Philippines Siana mine to resume gold production

7 January 2015 (Last Updated January 7th, 2015 18:30)

Philippine's Mines and Geoscience Bureau (MGB) has lifted a cease and desist order (CDO) from Siana gold mine processing operations, owned by Red5Limited.

Philippine's Mines and Geoscience Bureau (MGB) has lifted a cease and desist order (CDO) from Siana gold mine processing operations, owned by Red5Limited.

Lifting the CDO has enabled final commissioning to start on the newly constructed thickener and cement addition plant, with processing of ores. After this, gold production will recommence.

Stockpiling an estimated 195,000t of ore grading at 2.43g/t will take place and be used for final commissioning purposes and to provide feed to the mill during the current wet season.

"Lifting the CDO has enabled final commissioning to start on the newly constructed thickener and cement addition plant…after this, gold production will recommence. "

Prior to issuing the notification, MGB performed a site inspection to verify the completeness of the three construction activities it identified as the pre-conditions for lifting the order.

Stage one of the HDPE-lined tailings storage facility civil construction earth works has been completed, with sign-off received from Knight Piésold project engineers saying that construction met the approved design and technical standard.

Knight Piésold also approved stage one of all three tailings facilities, including TSF3 and TSF4.

A complete examination has been underway since June last year to rehabilitate all mechanical, electrical and process equipment for the Siana process plant and all of the key works-to-do activities have been closed out.

Final estimated costs of completion for the facility are expected to be A$16.3m ($13.20m), with around A$4.6m ($4m) remaining to be paid.

The company's existing cash position stands at A$18m ($15m), which leaves about A$13m ($11m) available for working capital after allowing for outstanding project-related commitments.