Name: Siana mine.

Location: The Siana mine is located on the southern Philippine Island of Mindanao.

Controlling Company: Red 5.

Brief History: The Siana deposit has been mined over three periods. The deposit was initially mined by Suricon Consolidated Mining from the late 1930s until 1960, when mining ceased. During this period, 1.6-million tonnes at an estimated head grade of 11.8 g/t of gold was produced.
Suricon restarted the mining operation in 1980, but production ceased in 1991, with the collapse of the east wall of the pit covering the ore in the pit floor. An estimated 3.3-million tonnes at an average head grade of 3.6 g/t of gold was mined during this period.

Greenstone Resources Corporation, a subsidiary of Red 5’s Philippines-affiliated company, acquired the project in 2003 and proceeded with exploratory drilling until sufficient mineralisation was delineated, allowing for a feasibility study to be undertaken. This work laid the foundation for a new mine development, one of only two hard-rock mines to have been developed in the Philippines in 30 years at the time.

With feasibility and permitting completed in 2009, site construction activities started in 2010. The project feasibility proposed openpit mining to deepen the existing openpit by a further 100 m making for an ultimate 200-m-deep pit, with underground mining to follow thereafter. The company initially proposed a throughput of 750 000 t/y; however, during financing, it was decided to commit to a larger semiautogenous mill, allowing for a throughput of 1.1-million tonnes.

Siana was put on care and maintenance in June 2013, as a result of a cease and desist order placed on the processing operations by the Philippines Mines and Geoscience Bureau (MGB). For the order to be lifted, a suitable tailings storage solution, and a thickener and cement addition facility had to be engineered and designed. A final solution was submitted to the MGB and Environmental Management Bureau in December 2013, culminating in Red 5 transitioning back to a construction phase in June 2014.

Red 5 completed a technical study of its mining strategy for the remaining life of the openpit operation at the Siana gold project in September. The revised mining strategy is designed to optomise the extraction of openpit ore over the project’s remaining life, before transitioning to underground mining.

Brief Description: Siana is an openpit gold mine, with mining activity currently focused on the Stage III pit design and associated remediation of the Eastern wall, the East perimeter ring drain, Stage II of the openpit design as the immediate source of ore, and Stage IV as resources allow.

Red 5 has started laying the foundations for the company’s growth by finalising its long-term plans for the openpit, and future underground mine.

Products: Gold.

Geology/Mineralisation: The Siana deposit is located subparallel to the Surigao Valley fault, a major north-north-west- to south-south- east-trending structure, which forms part of the major Philippine fault or Rift zone. The Philippines Rift zone is associated with numerous epithermal gold and porphyry-style copper/gold mineral deposits throughout the Philippines.

Gold mineralisation at Siana is largely located within the altered and brecciated volcanics, volcaniclastics and carbonates of the Central zone.

Reserves: Total probable reserves as at June 30, 2015, were estimated at 1.9-million tonnes grading 3.5 g/t of gold.

Resources: Total indicated and inferred resources as at June 30, 2015, were estimated at 5.8-million tonnes grading 2.6 g/t of gold and 6.3 g/t of silver.

Mining Method: The mine is currently in the openpit phase and will transition to underground mining in 2016/17.

Major Infrastructure and Equipment: The operation is mined using conventional openpit mining methods, using top hammer drill rigs, CAT 40 t articulated dump trucks and 80 t, CAT 374 hydraulic excavators.

The gold at Siana is extracted using a standard carbon-in-pulp circuit.

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

Red 5 currently expects to start underground development activities in the second half of the 2016 calendar year, funded from internal cash resources generated from the openpit.

Contact: Investor relations.

Contact Details:
Red 5,
tel +61 8 9322 4455,
fax +61 8 9481 5950,
email info@red5limited.com, and
website http://www.red5limited.com.