Rizal Resources | Comval Copper-Gold Project
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Comval Copper-Gold Project

On January 17, 2012, the Company completed the sale of 80% of the it’s interest in the
Comval Copper-Gold Project to Metallum Limited (“Metallum”) and retained 20%.

Pursuant to a shareholders’ agreement, Metallum has an obligation to fund AU $48,000,000 in exploration activity in Agusan.

The annual amounts in the table above are the expected schedule of expenditures; the cumulative amount is the funding requirement schedule. Should Metallum not meet the funding requirements, the agreement contains dilution provisions. Upon Metallum funding the project to AU $48,000,000, both the Company and Metallum will fund further development pro rata, based on their ownership interests. Metallum reported AU $7.4 million in exploration expenditures to December 31, 2014, an AU $7.6 million shortfall of the minimum exploration amount of AU $15 million required by the end of the third year (January 17, 2015). The Company is in discussions with Metallum to establish a long-term strategy for the Agusan project.

Exploration Expenditures Annual amount (AU $) Cumulative amount (AU $)
Year 1 5,000,000 nil
Year 2 5,000,000 nil
Year 3 5,000,000 15,000,000
Year 4 15,000,000 30,000,000
Year 5 18,000,000 48,000,000

The following tables provide a summary of mineral resource estimates for each of the Agusan project exploration prospects (INDEPENDENT TECHNICAL REPORT (NI 43-101) COMVAL COPPER – GOLD PROJECT MINERAL RESOURCE ESTIMATES FOR THE TAGPURA, MAANGOB & KALAMATAN PROSPECTS REPUBLIC OF THE PHILIPPINES Effective date 19th March 2013 Prepared For: CADAN RESOURCES CORPORATION © Cube Consulting Pty Ltd, Perth, Western Australia Cube Project: 2012_113). (see Technical Report on Comval Copper – Gold Project, March 2013).

Tagpura, Maangob and Kalamatan Inferred Mineral Resource Estimate > 0.3% Copper

Inferred Prospect Tonnes Cu (%) Au (ppm) Cu (t) Au (oz)
Maangob 5,022,000 0.41 0.06 20,500 9,500
Kalamatan 6,647,000 0.36 0.22 24,000 47,900
Tagpura West 15,709,000 0.34 0.08 54,000 38,800
Tagpura East 5,297,000 0.71 0.25 37,600 42,700
Grand Total 32,675,000 0.42 0.13 136,100 138,900

 

Tagpura, Maangob and Kalamatan Inferred Mineral Resource Estimate > 0.4% Copper

Inferred Prospect Tonnes Cu (%) Au (ppm) Cu (t) Au (oz)
Maangob 1,972,000 0.52 0.08 10,200 5,000
Kalamatan 1,173,000 0.43 0.23 5,100 8,600
Tagpura West 1,888,000 0.44 0.08 8,300 5,100
Tagpura East 3,954,000 0.84 0.30 33,300 38,200
Grand Total 8,987,000 0.63 0.02 56,900 56,900