NOTICE: The text below was created automatically and may contain errors and differences from the contract's original PDF file. Learn more here















It? WITNESS- WHEREOF, I have hereunto, set my hand and affixed

the' seal of the Corporation on this day of 1991 at


Mandaluyong, Metro Manila, 


























 BENGUET CORPORATION





CANATUAN GOLD PROJECT


Siocon, Zamboanga del Norte


PROPOSED TWO-YEAR EXPLORATION WORK PROGRAM








NAME AND ADDRESS OF COMPANY/PROPONENT:


* Benguet Corporation with postal address at #12 San Miguel


Avenue, Mandaluyong City, Metro Manila as OPERATOR for


and on behalf of Ramon V. Bosque, Claimowner.


LOCATION OF PROJECT:


* The Canatuan Gold Project is located close to the western


coast of Mindanao more specifically situated in Sitio


Canatuan. Barangay Tabayo, Municipality of Siocon,


Province of Zamboanga del Norte, Philippines. It is bounded


by Latitudes 7° 43' 30" to 7° 44’ 30" N and Longitude 122° 16’


00" to 122° 18’ 00” E, more or less.


AREA OR S ZE OF COVERAGE:


* The Project is composed of six (6) contiguous meridional block


applied for MPSA by Ramon V. Bosque with a total land area


of 508.3396 hectares as per actual transit survey.


DESCRIPTION OF PROJECT AREA:


* The opography of the project area is characterized by


steep-crested hills and deeply incised valleys. It is accessible


from Zamboanga City to R.T. Lim which is about 120 road


kilomoteres via Highway 14, thence through 45 km long old


logging road leading to the project site. The tributaries form


dendritic pattern which largely flows south to southeasterly to


the main Litoban River which flows westerly to Siocon Bay.


The area was previously logged-over both by commercial


logging and local residents. In addition to sparse second


. growth trees, patches of kaingin farms with upland rice,


rootcrops arid bananas cover the rolling terrains and flat


areas.


DESCRIPTION OF EXPLORATION PROGRAM:


A. Researan Work


* Between May and September 1991, Benguet Corporation


conducted preliminary field verification, followed by


mapping and sampling of some of the excavations of small


scale miners. Results indicated favorable gold mineralization


which suggested further systematic geological investigation.


B. Reconnaissance/Regional Survey/Studies


* The initial information gathered from the excavations done


by the small scale miners will be a good background. As


such, reconnaissance or regional survey/studies will not be


necessary. Thus, fieldwork will be initiated immediately with


semi-detailed survey or follow-up studies then subsequently


followed by detailed survey or studies.


C. Semi-detailed Survey/Follow-Up Studies


* Semi-detailed mapping/alteration studies will be conducted


over the entire 508.3369 hectares for a period of three (3)


months covering the tributaries, road cuts, trails, stream


sediment, pan- con and rock sampling involving 18 men and


staff with an estimated cost of PI98,150.00. The information


goithered will be consolidated into a 1:10.000 scale map


showing lithology, structural controls, alterations and


mineralization which will be utilized to plan targets for


detailed geological mapping and sub-surface programs.


* Geophysical Survey will be undertaken by utilizing the Time


Domain Electro-Magnetic (TDEM) and Magnetometer


applications along 4000 lineal meters. This activity will be


contracted by McPhar/other Laboratories with a budget of


P500,000.00. The resulting data will produce maps/graphs


showing the conductivity, resistivity, magnetic susceptibility of


the available metals and/or elements, contour and profile


maps, which will be used in planning programs for sub¬


surface investigations.


* Sub-surface Investigation will initially involve the mapping and


sampling of shafts and adits excavated by the small scale


miners numbering to about 50 openings with about 300


meters aggregate length/depth. Approximate channel


samples to be collected will be about 600 bags which will be


assayed for Gold by fire assay and Ag, Cu, Pb, Zn, As by AAS


method. This undertaking will be done by the same


manpower (9 men) as earlier established in Geological


Mapping for an approximate duration of three (3) months


with a cost of about P198,150.00.


D. Topographic Survey


* Topographic Survey will be initially undertaken over an area


of 1.5 km by 1.0 km or 150 hectares and establish a base map


of scale 1:2000 with 5 meter contour intervals. This activity will


involve 6 men with an estimated budget of P230,000.00 for a


seven (7) month period.


DETAILED SURVEY STUDIES


* Detailed Geological Mapping will be conducted with


Compass-tape traverses over the identified “economic zone"


area encompassing the tributaries, road cuts/access trails,


with emphasis on the structural controls, lithology, alterations


and mineralization utilizing 1:500 scale field maps and


transposed into 1:2000 base maps. Based on the small scale


miners operations the "economic" zone is about 150 hectares


wl ere activities will last for about 12 months supported by 9


men with an estimated budget of P792,600.00. Maps to be


produced will show lithology, alterations mineralized and ore


zones.


* Derailed Geochemical survey will be applied over an


approximate area of 1.5 km X 1.0 km or 150 hectares at 50 m


X 100 m grid where some 300 soil samples will be collected.


Gold and silver assays will be by fire assay and Cu, Pb, Zn, As,


Sb and Hg will be analyzed by AAS. This activity will be


complemented by 5 men over a period of two (2) months


 with an estimated cost of P75,000.00. The results will be


translated into 1:2000 scale maps showing anomalous zones


and isograd maps per element.








Sub-surface investigation will utilize diamond drilling (coring)


initially with 18 holes with a total length of 750 meters and


completed in two (2) months period. Some 150 sludge


samples and about 100 core samples is expected to be


collected. Estimated cost is about PI,875,000.00. In addition,


about 50 test pits has been programmed to test certain


anomalous zones with an aggregate depth of 300 meters


which is projected to be completed in about 3.5 months with


an estimated cost of PI40,000.00





Total Estimated Exploration Cost:








Year 1 P2,755,620.00


Year 2 3,560,430.00


GRAND TOTAL P6,316,050.00








Schedule of Activities (Gantt Chart) is herewith enciosed. Map


attachments include topographic map scale 1:10,000 showing proposed


grid geochem soil sample location, test pit location and diamond drill


holes location maps.














EC IA


G


PTR No. 439871


Dated: 02-27-96


 CANATUAN GOLD PROJECT





SUMMARY OF COST ESTIMATES


MOBILIZATION P100.000.00


CAMP CONSTRUCTION 200,000.00


REPAIR/MAIN1 ENANCE OF 150 000 00


ROADWAYS/BRIDGES


GEOLOGICAL MAP'-iNG 1,188 900 00


*SEMI-DETAILED 3 months P 198,150.00


•SUBSURFACE 3 months 198,150.00


'DETAILED 12mons. 792,600.00


SURVEY WORKS 230,000.00


GEOCHEMICAL SURVEY 75,000.00


GEOPHYSICAl SURVEY 500,000.00


TEST PITTING 140,000.00


SAMPLING/TEUT PIT LOGGING 445,850.00


DIAMOND DRILLING 1,875,000.00


SAMPLE PREP,-ASSAYING 315,300 00


METALLURGICAL TESTING 150,000.00


REPORT WRITING/ 96 000 00


DATA EVALUATION


FEASIBILITY STUDY 250,000.00


EVALUATION 100,000.00


01HERS 500,000.00


FOOD ALLOWANCE P 500,000.00


TOOLS & IMPLEMENTS 150,000.00


P6,316,050.00


GRAND TOTAL











 TWO-YEAR EXPLORATION WORK PROGRAM


CANATUAN GOLD PROJECT ,


SIOCON, ZAMBOANGA DEL NORTE, MINDANAO





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 (P 000)


1


10BILIZATI0N “00,000 P 100.00 i


I


AMP CONSTRUCTION "200,000 200.00


EPAIR/MAINTENANCE OF ROADWAYS, BRIDGES 150,000 150.00





-EOLOGICAL MAPPING 198,150 198,150 330,250 462,350 1,188.90





URVEY WORKS 131,430 98,570 230.00





EOCHEMICAL SURVEY 75,000 75.00





EOPHYSICAL SURVEY 500,000 500.00





EST PITTING 80,000 60,000 140.00





\MPLING / TEST PIT LOGGING 253,050 192,800 445.85


AMOND DRILLING 1,875,000 1,875.00


---


MPLE PREP / ASSAYING 165,590 149,710 315.30


ETALLURGICAL TESTING 150.00


:port WRITING / DATA EVALUATION ■ ■ 24,000 ■ 72,000 ■ 96.00





ASIBILITY STUDY 250,00C 250.00


ALUATION 100T)0(! 100.00


HERS 3i •o,ot yo.o ISC XCG O. 500.00


yEAR t - 2,~795tC20- O [ f 3,560,430,0 GRAND TOTAL P 6,316.05


 TWO-YEAR EXPLORATION WORK PROGRAM


CANATUAN GOLD PROJECT





SIOCON, ZAMBOANGA DEL NORTE, MINDANAO





ACTIVITY MONTHS BUDGET





1 2 3 I 4 5 I 6 7 8 | 9 10 11 12 13 14 15 16 171 18 19 20 21 22 23 24 (P 000)





MOBILIZATION I [ P 100.00








SAMP CONSTRUCTION 200.00





REPAIR/MAINTENANCE OF ROADWAYS, BRIDGES 150.00








GEOLOGICAL MAPPING J_L !. 1.188.90


I !


SURVEY WORKS I ! 230.00





GEOCHEMICAL SURVEY 75.00








GEOPHYSICAL SURVEY FT 500.00





TEST PITTING 140.00


I i





SAMPLING /.TEST.PIT. LOGGING 1 | 445.85





DIAMOND DRILLING 1.875.00


I I


SAMPLE PREP / ASSAYING 315.30








METALLURGICAL TESTING 150.00





REPORT 'WRITING / DATA EVALUATION I l 96.00








FEASIBILITY STUDY 250.00





EVALUATION 100.00








DTHERS 500.00





GRAND TOTAL P 6,316.05













I. linviron.'iion tn I A u pool.


A. Review of Proposed Exploration Program (Two Years)





1 . Phase---1 ~ Geological Mapping along roads and


trails and Test Pitting (400 pits - 1 m ;< 1 rn x <3


rn, at 200 rn interval) within an area of 1,095 ha.


2. Pha.Sfi._2 - Continue Test Pitting ( ] [ 500 pits at 50


• m interval) with closer interval. within an area


ol 400 ha. (Ab% of exploration area)


Note: Other activities for Phases 1 and 2 include


traverse surveying, brush cutting and putting up


temporary camp to ace ornmodat e about ten (10)


people.


3. Phase_3 - Metallurgical Testing and Feasibility


Study


B. Project Outputs Due to Exploration Activities





1. Test_Elktlng ~ Each test pit that will be


excavated down to 6 in deep will loosen about 6 in'"*


of soil. This excavated soil, will be piled-up


■ just beside the te3t pit.


2. Geological Mapping, traverse survey and brush


cutting will not in anyway' involve significant/


substantial environmental adverse effect.


C. Waste Disposal


1. Excavated six (6) soil from test pit. This


amount of soil will be backfilled in each pit


after soil examination/!’ ield analysis and


sampling.


D. Environmental Protection and Rehabilitation Cost


1. Backfilling Activities





a. Phase 1 --- V 16,500.0' 0


h. Phase 2 - i 0


Total V 71,700.0 0 '





Prepared by:


(l





, W u-iiH


RACE D. IffiQlftKRO


Env jYonrntntai Manager


‘ CHQ y Bengue/t/Corporation








3.1fl .9l/i»haa6l-2/r*i8