DJ Australia's Lafayette Pours First Philippines Gold
SYDNEY (Dow Jones)--Australia's Lafayette Mining Ltd. (LAF.AU) said Wednesday it has poured the first gold at its Rapu Rapu project, making it the first foreign-funded mine in the Philippines in 30 years.
The event was planned for late June but was delayed until Tuesday due to "normal commissioning bugs," Managing Director Andrew McIlwain told Dow Jones Newswires.
Gold production at Rapu Rapu is expected to ramp up to 50,000 ounces a year.
The Melbourne-based company is planning an official opening in October to coincide with the commissioning of a base metals plant at Rapu Rapu, McIlwain said.
It expects the copper, gold, zinc and silver mine, on an island 420 kilometers southeast of Manila, to generate US$300 million in revenue over six years from which it can fund further opportunities in the country.
Despite its small scale, Rapu Rapu is being held up by the government as proof new mines can be developed in the Philippines.
The government wants local and foreign miners to invest US$6 billion in 23 projects over the next six years.
"A lot of money has gone into exploration and lot of resources have been identified (in the Philippines) but no one has been able to get their way clear to accessing those minerals...that's something we've been able to do," McIlwain said previously.
Lafayette shares closed up 1 cent, or 5.6%, at 19 cents on volume of 1.7 million shares.
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LAF Price at posting:
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