Canadian firm TVI Pacific, which holds 30.66% of the project, said it was working towards commercial production and was progressing with various development works, for which it has a $US28.5 million term loan facility.
"Work includes the award of a contract to undertake a design review and provide construction supervision services for the Balabag tailings storage facility," the company said, adding that GHD Pty Ltd had been awarded the contract.
"We are very excited to see the start of development activities at Balabag after many years of planning and preparation," said TVI chief executive Cliff James.
"This is the culmination of significant efforts to date and we expect that (partner) TVIRD will continue with its ongoing exploration works with the objective of expanding the initial resource and reserves of the project to extend the life of this project."
TVIRD is a Philippine corporation in which TVI holds a 30.66% interest, is a diversified mining company that focuses on the acquisition, exploration, development and production of resource projects in the Philippines.
Balbag has a resource of 2.5 million tonnes with an average grade of 1.7 grams per tonne gold, 47.8gpt silver and 2.8gpt gold equivalent at a cut-off grade of 0.4gpt gold equivalent to 210,000 ounces (gold equivalent).