Philippine Metals is acquiring 100 percent interest in this property in exchange for payments totalling US$637,500 (subject to a 2 percent NSR). To date, US$362,500 has been paid. The balance of US$275,000 is due over three years upon receipt of an exploration permit.
The mineralization outcrops near unconformable contacts between units and occupies a section of the stratigraphy known to host coal seams. Copper minerals of chalcocite, covellite, bornite and chalcopyrite occur in massive silicified pyritic volcanoclastic sediments with reported thicknesses of a few meters to over 20 meters. The potential for this project is compelling, given the large size of its copper soil anomaly and the highly mineralized massive outcrops, which are located along a strike length of 277 meters.
The Malitao Property features a prominent and extensive andesite and micro-diorite dyke swarm that cuts strongly and steeply through a thick sedimentary package. Intense areas of sulphide alteration and replacement, measuring tens of meters wide, occur at the contacts of these dykes within the sediments. Flat, columnar jointing and chilled margins within the dykes demonstrate that they are emplaced as magma into the sediments and are oriented almost vertically.
Philex Mining Corp. carried out exploration and diamond drilling on the Malitao Prospect in 1969 and reported intersections of massive sulfide between six and 20 meters. The work also identified an 800-meter by 400-meter copper soil anomaly, which remains untested. Previous sampling by Philex identified a continuous section of 93 meters grading 3.5 percent Cu and 0.566 g/T Au. Grab samples of outcropping sulphide beds taken by Philex contain up to 32.74 percent Cu, 8.84 percent Zn d 2.00 g/T Au.
Chip sample results from a property visit carried out by PMC technical personnel in 2007 yielded metal content ranging from 14.8 percent to 34 percent copper, 1.4 percent to 26.4 percent Zn, 1.18 to 1.57 g/T Au and 303 to 534 g/T Ag.
Malitao is situated within the Conner-Kabugao Mining District, with known porphyry copper-gold, replacement massive sulphide and epithermal-gold deposits distributed along the margins of a batholitic size Miocene Calc-Alkalic intrusive complex.
Within the vicinity of the Malitao outcrop two styles of outcrop were observed:
1. Stratabound highgrade copper sulphide mineralization with a height of 2m - 3m averaging 34% Cu, 3% Zn, 544g/t Ag & 1.2 g/t Au. It appears that this outcrop striking north with gentle east dips can be traced for over 200 meters. Likewise, based on descriptions obtained from Philex X-ray size drill core, the stratabound massive sulphide layers occurs in stack of at least three, separated by lower grade zones (< 3% Cu) of clay-pyrite altered fine-grained bedded clastic rocks.
2. About a 100-m wide by about 300-m long clay pyrite zone (Red colored cross-hatch area in the map in Figure 1 and shown in photos in figure 4), interpreted as the upper oxidized section of a potential an Iron-Cu-Au Skarn adjacent to a possible intrusive possibly hosting porphyry CU-Au mineralization.
Based upon district correlation with other mineralization occurrences, prospects and mines with the extreme northern Luzon district covering Kalinga-Apayao & Abra Provinces, the Malitao can be classified as an Iron-Copper-gold Skarn above a buried dioritic intrusive which , in turn, could host porphyry copper-gold mineralization.
On July 27, 2011, Philippine Metals Inc. announced that the Panel of Arbitrators of the regional Mines and Geosciences Bureau (the "Panel") had ruled in favor of the Company on the formal objection to the Company's Malitao Exploration Permit Application ("EPA") and that Pacific Metals Canada Philippines Inc. ("PMCPI"), a wholly-owned subsidiary of Philippine Metals, is the rightful title holder of the Malitao EPA under Philippine law and that the adverse claim was without merit.
The Company is actively working to address legal and political challenges facing the Malitao Project. A key part of its strategy is identifying a local or international partner better positioned to aggressively move the project forward.