The Ungay-Malabago polymetallic deposit, currently owned by Lafayette Mining, is located on the eastern end of the island of Rapu-Rapu which lies east of the city of Legazpi in the Philippines. The island is sparsely populated and has largely been deforested by extensive logging some 30-40 years ago._x000D_
The deposit is situated on a plateau some 200 m asl and lies about one kilometre inland from the coast. The site topography is difficult with minimal flat areas for plant facilities. The region around Legazpi is subject to volcanic activity and though the island is not affected it is in a seismic zone._x000D_
There is no other mining or other industrial activity on the island, the local inhabitants being engaged in subsistence farming and fishing. These activities place a high level of responsibility on the mine operator with regard to the environment and the provision of employment and training to the local inhabitants._x000D_
Although no previous mining was carried out at Ungay, shallow pit mining for high-grade direct smeltable copper ore has occurred during the mid-1900s in an area, known as Hixbar, some 2 km west of the deposit This area is currently being explored by Lafayette.