JOHANNESBURG (miningweekly.com) – ASX-listed junior gold developer Red Mountain Mining’s strategic joint venture (JV) partner Bluebird Merchant Ventures has completed the Stage 1 payments totalling $1.7-million required to cement the JV that will fast-track the initial development of the Batangas gold project, on Luzon Island in the Phillipines.
Red Mountain stated on Thursday that receipt of the Stage 1 funding would enable the JV to complete a definitive feasibility study (DFS) on the project, with initial updated scoping study results confirming low capital and operating costs, and the recovery of over 100 000 oz of gold during the initial five to six years of the company’s ten-year production plan.
In addition to fulfilling the Stage 1 payment requirement, Bluebird paid interest, costs and accrued Batangas JV contributions to the value of $158 000 to majority shareholder Red Mountain Mining Singapore (RMMS), which would be used to fund the initial milestones of the Batangas project, based on an approved budget.
Consequently, Bluebird was issued with shares representing a 25% interest in the project, with RMMS holding the remaining 75%. Based on these shares issued, the Batangas JV was now valued at $6.8-million.
“This JV brings together two highly experienced board and executive teams, with the mining and development experience to develop this exciting gold project,” said Red Mountain director Jon Dugdale.
He added that, with the Batangas JV now fully operational and funded, the company could start fast-tracking the completion of the development studies and permitting.
The key milestones for the project in the near to mid-term included a complete prefeasibility study (PFS), using work completed on the project to date, as well as a new mining and processing schedule incorporating updated lower input costs and the current gold price.
The PFS would be upgraded to a DFS, incorporating additional geotechnical and other information, as well as any potential resource upgrades with the new mining and processing schedules.
The Batangas JV also aimed to conduct a drilling programme at its Lobo prospect, subject to the consent of the Phillipines Mines and Geosciences Bureau (MGB).
Lastly, the JV would complete all permitting inputs, including submitting the finalised environmental impact statement, required for the environmental compliance certificate and endorsements required to enable the Declaration of Mining Project Feasibility to be elevated to the MGB for final technical assessment and recommendation for approval.