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 50'





CTP CONSTRUCTION { IN1NG CORPORATION





location: brgy. dahican, c S&AL, SURIGAO DEL SUR


POINT LATITUDE T r TUDE POINT LATH L0NG1





























9° 26' 57“ 125° 56' OO" 38 9° 27' 5?" 125° 57* 05" / (


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9° 26' 57" 125° 56' 39 9° 27' (50" 125° 57' 05"















































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( 9° 27* 34“ 125° 56* 19’" 53 9° 26' 44“ 125° 56'


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125° 57' .34* 66 9° 26' 49" V 125° 55' 30“








I \toTAL AREA : 607.88


ctares





ROAD STOP





ENGB>sREGlNO L. SOBRESfN


EDITION I BTSM (FIRST PRINTING 1961) PU8LISMED BY AUTHORITY OF THE BOARD OF


TECHNICAL SURVEYS AND MAPS IN COOPERATION WITH THE DEPARTMENT OF NATIONAL GEODETIC ENG'R. NO. 996 500 20C


DEFENSE. 1000 0 1000


SOURCES: U. S. ARMY MAP SERIES 752 COMPILED IN 1956 BY PHOTOGRAMMETRIC PTR NO. 205-285 1000 500 0 1000 2000


METHODS 1947-1953 PHOTOGRAPHS AND OTHERS


1 1 0 1





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OFFSHORE DETAIL PLOTTED FROM PHOTOGRAPHY AND IS


NOT BASED ON Ti HYDROGRAPHIC DATUM AND CHARTS





























General Island


\uran island











Diju Island^














INDEX TO BOUNDA





7











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BOUNDARIES APPROXIf





Province; Chartered City ________________


Municipality ______________


A. Province of Surigao


Consuelo B. .Province of Agusan

















































































































Pagantayan























3 Statute Miles REPRINTED BY AFP MAPPING CENTER, I97B





4000 Meters


4000 Yards








2 3 Nautical Miles INDEX TO ADJOIN1NC











i t a \/


MGB Form No. 16-1








Republic of the Philippines


Department of Environment and Natural Resources


MINES AND NATURAL RESOURCES


North Avenue, Diliman, Quezon City








ENVIRONMENTAL WORK PROGRAM











1.0 NAME AND ADDRESS OF COMPANY / APPLICANT


CTP CONSTRUCTION AND MINING CORPORATION





C/o QNI Philippines, Inc.


4th Floor, Unit 401 Cedar Executive Building II





# 26 Timog Ave., Cor. Set. Tobias St.


Quezon City, 1103


Philippines








2.0 TYPE AND NATURE OF PROJECT








2.1 PROJECT DESCRIPTION


The proposed project involves the comprehensive and systematic


exploration for Ni-laterite deposits within the approved MPSA of CTP


Construction and Mining Corporation (MPSA NO. 018-93X111).


The primary purpose of the exploration program is to assess/evaluate the


Ni-laterite potential of the area with the primary objective of


locating/delineating Ni-laterite deposits/reserves amenable to future


mining.


The proposed exploration project will take two (2) years to complete at an


estimated cost of P 22,664,571.50.


The intended exploration project will have no adverse impacts on the


environment by nature of its scope and through the proper


implementation of mitigating measures.





2.2 THE MINERAL DEPOSIT





The primary deposit to be explored is the Ni-laterite resource found in the


ultramafics that could be sufficiently mineralized with Ni and Co.


Based on regional geological mapping and test pitting conducted by MGB


and BHP Minerals, the property contains very extensive deposits of


laterite, but with parts that are thin or erratically mineralized. However,


select deposits within the property compare favorably in terms of grades


and tonnage with other Philippine ore bodies.


MGB Form No. 16-1








3.0 LOCATION AND SIZE OF CONTRACT PROJECT








3.1 LOCATION AND ACCESSIBILITY


The project area is located in north-easternmost Surigao del Sur, and is


accessible by road from Surigao City passing the Maharlika highway to


Bad-as then a coastal road linking Surigao del Sur or by sea passing thru


Hinatuan passage. Travel time to the area is approximately 2 'A hours by


land or 3 hours by pumpboat.


Surigao City can be reached from Cebu City through a daily scheduled


fast ferry or boats. Other alternative route is from Butuan City, which is


about 2 !4 hours from the project area.


3.2 SIZE OF CONTRACT AREA





The contract area has Three Thousand Five Hundred Sixty Four (3,564)


hectares more or less. Coverage area is shown in Figure 2.











4.0 DESCRIPTION OF THE EXISTING ENVIRONMENT


4.1 THE LAND


4.1.1 Topographv/Phvsioaraphv


The total laterite area within the district is about 60 km2. The


predominant structural orientation expressed in the regional


topography is north-south but there is an important secondary


alignment of structure to the northwest-southeast.


The granted MPSA itself has moderate to rolling topography that


spreads over a range of elevations, from sea level to 677m asl,


but most of the flatter(thicker) areas are at 100-300m asl. The


topographic map of the area is shown in Figure 1.


4.1.2 Land Use/Capabilitv


The project area, which is generally covered by lateritic soil and in


some places overlain by ultramafics could be classified as grass


land or shrubland. The higher altitude areas were once forested


areas but now are almost deforested due to logging. However,


due to the poor top soil conditions re-growth of substantial timber


has not occurred with only light to medium secondary scrub that is


constantly harvested by small scale timber cutters for firewood.


Only the coastal area is utilized for residential purposes and few


and small agricultural areas are planted with root crops, fruit and


coconut trees.


Considering the above prevailing factors, the proposed exploration


project and possible development / mining in the future would help


develop the industrial and commercial utilization of the area.


4.1.3 Pedology


Soils within the area consists of Annam clay loam and


undifferentiated mountain soils. The soils are brown to yellow-


orange to reddish clay loam that they may be stony in character.


Although there are no chemical analyses of forest soil, ricefield


soils and sediments from surface water system, levels are


MGB Form No. 16-1








baseline quality (Table 1-3). This is mainly due to the fact that


there are no known industrial and major agricultural activities in


the area that may alter natural soil conditions.


Generally, the proposed exploration project will not have any


adverse effects on the soil characteristics as it is small in scope


and does not include earthmoving activities.








4.2 THE WATER





4.1 Water Quality


The water quality of the drainage system, estuarine, coastal areas


and groundwater are interpreted to be within national ambient


standards (Table 4-7).








4.2 Hydrology


Short consequent streams that are intermittent or seasonal


characterize the drainage system in the area. Due to their low


volume and low flow rate, these streams have limited use.


Unconfined groundwater is stored in secondary porosities in the


igneous rocks and in unconsolidated alluvial deposits occurring in


the area. In areas where the rocks are heavily fractured and/or


faulted, the fracture permeabilities of the rocks are increased


thereby storing groundwater.


 MGB Form No. 16-1











TABLE 1























BASELINE QUALITY OF FOREST SOIL











PARAMETER* PHILIPPINE RANGES** GLOBAL RANGES








pH 3.0-8.0 -


Arsenic <0.10-6.0 -





Boron <0.10-3.0 5-150


Chromium 1.6-128


200


Copper 6.5-81 20





Iron 5,400-85,000 500-50,000


Lead 3-15 10


Mercury 0.03-0.29 0.03


Zinc 0.3-190 10-250











* Concentrations in ppm





** Values presented are baseline soil quality of forest soils in Luzon, Visayas and


Mindanao.


Brandy, Nyle C., “ The nature and Property of Soils”


***





 MGB Form No. 16-1











TABLE 2























BASELINE QUALITY FOR RICEFIELD SOILS








PARAMETER* PHILIPPINE RICEFIELD SOILS





Arsenic <0.02-70


Boron 0.20-6.7


Chloride 2.3-62


Chromium 3.8-36


Copper 10-53


Iron 18,000-40,000


Lead 4-14


Manganese 288-1195


Mercury 0.03-0.80


Sulfate 32-372


Zinc 0.30-50











‘Concentrations in ppm


MGB Form No. 16-1











TABLE 3























BASELINE SEDIMENT QUALITY OF SURFACE WATER


SYSTEMS








PARAMETER* PHILIPPINE SEDIMENT QUALITY








pH 4.3-8.16





Arsenic 0.02-11.7


Boron 0.06-9.6


Cadmium -





Chromium <0.05-31





Copper 10.83


Iron 12,000-62,000


Lead 3.2-15





Manganese 60-1418


Mercury 0.01-2.13


Zinc 0.40-160








* Concentrations in ppm





 MGB Form No. 16-1











TABLE 4























BASELINE WATER QUALITY OF RIVERS SYSTEMS








PARAMETER* CLASS A (DRINKING) CLASS B (DOMESTIC) CLASS C (FISHERY)





Ph 6.5-8.5 6.5-8.5 6.5-8.5


Arsenic 0.05 0.05 0.05


Boron - - -


Chloride 200 - 350


Chromium 0.05 0.05 0.05


Copper 1.0 - 0.02


Iron 1.0 - -


Lead 0.05 0.05 0.05


Manganese 0.50 - -


Mercury 0.002 0.002 <0.02


Sulfate 200 - -


Zinc 5.0 - 2.0








* Concentrations in ppm





MGB Form No. 16-1











TABLE 5























BASELINE WATER QUALITY OF ESTUARINE WATER














PARAMETER* NATIONAL STANDARDS








Ph 6.5-8.5





Arsenic 0.05


Boron -


Chloride -





Chromium 0.02


Copper 0.02





Iron -


Lead 0.05


Manganese -





Mercury 0.002


Sulfate -





Zinc -








* Concentrations in ppm





 MGB Form No. 16-1











TABLE 6

















BASELINE WATER QUALITY FOR COASTAL WATER














PARAMETER* NATIONAL STANDARDS








Ph 6.5-8.5





Arsenic 0.05


Boron -


Chloride -





Chromium 0.05


Copper 0.02


Iron -





Lead 0.05


Manganese -


Mercury 0.002





Sulfate -


Zinc -








* Concentrations in ppm


MGB Form No. 16-1











TABLE 7




















BASELINE CHEMICAL CHARACTERIZATION OF


DRINKING WATER SOURCES














PARAMETER* NATIONAL STANDARDS





Ph 6.5-8.5


Arsenic 0.05


Chloride 200


Chromium 0.05


Copper 1.0


Iron 1.0


Lead 0.05


Manganese 0.50


Mercury 0.002


Sulfate 200


Zinc 5.0








Note: Concentrations in ppm


MGB Form No. 16-1














4.3 CLIMATOLOGY/ METEOROLOGY








Tropical climate with alternating wet and dry seasons characterize the


area. The highest precipitation occurs from October to March while the


dry season is from April to September.


Temperature ranges from 24.1 - 29.6°C with an average of 27.1 °C.





Baseline noise level of about 30 decibels is perceived at the proposed


project site which is unpopulated. This is within the national ambient


standard of 55 decibels for residential areas during the day time. Dust


exposure during field activities is also within national standards.








4.4 GEOLOGICAUGEOMORPHOLOGICAL ENVIRONMENT





The Ni-Co laterites deposits in the CTP MPSA area are typical of


Philippine deposits, being :





• generally immature (eq. low incidence of escarpment, little ferricrete,


free silica or magnesite); and


• well drained (eq. little smectite at the transition).


Generally, the Surigao region has formed from the Samar-Surigao





segment of the Bicol-Eastem Mindanao Ophiolite belt. This belt is


believed to have been emplaced in the mid to late Oligocene. Evidence


from the Surigao region includes post ophiolites units (limestone, elastics


and basalt andesite volcanics) of late Tertiary to recent age. Pre-ophiolite


units in the Surigao region include limestone and metavolcanics.


Within the region, the ophiolite units are predominantly peridotite; itself





being mainly harzburgite with less common dunite and rare pyroxenite


veins. The degree of serpentinisation varies widely from area to area.





4.5 BIOLOGICAL ENVIRONMENT








The area is not host to any form of exotic, rare, or endangered animal or


plant species that requires protection. Its proximity to already habituated


or developed areas have rendered it susceptible to human activities and


as such its former wildlife has either moved more remote areas or has


been decimated.


Similarly, endemic plants are already absent in the area probably due to


previous logging activities that has denuded the forest cover.








4.6 SOCIO-ECONOMIC ENVIRONMENT








Barangay Adlay is in an underdeveloped coastal area. Most of the


housing facilities are of light materials and have an average area of 36


square meters. Only a few multi-bedroom semi-concrete houses are


present.


The average annual income of the household is about P 20,000 - P


50,000.


MGB Form No. 16-1








Primary means of livelihood is fishing with only minor farming. Other


occupations are small business, livestock raising and government


employment.


Health needs are provided in the Municipality of Carrascal. Primary and


secondary education may be availed at the barangay level while College


education and vocational courses can be attained only at Surigao City or


Tandag.


Carrascal has its own post office located at the municipal building. The


communication system is underdeveloped and no telephone system


exists.


Electricity is available within the area through National power Corporation.


Water supply usually comes from springs that have been tapped, with


some using deepwells.


The major religion is Roman Catholic though minor Christian sects exist.











5.0 DESCRIPTION OF EXPLORATION WORK








The proposed exploration work program is planned to be undertaken


systematically and conducted in stages with the progression to the next stage


dependent on results of previous stages.


Ideally, the geological exploration will have the following major activities, to be


conducted at different stages:








• Reconnaissance Geological Mapping/Sampling


• Aerial Photographic survey


• Semi detailed Geological Mapping/Sampling


• Auger Drilling


• Topographic Survey


• Core Drilling


• Geological Evaluation





5.1 GEOLOGICAL MAPPING/SAMPLING





This activity will be undertaken in three (3) stages, namely:








Reconnaissance


Semi-detailed


Detailed





During the reconnaissance stage, work will be conducted on a scale of


1:50,000 and 1:25,000 and limonite and grab samples will be taken at a


density of 1 to 5 samples per square kilometer. Work will basically include


traverses along creeks, ridges and grid lines.


For the semi-detailed stage, work will be conducted on a scale of


1:10.000 and will involve compass and tape traverses I imnnitp anH nrah


MGB Form No. 16-1








samples will be taken at a density of 5 to 10 samples per square





kilometer


Detailed compass and the tape geological surveys will be on the scale of


1: 1,000 and 1:5,000. Closely-spaced grab sampling will be done


whenever possible.


During the three (3) stages, auger drilling will be carried out. This will


guarantee that no adverse impact will be made on the environment.








5.2 AERIAL PHOTOGRAPHIC SURVEY








Aerial photographic survey will compliment regional geological mapping


and interpretation. This will cover the whole area granted and adjoining


claims or approximately 20,000 hectares. Lines to be surveyed are


estimated at 86 line-kilometers.








5.3 AUGER DRILLING








This activity will be conducted to delineate potential Ni-laterite areas


within the project area using a small Man-portable Dormer Drillmite


machine. This is an efficient way of testing upper limonitic portion of the


laterite profile, but is not able to penetrate the saprolite. In this way it


provide a similar sample to test pits, but the auger holes are faster to drill


and have significantly less environmental impact than test pits.








5.4 TOPOGRAPHIC SURVEY








A topographic survey of the most prospective area within the project will


be made and will highlight the following:








• Establishment of horizontal and vertical control points


• Location of all drill holes





• Location of all geological data (outcrops, contracts, etc.)


• Preparation of topographic maps at 1:5,000 and 1:10,000 scale with


contour intervals of 5 and 10 meters, respectively.








5.5 CORE DRILLING








The most prospective Ni-laterite areas will be drilled with Koken drilling


machines.


This activity is designed to check the vertical consistency / persistency of





physical and chemical characteristics of the potential Ni-laterite deposit.


NQ sized holes will be drilled initially at 100m spaced grids then on


closely-spaced grids of 50m down to 25m if warranted. Samples will be


taken at 1m intervals.


MGB Form No. 16-1








5.6 PROCESSING SAMPLES








Only the drying and crushing/pulverizing of samples will be done in the


field and will be conducted at an appropriate place within the field camp.


Prepared samples placed in plastic sample bags will be sent to Manila


regularly for analyses.





5.7 PROPOSED WORK AREA








The proposed area is shown in Figure 3. It contains a land area of some


3,564 hectares. As reconnaissance work progresses and as Ni-laterite


areas are delineated, the coverage area for further exploration decreases.


Detailed exploration work will then be concentrated on most prospective


areas.





5.8 ESTIMATED EXPLORATION COSTS





The proposed exploration program will entail an estimated costs of P





22,664,571.50.


Details of exploration costs per activity are shown below:





Activity Cost


Legal Access P 11,077,620.00


Research Work P 100,000.00


Camp Cost P 654,300.00





Aerial Photo Survey P 712,080.00


Orthophoto Mosaic P 450,000.00


Regional Geological Survey P 817,411.00


Semi-detailed Mapping P 583,865.00


Auger Drilling P 737,581.50


Sample Prep and Analyses P 1,419,686.00





Topographic Survey P 189,044.00


Detailed Geological Mapping P 934,184.00


Core Drilling P 4,468,800.00


Geological Evaluation P 300,000.00


Environmental Management P 220,000.00


TOTAL P 22,664,571.50








*ln-fill core drilling will be conducted depending on success of delineating


a potential Ni-laterite deposits with at least 5MDT reserves.


MGB Form No. 16-1











6.0 IMPACT ASSESSMENT











6.1 THE LAND








There are no scenic land features, structures, wildlife and park


reservations in the area that would be affected during and after the


exploration program. The major portion of the proposed project area is


within a land that can be classified as grassland or shrubland. Areas at


higher elevations were once forested areas but now are almost de¬


forested. Only minor secondary growth trees of no commercial quality


occur in this areas.


Since the exploration program is limited in scale, no cutting of trees will





be made. The use of portable drilling rigs does not need preparation of


drill pads.








6.2 THE WATER








No adverse impact on the environment is expected.








6.3 THE AIR











No adverse impact on the environment is foreseen.








6.4 THE PEOPLE








The project is perceived to have positive socio-economic effects to the


local populace.


Employment and added income will be the direct benefits that the project





will bring to the community.











7.0 ENVIRONMENTAL MANAGEMENT STRATEGIES/MITIGATING


MEASURES








As the preservation of the environment is of outmost importance, the


environmental upkeep will be a main consideration during the actual


implementation of the exploration program.











7.1 STARTEGIES/MEASURES TO BE ADOPTED








Potential negative impacts will be addressed through the following


measures:








Land rental/payment of improvements in recognition of occupants


rights and interests on land to be used as based camp, etc.


MGB Form No. 16-1











Land rental/payment of improvements in recognition of occupants’


rights and interests on land to be used as based camp, etc.


Compensation for crop damages following prescribed rates of


provincial assessors office.


Establishment of community related projects (clinic, deepwells,


recreational facilities, etc.)


Continuation and improvement of information drive/dialogue with


local population


Established and monitoring of environmental stations.








An amount of P 220,000.00 will be allocated for the environmental


concerns of the project.








Prepared by:


Leobeiji Luis T Evangelista








Geologists


PRC License No.: 1223


TIN No. 142-998-240


PTR No. 439880


Dated: 02-27-99


 SURIGAO TENURE MAP


























SMR-033-97


CLAVER MINERAL


DEVT.CORP.














CLAVER MINERAL & DEVT. CORP














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MPSA-018-9381


P CONSTRUCTION & DEVT. CORP.





SMR-00295


SE MINING S DEVT. CORP


SMR-003-95 . JLB ENTERPRISES


SMR-001-9S


KEPHA MINING EXPL. co; CTP CONSTRUCTION & DEVT. CORP








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Ophiolite rocks, prospective for Ni-Co laterite deposits QNI Limited July 98





Figure 1: Location of the CTP Property, Philippines


MGB Form No. 05-4





Republic of the Philippines


Department of Environment and Natural Resources


MINES AND GEOSCIENCES BUREAU


North Avenue, Diliman, Quezon City








EXPLORATION WORK PROGRAM











1.0 NAME AND ADDRESS OF COMPANY/PROPONENT





Proponent: CTP CONSTRUCTION AND MINING CORPORATION


Address: c/o QNI PHILIPPINES INC.





4th Floor Unit 401 Cedar Executive Bldg. II,


# 26 Timog Avenue corner Scout Tobias St.,


Quezon City 1103, Metro Manila, Philippines





2.0 LOCATION OF PROJECT (SPECIFY GEOGRAPHIC COORDINATES)





The project area is situated in:





Barangay of : Adlay


Municipality of : Carrascal


Province of : Surigao del Sur


Island of : Mindanao





Technical Description :


The area is within the following geographic coordinates:





Corner Latitude Longitude





1 9°24’45” 125°51’30”


2 9°29’00” 125°51’30”


3 9°29’00” 125°52’00”


4 9°28’30” 125°52’00”


5 9°28’30” 125°53’30”


6 9°29’00” 125°53’30”


7 9°29’00” 125°54’00”


8 9°29’30” 125°54’00”


9 9°29’30” 125°55’00”


10 9°28’30” 125°55’00”


11 9°28’30” 125°55’30”


12 9°26’30” 125°55”30”


13 9°26’30” 125°52’30”


14 9°26’00” 125°52’30”


15 9°26’00” 125°52’15”


16 9°25’00” 125°25’15”


17 9°25’00” 125°52’30”


18 9°24’45” 125°52’30”








Please refer to the attached NAMRIA map 1:50,000 scale complete with





technical description.


MGB Form No. 05-4








3.0 AREA OR SIZE OF COVERAGE (HECTARES)


The project area is located in the north-easternmost Surigao del Sur, It has an


area of Three Thousand Five Hundred Sixty Four (3,564) hectares more or


less.


4.0 PROJECT AREA DESCRIPTION





4.1 Terrain/Physiography


The area is characterised by moderate to rolling topography with


elevation ranges from 100-300m above sea level. Highest peak can be


found on the western boundary of the claim or north of Ca-ayongen river


which is about 677 meters asl.








4.2 Accessibility


The area is accessible by road from Surigao City passing the Maharlika


highway to Bad-as then a coastal road linking Surigao del Sur or by the


sea passing thru Hinatuan passage. Travel time to the area is


approximately 2 V.z hours by land or 3 hours by pump boat.





Surigao City can be reached from Cebu City through a daily scheduled


fast ferry or boats. Other alternative route is from Butuan City, which is


about 2Vz hours drive.








4.3 Drainage System/s


Drainage system is generally dendritic draining towards south-east of the


project area. The major creeks/rivers are Ca-ayongen and Tandawa


located south and north, respectively.








4.4 Vegetation


Large portion of the project area is already denuded but was once a


thickly forested area. The logged-out portions on the ridges, have


secondary growth forests while the areas at lower elevations are covered


with shrubs, under brushes and cogon grasses.





4.5 Land Use


Much of the surface of the laterite deposits was subjected to logging in


the past. However due to the poor topsoil conditions re-growth of


substantial timber has not occurred with only light to medium secondary


scrub that is constantly harvested by small scale timber cutters for


firewood. Most of the villages and towns are located on the shoreline


and cultivate the adjacent flood plains.





5.0 DESCRIPTION OF EXPLORATION PROGRAM


The purpose of Exploration Program is to assess/evaluate the Ni-laterite


potential of the CTPCMC approved MPSA No. 018-93-XI. Based on regional


mapping and test pitting conducted by both government and private companies,


the nronertv contains very extensive deposits of laterite. but with parts that are


MGB Form No. 05-4





5.1 Research Work


Research will be done at the Philippine Mines and Geo-sciences Bureau


library for any article, literature or reports regarding previous works.


Allegedly, the MGB through the support of Metal Mining Agency of Japan


conducted regional geological mapping, sampling and excavation of more


than 500 test pits at about 200 meter grid spacing between year 1953-


1961. In 1996, BHP Minerals through a MOA with South Surigao Red


Bay/Stellar Metals also evaluated the property by re-establishing the grid,


re-sampling old test pits and excavation of new ones. During the later half


of 1997, Stellar Metals with the financial support of Philmac/Longpoint


drilled 31 holes using Koken drill machines. Drilled depth ranged from


5.00 to 34.00 meters per hole. The total amount of meters drilled is


609.41.








5.1.1 SURVEY OF PREVIOUS WORK/S ON THE AREA


5.1.1.1 Nature or type of study or undertaking





Tenure status, geological data and other related


information relevant to the area will be completed. The most


important information will include geological maps, test pit


and drill location maps/sections, Analysis and drill logs.





5.1.1.2 Duration


One (1) month


5.1.1.3 Coverage





Entire area granted for MPSA and immediate vicinities.


5.1.1.4 Proponent


Technical staff





5.1.1.5 Results or conclusions arrived at


Initial interpretation on the thickness of the laterite, extent of





mineralization and grade ranges.








5.1.2 DATA COMPILATION/COLLATION


5.1.2.1 Geophysical data





Geophysical data such as aerial photographs from MGB


or NAMRIA could be used in the initial aerial photo


interpretation.


5.1.2.2 Lithological data





Previous geological mapping data will be compiled and


collated in a digital format using a program such as Corel


Draw or AutoCAD. This data could assist in the


development of an understanding on the regional


geology and in the identification of major features such


MGB Form No. 05-4





5.1.2.3 Mineralization/alteration studies


The areas covered by previous exploration may have


identified the area/s being mineralized and this will be a


useful guide for an earlier stage of exploration.


5.1.2.4 Various thematic maps covering the target area





The social aspects of working in the area will not be


overlooked. The claim boundaries of CADC/IP and


Protected Areas if any will be included in the maps or


database.


5.1.2.5 Estimated cost


P 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.)


Aerial photographic survey will compliment regional


geological mapping and interpretation. This approach to


exploration is very useful in covering large areas in a


limited time.


5.2.1.2 Duration


The aerial survey and processing/printing of photographs


is approximately 1 month or depending on the weather


conditions of the area. However, the scanning and


processing of Orthophoto mosaic is approximately 3


months.


5.2.1.3 Proponent (company or group which will undertake


the survey or study)


The Certeza Surveying and Aerophoto Systems, Inc is


the company we are considering to handle the survey.


5.2.1.4 Coverage (hectares)





The area that will be covered will include not only the


area applied for MPSA but the immediate vicinities or


approximately 20,000 hectares. Lines to be surveyed are


estimated at 86 line-kms.


5.2.1.5 Total or estimated cost





P 1,162,080.00


MGB Form No. 05-4





5.2.1.6 Main output (maps, reports, etc.)


1. One (1) set of colour contact prints in Medium-


Weight Semi-Matte Photo paper.


2. One (1) set of Photo Centers location map.


3. One (1) set orthophoto maps at scale 1:15,000 with


contour overlay


4. Digital orthophotos in TIFF format.





5. The photo geological interpretation will be digitized


and will constitute part of the comprehensive


database. These layers, in conjunction with others


will be the basis for subsequent generation of


interpretative geological maps.


5.2.2 Regional Geological Survey





5.2.2.1 Coverage (hectares)


Reconnaissance work to be conducted will cover the


entire area granted and immediate vicinities. Samples


that will be taken consist of limonite and saprolite from


outcrops, erosional windows, gullies etc. Samples that


will be gathered will be sent to Ostrea laboratories in


Manila. The elements that will be analysed are Ni, Co


and Fe.


5.2.2.2 Duration


Regional geological mapping and sampling will be


conducted over the entire area and for a period of


approximately three (3) months.


5.2.2.3 Manpower complement (technical and support staff)


One (1) Geologist, One (1) Geo-technician and 6


geologic aides.


5.2.2.4 Estimated cost





P 817,411.00


5.2.2.5 Output (number, type, scale maps and technical


reports)


The reconnaissance geological mapping will cover the


old road cuts and trails to differentiate lithological types,


degree of weathering, structures and extent of


mineralization. Output will be a regional technical report


and maps at scale of 1:50,000.


MGB Form No. 05-4








5.3 SEMI-DETAILED SURVEY OR FOLLOW-UP STUDIES





5.3.1 Geological mapping/alteration studies





Potential Ni-laterite areas identified after the reconnaissance


stage will be mapped on a semi-detailed basis. The compass


and tape survey will focus on delineating the most prospective


areas that could initially be probed with Drillmite auger drills.


Shallow auger drills will test the vertical consistency/persistency


of physical and chemical characteristics of the Ni-laterite areas.





5.3.2.1 Coverage (hectares)





Semi-detailed work will cover at least 50 percent of the


total project land area. Analyses will be similar to that


during the reconnaissance stage.


5.3.2.2 Duration


Two (2) months





5.3.2.3 Manpower complement





This work will engage the same field geology team who


carried out the previous reconnaissance survey. For


facility and better coverage, these teams will establish


semi-permanent base camps within the prospect area





5.3.2.4 Estimated cost


P 583,865.00





5.3.2.5 Output


Geologic output will be a project level geological report





and maps with semi-detailed geology delineating the


locations of thin and thick laterite (limonite). Maps will


be plotted on 1:10,000 scale folios in the same manner


as the 1:50,000 sheets.





5.3.2 Subsurface investigation





5.3.2.1 Type (auger drilling)


Auger drilling using drillmite machines is an efficient


way of testing the upper limonitic portion of the laterite


profile, but is not able to penetrate the saprolite. In this


way it provide a similar sample to test pits, but the


auger holes are faster to drill and have significantly less


environmental impact than test pits.





■ ■ ■ XL


MGB Form No. 05-4





previous test pit results conducted by MGB and other


private companies. The number of holes to be drilled at


100 meter spacing is estimated to be 550 or a total of


about 3,300 meters with an average depth of 6


meters/hole.


5.3.2.3 Estimated number of samples to be taken





Samples will be taken at every meter or if possible at


every change in lithology. The expected number of


samples will be about 3,300.


5.3.2.4 Mode of analysis/target elements





Samples to be analysed will be prepared on site before


sending to Ostrea Laboratories in Manila. The target


elements to be analysed by AAS method are the TYPE-


1 (Ni, Co and Fe). Duplicate samples (every 10th) will


be send to the QNI laboratory in Australia for checking


on the accuracy of grades.


5.3.2.5 Manpower complement


This activity is planned to be conducted by a contractor





using two Drillmite auger machines. One machine


should have at least 6 crew including the sampler.


5.3.2.6 Estimated cost





P 737,581.50


5.3.2.7 Output





Expected output would be a report and maps on


1:10,000 scale showing the delineation of thickness of


the limonite. However, delineations might change


depending on the results of the detailed core drilling.





5.4 Topographic Survey


5.4.1 Coverage





Survey controls will be necessary at the conclusion of the follow¬


up survey and prior to the initiation of detailed work and drilling.


The survey would extend across the prospective areas of interest


and the following are the highlights:


• Establish horizontal and vertical control stations within the


area to be explored that will be derived from the cadastral and


land survey control stations.


• Locate all drill hole collars, test pits, access route and existing


trails or road traversing the project area.


• Locate several tie points for all geological data (outcrops,


MGB Form No. 05-4





5.4.2 Scale and contour intervals


Sufficient survey control will be necessary to facilitate geological





information gathered down to scales of 1:5,000. This precision will


allow meaningful contouring down to an interval of as low as 5


meters.


5.4.3 Manpower complement


Contract survey crews headed by a licensed surveyor, survey aide





computer plotter with eight local hires will likely be required.


Instrumentation for the survey will be rented.


5.4.4 Estimated cost





P 189,044.00


5.4.5 Output





Establish accurate engineering survey control points and layout tie


points for detailed geological mapping.


Establish base and grid lines for proposed detailed drilling.


Prepare accurate topographic and engineering maps for reference to


prepare the project feasibility studies.





5.5 Detailed Survey or Studies








5.5.1 Detailed Geological Mapping


Detailed geological mapping will concentrate on delineated


mineralised areas from reconnaissance and semi-detailed


exploration stage. All structures and workings within the area


delineated should be plotted on a detailed map on 1:5,000 scale.


Correlation and Interpretation done from previous works will be


reflected on this detailed map that includes lithology, structures


and thickness of limonite.


5.5.1.1 Nature or type of survey (compass and tape, grid,


etc.)


Geological mapping will cover the most prospective area


using tape and compass techniques along un-mapped


portions, grid lines and new outcrops exposed by


exploration activities.


5.5.1.2 Coverage (hectares)


The extent of the area to be assessed is approximately


600 hectares.


MGB Form No. 05^t





5.5.1.3 Duration


Detailed mapping will be continuous every time there are


new outcrops exposed during exploration stage but more


or less three (3) months was allocated.


5.5.1.4 Manpower complement





This work will engage the same field geology team who


carried out the previous reconnaissance and semi-


detailed survey.


5.5.1.5 Estimated cost


P 934,184.00





5.5.1.6 Output





Expected output will be a detailed report and a geologic


map showing the delineated thickness of limonite based


on auger drilling and geologic mapping. This phase of


mapping will orient a subsequent core drilling


programme.





5.5.2 Subsurface Investigation


5.5.2.1 Drilling





5.5.2.1.1 Type (diamond, percussion, auger, etc.)


When drilling is undertaken it will be contracted to a





competent company with drill rigs with depth capacities


comparable to Koken. NQ will be the principal core


diameter as this yields the most suitable sample volume.


The contractor shall exert all efforts to maximize core


recovery. Core will be analysed for Type 1 (Ni, Co and


Fe). Appropriate quality measures will be integrated in


the sampling. This will consist of duplicate samples taken


every 10th and will be send to QNI Yabulu laboratory.


5.5.2.1.2 Number and depth





First phase drilling will cover an area of about 63


hectares. Sixty-three (63) holes will be drilled at 100-


meter space or a total of about 1300 meters. For the


second phase drilling, the potential areas will be drilled


down to 50 and 25 meters interval.


5.5.2.1.3 Estimated number of samples





The samples to be analysed will be taken every meter


and the number of samples will depend on the total


meterage drilled plus ten percent for the duplicates.


MGB Form No. 05-4





6.0 TOTAL ESTIMATED EXPLORATION COST (PESOS)





Year 1 P 9,002,304.16





Year 2 P 13,662,267.34





Total P 22,664,571.50








7.0 SCHEDULE OF ACTIVITIES (GANTT CHART)


8.0 MAP ATTACHMENTS


Figure 1 location of the CTP Property, Philippines


Figure 2 Surigao Tenure Map


Figure 3 Geological map of 1: 10,000 scale


9.0 SIGNATURE OF PROPONENT or person preparing the exploration work


program, please specify PRC License and PTR numbers.




















Prepared By :





PRC License No.: 1223


TIN No. 142-998-240


PTR No. 439880


Dated: 02-27-99


 CTP CONSTRUCTION AND MINING CORPORATION


MPSA NO. 018-93-X1





Two-Year Exploration Work Program




















Activity Months Budget


1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24


Legal Access 11,077,620.00


Research Work 100,000.00


Camp Costs 654,300.00


Aerial Photo Survey 712,080.00


Orthophoto Mosaic 450,000.00


Regional Geological Survey 817,411.00


Semi-Detailed Mapping 583,865.00


Sub-surface Work (Auger Drilling) 737,581.50


Sample Prep and Analysis 1,419,686.00


Topographic survey 189,044.00


Detailed Geological Mapping 934,184.00


Core Drilling 4,468,800.00


Geological Evaluation 300,000.00


Environmental Management 220,000.00


Total Year 1 P 9,002,304.16 Year 2 P 13,662,267.34 22,664,571.50