A unique partnership will see Mindoro Resources form a co-operative with small-scale miners at the company’s Tapian San Francisco Project in Surigao del Norte, Northern Mindanao, the Philippines.

The co-operative will help regulate small-scale mining activities at the project and the program is being undertaken with the assistance of the Governor of the Surigao del Norte Province, the Mayor of Malimono Municipality and the Mines and Geosciences Bureau (MGB).

Artisanal or small-scale miners have been mining epithermal gold in the area for several decades, however high-grade copper mineralization has been discovered recently by artisanal miners on Mindoro's Masgad Prospect at Tapian San Francisco, which is thought to be related to a porphyry copper-gold system in the area.

Discovery of this mineralization, combined with high copper prices, has led to the new and relatively unique phenomenon of artisanal miners mining high-grade copper ore, which is transported to China for processing. Based on assay results provided by a local ore buyer, the artisanal miners are producing ore grading about 12% copper.

The Masgad discovery is a new occurrence, unrelated to the discovery of similar high-grade copper prospects reported from Mindoro's Agata Project, 34km to the south.

Artisanal miners typically lack the financial means and regulatory knowledge to apply for small-scale mining permits on their own. As a result, the small-scale activities are unauthorized and unregulated, often employing both socially and environmentally questionable practices. Mindoro recognizes the importance of balancing the needs of the miners to earn a living and at the same time ensuring that the mining activities are conducted in a socially and environmentally responsible manner. To achieve this objective Mindoro, the MGB and other local government units have undertaken the initiative of creating small-scale mining cooperatives to assist and regulate the small-scale mining activities.

Under the strategy, Mindoro's Philippine partners have applied for small-scale mining permits over those areas where the activities are taking place. The company has entered into an agreement with a qualified local small-scale mining contractor, who, upon issue of the appropriate permits, will become the authorized entity to undertake small-scale mining operations.

Mindoro and the mining contractor, with the assistance of local government units, have initiated the formation of a cooperative to regulate the small-scale mining activities, allowing the small-scale miners to operate in a legal and responsible manner.

www.mrlgold.com.ph