Royalty interest in Siana Gold Mine
Red 5 sold its interest in the Siana Gold Project in 2021. Siana is located in Surigao del Norte Province on the island of Mindanao.
Red 5 has retained a Net Smelter Return royalty of 3.25% payable for up to 619,000 ounces of gold, with an estimated future face value of US$36 million (based on a US$1,800/oz gold price).
Siana is now owned by TVI Resource Development (Phils.) Inc. TVI is currently in the process of restarting the Siana Gold Mine, with production expected to recommence in the first half of 2023.
Background to Siana Gold Project
The Siana Gold Project is located within the Siana Mineral Production Sharing Agreement (MPSA). Red 5 previously had developed and operated the gold mine until 2017, when it was placed into care and maintenance. During this same year, Red 5 purchased the King of the Hills and Darlot Gold Mines whereby it pivoted towards being an Australian gold miner.
The Siana deposit was mined by open pit methods, with a plan to transition to underground mining following completion of the open pit. Underground mine development commenced, with 445m of development completed, three portals and establishment of several critical surface infrastructures to the mine.
Siana has maintained its environmental and regulatory compliance, including dewatering of the open pit, infrastructure maintenance and monitoring of geotechnical conditions and pit wall stability. TVI is in the process of finalising permits to restart the mine.
Key highlights for Siana include:
- A Mineral Resource inventory totalling 1.1Moz across the Siana and Mapawa Gold Projects.
- A conventional modern 1.1Mtpa gravity and Carbon-in-Leach processing plant located on-site at Siana.
- Open pit and underground mine development and mining and processing infrastructure already in place.
- Large exploration landholding in one of the most mineralised provinces in the Philippines