Red Mountain Mining and its strategic funding partner Bluebird Merchant Ventures Ltd intend to fast track development studies and permitting for the Batangas Gold Project in the Philippines.
Bluebird has completed all payments totalling US$1.7 million and has been issued shares representing a 25% interest in Red Mountain Mining Singapore Ltd (RMMS), the owner of the Batangas assets. A 75% Red Mountain: 25% Bluebird incorporated joint venture has been formed at RMMS level.
The Batangas Joint Venture is now funded to target completion of key milestones to development of the project.
The key milestones for the JV in the near to medium term are:
- Complete a prefeasibility study (PFS), utilising the work completed to date and new mining and processing schedule incorporating updated lower input costs (eg lower diesel price) and applying the current gold price of circa A$1750/ounce;
- Subject to the consent of the Philippines Mines and Geosciences Bureau (MGB), conduct a drilling program to complete geotechnical testing and test key resource/reserve targets at Lobo;
- Upgrade the PFS to a definitive feasibility study (DFS), incorporating additional geotechnical and other information as well as any potential resource upgrades with new mining and processing schedules; and
- Complete all permitting inputs including submission of the finalised Environmental Impact Statement (EIS) required to allow grant of the Environmental Compliance Certificate (ECC), and endorsements required to allow the Declaration of Mining Project Feasibility (DMF) to be elevated to the central MGB for final technical assessment and recommendation for approval.
Red Mountain managing director Jon Dugdale said, “Now that the Batangas JV is operational, and funded, we can bring together all the work over the past 12 to 18 months to fast track completion of the development studies and permitting.
“This JV brings together two highly experienced board and executive teams, with the mining and development experience to develop this exciting gold project.”