Masbate City and Province

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2 firms see gold potential in Masbate

First posted 02:50:21 (Mla time) June 26, 2008
Philippine Daily Inquirer




LEGAZPI CITY – Geograce Resources Philippines Inc. and Vale Exploration Philippines Inc. have agreed to jointly explore seven mineral claims covering 84,046 hectares of land on Masbate Island, about 350 kilometers south of Manila.

Vale is actively engaged in mineral exploration efforts in 21 countries all over the world while Geograce has spent more than $5 million for early-stage exploration and assessment of promising mining claims throughout the Philippines.

Under the agreement, Vale will provide $6 million over three years to fund early-stage exploration on Geograce’s Masbate claims, while Geograce will be responsible for managing permit approvals and community relations on the project.

Geograce is a listed Philippine mineral exploration company focused on the joint development of highly prospective mining claims with international mining firms while Vale is the local subsidiary of Companhia Vale do Rio Doce.

Under the joint venture agreement, Vale has the option to take an undivided 51-percent interest in the Masbate claims at the end of the early-stage exploration.

The joint undertaking will be responsible for the commissioning of a pre-feasibility and bankable feasibility study on the Masbate claims.

The island has a previous history of gold mining, dating back to the 1980s and is once again attracting interest for its mineral resources.

Geograce’s Masbate claims are adjacent to the Aroroy gold mine being developed by CGA Mining of Australia, which has already established a mineral resource base in the province.

“We are extremely pleased to become the first Philippine partner of Vale, which is not only one of the world’s biggest mining companies, but its success is strongly rooted in helping develop its home country, Brazil, into a natural resources superpower,” said Michael Defensor, GEO Management Services chair, in a press statement. Inquirer Southern Luzon