Metals Exploration disappoints investors with lower resource estimates at Runrun
19 November 2009
Metals Exploration has been forced to launch a damage limitation exercise after a new JORC-compliant update for its Runruno gold and molybdenum project in the Philippines slashed its resource estimates.
Since July this year, the AIM listed mining group has been working with independent consultants from Mining Associates to interpret new drilling data and update the last resource estimate for Runruno which was published in October 2008.
The downside of this exercise has been to reduce the total amount of gold – including measured, indicated and inferred – to 1.5 million ounces from 2.0 million ounces previously. The total estimated amount of molybdenum has also fallen to 25.4 million pounds from 34.4 million pounds.
Partly offsetting some of this bad news is the fact that the new survey has promoted some previously inferred resources into the measured category. That means Metals Exploration can accurately say it is sitting on 560,000 ounces of gold, up from 270,000 ounces. However, the indicated and inferred categories, which are less accurate estimations of gold in place, have fallen as a result.
The new resource update took a detailed look at a much larger area – 9.1 million tons – that the previous survey, which measured 3.6 million tons. As a result the grams-per-ton of gold in the measured category has been diluted from 2.37 to 1.92, which is also unwelcome news.
The company blamed the disappointing new findings on a combination of previously inferred tonnage to the south, west and north of the deposit not being supported by recent drilling, together with a lower overall grade because of the inclusion of lower grade and waste material into resource blocks within the model.
It said it was now changing the ongoing feasibility study for Runruno to reflect the new resource estimates. Today’s news came as Gary Powell, an executive director of the company, announced his resignation from the company.
Shares in Metals Exploration were suspended on Tuesday this week (17 November) ahead of today’s news, but trading was set to begin again today.
|
Relevant Companies
For more company information click below:
Headlines
31 August 2010
30 August 2010
27 August 2010
20 August 2010
18 August 2010
13 August 2010
09 August 2010
06 August 2010
30 July 2010
29 July 2010
28 July 2010
27 July 2010
26 July 2010
23 July 2010
23 July 2010
22 July 2010
21 July 2010
19 July 2010
16 July 2010
12 July 2010
09 July 2010
08 July 2010
07 July 2010
06 July 2010
05 July 2010
02 July 2010
06 May 2010
13 April 2010
24 March 2010
23 March 2010
23 March 2010
23 March 2010
23 March 2010
23 March 2010
23 March 2010
23 March 2010
23 March 2010
22 March 2010
22 March 2010
22 March 2010
22 March 2010
22 March 2010
22 March 2010
22 March 2010
22 March 2010
22 March 2010
22 March 2010
22 March 2010
19 March 2010
19 March 2010
» See all News
Features
31 August 2010
28 July 2010
23 July 2010
13 April 2010
24 March 2010
22 March 2010
19 March 2010
19 March 2010
18 March 2010
16 March 2010
15 March 2010
12 March 2010
11 March 2010
08 March 2010
05 March 2010
05 March 2010
» See all Features
Round-Ups
27 August 2010
20 August 2010
13 August 2010
06 August 2010
30 July 2010
23 July 2010
16 July 2010
09 July 2010
02 July 2010
19 March 2010
19 March 2010
12 March 2010
12 March 2010
05 March 2010
05 March 2010
28 February 2010
Popular
31 August 2010
28 July 2010
27 August 2010
30 August 2010
18 August 2010
30 July 2010
04 December 2009
26 July 2010
20 August 2010
29 July 2010
23 March 2010
06 August 2010
19 March 2010
08 July 2010
27 July 2010
01 February 2010
|