Red Mountain Mining has submitted its Batangas gold mining project feasibility applications to the Philippines Government for approval, thus moving once step closer to production and cash flow.
The applications include the Declaration of Mining Project Feasibility report, exploration report and the Environmental Impact Statement that form the submission for the grant of an Environmental Compliance Certificate.
An expanded 10-year mining operation is sought, which will initially focus on mining and processing inventory from the South West Breccia mineral resource, on the Lobo Mineral Production Sharing Agreement. Following this, mining and transporting to Lobo, and processing of the Kay Tanda West mineral inventory would take place.
It is anticipated that additional resources from Kay Tanda, then lower grade stockpiles will be mined, transported and processed out to year 10 of the operation.
Red Mountain has a dedicated project team focused on detailed mining design and project funding, as well as resource definition.
Red Mountain’s managing director Jon Dugdale says, “The submission of these very important permit applications is another key milestone for the company. The aim is to continue feasibility studies and complete detailed design at the same time as progressing the project to final permitting so that financing and development can commence immediately after they are both achieved.
“Meanwhile we’ll continue our drilling campaign that is testing high grade targets at the Lobo prospect, and elsewhere, with the objective of increasing resources and upgrading the mining inventory available for the Batangas Gold Project.”
The total resource at Batangas to date hosts 5.78 million tonnes @ 2.2 grams/tonne gold, for 408,000 ounces but with significant exploration upside. A recent scoping study established Batangas as a low capital cost project with attractive early cash flow generation and a quick return on capital.
The estimated capital cost of just $16.7 million is modest, while the IRR of 70% presents a very worthwhile investment. This is highlighted by the Red Mountain’s decision to proceed with a definitive feasibility study. Construction is targeted for early 2015.