FNI bares higher mineral resources at Surigao mine

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GLOBAL Ferronickel Holdings Inc. (FNI) said on Thursday that the mineral resource estimate of its subsidiary Platinum Group Metals Corp. (PGMC) had increased by 3.8 million dry metric tons (DMT) following the completion of drilling activities at Cagdianao (CAGA) deposit areas 2 and 3 in Surigao del Norte.

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In a disclosure to the Philippine Stock Exchange, FNI announced that the combined measured and indicated mineral resources at CAGA 1 to 5 have increased to 54.16 million DMT from the previous 50.3 million DMT, with an average grade of 1.1 percent nickel and 31.4 percent iron.

Of the material mix, medium-grade accounted for 69 percent or 37.2 million DMT, low-grade made up 20 percent or 10.8 million DMT, and high-grade accounted for 11 percent or 6.23 million DMT.

Inferred resources, whose tonnage, grade and mineral content can be estimated with a low level of confidence, reached 23.98 million DMT from 18.08 million DMT, with an average grade of 1.2 percent nickel and 21.5 percent iron, FNI said.

“Even as we are continuing to mine CAGA 2 and 4, our exploration program allows us to successfully increase our resource inventory and continually upgrade resource confidence level,” FNI President Dante Bravo said in the disclosure.

“[We] still have significant scope for further exploration. We expect to report new drill data for CAGA 1, 6 and 7 in 2018,” he added.

The CAGA nickel project covers 4,376 hectares in Sitio Kinalablaban in Barangay Cagdianao, Claver, Surigao del Norte. The mining project is split into seven contiguous laterite deposits, and connected within eight kilometers from two causeway facilities.

The project is covered by a 25-year Mineral Production Sharing Agreement, and an Environmental Compliance Certificate that allows a maximum production volume of 5 million DMT annually.

Besides PGMC, FNI’s other subsidiaries also include Surigao Integrated Resources Corporation, PGMC-CNEP Shipping Services Corp, and PGMC International Limited.

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