MINING FIRM RED 5 LTD. OF AUSTRALIA is expected to invest $40 million in the Siana gold project in Surigao del Norte.

Red 5 holds a 90-percent beneficial interest in the Siana gold project through Greenstone Resources Corp., which manages the local operations through a joint venture with JCG Resources Corp.

Mines and Geosciences Bureau Director Horacio Ramos said officials of Red 5 had visited the bureau the other week to reinstate the company’s interest in pursuing mine operations in the gold district.

Ramos said the visit was prompted by the MGB’s decision to remove the Siana gold project from the government’s priority mineral development and exploration projects.

“They complained about it and said they are still interested. We asked them to update their feasibility study, submit all requirements and we will help them out,” Ramos said.

He said the firm had already finished its exploration and was set to begin development of the mine site.

The project, which is under a Mineral Production Sharing Agreement, covers 2,023.74 hectares of in Siana, Mainit, Surigao del Norte.

The MGB said the Siana gold project was expected to bring in $45-million investments and generate gross sales of $15 million yearly.

Red 5 earlier said the premining gold endowment at Siana was estimated to reach 2 million ounces.

It said past production from underground and open pit operations in the Siana mine reached 4.9 million tons at an average grade of 6.3 g/t gold.

A narrow vein underground development was carried out from 1938 to 1960 and produced 1.6 million tons at an average grade of 11.8 g/t gold. Open pit mining from 1980 to 1990 produced 3.3 million tons at an average grade of 3.6g/t gold.