MANILA, Philippines - Philex Mining Corporation reported that its Padcal mine delivered ore worth P805 million in January this year, an 8% improvement over the P745 million worth of ore mined in the same month of 2009.

In a disclosure to the Philippine Stock Exchange, Philex president Jose Ernesto Villaluna Jr. said Philex delivered 684,459 dry metric tons of ore resulting in 4,705 DMT of concentrates.

The concentrates contained 55.17 grams per DMT of gold, 24.96% copper and 57.09 grams per DMT of silver or about 8,354 ounces of gold, 2.59 million pounds of copper, and 8,636 ounces of silver.

In January last year, Philex produced 752,261 DMT of ore resulting in 6,122 DMT of copper concentrates averaging 61.6 grams per DMT of gold, 23.81% copper, and 60.03 grams per DMT of silver or about 12,134 ounces of gold, 3.21 million pounds of copper, and 11,817 ounces of silver.

Villaluna said the value of the January 2010 production was based on provisional metal prices of $1,081 per ounce of gold, $3.11 per pound of copper and $16.29 per ounce of silver at the exchange rate of P46.743 to the dollar.

Of the total P805 million, P422 million came from gold, P376 million from copper, and P7 million from silver.

Philex earlier announced that the projected operating life of its Padcal mine has been extended by another 3 years until 2017, based on the reserves of the mine as of June 30, 2009.

According to the company, the Padcal mine currently has reserves of 74 million tons, at assumed metal prices of $800 per ounce of gold and $2.00 per pound of copper and at copper equivalent cut-off of 0.36%.

Philex is also ramping up exploration activities in its Bayugo prospect in Tubod, Surigao del Norte after initial mineral resource estimate showed 85.7 million DMT of indicated resource and 32.7 million DMT of inferred resource.

The Bayugo mineral deposit is a porphyry-hosted copper gold occurrence in an island-arc setting, located within areas covered by MPSA 149 and EP13 and about one kilometer northwest of the Boyongan copper gold deposit.

Boyongan and Bayugo are within the Silangan property in which Philex has a direct 50% interest. The other 50% is held by Canadian unit Philex Gold Inc.