Royalco has advanced its main gold and copper exploration interests in the Philippines.

Additional geochemical surveys and impressive administrative clearances should result in three of the company"s four major tenement areas achieving drill ready status in the March quarter and the fourth area, Gambang, early the  June quarter.

Pao is Royalco's first drilling priority. It is about 7km south west of Oceana Gold's Dinkidi project which is under construction.

Targets at Pao include epithermal gold vein structures as well as a significant copper porphyry prospect.

The first diamond rig is expected to start drilling by early June, once a substantial exploration camp has been constructed with roadworks to the site now complete. This will be quickly followed by a second rig, as the programme is sizeable, comprising 6000 metres in the first stage.

Royalco executive chairman Peter Topham says: "We are looking for elephants and the safari has just begun."

Pao, has now received Indigenous Peoples support with final approval for National Commission on Indigenous Peoples, (NCIP), certification due this month.

Geochemical sampling has also been conducted at Surigao and Malangza which will see these tenements drill ready in the next few months. Farm-in obligations at Samay were completed during the quarter.

Royalco's cash position remains strong with $9.4 million cash on deposit. There is also substantial royalty income set to accrue starting in the fourth quarter.