NATELI’ MINING ENGINEERING SERVICES®

NON-VAT Reg. TIN: 334-776-628-000

Office Address: Barreda St. Mangagoy, Bislig City,Surigao Del Sur
Email Address: [email protected]
Contact Nos. : (086) 311-1401 ; 0994-826-6398

Mining and Geological Report

Project Title:

Mining and Geological Verification for Probable Coal Reserve

Location:

Araibo, Pantukan, Davao de Oro

Proponent:

De Oro Small-Scale Mining Cooperative

EXPA Area Coverage:

Total EXPA area: 540 hectares

Date of Verification:

September 11, 2024

Verification Team:

 Lead Mining Engineer: Engr. Ernie L. Indiola

 Mining Engineer: Engr. Jervene D. Adanza
 Mining Engineer: Engr. Freddie M. Laorden

Executive Summary

The geological verification was conducted to assess the presence of a probable coal reserve within
the EXPA area of the De Oro Small-Scale Coal Mining Cooperative, located in Araibo, Pantukan,
Davao de Oro. The investigation covered multiple observation points, and findings suggest that the
materials initially suspected to be coal were, in fact, fault gouge caused by tectonic activity, with no
indication of sedimentary depositions typical of coal-bearing formations.

NATELI’ MINING ENGINEERING SERVICES®

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 NATELI’ MINING ENGINEERING SERVICES®
NON-VAT Reg. TIN: 334-776-628-000
Office Address: Barreda St. Mangagoy, Bislig City,Surigao Del Sur
Email Address: [email protected]
Contact Nos. : (086) 311-1401 ; 0994-826-6398

Geological Setting

The area surveyed falls within a region predominantly composed of an ophiolitic sequence and
metavolcanic rocks. These formations are characteristic of the Cretaceous-Paleogene basement
rocks, particularly consisting of basalt, gabbro, diabase, andesite, and porphyry diorite.

Lithology:

 Basalt: Primary rock observed, with dark coloration often mistaken for coal.
 Gabbro: Medium to coarse-grained, observed in outcrops.
 Diabase: Fine-grained, present within the ophiolitic complex.
 Andesite: Occasional occurrences in the rock sequence.
 Porphyry Diorite: Noted in deeper intrusive settings.

Field Observations

Observation Points and Findings:

Observation Points 1 and 2:

These locations were initially suspected by the De Oro Small-Scale Mining Cooperative to
contain coal deposits. However, the verification team identified that the black materials
present at these points were not coal but fault gouge. The gouge resulted from dip-slip
faults:

o Fault at Point 1: Strike of S 30° W, dipping 30° SE.

o Fault at Point 2: Strike of S 12° W, dipping 21° SE.

The dark coloration of the materials led to misinterpretation as coal. There were no signs of
sedimentary layers that could suggest the presence of coal deposits.

Observation Point 3:
A fault was observed with a strike of N 34° W and a dip of 50° SW. The fault gouge here
contained a stratified black layer, initially suspected to be coal. Upon inspection, this black
material was determined to be fault gouge, originating from the incohesive blocks of faulted
basalt. The basalt’s dark coloration again led to confusion, but no evidence of coal was found.

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 NATELI’ MINING ENGINEERING SERVICES®
NON-VAT Reg. TIN: 334-776-628-000
Office Address: Barreda St. Mangagoy, Bislig City,Surigao Del Sur
Email Address: [email protected]
Contact Nos. : (086) 311-1401 ; 0994-826-6398

Up Thrown Block Down Thrown Block

Image 1: Observation Point No. 1 (7°14’19.65”N, 126°08’37.87”E)

Down Thrown Block

Up Thrown Block

Image 2: Observation Point No. 2 (7°14’19.92”N, 126°08’37.41”E)

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 NATELI’ MINING ENGINEERING SERVICES®
NON-VAT Reg. TIN: 334-776-628-000
Office Address: Barreda St. Mangagoy, Bislig City,Surigao Del Sur
Email Address: [email protected]
Contact Nos. : (086) 311-1401 ; 0994-826-6398

Image 3: Observation Point No. 3 (7°14’20.84”N, 126°08’36.99”E)

Angular unconformity

Apex
Massive
Basalt

Fractured
Basalt

Image 4: Observation Point No. 4 (7°14’10.15”N, 126°08’06.06”E)

Outside the EXPA Area

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 NATELI’ MINING ENGINEERING SERVICES®
NON-VAT Reg. TIN: 334-776-628-000
Office Address: Barreda St. Mangagoy, Bislig City,Surigao Del Sur
Email Address: [email protected]
Contact Nos. : (086) 311-1401 ; 0994-826-6398

Observation Point 4:
At this location, a large fold caused by an upward intrusion was exposed along a road cut.
The folded layers included dark to black rocks that were initially suspected to be coal. Upon
closer inspection, the team identified these as basalt rocks, not coal. The fold is an anticline,
with the limb of the fold striking due North and dipping 46° East. This type of structure further
supported the conclusion that no sedimentary coal deposits were present in the area.

Image 5: Rock Samples from the wall rock of Observation Points No. 1 and 2. (Basalt Rock;
fine-grained extrusive rock.

NATELI’ MINING ENGINEERING SERVICES®

NATELI MES - OSF-0003-2022
 NATELI’ MINING ENGINEERING SERVICES®
NON-VAT Reg. TIN: 334-776-628-000
Office Address: Barreda St. Mangagoy, Bislig City,Surigao Del Sur
Email Address: [email protected]
Contact Nos. : (086) 311-1401 ; 0994-826-6398

Image 6: An actual image of Coal Sample (Bislig Coal)

Structural Geology

Faults:
Multiple dip-slip faults were identified throughout the area, contributing to the formation of
fault gouge and the displacement of basaltic rocks. The fault orientations suggest regional
tectonic activity that has affected the structural integrity of the rock formations.

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NATELI MES - OSF-0003-2022
 NATELI’ MINING ENGINEERING SERVICES®
NON-VAT Reg. TIN: 334-776-628-000
Office Address: Barreda St. Mangagoy, Bislig City,Surigao Del Sur
Email Address: [email protected]
Contact Nos. : (086) 311-1401 ; 0994-826-6398

Folds:
The anticline fold observed at Observation Point 4 is a significant feature in the geological
landscape, formed due to upward pressure from intrusive magmatic activity. This fold does
not suggest the presence of coal-forming environments, as it is dominated by basaltic
material.

Conclusion and Recommendations

The geological verification revealed that the materials identified as potential coal at several
observation points were not coal but fault gouge resulting from tectonic activity. The observed
geological formations—composed of basalt, gabbro, and other ophiolitic rocks—do not show any
signs of sedimentary deposition that would indicate the presence of coal.

There is no evidence to support the existence of a coal reserve in the surveyed area within the
1-kilometer radius. The dark materials mistaken for coal are fault gouge, likely caused by the
displacement of basaltic rock along dip-slip faults.

Given the absence of coal-bearing sedimentary layers, it is recommended that further exploration for
coal reserves be conducted in other areas that show more promising geological settings, particularly
those associated with sedimentary basins rather than ophiolitic and volcanic sequences.

Prepared by:

Engr. Ernie L. Indiola RSEM Engr. Jervene D. Adanza RSEM

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Proprietor/Senior Mining Engineer Project Engineer
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