Australia Digs Up Copper-gold System In Philippines

Australian explorer Red 5 announced that at its Siana gold project in the Philippines a major porphyry copper-gold system will be implemented.
Yesterday the firm reported about a 380 metre intersection in the Madja area averaging 0,2% copper, 0,14 g/t gold and 0,92 g/t silver.

Seven intersections between 41 metres and 361 metres exceeded a nominal 0,2% copper cut-off, aggregating 162 metres at a weighted average grade of 0,32% copper, 0,26 g/t gold and 1,5 g/t silver. The hole terminated in mineralization, at the practical limit of the rig capacity.

The Perth-based explorer is sole funding the current diamond-drilling programme at the Madja prospect, located seven kilometres south of its 1,1-million ounce high-grade Siana gold deposit. The prospect was identified last year as one of two very significant copper-gold and copper targets in the southern portion of the Siana property, located in close proximity to Anglo American?s multi-million ounce Boyongan Copper-Gold deposit.

Red 5?s MD, Greg Edwards, said the grades encountered in the hole were considered very encouraging and confirmed the presence of a significant copper porphyry system.

Porphyry copper-gold deposits provide over 50% of the world?s copper, typically from large bulk tonnage deposits (100-million tons to several-billion tons) at average grades of 0,5% copper, 0,38 g/t gold and 1,7 g/t silver.

They have long mine lives when economic and are therefore generally sought after as priority targets by the major copper producers.