Sagittarius Mines, Incorporated (SMI) is the Philippine-based affiliate that operates the Tampakan Project whose 40% controlling equity is a joint venture among Xstrata Copper (62.5%), Indophil Resources NL (34.2%) and the Alsons Corporation (3.3%). The 60% non-controlling equity shareholders of SMI are the Tampakan Mining Corporation and Southcot Mining Corporation (known as the Tampakan Group of Companies).

The Tampakan Project is located on the southern Philippine island of Mindanao, approximately 65 kilometers north of General Santos City. The project is situated on the boundaries of four provinces: South Cotabato, Sultan Kudarat, Davao del Sur, and Sarangani and represents one of the largest undeveloped copper-gold deposits in the South East Asia-Western Pacific region.

The new Measured, Indicated and Inferred Resource estimate totals 2.4 billion metric tons at a grade of 0.6% coper and 0.2 grams per ton gold and contains 13.5 million metric tons of copper and 15.8 million ounces of gold, using a 0.3% copper cut-off grade. The Mineral Resource also contains estimated average grades for molybdenum of 70 parts per million.

In December 2008, the Tampakan Project completed a 21-month extended pre-feasibility study. Upcoming project phases to be completed include a feasibility study, community consultation as part of the Environmental Impact Assessment (EIA) and provision of Free and Prior Informed Consent with our host indigenous communities.

The Project in 2008 had approximately 209 employees and 846 contractors, including 349 local community residents who worked on weekly rotational shifts to support the project’s exploratory drill rigs and other operational needs.