Siana Gold Project
The Siana Gold Project is located on the island of Mindanao in the Philippines, within the Siana MPSA. The project is situated in the Surigao del Norte region in northern Mindanao, which is a highly prospective and established mining province.
Mining operations have been conducted at Siana since the early 1900’s, with major commercial underground mining conducted by Philippine company, Suricon Consolidated Mining Company, from 1938 to 1960 followed by open pit mining from 1980 to 1991.
The Siana Gold Mine had produced nearly one million ounces of gold prior to its acquisition by Greenstone Resources Corporation (Red 5 Philippines affiliated company) in 2003.
Following an extensive feasibility and permitting process, construction of a new open pit mining operation at Siana commenced in 2010, based on deepening the existing open pit by a further 100 metres.
The Company poured its first gold bar at Siana in February 2012, with the ore processed through a conventional modern 1.1 million tonne per annum gravity and Carbon-in-Leach processing plant located on-site to produce gold doré, which is then shipped for refining.
Following subsidence of a tailings dam wall and a period of redevelopment of tailings storage facilities, the Siana Gold Project resumed operations in January 2015 with a ramp-up to full production completed by mid-2015.
Mining from the open pit at Siana is expected to be completed during the 2017/18 financial year, transitioning to underground mining following completion of the open pit.
Near-mine and regional exploration activities in the area surrounding the Siana Gold Mine are also planned, with a focus on in-fill drilling of the Siana underground deposit, as well as exploration of the near-mine Dayano and Alegria prospects.
The Mapawa Project is a significant gold-copper porphyry prospect which forms part of the Group’s broader regional tenement portfolio in the highly prospective Surigao del Norte mining province in the Philippines. Mapawa represents a strategic development and growth opportunity for Red 5, and is located approximately 20km north of the operating Siana Gold Project.
The project area has been known to be prospective for gold since the 1930s. From 1988 to 1990, Surigao Consolidated Mining Company (Suricon) actively explored the area and undertook field mapping, trenching and drilling, targeting the surface epithermal gold veins, culminating in a limited trial-mining exercise in the late 1990s.
The Mapawa Project was also drilled by Greenstone Resource Corporation (Red 5 Philippines affiliated company) in 2010 and 2011, returning some significant intersections including:
- 167m @ 1.06g/t gold and 0.17% copper (MDD001);
- 156m @ 1.23g/t gold and 0.19% copper (MDD003); and
- 69m @ 1.06g/t gold and 0.16% copper (MDD007).
A JORC 2012 compliant Indicated and Inferred Mineral Resource estimate for the Mapawa LSY deposit was completed in October 2015. View the full
Initial studies were undertaken to evaluate the potential for open pit mining of the shallower part of the deposit and transporting of higher grade ore from the Mapawa LSY deposit to the Siana processing plant to provide incremental ore feed during the proposed underground mining phase of the Siana Gold Project.
Approximately 79,000 tonnes of Mapawa ore was mined historically by Suricon in the 1990s, of which a significant proportion was used to supplement ore feed at the Siana operations. The remaining portion was used for commissioning the current Siana mill in 2012, which returned positive results, demonstrating that the Mapawa material may be suitable for blending with the Siana ore.
The Red 5 Group believes that there is also significant potential to add to the Mapawa LSY resource base and plans to conduct further exploration activities, with the goal of increasing the Mineral Resource sufficiently to enable a possible stand-alone gold-copper project at Mapawa.
The Group holds a significant tenement position in the Surigao del Norte region of the Philippines, which represents one of the most highly mineralised provinces, in one of the most mineralised countries globally.
Numerous high-quality exploration targets have been identified across this tenement base, which offer the potential to provide additional ore feed for the Siana gold mine or to be developed as stand-alone mining operations.
Key exploration targets across the Company’s tenements include:
- Siana Gold Project – underground in-fill drilling
- Dayano prospect
- Alegria prospect
- Madja propect
- Mapawa LSY – maiden resource
- St Nino prospect
- Number of strong IP and magnetic anomalies