Siana gold mine returns to production

Image: Red 5

A cease and desist order has been lifted from Siana Gold processing operations by the Philippine’s Mines and Geoscience Bureau.

The Red5Limited-owned Sian gold mine has been on care and maintenance since April 2013, when the external wall of the tailings dam was compromised by subsidence.

On April 24 milling operations were suspended when minor subsidence was detected, however further subsidence occurred over the following days, and all earthmoving activities had to be directed to waste removal.

The Philippines Mines and Geoscience Bureau imposed a cease and desist order, which could not be rescinded until completion of structural repairs and improvements to tailings storages facilities.

Works included a new High Density Polyethelyne-lined tailings storage facility (TSF) downstream of TSF4, a thickener and cement addition facility to produce dry tailings product, and increased strengthening to the TSF3 and TSF4 to accommodate the new thickened cement tailings.

Managing director Mark Williams the ramp-up of steady state operations would take three to six months from completion of plant commissioning, and that production guidance will be provided after achievement of steady operations.

Williams reported to the ASX that $4.6 million remained to be paid of the $16.3 million final estimated cost.

With the mine free to recommence production, an estimated 195,000 tonnes of core at a grade of 2.43 grams per tonne will be used for final commissioning and to feed the mill during the wet season.

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