The Australian Government has offered funding support to Red Mountain Mining for its Batangas gold property in the Philippines as new financing from the UK underpins studies and permitting through to the development stage.
As part of Australia’s research and development refund program for the 2015 financial year, the explorer received $337,543.
Research on the environmentally safe disposal and storage of thickened residues was conducted as metallurgical recovery of semi-refractory fine gold was mined from gold ores at Batangas.
In addition to an agreed repayment to Red Mountain of loans totalling US$850,000, Bluebird committed to a two-stage funding arrangement totally up to US$5.5 million that will earn Bluebird up to 50.1 per cent of Red Mountain Mining Singapore.
New funding for Red Mountain as Batangas continues to improve its profile is a big plus, especially considering the upside potential related to being able to fund the further development of recent surface sampling successes.
The planned drilling at Lobo and Tamarind represents notable potential for Red Mountain share price catalysts in the near term as does completion of the DFS – which is expected in short order with the support of Bluebird.
An upgraded resource model is planned to be converted to ore reserves on completion of the DFS through the assessment of geotechnical drilling information and a metallurgical model ahead of final mine design.
Another foreseeable milestone expected to add value to the project is the pending approval of an Environmental Compliance Certificate. Red Mountain has already submitted all final responses to questions from the environmental authority to pave the way for this official recommendation.