Philex Gold Inc.: Formal Agreement Finalized with FEC to Explore Lascogon and Danao Properties.TORONTO -- Philex Gold Inc. (TSX VENTURE:PGI) is pleased to announce that its 100% owned Philippine subsidiary Philex Gold Philippines, Inc. (PGPI PGPI Pretty Good Privacy for the Internet ) has finalized agreements for the Joint Venture of its Lascogon and Danao properties with FEC Resources (FEC). The property, MPSA MPSA Midwest Political Science Association MPSA Microsoft Personal Security Advisor MPSA Military Postal Service Agency MPSA Mineral Production Sharing Agreement MPSA Mississippi Private School Association MPSA Mobile Payment Services Association 148 which comprises 2,306 hectares in the province of Surigao del Norte Surigao del Norte is a province of the Philippines located in the Caraga region in Mindanao. Its capital is Surigao City. The province consists of two major islands—Siargao Island, and Bucas Grande Island—in the Philippine Sea, and a small region at the northernmost , Philippines, will be transferred into a joint venture company which will be owned by PGPI and FEC. Under the agreement, FEC will earn a 40% interest in the properties by paying PGPI US $250,000 and advancing by way of loan US $1.0 million to the joint venture company for exploration. FEC may earn an additional 20% by funding the development and construction of the mine, up to US $10 million. Drilling has commenced at Lascogon, with four diamond drill holes totalling 534 metres completed in late 2005. Hole LSD-1 intersected a 13-metre thick limonitic soil horizon containing jasperoid fragments averaging 3.0 g/t gold, while hole LSD-2 cut a 16 metre fractured jasperoid horizon assaying 0.8 g/t. Hole LSD-3 was collared in a 6-metre thick limonitic soil horizon containing jasperoid fragments assaying 1.54 g/t gold and hole LSD-4 cut a 10-metre thick fractured zone believed to be a feeder for the mineralizing fluids and containing fragments of decalcified limestone with pyrite and arsenopyrite disseminations. Cuprite cu·prite n. A natural red secondary ore of copper, essentially Cu2O, that forms as a result of weathering. Noun 1. disseminations and fracture fillings associated with the underlying basalts suggest possible copper-gold mineralization Mineralization The process by which the body uses minerals to build bone structure. Mentioned in: Rickets mineralization, n the bioprecipitation of an inorganic substance. at depth. Two rigs have been moved to Danao, where drilling continues. It is expected that initial drilling under the joint venture will focus on the 100 hectare Lascogon prospect, with a ten month exploration and delineation work programme commencing in early January 2005. The Company announced in September the signing of a Heads of Agreement Heads of Agreement A non-binding document outlining the main issues relevant to a tentative partnership agreement. Notes: It is the draft used by lawyers when drawing up the contract. It serves as a guideline for both parties before any documents are legalized. for MPSA 148 with Transpacific Mining Limited, a company affiliated with FEC. In discussions following this announcement, the Transpacific group indicated the desire to use a Philippine company and FEC to execute the transaction. Philex Gold Inc. is a Canadian mineral exploration company active in the Philippines. Its interests include the North Project on Mindanao Island, a joint venture with Anglo American plc Anglo American plc (LSE: AAL, JSE: ANGLO) is a world-wide group of companies, originally founded in South Africa as a mining enterprise but now extending into other areas. Natural resources remains the focus of its operations. , as well as the former Bulawan gold mine and a number of gold prospects. The North Project includes the Boyongan copper-gold porphyry deposit discovered in 2000, the separate Bayugo copper-gold porphyry system identified in 2003, and other prospects. The TSX Venture Exchange TSX Venture Exchange Originally called the Canadian Venture Exchange (CDNX), this was a result of the merger of the Vancouver and Alberta stock exchanges. The goal of TSX Venture Exchange is to provide venture companies with effective access to capital while protecting investors. has not reviewed and does not accept resp onsibility for the adequacy or accuracy of this release. Philex Gold Inc. (TSX VENTURE:PGI) |
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