The Isabela Nickel Project is a 2,391.80 hectare Nickeliferrous Laterite project located in the Municipality of Dinapigue in the Province of Isabela. (Figure 1). It is covered by Mineral Production Sharing Agreement (“MPSA”) No 258-2007-II granted on July 30, 2007, now in the name of Geogen Corporation (“Geogen”) , valid for 25 years from date of issuance and is renewable for another 25 years.
Geogen has signed an Operating Agreement with NiHao Mineral Resources International Inc. (“NiHao”) as the Operator of the Project Area. NiHao is entitled to receive 90% of operating revenue from Geogen Corporation from all sale of minerals from the Project Area. NiHao has the exclusive right to explore, develop, produce, and market any minerals from the Project Area.
The Project Area has been subjected to extensive drilling; 553 drill holes with an aggregate depth of 8,593 meters with grid spacing of up to 50m x 50m. The current extent of the drilling program has only covered only 1,436 hectares or 60% of the Project Area; and additional drilling may still potentially increase current resource estimates. Additional exploration work has identified the presence of chrome ores, and from initial findings warrant further exploration.
The Isabela Nickel Project has completed over 100,000 MT of exports of Direct Shipping Nickel Laterite Ore (“DSO”) in 2012, its first year of operations. NiHao projects that it will export One Million tons of ore in 2013 and ramp up production to Five Million tons within the next three years.