Siana Gold Mine
In the Philippines, the Red 5 group holds interests in the Siana Gold Project and the Mapawa Gold Project, both located in the highly prospective and established mining region of Surigao del Norte Province on the island of Mindanao.
On 29 July 2021, Red 5 announced a Binding Agreement to divest the Siana Gold Project to TVI Resource Development (Phils.) Inc. Key terms of the agreement are:
- US$19 million cash payable upon completion
- 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)
- TVI Resource Development (Phils.) Inc. is in the advanced stages of securing funding to restart the Siana Gold Project, which is expected to re-commence operations in the first half of 2023
- Financial close is expected in the September Quarter 2021
The Siana Gold Project is located within the Siana Mineral Production Sharing Agreement (MPSA). Mining and processing activities at Siana were suspended in April 2017 pending an improvement in operating conditions in the Philippines.
Before the suspension, the deposit was mined by open pit methods, with a plan to transition to underground mining following completion of the open pit. Underground mine development has commenced, with 445m of development completed, three portals and establishment of several critical surface infrastructures to the mine.
During the period of suspension, environmental and regulatory compliance at Siana is being maintained, including dewatering of the open pit, infrastructure maintenance and monitoring of geotechnical conditions and pit wall stability.
The Mapawa Project hosts a significant gold-copper porphyry prospect and represents a strategic development and growth opportunity, located approximately 20km north of Siana.
Key highlights in the Philippines include:
- A Mineral Resource inventory totalling 1.1Moz across the Siana and Mapawa Gold Projects. See our latest Annual Report for JORC 2012 Resource and Reserve tables.
- 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
The Red 5 group, through its Philippine-affiliated company Greenstone Resources Corporation, are evaluating its preferred plan and options for its gold assets in the Philippines, including a revised mining strategy for the Siana mine and required funding for the potential future recommencement of operations.