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UPDATE
JVA - JMI Sand & Gravel Corporation

In December 2018, CCIL Mining & Mineral Resources Corp entered into a Joint Venture Agreement (JVA) with JMI Sand & Gravel and Trucking Services Corp for the extraction and exportation of marine and construction sand. This project is in connection with the mitigating measures to address the flooding of Simuay River in Sultan Kudarat, Maguindanao.

 

As a backgrounder, JMI Sand and Gravel & Trucking Corporation (JMI) has been doing business which involved the extraction of sand & gravel since 2012. JMI was granted thirteen (13) Environmental Compliance Certificates (ECC’s) and Industrial Sand and Gravel (ISAG) Permits to quarry sand and gravel along the Simuay River supplying domestic market in western Mindanao.

Early this year, the LGU of the Municipality of Sultan Kudarat, the Honorable Mayor Shameem Mastura and CCIL Mining & Mineral Resources Corp (CCIL) initiated and signed a MOA on a flood mitigating project called- “Dredging & Re-alignment of the Simuay River”. CCIL was granted Resolution 19-04 interposing no objection to the project and Resolution 19-05 authorizing Hon. Mayor Mastura to enter into a MOA with CCIL. Barangay Sambulawan also issued CCIL Resolution 02-2019[4] also interposing no objection to the project. CCIL as the “Grantor” of the project , appointed JMI as the “Implementor”[5] of the flood mitigating project. JMI was appointed as implementor of the project since we have all of the local permits and licenses and the most qualified entity to implement the project. The company is also registered with the Regional Board of Investments (RBOI)[6], wherein the said project has been published as the First Investment registered under the Bangsamoro Organic Law (BOL).

 

NATURE & OBJECTIVE OF THE PROJECT:

Simuay River and Coastline Dredging Project area is located in the Municipality of Sultan Kudarat, Province of Maguindanao. The project area covers the coast along the mouth of the Simuay River that extends to about 4 kilometers of coastline. It also covers the Simuay River stretching from its river mouth to about 20 kilometers upstream. The primary purpose of this project, which consists of dredging and opening the deposited coarse sand at the Simuay river mouth and deepening, aligning the Simuay river in order to address and lessen the periodic flooding and bank erosion within the area. A Cutter Suction Dredger (CSD) will be used to implement the project.

 

METHODS & MEANS OF THE PROJECT:

The Cutter Suction Dredger (CSD) is equipped with a rotating cutter head, for cutting possible hard soils and sands. The soil and sand is sucked up by means of dredge pumps, and discharged through a series of screens and pipes then transferred onto the transport vessel. A CSD is a stationary dredger and remains on the same location secured by anchors and winches.

The SIMUAY DREDGING PROJECT will be implemented into TWO (2) Phases:

PHASE I-  Coastal Marine Sand. The project area is located at the coast along the mouth of the Simuay River and extends to about 900 meters towards the open sea. Cutter Suction Dredgers (CSD) type dredgers will be used to extract the sand deposited and unclog the river mouth. Dredging operations in Phase I will be 2 shifts at 8-hour shifts per day and 6 days per week. Each CSD will have a projected capacity of about 4,000 to 5,000 cubic meters per hour.

PHASE II-  River Sand- Submersible sand pumps set in pontoons will be use to dredge and extract sand and gravel along the Simuay River. Several units or sets of different prototypes of submersible sand pumps are setup along the strategic locations about 4 kms apart along Simuay River where its location will not cause any negative impact on any existing structures. It will dredge and deepen the river bed to accommodate more water outflow and prevent or lessen flooding in the area. The pumps will have a capacity to dredge 800-1,000 tons per hour.

Panoramic view of Simuay River showing the vast construction sand deposit  currently being quarried for local market. 

Panoramic view coastline near the mouth of the Simuay River showing the vast marine sand deposit  that seems to choke the river mouth causing flooding.

Chromite Trading-
Libjo, dinagat

Within the several small scale permits of local miners, chromite-rich laterite zones were also identified. Exposed ultramafic rocks underneath the laterite veneer hosts massive to disseminated chromite deposits.

Two abandoned chromite small-scale mining areas were investigated, the Catmonan and East Maraquing where remnants of chromite ore fragments littered around the vicinities have been observed. Based on float, chromite occurs in the form of massive, disseminated and banded localized in the serpentinized dunitic country rock intercalated with the harzburgite. According to previous workers who made a detailed investigation of the mining area, the massive chromite occur as lenses or pod-shaped ore body ranging in thickness from 0.5 to 1.0 meter. Majority of the chromite ore bodies generally strike parallel to the regional structural trend of the area. In 1990 a total of 5,000.0 metric tons of lumpy ores were extracted in these mining areas.    

Photographs showing a stockpile of chromite sand mined-extracted by small scale miners and delivered to the chromite stockyard and buying station of CCIL  in Libjo, Dinagat Island (R).

Photographs showing the delivery of chromite sand mined-extracted by small scale miners to the chromite stockyard and buying station of CCIL  in Libjo, Dinagat Island.

Small Scale & Minahang Bayan Operations

CCIL Mining and Mineral Resources Corporation (CCILMMRC) signed an agreement with small scale miners and minahang bayan memebers for Chromite supply.

From Surigao City to San Jose Municipality, Dinagat Island is being serviced by motorized Banca’s and inter-island ship (RO-RO) in more or less two hours during fair weather conditions in the area. San Jose to highway junction at Brgy Gen. Aguinaldo, a distance of 44 kilometers can be reached in hour drive by all types of vehicles. Thence from this point, another 10 kilometer all-weather road leads to the chromite and nickel area.

The conservative estimated resource of the nickel laterite within the minahang bayan license area is about 47.3 million tonnes with a n average depth of 7.0 meters only. Manual auger drilling conducted by the members of the minahang bayan and small scale miners along the southeast section of the area indicated a depth down to 8-9 meters only and still open ended. 

 

The crest and slopes of the ridges are mantled with residual nickeliferous lateritic soil derived from extensive weathering of serpentinized harzburgite and dunite. Associated with these laterite deposits are minor amount of disseminated chromite and magnetite grains. Concentration of black sand along the channels of the drainage systems dissecting the area believed to be the result of weathering process of the underlying rocks
 

Photograph showing the thick nickle laterite deposit within the minahang bayan area.

Within the small scale and minahang bayan area, chromite-rich laterite zones were also identified. Exposed ultramafic rocks underneath the laterite veneer hosts massive to disseminated chromite deposits.

Two abandoned chromite small-scale mining areas were investigated, the Catmonan and East Maraquing where remnants of chromite ore fragments littered around the vicinities have been observed. Based on float, chromite occurs in the form of massive, disseminated and banded localized in the serpentinized dunitic country rock intercalated with the harzburgite. According to previous workers who made a detailed investigation of the mining area, the massive chromite occur as lenses or pod-shaped ore body ranging in thickness from 0.5 to 1.0 meter. Majority of the chromite ore bodies generally strike parallel to the regional structural trend of the area. In 1990 a total of 5,000.0 metric tons of lumpy ores were extracted in these mining areas.    

Dredging Project- Cagayan River

BRIEF BACKGROUND

In 2011, CCIL Mining and Mineral Resources Corporation (CCIL) focused mainly in prospecting for iron deposits and prospects (lumpy iron ore and magnetite sand) a diversion from previous precious and base metals (gold, & copper, lead, zinc) exploration. Exploration for iron deposits were conducted in the Provinces of Cagayan and Isabela, wherein known magnetite-rich river sand, beaches and lumpy skarn-type iron deposits occur.

In 2012, a publication ‘The Mineral Resources at the Lower Cagayan River’ by the Mines and Geo-sciences Bureau (MGB) Regional Office 2 in Tuguegarao City evaluated the mineral potential of the lower Cagayan River. This river is the major drainage system of the Cagayan Valley comprising the provinces of Viscaya, Quirino, Isabela, Cagayan and portion of the Cordillera Administrative Region. he report also revealed the various mineral resources found in the Lower Cagayan River namely; sand and gravel, magnetite sand, titanium, gold, copper, silver and pyrite.

In 2012, CCILMMRC applied for an Industrial Sand and Gravel (ISAG) permit with the Mines and Geo-sciences Bureau Regional Office 2, covering about 17 hectares within the Cagayan River in Barangay Jurisdiction, Municipality of Lal-lo in Cagayan. The permit was approved on the 21st of March, 2013. Consequently, the company also submitted a Mineral Processing Permit (MPP) application with the MGB and was approved on the 21st of March, 2013. The MPP covers about 5 hectares situated in Lallo, Cagayan. 

In April 3, 2013, a Memorandum of Agreement (MOA) between CCILMMRC and the Governor of Cagayan Province was signed for a Dredging Permit over fifteen (15) kilometers stretch along the lower Cagayan River from the Municipalities of Aparri, Calamaniugan to Lallo, Cagayan province totaling about 1,200 hectares. The agreement shall be for a period of 25 years.

 

The Dredging Permit issued via Memorandum of Agreement (MOA) with the Provincial Government. In the case of Cagayan River, the Cagayan Riverine Zone Development Framework Plan for 2012-2035, formulated and adapted by the Regional Development Council of Region 02, one of the strategies for the mitigation of the destructive effect of flooding and reduction of its extent in terms of area and time is the dredging of the heavily silted portions of the Cagayan River and removal of sediments allowing faster flow especially during the rainy seasons. The dredging of the Cagayan River will entail costs beyond the financial capability of the Provincial Government of Cagayan, thus compelled to seek for the assistance of the private sector for the rehabilitation and dredging of Cagayan River at no cost or minimal cost to the Province.

 

CCIL’s dredging permit area is part of MGB’s study area along the Cagayan River. The permit is about 20 kilometers long and widths ranging from 800 to 1600 meters wide or roughly 1,200 hectares. An inferred resource of 210.6 M tons with an average magnetic fraction of 10% Fe based on the MGB studies and a depth of -9.0 meters is projected within the dredging permit. 

WORK PROGRAM

Exploration works over the dredging permit area will include geophysical surveys and a drilling program. Thirty-seven (37) east-west trending seismic lines/runs are proposed over the entire dredging permit area with 400 meters line spacing. Additional in-fill lines may be required during the progress of the geophysical survey down to 200 meters spacing. The geophysical survey will produce seismic profiles indicating the depth of the river sand deposit and possible magnetite-rich horizons. These seismic profiles will serve as aide in the design of the drilling program. Bathymetric measurements will also be conducted simultaneous with the seismic surveys. 

Man-portable drill rig mounted on a boat or a barge to be utilized in the drilling program. The drill rig can penetrate down to 20 meters from the river bed. Three (3) meter-lengths NQ rods and NW casings with NQ core barrel with core basket will be used to collect the sand sample. Initially during the early stages of the drilling, samples are collected on 1-meters depths until representative intervals are arrived at by statistical analysis.

Pre-determined drill sites along the east-west seismic lines with 200-meter grid spacing are proposed for the drilling/sampling program. In locating the position of the pre-determined drill positions, a Geographical Positioning System (GPS) will be used. 
 

A section of the Cagayan River with sand bar deposits indicating the need for dredging the river to prevent flooding and bank erosion.

Google image showing the flooded Municipality of Aparri in Cagayan Province. 

Photograph showing the on going erosion of the banks of the Cagayan River located within the dredging permit in the Municipality of Aparri, Cagayan Province. Dredging this colossal river will significantly reduce flooding and lessen bank erosion in the region. 

Nickel Laterite Project-
Surigao del Norte

The Cagdianao Nickel Project of Claver Mineral Development Corporation (CMDC) consisting of Parcel I and Parcel II containing an approximate area of 433.9798 hectares are within the approved Mineral Production Sharing Agreement (MPSA No. 103-98-XIII-SMR) and under the barangay jurisdiction of Cagdianao, Municipality of Claver, Province of Surigao Del Norte.

CCIL Mining and Mineral Resources Corporation (CCIL) signed a Joint Venture Agreement with CMDC as mining contractor in July 9, 2014  and was officially registered with the Mines and Geosciences Bureau (MGB) in September 11, 2014.

The MPSA area is chiefly underlain by ophiolitic rock suite consisting of highly folded, interlayered serpentinized hurzeburgite and dunite intruded by diabasic dike swarms.

 

The nickeliferous deposits in the area occur as residual product of extensive weathering of the serpentinite along the flat-lying to gentle sloping ridge which is the favorable site for the formation of this type of deposit. In the early stages of decomposition the serpentinized peridotite is broken down by groundwater entering along fractures and other planes of weakness. As decay continues magnesia and silica begin to dissolve, porosity develops and more water is brought into contact with rock surfaces. As decomposition progresses the serpentine soften to an earthy material and passes through a color of light green, to yellow-green to yellow-brown to brown lateritic soil mantle. In the area of West Kaba, garnierite was observed in some of the boulders of serpentinized host rocks filling the tension fracture systems

The result of drilling in Tandawa West conducted by the previous workers has an average depth of 5.04 meters of the limonite zone containing an average 45.78 % Fe and 1.05 % Ni while the saprolite layer with an average thickness of 5.60 meters contains 0.86 % Ni and 8.64 % Fe.

Fort the latest and updated remaining resources of nickel laterite deposit within the MPSA license area that includes the Tandawa West and East, West Kaba and Kaba Point totals to about 15.7 M tons. 

Panoramic view of the Claver Mineral Development Corporation (CMDC-1) minesite as represented by its President Ireneo Cezar located in Bgry. Cagdianao, Claver, Surigao del Norte. The photograph shows the "hazardous laterite stockpiles" supposedly to be removed as ordered by the Dept of Environmental & Natural Resources and the Mines and Geosciences Bureau (DENR-MGB). These stockpiles were remnants of the previous mining operator.

Photograph showing the causeway of CMDC located along the northeast section of the MPSA. 

Photograph showing stockpile area of the CMDC nickel laterite mine in Cagdianao, Surigao del Norte.