GOLD MINING. Abacore holds 102 gold mining claims in Agusan del Sur and Surigao del Sur and seven (7) coal blocks, each containing 1,000 hectares, located in Surigao del Sur. Abacore is in the process of completing the regulatory requirements to be able to proceed to full exploration and development of its gold mining properties.
COAL MINING. On January 10, 2007, Abacore signed a new Coal Operating Contract with the Department of Energy for the exploration and eventual production covering Coal Block Nos. L38-84 to –89 and L38-249 located in Tago and Marihatag, Surigao del Sur. In September 2008 Abacore executed a Heads of Agreement with Lodestar Investment Holdings Corporation (LIHC), a publicly listed holding company, for the eventual acquisition by LIHC of Abacore’ coal mining rights. The agreement is envisioned to result in the commercial development of the coal mining properties, in exchange for which Abacore will be receiving P225 million worth of LIHC shares, plus royalty payments once coal production commences. On July 17, 2009 Abacore received the Certificate of Non-Coverage from the Department of Environment and Natural Resources for the mining project. Abacore expects to obtain before December 2010 clearance from the Department of Energy to proceed to full scale development of its coal mine.
