Bluebird Merchant Ventures Plc (EPIC:BMV) is pleased to announce that ASX listed Red Mountain Mining Ltd (“RMX”) has today published a Pre-Feasibility Study (“PFS”) for the Batangas Gold Project (the “Project”) in the Philippines. BMV is a 25% joint venture partner in the Batangas Gold Project with an option to increase its ownership to 50.1%.
The full RMX news release dated 15 June 2016 is available at: http://www.redmm.com.au/investors- and-media/asx-announcements/
Highlights of the PFS:
- Pre-Feasibility Study shows Batangas Gold Project will generate US$ 34 million in free cash flow during first 7 years of production (after capital and pre corporate tax & admin) at gold price of US$ 1,250 / oz)
- Maiden open-pit Ore Reserve of 128,000 oz of gold (incl. silver credits) including high-grade 100,000 oz at 4.2 g/t gold
- Recovered production of 116,000 oz of gold, an increase of 26,000 oz of gold from Scoping Study
- Low cash operating costs of US$ 735 per oz of recovered gold
- Low up-front capital costs of US$ 16 million, including new CIL processing plant
- Additional 320,000 oz of gold of mostly Inferred Resources remains available for future conversion
- Immediate upside potential within the 14 km of identified mineralised structures at Lobo
Commenting on the PFS, Charles Barclay, Chief Executive of Bluebird said:
The PFS Study confirms the Batangas project is at an advanced stage as well as its economic viability which has a planned mine-life of 10 years and is based on a maiden Ore Reserve of 128,000 oz of Gold (including Silver credits). Low operating costs and up-front capital costs make Batangas a project that can relatively quickly be converted into a producing mine.
The next milestone for the project prior to construction of the mine is a Definitive Feasibility Study (“DFS”) and finalisation of permitting which is targeted for completion later in the year.
The copper concentrate trading business of Bluebird is progressing well and the company expects to be able to make further announcements in this regard over the next few weeks.