(MENAFN- ProactiveInvestors)
() has received additional funding under its partnership agreement with Bluebird Merchant Ventures Ltd as it advances the final stages of the Definitive Feasibility Study for the Batangas Gold Project in the Philippines.
Endorsement is expected soon from the Lobo Municipal Council which is currently in the final stages of deliberation.
In addition additional sampling results are due shortly from further test pitting and trenching at the high grade early mining target.
This will be followed by the next drilling program to define the target and convert to Measured Resource.
“The Definitive Feasibility Study and permitting processes are in their final stages and we are looking forward to getting this high-grade gold project underway” managing director Jon Dugdale said.
“We are also completing definition of our very high grade at surface gold resources that will give us a potential cash-flow advantage in the early stages of the project.”
Funding and Feasibility Study
has now received a total of US$280000 (A$366000) as part of the Stage 1 funding commitment of US$1 million from Bluebird.
The remaining funds will be paid as monthly US$100000 instalments and/or upon admission of Bluebird to London’s market.
Based on the Bluebird funding the final stages of the Definitive Feasibility Study (DFS) are now in full swing.
The processing flow sheet has been finalised final metallurgical testing including variability work is underway and tailings testing and geotechnical programs will be completed to allow the key capital and operating costs inputs to be finalised.
Test Pitting and Trenching
Further test pitting and trenching is in progress prior to commencement of the next drilling program to define the high grade early mining target and convert to Measured Resource.
This will allow mining to commence immediately following final permitting pending a toll treatment and/or ore sales agreement.
Discussions have progressed with a Shandong China based operator interested in purchasing high grade gold ore concentrate.
A metallurgical testing program will be initiated to investigate the potential to upgrade the high grade surface material via screening.
Discussions have also commenced with a local small processing plant operator for potential processing trials / toll treatment.
Early mining target zones include multiple high grade gold lode outcrops along the 500 metre SWB trend including: South West Breccia Extended Japanese Tunnel the Trench 7 Zone and the Limestone Target.
Endorsements and Permitting
Red Mountain previously received endorsement of the Batangas Gold Project mining and processing plan by all of the 10 potentially affected Barungay (Township) Councils.
The Lobo Municipal Council is in the final stages of deliberation to complete local government endorsement of the project prior to the DMPF proceeding to the central Mines and Geosciences Bureau (MGB) for final approval.
Meanwhile the Philippines Environmental Management Bureau (EMB) has provided feedback on the submissions for the Environmental Compliance Certificate (ECC) the other key permitting requirement to allow the Project to proceed.
Community consultation will follow prior to the final draft of the ECC being prepared for final approval.
Recent Activity
In March the company delivered more high-grade gold results from trenching at the Lobo Prospect of the project.
Highlights included:
- 9 metres at 28.9g/t gold main South West Breccia Lode approximate true width; and
- 11 metres at 19.1g/t gold overlying Colluvium Zone
- 4.5 metres at 14.8g/t gold; and
- 6 metres at 13.03g/t gold.
Analysis
continues to advance the Batangas Gold Project with the Definitive Feasibility Study and permitting processes well in their final stages.
Work is also underway to complete definition of the high grade mining target that could provide early cash flow.
Adding interest the partnership with Bluebird Merchant Ventures Ltd continues to deliver funding for the company to progress its activities.
Share Price Catalysts
- Trenching results ongoing;
- Additional drilling results;
- Measured resource potentially;
- Toll milling agreement;
- Permitting and second stage of funding agreement;
- Establish access and commence initial mining for toll milling;
- Completing feasibility; and
- Final permitting.
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