Philsaga Mining Delays Tigerway Decline Completion to December 2025 Amid Operational Challenges

Background and Initial Plans

Philsaga Mining Corporation (PMC), 40% owned by Ten Sixty Four Limited (ASX:X64), has provided a detailed update on the progress of the Tigerway decline at the Co-O Mine in the Philippines. Originally approved in early 2020, the Tigerway decline was designed to extend below Level 14 to a depth of 730 meters, with an estimated cost of US$54 million and a targeted completion date of December 2024.

The decline is a critical infrastructure project intended to enhance the efficiency of ore extraction from deeper levels of the mine, underpinning future production growth. However, the onset of the COVID-19 pandemic delayed the appointment of an underground mining contractor until April 2021, setting back initial development timelines.

Operational Challenges and Delays

Development of the Tigerway decline faced further hurdles in 2024. Production from the Co-O Mine began to decline in the March and June quarters due to the increasing distance ore had to be transported from upper levels, compounded by a temporary stoppage of upper mine levels following a 7.2 magnitude earthquake in December 2023. This seismic event raised concerns about ground stability, necessitating a thorough safety inspection before operations could resume.

Additional operational difficulties included ventilation problems and inefficient ore transportation logistics, which prompted PMC to temporarily halt Tigerway decline development approximately 620 meters below surface after completing 4,336 meters of decline development. The company shifted focus to constructing horizontal drives from operating levels to the Tigerway to alleviate these issues, improve ventilation, and create a more stable working environment.

Progress and Financials

As of December 31, 2024, the Tigerway decline had advanced 4,217 meters with an additional 1,338 meters of accessory drives completed, including stockpiles, ventilation drives, and level access routes. The expenditure on the main access decline reached US$43.4 million, remaining within the original budget of US$54 million. An additional US$6.6 million was invested in equipment, ventilation, and integration linkage drives.

Notably, ore haulage through the Tigerway began in late 2024, with ore from Levels 11 and 12 passing through the decline stockpile, marking an important milestone in integrating the new infrastructure with ongoing mining operations.

Looking Ahead

PMC plans to complete level backbone development at Level 460, including an ore pass to Level 495, by late June 2025. Following this, the company intends to resume the remaining 482 meters of Tigerway decline development, aiming for full completion in the December 2025 quarter. This phased approach reflects a strategic pivot to address operational bottlenecks and ensure safer, more efficient mining conditions.

The company has committed to keeping the market informed on progress, signaling transparency amid these challenges. The Tigerway decline remains a cornerstone project for the Co-O Mine’s long-term viability and production growth, making its timely completion critical for stakeholders.