Bezant Resources plc (LON:BZT) has thrown its weight fully behind its exploration and alluvial activity in Colombia and written off its interest in the Mankayan project in the Philippines.
The impairment charge of £8.3mln came after Bezant decided the uncertain mining environment in the Philippines meant a sale of Mankayan was unlikely.
It meant an after–tax loss of £9.1mln for the year to June.
Chairman Edward Nealon, a South African platinum mining veteran, said he was optimistic over the operations in Colombia.
Bezant appointed local firm Exumax as its contractor in September and Nealon said all machinery, earth-moving equipment, processing plant and work crews are now on site and work on the first exploration test pits has commenced at licence FKJ-083 in the Choco region.
“We identified that there are promising near surface alluvial platinum projects in the famous Choco district, a region that had previously been the world's major source of platinum prior to the discovery of the Bushveld Complex in South Africa.
“The mining conditions in Colombia are very simple compared to the Bushveld Complex.
The political and investment situation in Colombia has also improved dramatically, he said.