Blackstone Minerals Agrees to Joint Acquisition of New Drill Rig for Mankayan Copper-Gold Project
Blackstone Minerals (ASX: BSX) and KCA Site Services have agreed to the joint purchase of a new high-performance diamond drill rig to help advance exploration at the Mankayan copper-gold porphyry project in the Philippines.
The partners will engage in a hire-to-buy arrangement for the state-of-the-art rig, which will enable drill hole depths of up to 1,800 metres (more than 300m deeper than at present), depths Blackstone considers essential for unlocking the full potential of the world-class project.
Blackstone expects to mobilise the rig on site in the coming weeks in preparation for the next stage of exploration.
Ta Khoa Model
The joint acquisition mirrors Blackstone’s cost-effective model at the Ta Khoa nickel project in Vietnam, where it achieved an “all-in” diamond drilling cost of US$50 per metre by purchasing drill rigs and employing local workers.
Managing director Scott Williamson believes the same approach at Mankayan could help Blackstone substantially lower its drilling and related services costs (such as geophysics work) and improve efficiency.
“We are excited to kick off this next chapter at Mankayan with a smart and scalable solution that aligns with our capital efficiency strategy,” he said.
“Our prior success in owning and operating rigs has shown us the value this model can unlock and partnering with KCA allows us to move quickly and cost-effectively, putting more metres into the ground and delivering more value to our shareholders.”
Tailored Solutions
KCA managing director Adam Wilson said the company was keen to support Blackstone’s exploration at Mankayan.
“Our team is focused on delivering tailored, fit-for-purpose solutions that empower clients like Blackstone to move fast, operate efficiently and extract maximum value from their drilling programs,” he said.
“We are proud to partner on this exciting copper-gold project and look forward to supporting the company’s success.”
Share Purchase Plan
Blackstone has received $217,500 in applications for a share purchase plan from sophisticated and professional investors, in addition to a separate $22.6 million share placement.
The company will issue approximately 2.78 million shares under the plan priced at $0.078 each, representing a 9% discount to the five-day volume weighted average market price.
Blackstone will apply the funds raised to exploration activities at Mankayan including a 50,000m drilling program, geophysical surveys, and metallurgical and geotechnical work.