ECR Minerals Plc has announced that it has decided not to operate the Danglay gold mine in Benguet, the Philippines. The company stated that it took this decision after careful deliberation, but the decision was necessary since it feels that the current government in the country is not lending adequate support to the mining industry.
In the last few years, ECR Minerals has earned an interest of 25 per cent in Danglay. It had an opportunity to earn another 25 per cent through Cordillera Tiger Gold Resources Inc. as long as it poured in more investments into the project. However, ECR Minerals decided against this move.
ECR Minerals stated that since the new government came to power on 30th June, the new administration has not been offering the support that the mining industry needs in the Philippines. Hence, ECR Minerals’ directors decided not to invest in Cordillera Tiger to earn another 25 per cent.
The mining contractor pointed out that in 2014 and 2015, it had performed a lot of explorations in the region as part of the Danglay project. These explorations revealed that the region has significant commercially viable mineral resources and warranted further exploration.
The results showed that Danglay can yield up to 60,500 ounces of gold from 1.2 million tonnes of excavated material. ECR Minerals added that further explorations could have increased the yield to 170,000 ounces of gold.
Cordillera Tiger is still waiting for the renewed permit for exploration. Once the permit is issued, the company will have to submit a number of documents related to work plans for exploration and preserving the environment to the country’s Mines and Geosciences Bureau along with its financial strength. The budget for the plans was approximately £270,000. However, since ECR Minerals is no longer the operator, it would not have financial responsibility to meet those obligations.