Red 5 Limited, an Australian listed mining company has made a production output forecast of 850,000 ounces of gold over a period of 11 years from the Siana project.
Red 5 made the announcement after its first pouring of gold and silver at the mine located in the Philippines.
The bar poured at the Siana mine in Surigao del Norte is said to weigh a total of 228 ounces and is supposed to be 50% gold. It was derived from the low grade stockpiles from Siana and minor Mapawa low grade stockpiles besides ore from the upper pit benches that were exposed by the pre-strip. It was poured on February 3, 2012.
The Perth based miner is operating the Siana project as an open pit mine that will be followed by an underground mining operation. The ore obtained will be treated through a conventional modern gravity and ‘carbon-in-leach’ plant to produce gold ore.
The expected mine life is about ten years. The gold will cost a cash cost of sub US$400 per ounce for the 849,000 ounces of gold production expected from the mine. There are certain possible mine extensions under review to extend the projected mine life.