Environment and Natural Resources Secretary Angelo T. Reyes on Tuesday approved the issuance of three exploration permits (EPs) to two firms – one for MRL Gold Phils. Inc. and two for Egerton Gold Phils. Inc. -- to explore gold, copper and other associated mineral deposits in Surigao del Norte and Batangas.

“I have approved the issuance of the EPs to MRL and Egerton after a thorough evaluation of their compliance to the requirements set under the Mining Act of 1995 and all existing rules and regulations. After hearing their project presentations last week, I am convinced that these exploration projects can spur development in the host areas once substantial mineral reserves are found,” Reyes said.

Reyes has required the project presentations to identify serious investors, weed out speculators, and assess the corporate social and environmental policies of the companies. He imposed tighter screening of mining investors amid the influx of various local and foreign companies interested in developing mineral resources in the country.

“The issuance of these new permits sends a clear signal to investors that the government’s revitalization program for mining is on track. We continue to address the concerns of various stakeholders, specifically with regards social equity and environmental protection. All these strengthen our firm belief that the mining sector remains a potent force for economic development,” Reyes emphasized.

On Tuesday, Reyes formally signed at the DENR central office in Quezon City the documents that paved the way for the two firms to begin their exploration activities.

With the Secretary’s approval, the Director of the DENR-Mines and Geosciences Bureau (MGB) can now issue the EPs to MRL and Egerton pursuant to Department Memorandum Order No. 2005-020 (Issuance of Exploration Permit Pursuant to Department Resources Administrative Order No. 2005-15).

The EP that will be issued to MRL covers 316 hectares in the Municipality of Malimono, Surigao del Norte while Egerton has a combined area of 6,980 hectares covered by two EP applications in the Municipalities of Lobo and San, Juan in Batangas province.

“We welcome the additional investments that will be made by these companies and we hope that in their search for our precious gold and copper resources, they will also put a premium on their environmental and social obligations especially to the communities, the local government and other stakeholders,” Reyes added.

MRL Gold is a corporation registered with the Securities and Exchange Commission, 99.9% of which is owned by Mindoro Resources Ltd., a Canadian company. Egerton, on the other hand, is a Filipino corporation with 40% Australian equity. In 2000, MRL signed an operating agreement with Egerton to also explore the latter’s mineral claims.

MRL Gold was formed in 1996 focusing on South East Asian countries like Myanmar, Indonesia, Malaysia and the Philippines. In recent years, the company decided to shift its entire focus on the Philippines because of the country’s great technical potential. The company’s portfolio includes 22 porphyry copper-gold prospects, five epithermal gold prospects and a nickel laterite prospect.

Egerton’s Australian partner Egerton Gold NL is also not new to the Philippines, having substantially explored the Lobo and Archangel Prospects in Lobo, Batangas, the Sto. Niño Prospect in Bohol and the Masgad Prospect in Surigao del Norte. From 1997-1998, Egerton Gold NL spent P 25,000,000 exploring the said copper-gold prospects.

MRL and Egerton have, in the last ten years, a total combined investment of over CDN $ 13,000,000 for the exploration projects in Batangas, Surigao and other provinces, including over $ 5,000,000 in just the last two years.

Egerton estimates that it will be spending about P 5,490,000 for its exploration work program (geologic mapping, diamond drilling, etc.) and P 546,000 for its environmental work program during the two-year period of its EPs in Batangas.

For the Malimono project, MRL has allotted P21.5 million for its exploration work program and P 2.15 for its environmental work program during the same period.

An exploration permit has a term of two years, renewable for like period but not exceeding eight years for metallic minerals. In case of a discovery of economic mine deposits, the permittee has the preferential right to file either for a 25-year mine contract, also known as Mineral Production Sharing Agreement, or Financial and Technical Assistance Agreement. (DENR Public Affairs Office)

October 10, 2006