depth building

The Tampakan Copper-Gold Project ("Tampakan Project") is located approximately 50km north of General Santos City , a major growth centre on the southern Philippines island of Mindanao ( Figure 1 ). General Santos has a population of approximately 420,000 and is accessed by sealed highways, a major deep water port and a modern international standard airport with the capacity to take the largest available commercial aircraft.

With a recently updated (December 2004) indicated and inferred resource estimate, of 1,179 million tonnes at 0.65% copper and 0.27g/t gold at a 0.3% copper cut-off grade, carried out under JORC reporting guidelines, the Tampakan Deposit represents the largest undeveloped copper-gold deposit in the Southeast Asia - Western Pacific Region ( Figure 2 ). This pre-mining resource contains 7.68 million tonnes of copper metal and 10.05 million ounces of gold. Significant additional mineralisation potential exists.

The Tampakan Copper-Gold Project is currently the subject of a Pre-feasibility Study into future mine development by Indophil and its Philippines affiliate Sagittarius Mines Inc. ("Sagittarius"). This followed the completion of a successful Scoping Study during 2004 which demonstrated that the Tampakan Project has robust economic outcomes using conservative price inputs and based on a preferred large scale open pit option producing copper concentrates with associated gold. Further, ongoing metallurgical studies have produced encouraging results in the differential flotation of arsenical copper sulphides present in certain sections of the deposit. It is anticipated that the Pre-feasibility Study will be completed during 2006 with a Bankable Feasibility Study based on selected mining and processing options to follow shortly thereafter.