The Manat project is located in the Masara mineral district of East Mindanao approximately 60km northeast of the port city of Davao. This district hosts a number of significant epithermal gold and porphyry copper-gold deposits, including the King King porphyry copper-gold deposit (398Mt @ 0.34% Cu and 0.52g/t Au). Indophil, through a joint venture arrangement with Aldevinco, a member of the Alcantara Group of Companies, has a residual 25% equity position in the project. The JV area comprises an approved Mineral Production Sharing Agreement (MPSA) of 15.5km² and an MPSA application of approximately 30km².

Exploration by Indophil, which was manager of the project until mid 2008 while it earned its interest,  identified three sub-parallel NW trending mineralised structures within the Project area ( Figure 2 ). The focus of exploration activity has been the central Magas Prospect where a mineralised epithermal vein system containing gold, silver, lead and zinc has been discovered.

A delineation and resource definition diamond drilling program comprising 30 diamond drillholes has been completed over a strike length of 1.2km of the Magas vein system ( Figure 3 ). An inferred resource estimated to JORC reporting guidelines stands at 2.7Mt at 2.8g/t Au, 26g/t Ag, 0.85% Pb and 1.58% Zn. This resource contains an in-situ 245,000ozs gold, 2.28Mozs silver, 22,500t lead and 42,000t zinc. A longitudinal section of the main vein ( Figure 4 ) shows two distinct shoots at the 20 gram.metres gold contour with the mineralised system open at depth and along strike to the north.  Preliminary metallurgical studies conducted on the Magas mineralisation indicates that it is essentially refractory with maximum recoveries of 70% achieved by cyanidation after an ultra-fine grind.

Exploration by Indophil also discovered a new porphyry copper-gold system to the immediate south of the Magas with drillhole MNTD14 which intersected 227m at 0.19% Cu and 0.30g/t Au. This and the additional prospects associated with the other two vein trends remain to be tested.

Indophil is currently discussing a farm out option with interested parties.