting, loading and hauling will apply to the Balabag Au-Ag Project.

The deposit will be mined using the side cut technique and will be patterned after Canatuan gossan and sulphide projects’ model of contract mining. The mine will be developed in a series of pushbacks instead of applying the simple ‘top-down’ mining, to minimize the initial stripping requirement and associated costs. The pit will be free-draining. Mining is planned such that no water will accumulate within the pit. Runoffs will be diverted through channels into the tailings storage facility.

Dozers will be utilized for mine development, floor maintenance of active mining areas, ore stockpile and waste dump maintenance, and rehabilitation works. Road grader, vibratory compactor and water truck will be utilized for ancillary activities like maintenance of mine haul roads, the mine-ROM haulage road and all access roads on the project site. All mining equipment will be provided by the mining contractor on a lease arrangement. Since mining operation will be subcontracted, no acquisition of the mobile and heavy equipment will be done since the mining contractor will provide all the mining equipment.

Waste rock excavated from the mine will be loaded in dump trucks and stored in the overburden stockpile (mine waste dump). The pile of waste rock will be spread and ........

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