SMEDG - PREVIOUS MEETING

DATE: Tuesday 18 July 1995 - 5.30 pm VENUE: 2nd Floor, Rugby Club, Crane Place, Sydney SPEAKERS: John Haggman-Vice President, Exploration for Arimco Mining Corp. Chris Stephenson - General Manager, Corporate Development, Climax Mining. TOPIC: "The Discovery of the Dinkidi Au-Cu Porphyry and how the Climax Group Changed the Direction of Exploration in the Philippines" In 1988, three Australian geologists hiked into the remote Sierra Madre Mountains in northeast Luzon, Philippines. Crossing a heavily timbered ridge, the mountains opened up to a broad valley surrounded by a distinct ridge creating a wide, circular rim - an apparent collapsed caldera. Looking to the western side of the valley, an interesting feature was observed. A steep -sided razorback ridge was seen to protrude out from the valley floor, creating an extremely unusual topographical anomaly. It also glowed and sparkled with white alteration and copper mineralisation. Didipio had been discovered. Since that day, Climax Mining has turned the Dinkidi ridge into a resource of over 3 million ounces of gold and over 1 billion pounds of copper. But while pioneering in the mountains of northern Luzon, the Company was also pioneering a new form of mining agreement with the Philippine Government in Manila - the Financial and Technical Assistance Agreement. This was the first foreign investment agreement of its kind in the Philippines. Success came at both ends to Climax Mining. The company had its FTAA signed by the office of President Ramos in June last year, and a feasibility study on Dinkidi is due for completion within three months. This is a story of endurance, and how an aggressive Australian exploration company conquered the bush, the Government and the steamy bars and nightclubs of Manila.