Name and Location
Batangas gold project, Manila, the Philippines.

Client
Red Mountain Mining.

Project Description
A scoping study has confirmed a strongly viable, low-capital and low-operating, initial gold mining and processing project.

The study is based on the openpit mining and carbon-in-leach processing of existing, high-grade resources, of which 90% are in the indicated mineral resource category.

Initial production is planned from the South West Breccia (SWB) resources on the granted Lobo mining permit – a mineral production sharing agreement (MPSA), following which the higher-grade mining inventory from Kay Tanda West resources will be transported 15 km from the granted Archangel MPSA to the planned Lobo plant.

Low-grade mining inventory using a cutoff grade of 0.85 g/t of gold from the Kay Tanda West mine will be stockpiled. Metallurgical testing indicates that the two mining inventory resource types need to be processed at different grind sizes and leaching residence times for optimum recovery and cost.

Value
Preproduction capital is estimated at $16.7-million.

Duration
The scoping study expects construction to start in the June quarter of 2015, and processing/gold production to start in the March quarter of 2016, subject to financing.

Latest Developments
Based on the scoping study, Red Mountain will commission a definitive feasibility study.The DFS will be completed in parallel with the submission of an expanded ten-year mining plan to meet the requirements for the declaration of mining project feasibility and related permit applications to be submitted to the Philippines Government Mines and Geosciences Bureau of the Department of Environment and Natural Resources.

The DFS and permitting process are expected to cost A$1.1-million and be completed by December 2014.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Red Mountain Mining, tel +61 8 9226 5668, fax +61 8 9486 8616 or email info@redmm.com.au.