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Company Statement
Toledo Mining Corporation plc is a mining company focused on nickel exploration and development in the Philippines. It has significant interests in three nickel laterite projects (Berong, Celestial and Ulugan) on Palawan in the Philippines.
Toledo Mining is listed on the AIM market of the London Stock Exchange.
Toledo is headquartered in London, with a second office in Manila where the General Manager of the Philippines is based and from where the projects on the island of Palawan are run.
Key Highlights 2009
- Ore production of 563,280 wet metric tonnes for the financial year
- Record monthly ore production of 127,849 wet metric tonnes (August 2008)
- Shipments of 418,350 wet metric tonnes
- Suspension of mining operations in October 2008 in response to the global financial crisis
- Ipilan JORC resource of 30 million tonnes grading 1.36% nickel
- Positive concept study for heap leaching at Berong prepared by European Nickel
- Memorandum of Understanding with Jiangxi Rare Earth and Rare Metals
- Tungsten Group for possible leach process plants at Ipilan and Berong
- Berong sales revenue, US$14.65 million (2008: US$23.35 million)
- Consolidated Profit before Tax £1,919,887 (2008: £1,206,702)
- Earnings per Share including associates 5.55p (2008: 3.43p)
- Placement of 12 million shares at a price of 28 pence to raise £3,248,222 net of expenses
- Additional supportive corporate investors enter the share register
Current Operations
Berong Nickel
Toledo Mining is focused solely on nickel laterite deposits in the Philippines.
Initial activities are centred on developing a direct-shipping laterite operation at Berong, whereby the ore will be sold FOB Philippines to nickel smelters.
The company has an economic 56.1% interest in the Berong, Moorson, Long Point and Ulugan deposits (referred to collectively as the Berong Deposit), all on Palawan Island, which have a combined pre-JORC resource of approximately 275 million tonnes of nickel ore at around 1.3% nickel (ni). The company also has interests in an additional laterite property, Celestial which has pre-JORC resource of approximately 75 million tonnes at around 1.25% nickel.
Both Berong and Celestial deposits total a combined, pre-JORC resource of some 350mt@1.3%Ni.
Current status
A long term laterite ore Supply Agreement has been signed with Queensland Nickel Pty Ltd, a BHP Billiton group company. The laterite ore will initially be shipped from the Company’s operations at Berong to QNPL’s Yabulu Refinery in North Queensland, Australia. The Supply Agreement is for a 5 year term with an option to extend for a further 5 years at the election of QNPL. Project activities completed include the coastal stockpile drying pad area and associated siltation management system, the assay laboratory and the potable water systems. Designs and costings were completed for the permanent offices, accommodation village, crusher and batch plant facilities, workshop facilities, Dangla Road, Berong airstrip upgrade, and the pedestrian bridge over the Berong River. The design of the trestle conveyor and alternative ship loading options continue.
Permit approvals continue to delay the start of construction of the Dangla Road, a dedicated haul road without community development along its route.
As previously reported, the Company entered into a Mineral Production Sharing Agreement [MPSA No.235-2007-IVB] with the Philippine Government covering the 288 hectare Berong Nickel Project. The current Direct Shipping Operation falls under the MPSA and the associated Special Mines Permit. The Feasibility Study Report for the life-of-mine operations is currently being prepared for submission to the Department of Environment and Natural Resources to enable the “Declaration of Mining Feasibility” for this MPSA area.
A JORC compliant mineral resource was prepared by Snowdens Mining Industry Consultants and released to the market. The measured, indicated and inferred resource within the 288 ha MPSA area is estimated at 9.92 million tonnes at an average grade of 1.55% Ni using a 1% nickel cut-off grade. Drilling within the MPSA area is ongoing and is aimed at delineating additional tonnage.
The assessment of processing options to add value to the large lateritic resources at Berong continued. SNC Lavalin is undertaking this work, and samples of the various ore types have been selected and are ready for shipment to the testing laboratories. Processing options being considered are high pressure acid leaching, atmospheric leaching, heap leaching, ferro-nickel smelting and the Chinese nickel pig iron process.
Celestial/Ipilan
The Company’s Celestial nickel laterite property, also on Palawan Island, covers an area of 2,835 hectares, and has substantial permitting already in place. The Company will earn a 52% economic interest in this project, with the right to increase this to 71.2% through future payments.
Acid leach metallurgical test work has been conducted on the property and a pre-feasibility study has demonstrated economic viability, subject to more detailed work being carried out for a bankable feasibility study. The property has been well explored, yielding a current resource estimate of 77 million tonnes of 1.25% nickel and 0.10% cobalt within an area of 800 hectares.
Current status
Field exploration and evaluation activities continued, with excellent progress being made. Drilling continues to be used where the ore body is too deep for hand pitting. To date, approximately 300 hectares of mineralisation has been drilled or test pitted on a grid spacing of 25meters x 25 meters to an average thickness of between 15 meters to 20 meters. This would indicate more than 60 million tonnes of laterite nickel mineralisation within a small footprint. This is more than sufficient for an initial direct shipping operation to be followed by value added processing on site. A JORC compliant ore resource estimate is expected to be released before year end.
Project activities are being directed towards those activities which would allow the early development of the project into a Direct Shipping Operation. These activities include detailed topographic surveys together with test pit and drill hole locations, seeking expressions of interest from engineering contractors for the scoping and costing of the infrastructure facilities, initiating the tree inventory count for the project areas likely to be mined, scoping of the marine bathymetric surveys, and preliminary ore body modelling and mine designs. Planning is being undertaken on an initial 1.5 million wet metric tons per year operation.
Metallurgical testing of the ore types is currently being undertaken in conjunction with the testing programme being performed on the Berong ore types. The ore types are expected to show characteristics suitable for acid leaching or the Chinese blast furnace process for producing nickel pig iron.
Ulugan Nickel
The Company owns a 58% economic interest in the Ulugan Nickel project. This deposit is also located on the island of Palawan and consists of two Exploration Permit applications covering more than 16,000 hectares. Pending granting of the Exploration Permits little work has been undertaken on this property.
Together, Berong, Celestial/Ipilan and Ulugan represent world class projects with a combined pre-JORC1 resource of some 350 million tonnes at 1.3% Ni and an estimated total nickel content of more than 4.5 million tonnes. The deposits offer the potential to recover both limonite and saprolite ore.
Geographical Spread
Philippines
Board of Directors and Key Management
| Reginald Eccles | Non-Exec Director/Acting Chairman |
| Felix Pole | Non-Exec Director |
| Simon Purkiss | Non-Exec Director |
| Constantine Thanassoulas | Non-Exec Director |
| Jason Cheng | Non-exec Director |
Company AddressGround FloorFinova House11 Albemarle Street
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Additional Address/Key ContactPhilippines |
CapitalTotal shares in issue; 41,538,333 |
Annual General Meeting8th October 2009 | Year EndMarch |
Nominated BrokersAmbrian Partners Limited | Nominated AdvisorsAmbrian Partners Limited |
Major Shareholders
| Daintree Resources Limited | 24.01% |
| European Nickel PLC | 13.70% |
| Fevamotinico SARL | 9.77% |
| TD Waterhouse Securities | 5.65% |
| TPG-Axon Capital Management | 4.81% |
| Selftrade | 3.95% |
| Barclays Stockbrokers Limited | 3.16% |
| Ramos A Esq. | 3.13% |
| Baker Steel Capital Managers LLP | 3.06% |
| Edwards G Esq. | 3.01% |
Related News
13/01/10 - The Best Laid Plans Of Toledo Mining Are Back On Track, After A Mixed 200921/07/09 - Toledo Mining Brings Some Influential Friends Onto Its Share Register, As It Presses On With Plans To Leach Nickel Ore In The Philippines
11/12/08 - With Chinese Backing, George Bujtor Gets Toledo Mining Into Position For A Long Haul Through Serious Weakness In Nickel
01/10/08 - Toledo Mining Is Well Positioned To Ride Out The Storms In The Market, Even With Nickel At Under $16,000 Per Tonne
08/05/08 - Toledo Mining Starts To Get Serious About Downstream Nickel Production
Most Recent Statement
17/02/10 - Further re Berong Update11/11/09 - Update on Berong Nickel Operation
08/10/09 - Toledo Mining Corporation PLC Result of AGM
15/09/09 - Grant of Options
01/09/09 - Toledo Mining Full Results 2009
20/08/09 - Statement regarding Berong Nickel Operations Update