Philex Gold Inc.
TSX VENTURE : PGI

Philex Gold Inc.

February 22, 2008 09:26 ET

Philex Gold Announces the Result of Anglo American's Pre-Feasibility Study of the Boyongan Project

TORONTO, ONTARIO--(Marketwire - Feb. 22, 2008) - Philex Gold, Inc. (TSX VENTURE:PGI) reports that in a joint venture meeting on February 20, 2008 with Philex Gold Philippines, Inc. (PGPI), PGI's wholly-owned subsidiary in the Philippines, Anglo American Exploration (Philippines), B.V. ("Anglo") presented the results of its pre-feasibility study of the Boyongan copper-gold porphyry deposit within the Mineral Production Sharing Agreement No. 149-99-XIII.

The principal conclusion of the pre-feasibility study is that a mining operation based on the currently defined resources, proposed mining and processing methods, assumed long-term copper and gold prices, and estimated capital and operating costs would not provide an acceptable rate of return on the project investment.

The Anglo study stated that out of the current resource inventory at Boyongan of some 218 million tonnes grading 0.51% copper and 0.77 grams per tonne gold (above a cut-off of 0.5% copper equivalent), only about 87 million tonnes at 0.68% copper and 1.06 grams per tonne gold can be publicly reported as a mineral resource by virtue of having "reasonable prospects of eventual economic extraction". (Please refer to Tables 1 and 2 below) The study cited as principal reasons the complexity of the oxide mineralogy, the high stripping ratio and the relatively small size (and hence short mine life) of the defined resource included in the mine plan.

Anglo claims that other mineralized centers have been discovered in the vicinity and are currently the subject of intensive exploration and delineation drilling program which Anglo wants to continue throughout 2008. Anglo also reported that there is geologic evidence for two additional porphyry copper-gold targets within two kilometers of Boyongan which Anglo plans to test over the next six months. These recent discoveries and their impact are not included in the current pre-feasibility study.

PGPI has differing points of view from Anglo on a number of assumptions and conclusions made in the pre-feasibility study. PGPI has thus asserted its position that given the results of the study, as provided for under the terms of the joint venture agreement, Anglo should return the Boyongan property to PGPI, which Anglo has contested. Both parties are continuing discussions to resolve this issue.



Table 1. Total Boyongan Resource, Base, greater than 0.5%Cu equivalent
at $1.15/lb Copper and $475/oz Gold

---------------------------------------------------------
Indicated 151 MMT 0.56% Cu 0.88 gr/t Au
---------------------------------------------------------
Inferred 66 0.40 0.49
---------------------------------------------------------
Total 218 0.51 0.77
---------------------------------------------------------


Table 2. Total Boyongan Resource, Anglo Model, greater than 0.5% Cu
Equivalent at $1.75/lb Cu and $700/oz Au

---------------------------------------------------------
Indicated 83 MMT 0.68% Cu 1.10 gr/t Au
---------------------------------------------------------
Inferred 4 0.53 0.28
---------------------------------------------------------
Total 87 0.68 1.06
---------------------------------------------------------

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information