REG - Metals Exploration - Runruno Operational Update

Metals ExplorationAnnouncement

28/08/2025 07:00

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RNS Number : 9379W  Metals Exploration PLC  28 August 2025

28 August 2025

 

METALS EXPLORATION PLC

 

Runruno Operational Update

 

Metals Exploration plc (AIM: MTL) ("Metals Exploration", the "Company" or the
"Group"), a gold production, exploration, and development company with assets
in the Philippines and Nicaragua, wishes to advise the market of an
approximate six week deferral of gold production that has taken place at
Runruno.

 

The deferral of gold production is to allow new process monitoring and
production procedures to be implemented following a cyanide contamination
impacting the BIOX circuit. However, the Company can confirm that, despite the
temporary pause in production, as at the date of this announcement, no
amendment to the Company's FY2025 production forecast range is required.

 

The Company paused processing of ore while it determined the cause of a
contamination impacting the BIOX circuit, which was initially determined to
have originated from cyanide contaminated water upstream from Runruno due to
illegal mining activity. The contamination required the BIOX circuit to be
drained, cleaned and new bacteria inoculated, however, the new bacteria have
been unable to recover fully due to ongoing contamination issues.

 

The Company has recently discovered that a second source of contamination can
be attributed to ore feed from Stage 5-6 small scale mining tunnels, where
recent illegal mining activity has resulted in residual cyanide contamination
of ore delivered to the run-of-mine ("ROM") pad. Unfortunately, the BIOX
bacteria has been unable to cope with the levels of cyanide in the BIOX feed.
Accordingly, new and additional monitoring protocols will be introduced to
minimise the impact of this contamination, both now and in the future, which
are expected to resolve the issue.

 

The Company believes the use of cyanide to process ore within the illegal
miners' tunnels is a recent development following the removal of all illegal
ball mills from the area last year. Accordingly, the Company believes the
cyanide contamination will be limited given very few tunnels have been
reopened by the illegal miners due to the Company's ongoing policing and
security efforts.

 

An extensive network of illegal miners' tunnels are being discovered as mining
moves through Stages 5-6 at Runruno, and although the extent of illegal mining
is much larger than previously thought, the Company believes the residual
cyanide issue is isolated and can be carefully managed for the remainder of
mining in Stages 5-6. Testing of ROM pad ore is currently underway to
ringfence the remaining contaminated ore to prevent a repeat of damage to the
BIOX circuit bacteria.

 

The source of water contamination from illegal mining upstream from Runruno,
which introduced cyanide into the water feed into the BIOX circuit, has also
been resolved and water feed will be regularly tested to ensure it is not
repeated.

 

During the contamination period, only minimal ore has been fed into the plant.
As a result, the current issue will not result in any material loss of overall
gold production, rather it has resulted in a delay in gold production. The
deferred ounces not produced over this period will be produced at a later
point in the remaining life of the Runruno mine.

 

The Company estimates that production levels will return to planned levels
within the next two weeks.

 

Despite this set back, as at the date of this announcement, no amendment to
the Company's FY2025 production forecast is required, albeit the expectation
is that the final outcome will be towards the lower end of the forecast range
of 70,000 - 75,000 ounces.

 

Darren Bowden, CEO of Metals Exploration, commented: "We are disappointed that
we have had to temporarily defer ore processing operations at Runruno due to
the contamination impacting the BIOX circuit. However, we are pleased to have
found the causes as to why this contamination has taken place, and are
implementing additional monitoring processes to minimise the impact at
present, as well as in the future.

 

I would like to thank our operational team for their diligent work in
identifying, and uncovering the sources of, the issue. Production is expected
to be back up and running within the next two weeks, and importantly, we do
not envisage the need to amend our production forecast range for 2025. Whilst
it is now our expectation that we will now achieve the lower end of the
forecast range, we are confident that this event will not have any long-term
effects on our operations at Runruno."

 

 

 

END

 

For further information, please contact or visit:

 

 Metals Exploration PLC
 Via BlytheRay                                   +44 (0) 207 138 3204

 Nominated & Financial Adviser:                  STRAND HANSON LIMITED
 James Spinney, James Dance, Rob Patrick         +44 (0) 207 409 3494
 Joint Broker:                                   HANNAM & PARTNERS
 Matt Hasson, Franck Nganou                      +44 (0) 207 907 8500

 Joint Broker                                    PANMURE LIBERUM

 Scott Mathieson, Amrit Mahbubani, Zak Wadud     +44 (0) 20 3100 2000

 Public Relations:                               BLYTHERAY
 Megan Ray, Said Izagaren                        +44 (0) 207 138 3204

metalsexploration@blytheray.com

 

Web:                      www.metalsexploration.com
(http://www.metalsexploration.com)

X:                            @MTLexploration
(https://twitter.com/MTLexploration)

LinkedIn:               Metals Exploration
(https://www.linkedin.com/company/metals-exploration-plc)

 

Forward Looking Statements

Certain statements relating to the estimated or expected future production,
operating results, cash flows and costs and financial condition of Metals
Explorations, planned work at the Company's projects and the expected results
of such work contained herein are forward-looking statementswhich are based on
current expectations, estimates and projections about the potential returns of
the Group, industry and markets in which the Group operates in, the Directors'
beliefs and assumptions made by the Directors. Forward-looking statements are
statements that are not historical facts and are generally, but not always,
identified by words such as the following: "expects", "plans", "anticipates",
"forecasts", "believes", "intends", "estimates", "projects", "assumes",
"potential" or variations of such words and similar expressions.
Forward-looking statements also include reference to events or conditions that
will, would, may, could or should occur. Information concerning exploration
results and mineral reserve and resource estimates may also be deemed to be
forward-looking statements, as it constitutes a prediction of what might be
found to be present when and if a project is actually developed.

 

These statements are not guarantees of future performance or the ability to
identify and consummate investments and involve certain risks, uncertainties
and assumptions that are difficult to predict, qualify or quantify. Among the
factors that could cause actual results or projections to differ materially
include, without limitation: uncertainties related to raising sufficient
financing to fund the planned work in a timely manner and on acceptable terms;
changes in planned work resulting from logistical, technical or other factors;
the possibility that results of work will not fulfil projections/expectations
and realize the perceived potential of the Company's projects; uncertainties
involved in the interpretation of drilling results and other tests and the
estimation of gold reserves and resources; risk of accidents, equipment
breakdowns and labour disputes or other unanticipated difficulties or
interruptions; the possibility of environmental issues at the Company's
projects; the possibility of cost overruns or unanticipated expenses in work
programs; the need to obtain permits and comply with environmental laws and
regulations and other government requirements; fluctuations in the price of
gold and other risks and uncertainties.

 

The Company expressly disclaims any obligation or undertaking to disseminate
any updates or revisions to any forward looking statements contained herein to
reflect any change in the Group's expectations with regard thereto or any
change in events, conditions or circumstances on which any such statements are
based unless required to do so by applicable law or the AIM Rules.

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