Australian company Capital Gold Pty Ltd has signed a deal yesterday with Dizon Copper Silver Mines Inc. for the recovery of 110 million tons of gold and copper in its tailings dam in San Marcelino, Zambales in the Philippines.
Gregorio C. Dizon, DCSM chairman said that the resource estimate was based on a study conducted in 2004 by Medusa Mining Ltd., Dizon’s former partner. Mr Dizon said that certainly there was a value if there was a process. Medusa was optimistic with it, but they wanted to be open with their options. The volume of tailings was big he added.
Dizon Copper Silver Mines Inc agreed that the Capital Gold estimate was not yet in compliance with the Philippine Mineral Reporting Code. Capital Gold will be investing an initial capital of $ 70 million into the project. Returns from the project would probably come through in 18 months from the start of work.
Soc Serrano, operations director of Dizon Mines, said several methods could be used to extract minerals from the tailings. These included gravity method and cynidation. These need to be done in an environmentally sound process as approved by the Department of Environment and Natural Resources said Mr Serrano.