09/05/2014 - 09:43

Red Mountain kicks off DFS

09/05/2014 - 09:43

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Red Mountain Mining expects to complete by the end of the year a definitive feasibility study at its Batangas gold project in the Philippines after appointing Como Engineers to undertake the initiative.

Red Mountain kicks off DFS
Red Mountain Mining managing director Jon Dugdale

Red Mountain Mining expects to complete a definitive feasibility study at its Batangas gold project in the Philippines by the end of the year, after appointing Como Engineers to undertake the initiative.

Red Mountain managing director Jon Dugdale said the company’s aim was to complete the DFS so that it was in a position to finance and develop Batangas as early as next year.

“Our strategy at Batangas is to develop the project based on identified high-grade resources, and continue to explore for new ounces at the same time,” he said.

Mr Dugdale said a key advantage of Batangas was the very high grade surface ore for initial production, which would allow quick payback of the project’s capital expenditure.

A scoping study the company released in March found Batangas could recover 90,000 ounces of gold over a four-and-a-half year mine life with a capital expenditure of $40 million.

The indicated mineral resource at Batangas stands at 2.76 million tonnes grading 2.3 grams per tonne for 208,000 ounces of gold at a cut of grade of 0.85 grams per tonne.

Earlier this week the company completed further drilling at Batangas and plans to incorporate these results into an upgraded mineral resource.

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