The Rapu-rapu Pollymetallic Project on Rapu-rapu Island in Albay poured its first gold on Wednesday, the company reported to the Mines and Geosciences Bureau.

The project, a joint venture of Lafayette Phil. Inc. with Lafayette NL of Australia, LG Collins and KORES of South Korea, becomes the first foreign-funded mine to be commissioned and have successfully gone into production in the Philippines in 30 years.

Other than gold, the project will also produce copper, silver and zinc.

Following the start up of the gold plant, La Fayette will commission the base metals plant in the fourth quarter of 2005 for the production of copper (with contained gold and silver) and zinc concentrates.

Rapu-rapu was expected to yield an average of 50,000 ounces of gold per year, 600,000 ounces of silver, 10,000 metric tonnes of copper concentrate and 14,000 MT of zinc concentrate. The resource in the mine was expected to last for at least seven years.

Half of the copper and zinc concentrate output of the project would be exported to South Korea. The other half would be sold to Philippine Associated Smelting and Refining Corp., the country's sole copper smelter and refiner.

Rapu-rapu is one of 23 priority mineral development projects identified by the government. The project was estimated to have a potential investment of US$42 million and potential gross sales of US$41 million annually.

July 20, 2005