Name and Location
Siana gold project, the Philippines.

Client
Red 5.

Project Description
A technical study of Red 5’s mining strategy for the remaining life of the openpit operation at the Siana project has been designed to optimise the extraction of openpit ore reserves over its planned remaining life up to December 2017. This will maximise cash flows, mitigate possible geotechnical risks, and preserve the integrity and safety of the openpit operation.

The revised openpit mining strategy will recover an estimated 181 000 oz from July 1, of openpit mining using a progressively staged cutback of the East pit wall to allow for the base of the openpit to be mined to a final depth of 180 m below surface.

The project has indicated and inferred resources of 5.8-million tonnes grading 2.6 g/t of gold and 6.3 g/t of silver. Probable reserves are estimated at 1.9-million tonnes grading 3.5 g/t of gold and 8.2 g/t of silver.

Owing to the implementation of the revised openpit mining strategy, Red 5 has elected to remove 74 000 oz from its last reported openpit reserves, of which it aims to recover a portion in the underground phase of the operation.

Net Present Value/Internal Rate of Return
Not stated.

Value
Not stated.

Duration
Not stated.

Latest Developments
A new underground concept study has highlighted the potential to extract resources below the -130RL level and will form the basis of additional studies targeting the development of a future long-term underground mining operation at Siana.

This will include recovering as many of the ounces previously removed from the former openpit reserve as possible.

The study suggests that further work be undertaken to upgrade the existing reserve to a Joint Ore Reserves Committee 2012 status if future development of the underground mine at Siana is to be considered.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Red 5, tel +61 8 9322 4455, fax +61 8 9481 5950 or email info@red5limited.com.