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ANNEX“A”
CORPORATE SECRETARY’S
CERTIFICATION
Secretary's Certificate
\
The undersigned, being the duly elected and qualified Corporate Secretary of Filminera tw
Resources Corporation (the "Corporation"), a corporation duly organized and existing under
Philippine law, is authorized to certify, and hereby certifies on behalf of the Corporation, that:
1. Mr. Rolando Amores is the incumbent and duly elected President of the Corporation
to serve as such until his successor shall have been duly elected and qualified.
2. Under Section 4, Article V of the Corporation's By-Laws, Mr. Rolando Amores'
functions as President include:
xxx
c) [***H]av[ing] general supervision and management of the business
affairs and property of the corporation;
xxx
g) [***P]repar[ing] such statements and reports of the corporation as
may be required of him by law;
h) [***R]epresent[ing] the corporation at all functions and proceedings;
i) [***E]xecut[ing] on behalf of the corporation all contracts,
agreements and other instruments affecting the interest of the corporation which
require the approval of the Board of Directors, except as otherwise directed by the
Board of Directors; ___
xxx
3. The foregoing statements are true and correct and in accordance with the records of
tiie Corporation.
r, r ■■ ~
IN WITNESS WHEREOF, I have hereunto set may han _day of April 2005 at
Makati City.
/'fte.■>i’£ftft ~~
MA. CHERELL L. DE CASTRO
REPUBLIC OF THE PHILIPPINES )
MAKATI CITY )S.S.
Before me, a notary public in and for the city named above, personally appeared:
Name Community Tax Place/ Date of Issue
Certificate No.
Ma. Cherell L. de Castro 14687461 Makati City
January 31, 2005
who is know to me to be the same person who presented the foregoing instrument and signed the
instrument in my presence, and who took an oath before me as to such instrument.
&n?r n n ?nn1
Witness my hand and seatthis ^ - day of April 2005.
EMt**? 'C\ PAN AS
. i-j '*
Appci(Uf.*o l
Doc. No. PTR No. 344'--:.* ' • ii City
Panp Nn “W- IBP No. v! t1 • Cfoapier
ANNEX"B"
Location Map/Sketch Plan
on
1:50,000 scale NAMRIA Map
(
1
AMENDED PLAN M- oidbi
il) i Cs/*
OF
MINERAL PRODUCTION SHARING
AGREEMENT APPLICATION
APSA-0Q031-V
AS PREPARED FOR
Situated In The
Brgy of Paniqu & Puro
Prov of Masbate fra’Japay
Island of Masbate
I
Containing an Area of 129.7217 Has
Scale: 1 50,000
Prepared By:
GE No Date 03-25-95
PTR No 17 Date: 01-20-05
3 Statute Miles
2000 3000 4000 Meters
2000 3000 4000 Yards
3 Nautical III INDEX TO BOUNDARIES INDEX TO i
CONTOUR INTERVAL 20 METERS WITH SUPPLEMENTARY
CONTOURS AT 10 MFTFR INTFRVAI R
VERTICAL DATUM MEAN SEA LEVEL
TRANSVERSE MERCATOR PROJECTION
HORIZONTAL DATUM LUZON DATUM
HYDROGRAPHIC DATUM MEAN LOWER LOW WATER
Municipality
Piovsnct 0* Mnbalt
Municipality
Fubashed by I Mandaon
Department of Environment and Natural Resources ? Aforoy
3 Bateno
4 Masbate
NATIONAL MAPPING & RESOURCE INFO RM AD ON AUTHORITY
Fort Bonifacio, Makati
Metre Manila
BA
ANNEX“C”
EXPLORATION WORK
PROGRAM
Republic of the Philippines
Department of Environment and Natural Resources
MINES AND GEOSCIENCES BUREAU
North Avenue, Diliman, Quezon City
EXPLORATION WORK PROGRAM
Name and Address of Company/Proponent:
F1LMINERA Resources Corporation
Main Office: 3I(I Floor, Corinthian Plaza Condominium Bldg.,
121 Paseo de Roxas, Legazpi Village, Makati City
Philippines
Telephone No. (02) 811 3451 (Connecting All Depts.)
Facsimile No. (02) 811 3463
Email address:
Minesite : Barangay Puro, Aroroy, Masbate, 5414 Philippines
Telephone No. (02) 845 0714 (Connecting All Depts.)
Facsimile No. (02) 845 0714
Email address:
Location of Project (specify geographic coordinates):
The gold-silver prospect is located at Barangays Puro and
Panique within the Municipality of Aroroy, Province of Masbate.
Masbate Island, Philippines. It is bounded by geographic coordinates
12°27’00” to 12°28’30.00” N latitude and 123°22’59 to 123"23’30” 1
longitude with the following technical descriptions:
Corner LATITUDE LONGITUDE
1 12’ 27’ 00.00r- 123 22’59.992”
2 12° 27’16.273” 123 22’59.992"
3 12’ 27’16.273” 123 23’ 24.369”
4 12 28’ 09.093” 123 23’24.366”
5 12° 28’ 09.088” 123' 23’ 03.834"
6 12’ 28' 16.253” 123 22’59.974”
7 12’ 28’29.922” 123 22’59.994”
8 12° 28’30.001” 123'23’30.000”
9 12’ 28’ 11.953” 123 23’30.000” j
10 12° 28’11.619” 123° 23’29.346”
11 12’ 28’ 10.382” 123° 23’29.999”
12 12° 27’00.001” 123’ 23’30.000”
Area or size of coverage (hectares):
This prospect covers a total area of 129.7217 hectares
encompassing two (2) barangays in the Municipality of Aroroy.
Province of Masbate.
MGB Form No. 05-4
4.0 Project Area Description :
4.1 Terrain/Physiography -
The prospect area is characterized by moderate to rolling
topography with conspicuous domal/conical promontories, flanked b\
relatively flat terrain. Rugged topography with sharp ridges is noted
in the prospect area.
4.2 Accessibility-
From Masbate, the prospect site is easily accessible to any type
of motorized vehicle utilizing the Masbate-Milagros road or the
Aroroy- Baleno road. On the other hand, flights from Manila to
Masbate and vice versa is available on a daily regular basis with an
air travel time of one (1) hour and twenty (20) minutes.
4.3 -' Drainage System/s -
The prospect area is bounded by the Guinobatan River on the
east and northeast portion and by the tributaries of Lanang River at
the southwest. Both rivers drain westward to the Port Barrera Cove.
4.4 Vegetation -
The area has limited forest trees. It is generally covered ssitli
cogon grasses and shrubs suited for grazing. Mangroves and swamp)
areas are found in the eastern portion of the prospect along the
coastal areas. The hills and valleys are practically barren except for
corn farmlands, wild bananas, coconuts and vegetative crops which
grow in clusters.
4.5 Land Use -
The proposed area is classified as mineral lands. The
surrounding areas are suited for grazing hence, the presence of many
cattle ranches. Although an estimated 1/10 of its total land area is Hat
and suitable for agricultural/vegetative crops, the residents prefer the
quick and more lucrative gold panning as their means of livelihood.
5.0 Description of Exploration Program
5.1 Research Work - Year 1
5.1.1 Survey of previous work/s on the area
ACMDC previous staff geologists and geological aides
generated extensive records of surface trenching, underground
geological mapping and sampling, assay data, drill hole logs,
blast hole assay, bench plans and survey data. These data are
still available at the project site
Page 2 of 10 Pages
APSft-V-0031
M(SB Form No. 05-4
5.1.1.1 nature or type of study or undertaking -
Research work shall focus in the review of all the
available ACMDC records sorting out of plan maps,
cross section and other relevant files, of particular to
the Main Vein pit historic production records,
geological mapping and assays. The ob jective is to
consolidate the geological information from the Main
Vein pit whose NNW gold mineralization trend is still
open towards the applied area. Research will also be
undertaken as to the extent of the ACMDC Waste
Dumpsites which probably covered some good surface
vein exposures and old workings.
5.1.1.2 duration - Two (2) months
5.1.1.3 coverage - Applied area and vicinities
5.1.1.4 proponent - Filminera Resources Corporation
5.1.1.5 results or conclusions arrived at - The outcome will
dictate the scope and amount of exploration work to
be introduced in the area targeted initially to define
any gold mineralization potential, or some possibility
of mineable reserves existence in the area.
5.1.2 Data compilation/collation - All previous exploration data will
be compiled and stored carefully. Relevant geological
information from old maps and sections such as grade,
structures, lithology and alteration zones will be digitized to
produce a working geological map. Old assays and drill data
w ill be stored in the computer to form database files.
5.1.2.1 geochemical/geophysical data - None.
5.1.2.2 lithological data - Rock types based on old maps will
be compiled and verified in the field
5.1.2.3 mineralization/alteration studies - Mineralization and
alteration map w ill be digitized
5.1.2.4 various thematic maps covering the target area N/A
5.1.2.5 estimated cost - Php 100,000.00
5.2 Reconnaissance/Regional Survey or Studies
5.2.1 Remote sensing studies
5.2.1.1 nature or type of survey or study (e.g. airphoto
interpretation, SAR, aeromagnetics, etc)
Color Aerial Photography Production A
Interpretation
Aerial photography by GEO-SURVEYS and MAPPING Inc.
(GSMI, a Metro Manila based Geomatics company).
GSM I upon implementation of the activity will fly-in its company
owned CESSNA plane equipped with LEICA RC30, a large
format camera and other field equipments namely: GPS Plight
Navigation System, a GYRO, FLYKIN GPS data processing
software and a PC for data acquisition and recording.
Page 3 of 10 Pages
M(iB I'orm No. 05-4
GSMI plane, while onsite will utilize the project airfield for the
duration of the Aerial Survey. Personnel involved in the activity
are six (6) from GSMI (pilot, co-pilot, aircraft mechanic, camera
technician and 2 surveyors). GSMI field surveyors will he
accompanied by 4 Filminera personnel assisting GSMI to stake
out their ground survey photo control points.
Recorded flight data gathered during the survey will he brought
by GSMI to own photo laboratory to generate the orthophoto
mosaics. Two (2) hardcopies of the orthophoto mosaics plotted in
(1:10,000m scale) glossy paper and digital data of the images in
CD recordable disk delivered to Filminera Resources
Corporation will represent the final output of this activity.
The advantages of color photography in geologic work are such
that it replaces the costly field data collection.
It is used by geologist in a variety of applications including
mapping to delineate zones of hydrothermal alteration, trend of
vein structures, trend of fault structures and in the interpretation
of various geomorphic features useful in locating the natural
resources.
Aerial photos provide interpretation for spatial data that can be
inputted in layers in a GIS for area assessments, i.e.: land use,
environment monitoring, mine planning etc.
The production of color aerial photographs will be conducted by
Geo-Surveys & Mapping, Inc. and the identification and
interpretation of geologic and other features will be done by the
FRC geologists including ground verification.
5.2.1.2 duration - Five (5) months to undertake, i.e.: Two (2)
weeks preparation, two (2) weeks commencement of
aerial photography, two (2) months delivery of output,
and, two (2) months geo interpretation.
5.2.13 proponent (companies or groups which will undertake the
survey or study)
Geo-Surveys & Mapping, Inc.
FRC geologists
5.2.1.4 coverage (hectares) - 129.7217 Hectares
5.2.1.5 total or estimated cost - Php400,000.00
Php200,000.00 (Php90,000 for images and Plipl 10,000
for the Contour Map.)
Php200,000 (2 geologists and 2 geo aides)
5.2.1.6 main output (maps, reports, etc)
- Ortho Mosaic images of ground and Contour Map at
1:10,000 Scale.
Page 4 of 10 Pages
APSA-V-0031
i i.mmvDsalazar03-04-04
-Geo-interpreted map with other features
5.2.2 Regional Geological Survey - None.
5.2.2.1 coverage (hectares) - N/A •
5.2.2.2 duration - N/A
5.2.2.3 manpower complement - N/A
5.2.2.4 estimated cost - N/A
5.2.2.5 output - N/A
5.2.3 . Regional Geochemical Survey - None.
5.2.3.1 coverage - N/A
5.2.3.2 sampling media/sample type - N/A
5.2.3.3 sampling density/estimated number of samples N/A
5.2.3.4 mode of analysis/target elements - N/A
5.2.3.5 manpower complement - N/A
5.2.3.6 estimated cost - N/A ■
5.2.3.7 output - N/A
5.2.4 Geophysical Survey-None.
5.2.4.1 nature or type of survey - N/A
5.2.4.2 coverage (hectares) - N/A •
5.2.4.3 duration - N/A
5.2.4.4 manpower complement - N/A
5.2.4.5 estimated cost - N/A
5.2.4.6 output - N/A
5.3 Semi-detailed survey or follow-up studies Year 1
5.3.1 Geological mapping/alteration studies
A semi- detailed geologic mapping program concomitant with
rock sampling will immediately commence after the
interpretation of the color aerial photography. In the
identification of priority exploration targets, the completed
aerial photography will be correlated with the past exploration
maps of ACMDC. The mapping activity will be undertaken
using compass and tape traverses tied to survey control tie
points. Such activity will focus in the mapping of structures,
lithology, alteration and quartz veinings. Chip and channel
sampling will be conducted primarily on mineralized altered
zones and quartz vein outcrops or exposures from trenches.
The sampling density is estimated to be one (1) sample per
hectare but can also be denser depending on altered and
mineralized outcrops.
The estimated total number of samples which is about 130 will
be submitted to McPliar Laboratory for the analysis of gold
and silver content. Duplicate or reference samples will be
stored at the mine site. Samples for laboratory analysis w ill lie
shipped to McPhar Laboratory in Makati with proper sample
dispatch sheet and Ore Transport Permit (OTP) approved b\
MGB-V. The laboratory procedure conducted by McPhar
3 includes:
-Samples for Drying/fine pulverizing, 2kg minimum/sample
-Samples for Drying/fine pulverizing, excess of 2kg
Page 5 of 10 Pages
mPSA-V-0031
-Samples (-200 mesli) for An fire assay 50g (catch weight) w/
AAS finish
-Samples (-200 mesh) for Ag geocliem by AAS following hot
IICL & HCL/HN03 leach in latter stages for 1 hr on 0.25g
sample
-Cert. Ref. Material for An by fire assay
5.3.1.1 coverage (hectares) - 129.7217 Hectares
5.3.1.2 duration- Four (4) Months
5.3.1.3 manpower complement
- Two (2) Geologists
- Four (4) Mapping Aides
- Five (5) Samplers
- One (1) Surveyor
- Three (3) Survey Aides
5.3.1.4 estimated cost
Two (2) Geologists Php28U.000.00
Four (4) Mapping Aides 120,000.00
Five (5) Samplers 120,000.00
One (1) Surveyor 60,000.00
Three (3) Survey Aides 90.000. 00
Laboratory Analysis 60.000. 00
Total - Php730,000.00
5.3.1.5 Output
- Semi-detailed map at 1:5000 scale covering
130.851 hectares
5.3.2 Geochemical Survey - The conduct of Geochemical Survey in
the area is discounted due to possible contamination from wind
blown dust generated from nearby ACM DC mill plant having
operated for 14 years (1980 -1994) processing gold ore.
Leachates from the ACMDC open pit waste dumps draining
into the applied area contributes contamination into creeks.
5.3.2.1 coverage - N/A
5.3.2.2 sampling media - N/A
5.3.2.3 sampling density/number of samples - N/A
5.3.2.4 mode of analysis/target elements - N/A
5.3.2.5 manpower complement - N/A
5.3.2.6 estimated cost - N/A
5.3.2.7 output - N/A
5.3.3 Geophysical Survey - None.
5.3.3.1 nature or type - N/A
5.3.3.2 coverage - N/A
5.3.3.3 manpower complement - N/A |
5.3.3.4 estimated cost - N/A
Page 6 of 10 Pages
APSA-V-0031
jimmypsalazar03-04-04
MGB Form No. 05-4
5.3.3.5 output - N/A
5.3.4 Subsurface investigation - None.
5.3.4.1 type - N/A
5.3.4.2 number and overall length or.depth - N/A
5.3.4.3 estimated number of samples to be taken - N/A
5.3.4.4 mode of analysis/target elements - N/A
5.3.4.5 manpower complement - N/A
5.3.4.6 estimated cost - N/A
5.3.4.7 output - N/A
5.4 Topographic Survey - None.
5.4.1 coverage N/A
5.4.2 scale and contour intervals - N/A
5.4.3 manpower complement - N/A .
5.4.4 estimated cost - N/A
5.4.5 output - N/A
5.5 Detailed Survey or Studies - Year 1 & 2
5.5.1 Detailed Geological Mapping _
After the semi-detailed survey has been conducted, a detailed
geological work will follow. The 130 hectares explored during
the semi-detailed phase will he delineated into areas judged to
have favorable gold mineralization potential for target testing.
Target testing will involve a much thorough compass and tape
geological mapping, trenching and sampling works to delineate
the highly favorable zones for drilling. Closed spaced trenching
(15 meters apart) shall be undertaken and 1.0 meter sampling
will be implemented in the altered and mineralized vein
outcrops. About 200 surface samples mostly from trench and
vein outcrops will be collected and sent to McPhar laboratory
in Manila for gold analysis. The estimated cost of sample
analysis including transport id Php 100,000.
5.5.1.1 nature or type of survey '
- Compass and Tape traverse tied to the Survey
Control Stations.
5.5.1.2 coverage (hectares) - Area will depend on the
results of semi-detailed mapping delineating the
favorable zones. .
5.5.1.3 duration- Four (4) Months
5.5.1.4 manpower complement
- Two (2) Geologists
- Four (4) Mapping Aides
- Five (5) Samplers •
- One (1) Surveyor
- Three (3) Survey Aides
5.5.1.5 estimated cost
Page 7 of 10 Pages
Two (2) Geologists Php280,000.00
Four (4) Mapping Aides 120,000.00
Five (5) Samplers 120,000.00
One (1) Surveyor 60.000.00
Three (3) Survey Aides 90,000.00
Total - Php670, 000.00
5.5.1.6 output
- Detailed Geologic Map at 1:1,000 Scale showing
lithology, alteration, structures and sample
locations.
5.5.2 Detailed Geochemical Survey - The conduct of Geochemical
Survey in the area is discounted due to possible contamination
from wind blown dust generated from nearby ACM DC mill
plant having operated for 14 years (1980 -1994) processing
gold ore. Leachates from the ACMDC open pit waste dumps
draining into the applied area contributes contamination into
creeks.
5.5.2.1 coverage of grid survey - N/A
5.5.2.2 estimated number of samples-- N/A
5.5.2.3 mode of analysis/target elements - N/A
5.5.2.4 manpower complement - N/A
5.5.2.5 estimated cost - N/A
5.5.2.6 output - N/A
5.5.3 Subsurface Investigation
5.5.3.1 drilling- •
5.5.3.1.1 type - Reverse Circulation and Diamond
Drills
Initial drilling will avail of a
contractor’s Diamond Drill unit
for 2 months duration including
mobilization. Six (6) drill holes
spaced 50 meters apart will be
sufficient to drill indicate about
300 meters of ore mineralization at
the applied area. Drilling will be
supervised by one (1) geologist
and two (2) samplers working
closely with the contractor’s drill
operator and helpers to log and
sample the drill core. Assuming
favorable results from the 6 holes
further infill drilling (Phase 111)
with the use of Reverse Circulation
will be planned out to fully firm up
the reserves for the Feasibility
Study. The Phase II drilling
budget and plan is not considered
in this program yet as it will
Page 8 of 10 Pages
APSA-V-0031
jimmypsalazar03-04-04
depend on the outcome of the
Phase I diamond drilling.
5.5.3.1.2 number and depth
- six (6) drill holes at sixty (60)
meters average depth.
5.5.3.1.3 estimated number of samples
- Around three hundred (300)meter
samples of half split core Mill he
bagged for delivery to the McPhar
Laboratory for gold analysis.
5.5.3.1.4 estimated cost -
- Php 1,250,000.00 broken doMii as
follows:
Geology Labor and
Materials P 100,000
Assaying Cost 150,000
Drilling Cost 750,000
Drill Mobilization 250,000
5.5.3.2 trenching/test pitting - None.
5.5.3.2.1 number- .
- Twenty (20) trenches at 15 meters
average length
5.5.3.2.2 over-all length or depth
- Three hundred (300) meters
5.5.3.2.3 estimated number of samples
- Three hundred (300) samples
5.5.3.2.4 estimated cost -
- Php 150,000.00
5.5.3.3 tunneling or aditting - None.
5.5.3.3.1 number - N/A
5.5.3.3.2 over-all length or depth - N/A
5.5.3.3.3 estimated number of samples - N/A
5.5.3.3.4 estimated cost - N/A
Page 9 of 10 Pages
Total Estimated Exploration Cost (Pesos) - Php3,630,000.00
Year 1 Plw1,353,000.00
Year 2 PhD2.277M0.00
Schedule of Activities (Gantt Chart) - Please Refer to Appendix “_
Map Attachments - Topographic map showing the Applied Area in 1:50.000
scale.
Signature of proponent or person preparing the exploration work program, please
specify PRC License and PTR number:
PREPARED BY:
RAMON S. VELASCO
Corporate Geologist
PRC Reg. No. 01267
PTR No. 2614871 A
Issued on March 11, 2004
At Aroroy, Masbate, Philippines
FILMINERA RESOURCES CORPORATION
MASBATE GOLD PROJECT
TWO (2) - YEAR EXPLORATION WORK PROGRAM
APSA-V-00031
ACTIVITIES FIRST YEAR SECOND YEAR REMAF
1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12
RESEARCH WORK | Php 100,000
PRODUCTION OF COLOR AERIAL Php 400,000
PHOTOGRAPHY AND INTERPRETATION
SEMI-DETAILED MAPPING Php 730,000
DETAILED GEOLOGICAL MAPPING Php 670,000
DRILLING IE ...... Php1,250.00C
TRENCHING --- Php 150,000 . j
QUARTERLY TOTAL 100,000 240,000 342,500 .547,500 402,000 684,666 883,334 100,000 3,3
ANNEX“D”
ENVIRONMENTAL WORK
PROGRAM
MGB Form No. 16-1
Republic of the Philippines
Department of Environment and Natural Resources
MINES AND GEOSCIENCES BUREAU
North Avenue, Diliman, Quezon City
ENVIRONMENTAL WORK PROGRAM
1.0 NAME AND ADDRESS OF THE PROJECT PROPONENT:
1.1 Name of Proponent : FILMINERA Resources Corporation
1.2 Address of Proponent:
Makati Office: 3rd Floor Corinthian Plaza
121 Paseo de Roxas, Legazpi Village,
Makati City 1229 Philippines
Tel. No.: (02) 811 3451
Fax No.: (02) 811 3463
Email address:
Minesite: Barangay Puro, Aroroy,
Tel/Fax No.: Masbate 5414 Philippines
(02) 845 0714
Email address:
2.0 TYPE AND NATURE OF PROJECT:
2,1 Project description:
This prospect is for a gold-silver exploration project over
potential areas covered by major fault structure that may have
induced tensional fractures within the applied area in Aroroy,
Masbate. This is best portrayed and delineated by the wide-
quartz breccia structure for potential lode of gold deposit of the
claim area.
The objectives are:
1) To conduct detailed geologic mapping of the
prospect group of claims and southward to Panique
in order to block mineable ore reserves to support
high production demand requirement for the
viability of the project.
2) To evaluate further potential mineralized areas for
increased ore reserves for extended mine life.
The amount needed to implement the proposed exploration work is
approximately Php 3.630 Million. This includes budget for the
environmental work program and socio-economic development
programs, distributed yearly as follows:
Exploration Environmental Total
Work Work
First Year 1.230 0.123 ■ 1.353
Second Year: 2.070 0.207 2.277
Total 3.300 0.330 3.630
MGB Form No. 16-1
3.0 GENERAL LOCATION AND AREA TO BE COVERED BY THE PROPOSED
PERMIT/CONTRACT AREA:
3.1 Location and Accessibility:
The proposed exploration project is in Barangays Puro and
Panique within the Municipality of Aroroy, Province of Masbate
and bounded by the coordinates 123° 20' 23" to 123° 23' 30"
and 12° 27' 00" to 12° 28' 30" (See Survey Plan on Annex A).
From Manila, the area is accessible by air transportation to
Masbate City, Masbate Province. Daily regular flights are
available and air travel time is about one (1) hour and twenty
(20) minutes.
From Masbate City Proper, the area is accessible by land thru a
67 kilometers gravel provincial roads.
3.2 Total Area Covered-Bv The Application:
The prospect covers a contiguous area of 129.7217 hectares,
spanning over and covering two (2) adjoining barangays of the
Municipality of Aroroy, Province of Masbate in Masbate Island.
Total Area (hectares) = 129.7217
Location of Claims = Barangays Puro and Panique all in the
Municipality of Aroroy, Province of Masbate
Kinds of Minerals = Gold, Silver and other associated
minerals.
4.0 DESCRIPTION OF THE EXISTING ENVIRONMENT WHERE WORK IS
PROPOSED TO BE UNDERTAKEN
4.1 Land Environment:
The information and data of the earth or soil mantle that
covers the prospect area is relatively competent. There are no
major landslides or erosions. Minimal erosions could be
observed in river and creek banks, which were due to the
effects of running water that occurs during rainy seasons.
4.1.1 Topography/Physiography
The exploration areas are generally characterized by
moderate to rolling topography with many conspicuous
domal/conical promontories, flanked by relative flat
terrain. The prominent topographical height reaches 325
meters above sea level. More rugged topography with
sharp ridges is noted at the eastern and southern portion
of the project areas extending to the boundaries of the
comprising barangays.
MGB Form No. 16-1
4.1.2 Land Use/Capability
The prospect areas are classified as mineral lands. The
surrounding areas are suited for grazing hence the
presence of many cattle ranches. Although an estimated
1/10 of its total land area is flat and suitable for
agricultural/vegetative crops, the residents prefer the
quick and more lucrative gold panning as their means of
livelihood.
Makeshift houses made of nipa, bamboo and light wooden
materials are found along areas where slopes are more
favorable and closer to the access road.
4.1.3 Pedology
The topographical relief features distinct vegetation
growth, reflective of the dominant soil type found in the
applied area. The mountainous eastern and southern
sections of the prospect area have shallow soil
accumulations (clays and talus), mainly due to moderate
and steeply sloping ground.
The eastern mountain areas generally represent the
mineralized ground where most of the exploration
activities will be conducted. Poor vegetation growth at
this section is largely due to thin and mineralized soil
cover. Slight to moderate erosion are confined on rill
and gullies.
The unmineralized western parts of the applied area are
characterized by flat to very gently sloping grounds,
mostly grasslands and patchy riceflelds in alluvium soil.
4.2 Water Environment
4.2.1 Water quality
Regular water and sediment samplings are collected at
strategic sampling points. This is made religiously to
ascertain potability and/or contamination of its sources
to ensure the safety and health of its users and
protection of the environment as well.
The following is the Average Water and Sediment
Sampling Results as indicated below for reference.
ENVIRONMENTAL BASELINE WATER & SEDIMENT SAMPLINGS
Monthly water and sediment sampling are continuously collected on the
following sample monitoring stations:
1. Panique Creek Upstream
2. Panique Creek Downstream
3. Rio Guinobatan Upstream
4. Rio Guinobatan Downstream
5. Port Barrera
The following are the most recent data collected from the above
monitoring stations:
MGB Form No. 16-1
I Water Samples January 2006 February 2006
Mercury Mercury
Location (ppm) (ppm)
Panique Creek Upstream <0.001 <0.001
Panique Creek Downstream <0.001 <0.001
Rio Guinobatan Upstream <0.001 <0.001
Rio Guinobatan Downstream <0.001 <0.001
Port Barrera <0.001 <0.001
Sediment Samples January 2006 February 2006
Mercury Mercury
Location (ppm) (ppm)
Panique Creek Upstream <0.004 <0.004
Panique Creek Downstream <0.004 <0.004
Rio Guinobatan Upstream <0.004 <0.004
1 Rio Guinobatan Downstream <0.004 <0.004
Port Barrera <0.004 0.423
Started on December 2004, additional monitoring stations were
established to monitor the effect of the activity of the small scale
mining, cyanidation plants and rod milling. The selections of the
monitoring stations were based on the survey of the common creeks
and drainage within the area where small scale mining is
predominant.
The following are the graphical presentation of the results from the
water and sediment sampling from the additional monitoring
stations.
WATER SAMPLE
0.045 Water Sample-Panique L700
0.040
ST 0.035
I' 0.020
H 0.015
J 0.010
0.005
0.000
8- 20- 18- 30- 27- 29- 16- 21- l 14- 20- 20-
CM
Dec- Jan- M ay- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb-
04 05 05 05 05 05 05 05 05 05 06 06
DAO 34 Std. Value (Hg=0.002 mg/I) ---•---Mercury (mg/I)
0.0035
0.0030
~ 0.0025
0.0020
~ 0.0015
X 0.0010
0.0005
0.0000
8- 20- 18- 30- 27- 29- 16- 21- 24- 14- 20- 20-
Dec- Jan- M ay- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb-
04 05 05 05 05 05 05 05 05 05 06 06
DAO 34 Std Value (Hg=0.002 mg/I) Series 1
MGB Form No. 16-1
0.20
0.18
Mercury (mg/I) Cyanide (mg/I) Mercury (mg/I) Cyanide (mg/I) 0.16
0.14
0.12
0.10
0.08
0.06
0.04
0.02
0.00
8- 20- 18- 30- 27- 29- 16- 21- 24- 14- 20- 20-
Dec- Jan- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb-
04 05 05 05 05 05 05 05 05 05 06 06
DAO 34 Std. Value (CN=0.05 mg/I) ---*---Seriesl
0.008
0.007
0.006
0.005
0.004
0.003
0.002
0.001
0
8- 20- 18- 30- 27- 29- 16- 21- 24- 14- 20- 20-
Dec- Jan- M ay- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb-
04 05 05 05 05 05 05 05 05 05 06 06
DAO 34 Std Value (Hg=0.002 mg/I) ---•---Seriesl
Water Sample-Panique School Site
0.18
0.16
0.14
0.12
0.10
0.08
0.06
0.04
0.02
0.00
04 05 05 05 05 05 05 05 05 05 06 06
DAO 34 Std Value (CN=0.05 m g/l) ---•--- Cyanide (m g/l)
8- 20- 18- 30- 27- 29- 16- 21- 24- 14- 20- 20-
Dec- Jan- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb-
04 05 05 05 05 05 05 05 05 05 06 06
DAO 34 Std Value (Hg=0.002 mg/I) ---*---Mercury (mg/I)
MGB Form No. 16-1
0.060
0.050
Mercury (mg/kg) 2 Mercury (mg/I) Mercury (mg/I) Mercury (mg/I)
0.040
0.030
0.020
0.010
0.000
8- 20- 18- 30- 27- 29- 16- 21- 24- 14- 20- 20-
Dec- Jan- M ay- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb-
04 05 05 05 05 05 05 05 05 05 06 06
DAO 34 Std Value (Hg=0.002 mg/I) ---®---Mercury (mg/I)
0.060
0.050
0.040
0.030
0.020
0.010
0.000
04 05 05 05 05 05 05 05 05 05 06 06
-DAO 34 Std Value (Hg=0.002 mg/I) ---e--- Mercury (mg/I)
8- 20- 18- 30- 27- 29- 16- 21- 24- 14- 20- 20-
Dec- Jan- M ay- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb-
04 05 05 05 05 05 05 05 05 05 06 06
DAO 34 Std Value (Hg=0.002 mg/I) ---•---Hg (mg/I)
rlENT SAMPLES
Sediment Sample-Panique L700
30.000
25.000
20.000
15.090
10.000
5.000
0.000
8- 20- 17- 30- 27- 30- 16- 21- 24- 14- 20- 20-
Dec- Jan- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb-
04 05 05 05 05 05 05 05 05 05 06 06
ANZECC Std Value (Hg=0.15 mg/kg) Mercury (mg/kg)
MGB Form No. 16-1
Sediment Sample-Panique L-700
Mercury (mg/kg) Arsenic (mg/kg) Mercury (mg/kg) Arsenic (mg/kg)
Dec- Jan- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb-
04 05 05 05 05 05 05 05 05 05 06 06
ANZECC Std Value (As=20 mk/kg) ---•---Arsenic (mg/kg)
8- 20- 17- 30- 27- 30- 16- 21- 24- 14- 20- 20-
Dec- Jan- May- Jun- Jul-05 Aug- Sep- Oct- Nov- Dec- Jan- Feb-
04 05 05 05 05 05 05 05 05 06 06
ANZECC Std Value (Hg=0.15 mg/kg) ---©---Mercury (mg/kg)
Sediment Sample- Gintong Araw
8- 20- 17- 30- 27- . 30- 16- 21- 24- 14- 20- 20-
Dec- Jan- May- Jun- Jul-05 Aug- Sep- Oct- Nov- Dec- Jan- Feb-
04 05 05 05 05 05 05 05 05 06 06
ANZECC Std Value (As=20 mg/kg) ---®---Arsenic (mg/kg)
ANZECC Std Value (Hg=0.15 mg/kg) ---«---Mercury (mg/kg)
MGB Form No. 16-1
Marcury (mg/I) Arsenic (mg/kg) Mercury (mg/kg) Arsenic (mg/kg)
8- 20- 17- 30- 27- 30- 16- 21- 24- 14- 20- 20-
Dec- Jan- M ay- Jun- Jul-05 Aug- . Sep- Oct- Nov- Dec- Jan- Feb-
04 05 05 05 05 05 05 05 05 06 06
ANZECC Std Value (As =20 mg/kg ---»---Series!
8- 20- 17- 30- 27- 30- 16- 21- 24- 14- 20- 20-
Dec- Jan- May- Jun- Jul-05 Aug- Sep- Oct- Nov- Dec- Jan- Feb-
04 05 05 05 05 05 05 05 05 06 06
ANZECC Std Value (Hg =0.15 mg/kg) ---•---Hg (mg/kg)
Sediment Sarriple-Mabanban Area
8- 20- 17- 30- 27- 30- 16- 21- 24- 14- 20- 20-
Dec- Jan- M ay- Jun- Jul-05 Aug- Sep- Oct- Nov- Dec- Jan- Feb-
04 05 05 05 05 05 05 05 05 06 06
ANZECC Std Value (As=20 mg/kg) ---®---Arsenic (mg/kg)
8- 20- 17- 30- 27- 30- 16- 21- 24- 14- 20- 20-
Decr Jan- M ay- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb-
04 05 05 05 05 05 05 05 05 05 06 06
ANZECC Std Value (Hg=0.15 mg/kg) ---»---Mercury (mg/kg)
MGB Form No. 16-1
8- 20- 17- 30- 27- 30- 16- 21- 24- 14- 20- 20-
Dec- Jan- M ay- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb-
04 05 05 05 05 05 05 05 05 05 06 06
ANZECC Std Value (As=20 mg/kg) ---•---Arsenic (mg/kg)
Sediment Sample-Gold Bug
8- 20- 17- 30- 27- 30- 16- 21- 24- 14- 20- 20-
Dec- Jan- M ay- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb-
04 05 05 05 05 05 05 05 05 05 06 06
ANZECC Standard Value (Hg=0.15 mg/kg) ---•---Mercury (mg/kg)
Sediment Sample-Gold Bug
250 -1------------”---7-----.....
j=P 200 215.28
"5i
£ 150
o
100
0
8- 20- 17- 30- 27- 30- 16- 21- 24- 14- 20- 20-
Dec- Jan- M ay- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb
04 05 05 05 05 05 05 05 05 05 06 06
-ANZECC Std Value (As=20 mg/kg) ---•---Arsenic (mg/kg)
Mercury for both water and sediment samples at Carloto Area is
significantly high. The monitoring station is close to a cyanidation plant.
Level 700 monitoring is the common drainage from various rod mills and
has also registered high level of mercury for both sediment and water.
The samples are analyzed by Ostrea Mineral Laboratories, Incorporated
located at Binan, Laguna. The laboratory is accredited by the following:
1. ISO/IEC 17025-2000
Accreditation No. LA-1997-0017
2. Department of Environment and Natural Resources
(Analysis performance, documentation and related technical
capability)
MGB Form No. 16-1
3. Department of Health (Certified Laboratory)
With the anticipated increase in activity during construction and
operation stages, environmental monitoring will expand its scope and
coverage. The monitoring will then include air quality, noise survey and
drinking water monitoring.
Except for the air quality and noise survey, all samples will be
continuously being collected every month.
4.2.2 Hydrology
During rainy season, run-off water in the area is high due
to frequent stormy weather and prolonged monsoon rains
aggravated by the rugged topography. Rare instances of
river swelling and flooding occur, normally at the height
of strong typhoons. The Lanang River is the main source
of both domestic and industrial water of the local
residents and the mining community all year round.
From historic record, the annual average water inflow
during the rainy season far exceeds 6,000 gpm, while dry
season average inflow is about 1,000 gpm. Excellent
climate and uninhabited watershed areas contribute to
continued water supply to the inhabitants. The prospect
areas, however, are outside the watershed.
4.3 Climatology/Meteorology
The climate is relatively humid with annual rainfall varying
from 24 to 26 cms. The average rainfall data were obtained
from the Philippine Atmospheric, Geophysical and
Astronomical Services Administration (PAG-ASA), Masbate
Station. Rainy season is from June to January with dry season
for the rest of the months. The area has an excellent climate
and good air circulation due to the absence of heavy vehicular
traffic, high-rise buildings and other industries.
The temperature is warm during the months of March, April
and May. From June to February, the climate is generally cool
with coolest period during December to February.
4.4 Geological/Geomorphological Environment
4.4.1 General Geology and Geomorphology
The prospect area is of low-relief and rolling
topography which is characterized by many conspicuous
domal/conical promontories (volcanic plugs) flanked by
relatively flat terrain which are blanketed by
agglomerates lithified tuff and some volcanoclastics
about the watermost flank.
The principal mineral to be explored is gold,
classified into two genetic types of ore deposits; gold-
bearing quartz vein and placer. The gold-bearing quartz
veins are localized and confined within the northeast
trending fensional joints or faults in the grandiorite
stock.
In general, the highest-grade gold ore follows the
contact of the grandiorite and ultramatic complex. The
ore minerals consist principally of native gold with some
anH ohalcouvrite. Quartz is the
MGB Form No. 16-1
dominant gangue mineral. The type of rock that is
present underground (from old tunnels of Atlas
Consolidated Mining and Development Corporation) are
serpentinized peridotite granodiorite, aplite and
lamprophyre. Granodiorite is by far the predominant
rock. Biotite flakes impart foliation to the rock and they
are crinkled in such a way that the crinkles constitute
lineation. The principal sulfides consist of pyrite,
sphalerite, chalcopyrite and galena. These minerals are
intimately associated with native gold and some silver.
The placer type refers to the river deposits, which
represents the continuous and successive depositions of
detrital materials derived mainly from the weathering
and disintegration of surrounding rock units in the area.
They are mostly made up of fragments of altered rocks,
ultramafics, intrusives and extrusives and associated
sedimentary rocks. These materials were transported by
surface waters occurring as veins or as discrete particles
in the country rock must have undergone the same
process. During the process of panning, the gold
particles intimately associated with fine magnetic
minerals and other heavy minerals are recovered.
The Guinubatan and the Lanang Rivers at its
central and the southeastern peripheries bound the
prospect area, respectively. Both rivers drained
westward at the central section and empties at the flat
marshy grounds of the Port Barrera Cove.
Except for some occasional ornamental and fruit
trees, the area is generally covered with cogon. The
cultivated ground along slopes and flat areas within the
claims are planted with a few coconut clusters while the
rest are bare and are considered for cattle grazing.
4.4.2 Structural Setting
The locations of all of the five (5) gold mining
districts are along the so-called Philippine Rift zone or
the Philippine Mobile Belt. This tectonic belt has some
genetical control on the gold deposits in the country.
The Masbate vein system is thought to be a northwest
split or branch of the rift zone, which controlled the
mega fractures and the alignment of the volcanic plugs.
These splits and branches of the rift zone could have
potential for gold mineralization.
The prospect area is transected by several
northwest trending tension fractures and is apparently
situated on an elevated fault block reflecting the great
upward push by extensive and continuous volcanic
activity. The northwest recurrent-shear zones are
further complicated by the post -tension fractures. An
extensive exploration-drilling program must confirm
these.
4.4.3 Lithology
1. Metasedimentary Rocks (MS): Consist of mildly
metamorphosed sandstone and siltstone interbeds
occupying the eastern boundary of the minesite, is
the oldest rock formation exposure.
MGB Form No. 16-1
2. Tuffaceous Agglomerate (TA): The most widespread in
the area and vicinity, which occupies the northern
and western flanks on the site. It is the assemblage of
inter-grading meta-tuff and agglomerate.
3. Andesite Agglomerate (AA): They are located
distinctly within the Main Vein and appeared in close
association with the Andesite flows and dikes of later
volcanic plug assimilating the agglomerate.
4. Hornblende-Auqite Andesite Porphyry (HAA): Intruded
mostly the pyroclastics in close proximity with the
quartz veining consisting of lath-shaped hornblende
and short stubby augite phenocrysts in an andesitic
groundness.
4.4.4 Mineralization and Hydrothermal Alteration
Free gold and silver metal deposition is controlled by
silica flooding and argillization. However, the gold-silver
metals are more concentrated in the quartz veins and/or
in the silicified and intensely argillized wall rocks in the
form of ultra-fine (10-20 microns) disseminations.
Silicification ranges from pure fracture filling to
pervasive-replacement within the fracture and about 1-3
meters beyond argillization (bleaching) is most intense.
Further away, chloritization and pyritization
predominates and the gold and silver values die out. Ore
values are only within the quartz veins and the argillized
zones.
Calcite dilutes the gold concentration and chalcopyrite is
occasionally seen.
Black and sooty pyrolusite is a very common residual
product in the leached brecciate veins. The resulting
quartz vein appears to be cellular and resembles a
honeycomb structure with black and sooty coatings. It is
from these veins where tonnage and grade estimation
can throw us off because of its light and friable character
and of its unusually high (on occasion, above 20 g/dmt)
gold values. Au and Mn ions, being more stable, were left
behind and re-concentrated in the cavities.
The consistently higher-grade values (above 3 g/dmt) are
usually hosted in the brecciated and re-cemented quartz
veins. The vein mass is composed of quartz and silicified
rock fragments re-cemented in quartz. The process of
silica-flooding, silification and brecciation has been
recurrent thereby enriching further the vein mass. These
brecciated veins are located at or near the intersection of
the major quartz veins (Wyoming-Doris and Breccia) and
Breccia veins itself. Although the veins are not more
than 90 meters wide, the intersection measures 150
meters across. The resulting vein structure assumes a
pipe-like shape and also happens to be the most ideal
orebody configuration for open pit mining.
The tuffaceous agglomerate appeared more receptive to
quartz veining and replacement than its lithic to lapilli
cr the relative degree of
MGB Form No. 16-1
porosity-permeability. Furthermore, the formation could
have been at the epithermal-low pressure setting in the
stratification sequence of host rocks.
4.5 Biological Environment
4.5.1 Terrestrial plants and animals
i. Animals
Cattle ranches are abundant in the surrounding
areas. Herds of cows are seen outside the prospect
areas grazing for green vegetation. Though some
of these ranches are inside other MPSA
application, these are outside and distant from the
proposed exploration projects under this
application (APSA-V-0031).
Domesticated animals such as carabaos, horses,
cows, goats, pigs and chicken are also found in the
area. Their number is limited since the site is not
an agricultural land and very few residents are
engage in farming. A few specie of migrating birds
are seen in the areas but is not home to any form
of exotic or rare animal species that requires
protection. The ecological niche occupied by the
native fauna is almost taken over by the
introduced animal species. Wildlife, such as deer,
wild boar, monitor lizard and monkeys is no longer
in the area.
ii. Plants
The area is generally covered with cogon grasses
and shrubs suited for grazing. Mangroves and
swampy areas are found in the northwestern side
of the prospected mining claims and along the
coastal areas of Port Barrera. Occasional trees can
be seen along the banks of creeks, brooks, streams
and rivers. The hills and valleys are practically
barren except for patches of rice and corn
farmlands, vegetative crops, and coconut trees,
which grow in clusters.
4.5.2 Marine Plants and Animals
A number of fish species such as carp, bangus and tilapia
can be found in the Lanang and Guinobatan Rivers.
4.6 Socio-Economic Environment
The development of the Municipality of Aroroy lags behind in
comparison to the booming and buzzling urban centers in the
neighboring provinces. Except for the few elite residents, the
economic and social conditions of the majority are below
standard. About 10% of the town folks depend on gold panning
as their main source of livelihood. Other residents are engaged
in fishing, small-scale business like buying and selling, eateries,
sari-sari stores and the transportation business utilizing
jeepneys and motorized bancas. Some are employed in the
government offices.
MGB Form No. 16-1
Residential houses are mostly concentrated in the barrio sites
of Puro, Panique and Lanang. Makeshift houses are scattered
within the areas but will not be affected by the exploration
activities. Electricity is not available in the area. Privately
owned generators are the only source of power.
The Company will undertake a more detailed study on the
environment as part of its exploration work program. The
study will be comprehensive and will be submitted to the
Bureau within the two-year exploration period. This will
include detailed data presentation of the existing condition of
the surface and subsurface water, water quality, current water
use, marine environment adjacent to the proposed project site,
current land use (particularly discussion on the forest reserve
and contract reforestation are close to the project), soil
chemical characteristics, coastal use, socio-economic profile to
include people's perception on the proposed project present
biological (flora and fauna) environment, near shore and marine
environment and other relevant information.
5.0 DESCRIPTION OF EXPLORATION WORK
5.1 Description of Exploration Methods and Equipment to be used
5.1.1 Geological Mapping
The prospect areas covered by this application are in a
contiguous prospective mineralized zone.
Compass - tape traverses will be limited to rock and
mineralized veins that may be exposed incidental to the
earth moving activities in preparing the access roads and
drill pads.
Rock outcrop sampling on veins and altered mineralized
zones will be done by channeling with hand moil and
sledge hammer, for initial assay for gold grade
determination.
5.1.2 Aerial Photography
Aerial Photography has been undertaken on the prospect,
in lieu of the Geophysical Survey, which was already
completed. This was undertaken for the whole areas of
concern of the Company (areas granted and areas
applied/undergoing evaluation). This was undertaken
during the Mining Feasibility Study for the granted MPSA
095-97-V. The aerial photography will aid in creating
historical data prior to the actual mining operations.
The aerial photography will be a more detailed study on
the environment as part of the exploration work program
and would serve as future reference over these mining
areas as far as environmental disturbance is concerned.
5.2 Preliminary Processing of Samples
Collected samples from the field outcrop exposures, drill core
and RC drill pulp samples will be split at the sample/core house
for duplicate preserved reference and the other samples
submitted to Assay Laboratory for gold assay analysis.
MGB Form No. 16-1
5.3 Map Showing the Location of the Proposed Work Area in
Relation to Readily Identified Geographic and Environmental
Features.
Please refer to Geologic Map on Appendix.
*
5.4 Estimated Exploration Costs
EXPLORATION EXPENSES YEAR 1 YEAR 2 TOTAL
Labor and Supervision 940,000 840,000 1,780,000
Samples/Assay Costs 150,000
60,000 210,000
Field Supplies 30,000 80,000 110,000
Drill Site/Mobilization - 250,000 250,000
Contract Core Drilling - 750,000 750,000
Aerial Photography 200.000 - 200,000
Total (Php) 1,230,000 2,070,000 3,300,000
Add: 10% Contingency 123,000 207,000 330,000
Grand Total |Php) 1,353,000 2,277,000 3,630,000
6.0 IDENTIFICATION OF POTENTIAL ENVIRONMENTAL EFFECTS
6.1 On Land
With the road network already existing during the operation of
Atlas Consolidated Mining and Development Corporation
(ACMDC), there is no significant potential environmental effects
identified on constructing access roads. The planned
exploration activities will only involve the construction of short
and narrow feeder roads.
The possible environmental effect may come during movement
of drilling equipment and drill site preparations. The drilling
operations will strip rock materials and the vegetation growth
within the confines of the drilling site. Drilling operations will
produce some noise and fumes/dust. There will be minimal
surface disturbance and soil contamination considering that
existing roads and short extensions will be utilized for access to
the drill sites.
The exploration campsites will be properly maintained with
proper sanitation and hygiene. Non-biodegradable waste (e.g.
container drums, lube oils, grease and other exploration waste
will be removed from the exploration site and disposed of
properly. The exploration team will be quartered at the existing
mine facilities since the housing compound is close to the
exploration sites.
6.2 Changes in Hydrology
Major flooding will be a remote possibility due to a limited
watershed and drainage network. There will be no major
ecological alteration. Vegetation that would be destroyed will
be replenished or compensated by the present
reforestation/afforestation project of the company. Existing
hydrologic cycle will thus be maintained. Water used in drilling
MGB Form No. 16-1
6.3 On the Ecology
Vegetative cover in the project area composed mainly of cogon
grasses and shrubs and bushes, trees of low commercial value
and a number of fruit trees. This would affect only small areas
since drilling activities will be conducted at areas where
potential deposits are needed to be explored.
7.0 ENVIRONMENTAL MANAGEMENT MEASURES
7.1 Colour Aerial Photography
Colour Aerial Photography of the prospect area at 1:10,000
scale will be included in the Aerial Photography of the approved
MPSA 095-97-V area which is wrapping up its exploration phase
and undergoing the Mining Feasibility Study, together with the
rest of the applied areas to commence anytime during this
period. This will provide the necessary photo coverage for the:
♦ Historical recording of current infrastructure (both
mining and community), environment, etc., prior to
further activity (can be useful in identifying actual
habitations prior to mining, etc.);
♦ Planning of mining activities, infrastructure
locations, definition of environmentally and socially
sensitive areas, presentations and so on;
♦ Geological photographic interpretation mapping and
so forth to delineate areas of potential for hosting
additional resources.
7.2 Creation of Company Environmental Management Officers who
will be responsible for monitoring and implementing programs
for regulatory compliance.
7.3 To protect any special habitat of flora and fauna in the area,
hunting of wildlife and rate animal/bird species shall be strictly
prohibited in the area. "Kaingin" and setting fire on the
vegetation shall be restricted.
7.4 Drainage system will be planned in a way to minimize erosion
and landslides. Major excavations will be backfilled and
recontoured, in such a way that slopes’ failure will not occur
and the area will be landscaped.
7.5 Cutting of trees will be avoided as much as possible.
7.6 At the exploration sites, drill sumps will be lined with
impervious materials to prevent the possibility of
contaminating the soil. The effluents from the drill equipment
will be directed into a collecting sump for proper disposal.
7.7 All excavated materials will be contained for subsequent
backfilling, re-vegetation and prevention of ARD.
7.8 Drill sumps shall be cleaned of possible contaminants prior to
backfilling of original materials.
A<^A7 /
MGB Form No. 16-1
7.9 Vegetation that will be destroyed will be replenished or
compensated by reforestation/afforestation projects. A nursery
is being maintained for this purpose.
7.10 The exploration activities will ensure that the ranches and
coconut plantations in the vicinity and the nearby coastal areas
will not be affected.
7.11 The drill sites will be located, as much as possible, away from
natural drainage system.
7.12 Information Education Campaigns will be implemented for the
communities during the exploration stage and an assessment of
public perception to the project will be undertaken. The
activities will be coordinated with the affected residents.
7.13 Damages resulting from the exploration activities will be
compensated.
7.14 The environmental management budget is 10% of the total cost
of exploration work program.
7.15 Priority employment of available local labor during drilling
operations.
7.16 No Exploration activity to be conducted at the Panique
Tailings Storage Facility Area.
ADDITIONAL BASELINE INFORMATION ON THE LAND
USE/CAPABILITY OF THE PROJECT AREA AND SUMMARY MATRIX
OF EXPLORATION ACTIVITIES INCORPORATED IN THE REVISED
EXPLORATION WORK PROGRAM:
Mitigating Measures Schedule of
Activity Impact Implementation Cost
Water sprinkling to
Excessive dust suppress dust
1. Rehabilitation of road Change in air 1. Proper maintenance Second quarter of
quality of vehicles and heavy
equipment.
2. Ground smoke Php 70,000
belching units.
network Alteration of No cutting of trees second year
existing vegetation unless very necessary.
Increase noise Proper maintenance of
level equipment
Ground Collect contaminated
2. Removal of oil- contamination soil and store in drums Second quarter of
or any appropriate
container for further Php 25,000
treatment.
contaminated ground Excessive noise Provide safety second year
from heavy paraphernalia to
equipment workers
Prepared by:
DANILO S. LATUG/
Project Manager
PRC Reg. No. 01836
PTR No. 2614872 A
FILMINERA RESOURCES CORPORATION
MASBATE GOLD PROJECT
TWO (2)-YEAR ENVIRONMENTAL WORK PROGRAM
APSA-V- 00031
ACTIVITIES FIRST YEAR SECOND YEAR REMARK
1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 (pe<
Company Environmental Mngt. Office Covered by co
Environmenta
Information and Education Compaigns 20,
--- --- --- --- --- --- - --- --- --- --- --- -
Compensation for Damages to Crops of 100,
Afected Farmers/Planters
Revegetation of Affected Areas:
-Nursery for reforestation/afforestation project 20,
-Nursery for fruit bearing trees 20,(
-Reforestation 25,(
Backfillling/Recontouring of Major Excavation 50,(
Rehabilitation of Road Network 70,(
Removal of Oil Contaminated Ground 25,(
QUARTERLY TOTAL (PhP) - 5,000 20,000 45,000 40.000 120,000 20,000 80,000 330.
L