Red 5 to restart gold production in Philippines
PERTH (miningweekly.com) – A cease and desist order preventing ASX-listed Red 5 from processing at its Siana gold project, in the Philippines, has been lifted.
The cease and desist order was received in June 2013 after milling operations were suspended in April of that year, when a possible tailings spill was flagged. The order called on Red 5 to cease ore processing at the site.
Red 5 said on Thursday that it had received a formal notification from the Mines and Geoscience Bureau, after a site inspection was performed to verify the completeness of the three construction activities identified as pre-conditions for the lifting of the case and desist order.
These included the construction of a new high density polyethylene-lined tailings storage facility, the installation of a thickener and cement addition facility to allow for the production of dry tailings, and modifications to the existing tailings storage facilities to accommodate the new thickened cement tailings.
Furthermore, since June last year, a complete examination has been undertaken to rehabilitate all the mechanical, electrical and process equipment for the Siana process plant, and Red 5 told shareholders that all of the key works-to-do activities had now been closed out, enabling operations at the plant to restart.
The lifting of the cease and desist order enabled the start of final commissioning of the newly constructed thickener and cement addition plant, with processing of ores, after which gold production would restart.
An estimated 195 000 t of ore, at a grade of 2.43 g/t gold, had been stockpiled and would be used for final commissioning purposes and to provide the feed mill during the current wet season.
The ramp-up to steady-state operations was expected to take between three and six months, after plant commissioning was completed.
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