Pan De Azucar

The PDA Project is part of MPSA No. 135-99-VI under the name of Minimax, and totaling 1,235 hectares, located in northeastern Panay Island in Western Central Philippines. That part of the MPSA on Pan de Azucar Island (Fig, 1 and Fig. 2) is bounded by north latitudes 11º 18’ 00” and 11º 17’ 00” and east longitudes 123º 09’ 30” and 123º 10’ 30”.

Fig. 1. Project Location: Map showing the location of the PDA MPSA Contract Area

Fig. 2. Topo Map showing location of the MPSA Contract Area. Pan De Azucar Project is located in Parcel 1. 

The project's main ingress and egress is through the Lo-oc beach north of Pan de Azucar Island. This point can be accessed by bancas and motorized pump boats from the coastal towns of Concepcion, San Dionisio, and Estancia, the travel time of which ranges from 45 to 80 minutes via the fairly sheltered Concepcion Bay.

The Valderama Deposit in the Pan De Azucar Project is interpreted as an epithermal replacement massive pyritic-sulphide deposit with significant gold, copper, zinc, and silver values. Probably formed by replacement of water-saturated dacitic and permeable tuffs in a shallow caldera moat environment. The Valderama replacement mineralization and the nearby Asparin Hill porphyry copper-mineralized breccia pipe are almost certainly generated by a porphyry system at depth.

2001 scout diamond drilling on the Valderama Zone, which tested coincident geochemical and strong chargeability anomalies, gave encouraging results, indicating the presence of a near-surface, massive pyritic sulphide deposit containing copper, gold, zinc and silver.  Results from eleven shallow drillholes (1,041.25 total meters) gave best drill intercepts in three holes as follows: PDA-03 with 37.1 meters (m) of 0.8% copper, 1.87 g/t gold, PDA-06 with 37.00 m of 0.14 % copper, 1.25 g/t gold , and PDA-08 with 40.25 m of 0.69 % copper, 1.21 g/t gold, 4.34 g/t silver , and 0.63 % zinc.  This third intercept includes a 19.25 m section of 1.08 % copper, 1.9 g/t gold, 6.49 g/t silver and 1.19 % zinc.

Phase 2 drilling program in 2002, consisted of seven diamond drill holes totaling 476.25 meters. Objective was to expand the dimensions of, and gain more information on, the extent of the Valderama Deposit. The Phase 2 drilling results were of lower tenor than for Phase 1. Best results were; PDA-12 with 32.26 m (46.82- 79.08 m) at 0.59 g/t gold and 36.24 % sulphur; PDA13 with 6.00 m (6.85 - 12.85 m) at 0.59 % copper; and a 9.00-m (12.85 - 21.85 m) section, which gave 0.41 % copper and 0.49 g/t gold; PDA-14 with 7.80 m (70.70 - 78.50 m) at 0.29 g/t gold and 42.08 % sulphur;  PDA-15 with 3 m (10.00 – 13.00 m) at 0.16% copper and 0.66 g/t gold, 8 m (16.00 – 24.00 m) at 0.33% copper, and 9 m (24.00 – 33.00 m) at 0.54 g/t gold and 34.66% sulphur. The Phase 2 results indicate that the later, copper-gold-silver-zinc mineralizing event (superimposed on the massive pyrite deposit) was irregular and erratic.

Phase 3 drilling in 2011 has confirmed and limit the mineralization on the 200 meters spaced interval of fourteen drill holes conducted in two previous programs which partially outlined Valderama sulphide body. Inferred dimensions of the deposit between PDA 1 and PDA 23 suggest a strike length of approximately 800m by 150m with a maximum thickness of 60 meters dipping at a shallow 10 to 15 degrees.

In 2012, following the Phase 3 drilling program, a Qualified Person as defined by NI 43-101 was commissioned by the project's proponent at the time to assess the Valderama pyritic massive pyrite deposit within the PDA Project. Based on the completed drill spacing, an Exploration Target was defined.

An Exploration Target, as defined by NI 43-101, represents the exploration potential of the mineralization in Valderama, established by the geological setting since the project's initial exploration in 1997. However, there is still insufficient exploration to estimate a mineral resource, and further exploration is required to validate this target.

The Valderama deposit's Exploration Target ranges from 8 million to 12.7 million dry metric tonnes (DMT) with a grade of 35% to 40% sulfur (70% to 90% pyrite), 0.4% to 0.6% copper, and 0.5 g/t to 0.7 g/t gold.

To advance to the Indicated Resource category as defined by PMRC, a resource drilling program was initiated in the last quarter of 2023. The program aimed to drill 33 holes, with a total meterage of 3,200, subject to adjustment based on results. Drilling commenced in March 2024, and as of the latest update, 19 holes have been drilled, totaling 1,548 meters. Core logging has been completed, and sampling is currently underway.

A successful resource drilling confirming the Exploration Target will set the stage for the Declaration of Mining Project Feasibility (DMPF) submission to the MGB. This declaration entails providing a Final Exploration Report, a Project Feasibility Study, an approved Environmental Compliance Certificate (ECC), and endorsements from two out of three local government units (provincial, municipal, and barangay), among other major requirements.