Red Mountain Mining is starting a scoping study to evaluate capital payback potential from high-grade, near-surface deposits at its Batangas project. The study is expected to be completed by December 2013.
The study will examine the viability and high-margin potential of the Batangas mining and processing project, according to company officials, and will initially be based on current indicated and inferred resources.
The resource is 5.78 million tonnes @ 2.2 grams/tonne gold and 3.3 grams/tonne silver, containing 408,000 gold ounces and 606,000 silver ounces at a lower cut-off grade of 0.85 grams/tonne gold.
The resources have the potential to increase, with Red Mountain continuing to target high grades near surface mineralization at its Japanese Tunnel and Pica prospects, with any new results from the drilling campaign to be added to the resource estimate and scoping study inventory. Mineralization, company representatives add, remains open along strike and at depth at the Japanese Tunnel prospect.
“The commencement of the study represents a significant milestone,” says managing director Jon Dugdale. “With our near surface, high-grade mineralization at Lobo we are targeting a high early cash flow project.” All current resources are within granted Philippines mining lease agreements.
Sedgman Ltd will complete the processing engineering study along with specialists including Crystal Sun Consulting – mining and infrastructure options; Minercon International – metallurgy; Technotrix Consultancy Services - environmental and social; and Resource Development Consultants - geotechnical, processing site, tailings storage facility.