Bezant Resources PLC (AIM:BZT) said authorities in the Philippines have renewed the mineral production sharing agreement for the Mankayan Project for a further 25 years, calling it a "catalyst" for the development of the copper-gold property.
Crescent Mining is developing the porphyry-hosted deposit. It has begun the feasibility study process and has engaged contractors to complete the scoping phase. The next step is a drill campaign that will assist with the geotechnical studies.
Bezant, which has an interest in Mankayan via a 27.5% holding in Australian company IDM, said it was "very pleased" the production sharing agreement had been renewed.
Chairman Colin Bird pointed out it occurred after the lifting of a Philippines moratorium on new mining projects using open-pit methods of extracting mineral resources.
“We are very confident that management in the Philippines supported by IDM has the experience and expertise to take the project forward through the next stages of evaluation and development which will significantly enhance the value of the project,” Bird added.
Some 240km north of Manila, on Luzon Island, Mankayan is potentially a world-class asset.
A 2020 mineral resource statement prepared by Derisk Geomining Consultants estimated Mankayan was host to 2.8mln tonnes of copper, 9.6mln ounces of gold and 20mln ounces of silver.