Oriental Petroleum and Minerals Corp. has confirmed nickel mineralization at its Libjo Nickel Laterite Project in Dinagat Islands, but said it is too early to determine whether the property can support a commercially viable mine.
In a technical report submitted to the Philippine Stock Exchange, the company said exploration had confirmed nickel-bearing laterite horizons across the 357.72-hectare property.
However, the report said the available exploration data were insufficient to estimate a mineral resource or determine the project's economic potential.
"There is no Mineral Resource to declare. The available data collected from Test-pit and Auger Drilling are insufficient to estimate mineral resource," the report said.
It also said there was "no exploration target to declare" because the existing drilling was inadequate to establish the property's tonnage and grade.
Oriental Petroleum was granted an exploration permit for the Libjo property in June 2024, with fieldwork beginning three months later.
The company collected 371 soil samples through geological mapping, test pits and auger drilling. The technical report said the exploration was conducted under a quality assurance program that produced reliable exploration data.
Testing showed average nickel grades of 0.50 percent in the upper limonite layer and 0.64 percent in the deeper saprolite layer.
The limonite and saprolite zones had average thicknesses of about 2 meters and 1.6 meters, respectively.
The company, however, cautioned against treating these results as evidence of a mineable deposit.
Many of the test pits and auger holes did not reach bedrock, leaving the true thickness and continuity of the mineralized zones uncertain.
The report recommended deeper rotary drilling, geodetic surveys and bulk density measurements before an estimate of mineral resources can be prepared.
"The Exploration Results should be regarded as an initial geological assessment of the property rather than evidence of an economically viable Mineral Resource," it said.
The Libjo project represents Oriental Petroleum's entry into nickel exploration in Dinagat Islands, one of the country's established laterite nickel districts.
Several mining properties in the surrounding area are already operating or have reported mineral resources, providing a prospective setting for further exploration.
Oriental Petroleum is primarily an oil and gas exploration company.
The Gokongwei and Coyiuto groups jointly control about 38.5 percent of the company. The JG Summit group holds 20.01 percent, while the Coyiuto group owns 18.51 percent.
The company said further exploration will be needed to establish the extent, grade and continuity of the nickel mineralization before the project's potential can be properly assessed.
