Metals Exploration`s management strategy and corporate plan is to:

Provide shareholders with high capital growth potential, delivered by developing a mineral project into a world class mine.

Undertake cost-effective and precise exploration on those targets most likely to deliver

Respect the indigenous culture of the exploration areas and to promote social and economic development for the traditional custodians.

Maintain a "queue" of projects ranging from grass-roots exploration to advanced resource projects requiring definitive feasibility studies.

Manage the inherent value of its portfolio by advancing short-term projects, joint venturing long-term projects requiring significant development capital, or by selling off those assets which deliver immediate value to the shareholders.

Use financial modelling to ensure that the targets being sought are of the style to deliver a low-cost position on the production-cost curve.

Conduct operations in a safe and environmentally responsible manner to industry best practise standards.

Offer employment opportunities to those who live in the exploration project areas.

Runruno

Runruno

Runruno is located 200 miles north of Manila in the mineral rich province of Nueva Viscaya. The area has been known to be abundant in gold and other precious metals since the early 1960s and has enjoyed a varied exploration history.

Metals Exploration first became involved with the Runruno deposit in 2005 and has undertaken extensive scientific and geological surveys since, with extremely encouraging results. In May 2010 the Company announced the results of the Runruno project Feasibility Study which confirmed the viability of the project, projecting average production of 96,700oz of gold per annum over a mine life of 10.4 years, at an average forecast operating cost $477/oz gold before any molybdenum credits. The capital cost is forecast to be US$149.3 million, with payback within 3.5 years at US$1,000/oz gold. The Runruno project will be an open pit operation, and will use the proven BIOX® and carbon in leach processes to recover gold and molybdenum.

Work to date has defined a resource of 1.42 million ounces (Moz) of gold, and 25.6 million pounds (Mlb) of molybdenum with 900,000oz gold reporting to the Measured and Indicated categories and 780,000oz gold within the Mining Proven & Probable Reserve category.

The deposit is located within a large alkaline volcanic complex, approximately 3.5 kilometres in diameter, of which less than 15% has been effectively explored presenting substantial exploration upside.

For a full resource estimate please see the Runruno Resource page.

Other Projects

Dupax

The Dupax EPA comprises two separate blocks – Dupax (5,042 hectares) and Solano (3,814 hectares) – totaling some 8,856 hectares in area.

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Sulong

The Sulong EPA covers some 6,963 hectares in area and is situated to the east of Solano, Nueva Vizcaya Province, approximately 220km north of Manila.

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Worldwide

On 7 March 2006 the Company announced that it had applied for an Exploration Permit (“EP”) for a property (“Worldwide”) located in the district of Northern Luzon, Philippines, adjoining the historic Santa Nino copper-gold producer.

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Waigeo

Historical drilling in the 1970`s identified nickel laterite deposits of some 35Mt at grades of 1.5% Ni, 0.13% Co and 37% Fe within the area. The Company believes there is potential to develop a sustainable short and medium term nickel operation in Waigeo. 

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Holding as at 17^th August 2011
This information was last updated on: 18^th August 2011

Reviewed 03.10.11