massive enormous divvy coming soon, page-14

irn another takeover to the collection IAMGOLD, SED, and now IRN lol

The divvie is going to end up being close to $1 the way this is going ehhehehheh


Xstrata eyes Philippine mine deal with Indophil

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July 19, 2006
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THINGS are starting to heat up for Indophil Resources, the Melbourne explorer that 10 years ago hitched its future to a copper/gold exploration project in the Philippines that WMC discarded.

The Tampakan project in the pineapple-growing region of Mindanao now ranks as the biggest undeveloped copper/gold resource in South-East Asia with a measured, inferred and indicated resource base that contains 11.62 million tonnes of copper and 14.56 million ounces of gold.

Back when no one was interested in copper, Indophil struck an option deal on Tampakan with Brisbane company MIM, now part of Xstrata's global resources empire. The option deal gives Xstrata the right to secure a 62.5 per cent stake in the monster Tampakan resource.

With hindsight, it is easy to say that the exercise price of about $50 million is a bargain given that the world is running a bit tight on large developments for the booming red metal. Gold is not doing badly either.

Indophil managing director and former WMC geologist Tony Robbins said there seemed to be little doubt that Xstrata would be taking up the option.

When it does, Indophil will be left with 32.5 per cent and its Filipino partner, Alsons Corp, with 5 per cent.

Xstrata has until the end of September to decide, which will coincide with the release of an Indophil feasibility study into a $US1 billion ($1.3 billion) development of Tampakan as an annual producer of 200,000 tonnes of copper and more than 100,000 ounces of gold from late 2010. Cash costs are expected to be super-competitive at US40¢ a pound of copper equivalent.

"We are meeting with Xstrata on a regular basis and the body language has been good," Mr Robbins said. "All the signs are that they (Xstrata) will almost certainly commit and exercise the option by the end of September. "At the end of the day, why wouldn't they? It's a great deposit and the entry fee is pretty small for a company of that size."

Mr Robbins has no regrets about the low-cost nature of the option. When it was struck with MIM in 2002, copper was struggling at US60¢ a pound and gold was about $US250-$US280 an ounce. Copper is now more than $US3.55 a pound and gold is about $US640 an ounce.

The recent experiences of the first Australian company to develop a Philippine mine, Lafayette Mining, serves as a reminder that the Philippine Government supports the mining industry, but the anti-mining lobby is alive and well.

"We are endeavouring to use the best practice in all the things we do and we'll make sure no shortcuts are taken," he said of Tampakan. "The Government is very aware that they need some good economic drivers and it is aware of the potential of the mining industry. All of the right vibes are coming out from the Government."

BARRY FitzGERALD