Crew Minerals Philippines Inc.
2001/2002 Achievements Commercial mining potential identified 2002/2003 Goals
The Pamplona Sulphur Deposit is located in southern part of Negros Island, the Philippines about 8 km from deep-sea port. The concession Area of 39 sq. km was acquired in 1998 and is covered by Exploration Permit. The large sulfur occurrence is formed in a geothermal center associated with an extinct, altered andesitic volcano. Elementary sulfur dominates in some areas while sulfide dominates in others. Additional sulfide occurrences are reported within the large exploration concession (EP-area). Previous exploration and development was completed in 1971. A total of 178 holes were drilled in a 60m-centered grid. Benguet Mining Corp. estimated the reserves on basis of 98 core drillings using standard mining engineering practice. Freeport McMoran evaluated the resource and prepared the mine plan for an open pit operation. Development was halted because of low sulfur prices and the deposit has been dormant since. According to the previous work the deposit holds an open-pitable reserve of 60 million tonnes grading 30.8% sulfur within a resource of 84 million tonnes. Crew has not completed its economic study on the deposit yet, but has conservatively reclassified the resources as measured and indicated resources according to the JORC code. The resource evaluation was carried out by Jon S. Petersen, M.Sc. (Vice President of Exploration Crew) on the basis of 178 diamond-core drill holes placed in a 60-meter grid pattern, and supplemented by 7 new core holes totaling 12.252 meters which were drilled by Crew in 2001 as part of its positive resource verification program. The deposit consists of both native sulfur (13.8% S) and sulfide (17% S) primarily marchasite, and the resource allows for mining of fairly high grade sulfide beds separated by lower grade material, and patches with high grade native sulfur. Mining of this deposit will provide a substantial local source of low-cost sulfur, which is competitive to foreign sources because of lower cost of transportation. Sulfur is currently imported for the domestic chemical and fertilizer industry in the Philippines. The Pamplona deposit was initially considered for its potential to enhance the economics of the Mindoro Nickel Project, but Crew is now investigating how the deposit can be brought into production as a stand-alone project. Both the sulfide and the native sulfur can be utilized for production of sulfuric acid through highly exothermic processes, which generate considerable amounts heat energy. Sulfuric acid is a major cost component in HPAL processing of nickel laterite ores. |
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