Red Mountain mulls toll milling options
PERTH (miningweekly.com) – ASX-listed Red Mountain Mining was hoping for early gold production at the Lobo prospects, at its Batangas gold project, in the Philippines.
The junior said on Monday that it had entered into discussions with a toll milling operator in south-east China regarding the potential for early mining, shipping and toll processing of the high-grade ore at the Lobo prospect.
Red Mountain previously identified four zones of very high-grade, outcropping gold mineralisation along the lode structure, which could be suitable for selective mining and offshore toll milling approach.
“This is an exciting option for Red Mountain as it will potentially allow the company to commence mining and the offshore toll processing to generate early cash flow, immediately following final permitting and the completion of the definitive feasibility study (DFS),” said Red Mountain MD Jon Dugdale.
The four zones identified were in addition to the 174 000 t, grading 6.8 g/t gold mining inventory currently under DFS at the Batangas project.
Dugdale said that following additional trenching and further drilling, an at-surface early mining and toll milling measured resource would be defined, with the intention that this be converted to probable reserve on completion of a feasibility study.
Following statutory approvals, road access and initial mining could then be established.
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