INDOPHIL RESOURCES NL 
By indophil resources nl
acn 076 318 173
Quarterly Report
For the three months ending 31 December 2011
Indophil Resources NL Level 3, 411 Collins Street Melbourne VIC 3000 Australia Tel: +613 8620 5800Fax: +613 8620 5888
Indophil Services International Pty Ltd Level 3, 107 Aguirre Street Legaspi VillageMakati City 1229
The Philippines
Tel: +632 752 1440
Fax: +632 752 1146
www.indophil.com
• As we approach the 3 February 2012 General Meeting called to seek shareholder approval . . . • Indophil is confirming its long-term commitment to its major asset, the Tampakan Copper-Gold Project in the southern Philippines. • Shareholder endorsement will strengthen the existing strategic alliance to help guide the Tampakan Project through final approvals, to construction and first production. • And Tampakan gets a timely revised and upgraded mineral resource estimate.
During the December quarter, Indophil was very pleased to
report the strengthening of a strategic alliance in the
Philippines, designed to underpin the Company's position and
standing as it strives to see its key asset, a 37.5% interest
in the Tampakan Copper-Gold Project, come closer to final
approvals, construction and first production.
The quality of that alliance, and the funding support it
brings, is critical to realising that goal on behalf of all
Indophil shareholders.
At 10.30am on Friday 3 February 2012 in Melbourne, Indophil
will hold a General Meeting of Shareholders to seek approval
for issuing new shares that form Tranche 2 of the US$99.4
million placement announced on
12 December 2011, and in turn creation of a strengthened
strategic alliance with a member company of the Alsons Group.
On 24 January
The Board of Indophil urges shareholders to support the resolution being considered for this purpose. If you do not have the relevant papers or you have an enquiry, please phone
Computershare on 1300 850 505 (within Australia)
or +61 3 9415 4000 (outside Australia).
In a timely reinforcement as to the quality and size of the
Tampakan deposit, project manager Xstrata Copper has issued
an upgraded mineral resource estimate. It is described in
detail within this report and in the announcement to the ASX
of 27 January 2012, and further reinforces the Tampakan
Project as one of the largest, long-life and low-cost
undeveloped copper deposits in the world.
Richard Laufmann
CEO & MD
30 January 2012
'Strengthening this strategic alliance provides a firm foundation for Indophil to play a key role in securing the approvals necessary to proceed to construction of the world-class Tampakan copper and gold deposit.'
S&P INDICES
On 2 December 2011, it was announced that effective close of trade on 16 December 2011, Indophil Resources would be added to the S&P/ASX All Australian 200 Index. This is considered important because it encourages index-driven funds to include companies listed in such indices in their investment portfolios.
PLACEMENT AND ALLIANCE
On 12 December 2011, Indophil announced a US$99.4m share
placement linked to a strengthened strategic alliance in the
Philippines. The placement is being made to a member company
of the Alsons Group (a long-term Indophil shareholder) at a
premium to the Indophil share
price at the time of the announcement. Alsons' investment is
undertaken with financial support arranged by BDO Unibank,
the largest banking group in the Philippines in terms of
total resources, customer loans, total deposits and assets
under management.
The placement consists of two tranches, the first of
which
was finalised on 29 December 2011. The second is subject to
Foreign Investment Review Board (FIRB) approval in Australia
and to Indophil shareholder approval. FIRB approval was
received on 24 January 2012. The Indophil shareholder meeting
to seek approval of Tranche 2 is set for Friday
3 February 2012 in Melbourne.
As part of that placement, Alsons' representative,
Nicasio
Alcantara, joined the Indophil Board, effective 29
December
2011. Mr Alcantara is a highly-respected Philippine business
leader, with more than 40 years involvement in public and
private companies. Indophil warmly welcomes Mr Alcantara to
the Board. An additional Board appointment will be made
following successful completion of the Tranche 2
placement.
"Strengthening this strategic alliance provides a firm
foundation for Indophil to play a key role in securing the
approvals necessary to proceed to construction of the world-
class Tampakan copper and gold deposit," Indophil's CEO
Richard Laufmann said.
For further detail on the placement and creation of a
stronger alliance, refer to Indophil's ASX announcements of
12 and 29
December 2011. For more information about the shareholder
meeting, refer to the formal notices issued on 29
December.
To bolster senior management within Indophil as the
Company moves to take a more active role in managing
its international asset base, Neil Grimes joined Indophil
on
9 January 2012 as Executive General Manager Corporate
Development and Vice President International Business. For
more detail, refer to Indophil's ASX announcement of
29 December 2011.
TAMPAKAN APPROVALS
On 29 December 2011, Indophil informed the market that
Tampakan operating arm, Sagittarius Mines Inc (SMI), had
formally submitted the Final Mine Environmental Impact
Assessment to the Philippine Government and was awaiting
government granting of the related Environmental Compliance
Certificate (ECC) which is a critical step in the approvals
process.
On 13 January 2012, Indophil received advice from SMI
that the application for the Mine Environmental Compliance
Certificate from the Philippine Government's Environmental
Management Bureau had been returned, for resubmission once
the issue of an open pit mining ban by the Provincial
Government of South Cotabato is clarified and resolved. The
Tampakan deposit is located in South Cotabato.
Indophil supports the view that the Tampakan Mine
Environmental Impact Assessment (EIA) process was, by any
measure, robust and comprehensive. The Philippine Government
confirmed this during the EIA evaluation period
under the auspices of the government's Environmental
Impact
Assessment Review Committee. The EIA was completed to the
highest international standards which in many respects went
beyond legislative requirement in the Philippines.
Indophil has become more active in seeking local Philippine
shareholders, and together we have made recommendations to
improve the operating structure and effectiveness of SMI.
Indophil believes that this delay to project approval can be
overcome in the near term, with the support of our
Philippine
corporate shareholders, and a committed and aligned response
from Indophil and Xstrata Copper as Project Manager.
Indophil will also accelerate moves to seek listing on the
Philippine Stock Exchange. This will make Indophil the first
dual Australia-Philippines publicly-listed company, and
provide more direct involvement and access by Philippine
investors.
TAMPAKAN MINERAL RESOURCE UPGRADE
Late news: On 27 January 2012, Indophil received from Project
Manager Xstrata Copper a revised and upgraded mineral
resource estimate for the Tampakan Project.
In summary, the total estimated mineral resources (Measured,
Indicated and Inferred) for the Tampakan deposit has risen
from 2.49 billion tonnes at 0.6% copper at a 0.3% copper
cut-off grade to 2.94 billion tonnes at 0.51% copper at a
0.2% copper cut-off grade. This represents a tonnage increase
of 18% over the previously reported October 2009 total
resource estimates.
Xstrata Copper reports as a 'significant increase' the lift
in the more-confident Measured and Indicated category, up
from 1.69 billion tonnes (0.6% copper) to 2.27 billion tonnes
(0.55% copper). This represents a 34% increase in tonnage in
the Measured and Indicated category.
On the basis of the new information, estimated contained
copper at Tampakan in total resources has risen from 13.9
million tonnes (Mt) to 15.0Mt while estimated contained gold
has risen from 16.2 million ounces (Moz) to 17.9 Moz.
Raul R Roco, the Competent Person for the Tampakan Statement,
consented to the technical interpretation as provided in
Indophil's announcement to the ASX on 27
January 2012. For detailed information, refer to that ASX
announcement.
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www.indophil.com
Commenting on the new estimates, Indophil's CEO Richard
Laufmann said that even though the Tampakan deposit had
already been acknowledged as world-class, the new information
confirms its ranking as one of the most significant
undeveloped copper-gold deposits in the world.
"The enhanced level of confidence provided in this upgraded
resource estimate for Tampakan is encouraging. It is timely,
and serves to restate the significance of this deposit to
minerals development in the Philippines as the project
partners work towards securing the range of approvals
required to bring this important development to production,"
Mr Laufmann said.
TAMPAKAN STUDY PROGRAM
Xstrata Copper, on behalf of the operator SMI in which
Indophil holds its 37.5% Tampakan interest, continued to
manage activities at the Tampakan Project including
technical, environmental and social studies.
Work continued during the quarter on the new mineral resource
estimate for Tampakan. A summary of the new resource estimate
appears earlier in this report. It reflects refinements in
the deposit interpretation, additional geological modelling
and changes to key parameters in the estimation process such
as trend amendments to commodity prices.
No drilling was conducted during the reporting period and no
new assay results were received.
In October 2011, the Mine Environmental Impact Statement
(EIS) was finalised and SMI's application for the Mine
Environmental Compliance Certificate (ECC) was submitted to
the Philippine Government. The EIS identifies potential
environmental impacts of the proposed mining operation and
detail SMI's comprehensive mitigation strategies.
SMI received official notification from the Philippine
national government's Department of Environment and Natural
Resources (DENR) on 13 January 2012, denying its application
for the ECC without prejudice for resubmittal until issues
with the use of open-pit mining methods have been resolved
with the Provincial Government of South Cotabato (the
province in
which the Tampakan deposit is located). SMI formally appealed
this decision through a motion for reconsideration on
27 January 2012.
The current work program at Tampakan continues to focus on
completing the remaining environmental impact statements and
on reaching agreement with the community and governments
on a range of social impacts including the need to undertake
a substantial resettlement program.
TAMPAKAN AT A GLANCE
The Tampakan copper and gold deposit, discovered in 1992,
is one of the largest-known undeveloped copper-gold deposits
in the world. Tampakan is a 2.94 billion tonne mineral
resource when measured at a 0.2% copper cut-off grade. It is
estimated to contain 15 million tonnes of copper and almost
18 million ounces of gold, with potential for growth.
The Tampakan Mine Project Feasibility Study, submitted to the
Philippine Government, outlines a proposed mining operation
that involves:
• A 17 year life-of-mine with potential for extension;
• A start-up mining and milling capacity of 66 million tonnes per annum;
• Annual copper production of 450,000 tonnes and annual gold production of 435,000 ounces over the first five years of operation;
• An average life-of-mine copper production rate of
375,000 tonnes per year;
• An average life-of-mine gold production rate of
360,000 ounces per year; and
• A development cost of US$5.9 billion, including the provision of US$900 million for a power station.
FINANCIAL REPORTING AND CASH BALANCE
Indophil's cash balance at the end of the December 2011
quarter was $195.9 million (previously $177.5m). The cash
position strengthened as a result of receipt of funds
from
the Tranche 1 placement. The Company's main expenditure
commitment for the quarter - $10.9m - was to the Tampakan
Project.
EXPLORATION PROGRAM - THE PHILIPPINES
Indophil's Itogon Gold Project in Northern Luzon continued its drilling program, testing shallow positions as well as lateral and depth extensions of the Frog, Taka Barr, Sesame, Gilkison and Pine Fault vein systems. The following holes were completed in the period:
Hole ID Depth Target
ITDH-037 150m Taka Barr vein zone
ITDH-038 300m Sesame, Gilkison, Pine Fault veins ITDH-039
276.4m Sesame, Gilkison, Pine Fault veins ITDH-040 96.4m Frog
South vein
ITDH-041 To commence next quarter
ITDH-042 205.1m Frog South vein ITDH-043 217.2m Frog South
vein ITDH-044 154.4m Frog Central vein ITDH-045 141.9m Frog
Central vein
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www.indophil.com
Significant assays received during the quarter for holes
ITDH-035, 036 and 038 were:
Hole ID From (m) To (m) Interval (m) Au g/t Ag g/t Vein Structure Host Lithology ITDH035 192.55 195.60 3.05 0.68 <0.50 Frog? Gabbroic Diorite ITDH035 199.00 202.65 3.65 0.84 1.60 Frog? Gabbroic Diorite ITDH035 204.60 209.90 5.30 0.83 0.77 Frog? Andesite Dike ITDH035 212.40 215.60 3.20 1.70 0.38 Frog? Andesite Dike ITDH035 216.80 219.05 2.25 4.08 1.40 Frog ? Andesite Dike ITDH035 223.30 224.15 0.85 1.20 0.80 Frog? Mine Fill ITDH036 205.20 209.10 3.90 1.11 6.33 Taka Barr/14 vein Gabbroic Diorite ITDH036 216.00 218.00 2.00 0.95 0.71 Taka Barr/14 vein Gabbroic Diorite ITDH036 219.00 221.00 2.00 2.06 1.25 Taka Barr/14 vein Gabbroic Diorite ITDH036 222.00 224.00 2.00 20.30 2.90 Taka Barr/14 vein Gabbroic Diorite ITDH036 226.00 227.00 1.00 0.70 3.50 Taka Barr/14 vein Gabbroic Diorite ITDH038 60.20 60.80 0.60 1.37 0.80 231- Gilkison-Pine VZ Andesite Dike ITDH038 63.95 64.95 1.00 1.44 0.25 231- Gilkison-Pine VZ Andesite Dike ITDH038 73.90 75.60 1.70 4.88 4.15 231- Gilkison-Pine VZ Andesite Dike ITDH038 76.30 77.50 1.20 31.50 114.80 231- Gilkison-Pine VZ Andesite Dike ITDH038 95.40 95.60 0.20 6.25 5.50 231- Gilkison-Pine VZ Vein ITDH038 103.25 104.15 0.90 1.53 1.60 231- Gilkison-Pine VZ Gabbroic Diorite ITDH038 105.65 106.95 1.30 0.97 0.50 231- Gilkison-Pine VZ Gabbroic Diorite ITDH038 125.70 126.60 0.90 6.48 4.80 231- Gilkison-Pine VZ Gabbroic Diorite ITDH038 136.90 137.90 1.00 0.99 2.00 231- Gilkison-Pine VZ Gabbroic Diorite ITDH038 176.30 177.95 1.65 1.11 080 231- Gilkison-Pine VZ Gabbroic Diorite ITDH038 187.20 188.90 2.65 0.82 1.02 231- Gilkison-Pine VZ Gabbroic Diorite ITDH038 188.90 189.85 0.95 1.28 1.40 231- Gilkison-Pine VZ Gabbroic Diorite
Note: VZ = Vein Zone; Intersection selection COG 0.5g/t Au.
There were no significant assays from hole ITDH-037.
Under a Memorandum of Understanding with Anvil Mining,
Indophil has assumed Anvil's position in an exploration and
development agreement with Itogon Suyoc Resources Inc., which
covers the Itogon Project.
In Central Mindanao, Indophil has three tenement applications
in the Buda area as well as a joint venture with Freeport
McMoRan over two blocks of tenement applications at Mt
Kinabalin and Buda. The area is interpreted to be an
extension of the volcanic
arc segment which hosts the Tampakan Copper-Gold Project.
Work continues with the Philippine Government's Mines and
Geosciences Bureau and associated communities in finalising
the titles and gaining access to explore. In Eastern
Mindanao, Indophil holds a 25% interest in the Manat Gold
Project.
COMPETENT PERSON'S STATEMENT
The information in this section of the quarterly report that relates to the non-Tampakan Exploration Results is based on information compiled by Tony Robbins. Mr Robbins is a Member of the Australasian Institute of Mining and Metallurgy, and is an Executive Director of Indophil Resources NL. He has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration for the reporting of Exploration Results to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Robbins consents to the inclusion in this report of the matters based on his information in the form and context in which they appear.
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www.indophil.com |
CORPORATE INFORMATION
ASX listed code IRN
Total listed shares 1,062,104,527* Unlisted options
2,564,000
* Total listed shares include the 66,666,667 shares issued in
the
Tranche 1 placement made on 29 December 2011.
Share price trading range for the December 2011 quarter: High
46.5¢
Low 30¢ Current 36.5¢
All currencies in Australian dollars unless stated otherwise.
DIRECTORS
Non-Executive Chairman Brian Phillips
CEO and Managing Director Richard Laufmann
Executive Director Tony Robbins Non-Executive Director Kyle
Wightman Non-Executive Director David Carland Non-Executive
Director Nicasio Alcantara
Company Secretary and Chief Financial Officer
Anita Krauser
For further information, please contact: Gavan Collery
Manager Corporate Affairs
Indophil Resources NL
Email:
gavan.collery@indophil.com
Office: +61 (03) 8620 5803
Mobile: +61 (0) 419 372 210
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www.indophil.com
Appendix 5B Mining exploration entity quarterly report
