Australian firm Red 5 Ltd. said its Philippine affiliate was wrapping up processing of existing ore stockpile at Siana gold mine in Surigao del Norte and would soon suspend mining activities.
Red 5 said Greenstone Resources Corp. was processing existing medium-to-low grade ore stockpiles in order to maximize the use of the existing tailings storage capacity and the existing stock of reagents.
Last April, Red 5 said the Siana project was halting operations despite having passed a mine audit conducted by the Department of Environment and Natural Resources due to “the operational impact which the current uncertainty regarding regulatory and government mining policy in the Philippines has had on the group’s operations.”
The company also said it made the decision based on its assessment of the likely resulting changes to open pit operations, mainly due to the delay in the approval of the amended environmental compliance certificate (ECC) for its long-term tailings storage facility (TSF).
Operations at Siana had been suspended previously in relation to a damage to a tailings pond in the area. But in September 2016, the MGB cited Greenstone’s use of ground-based radar technology in monitoring the integrity of the mine at Siana.
“(T)here have been no material developments since March/April 2017 in the processing of the ECC” for the new TSF, Red 5 said.
“The group will continue to closely monitor political developments in the Philippines, particularly following the recent appointment of Mr. Roy Cimatu as the new Acting Secretary of the DENR,” it added.
Red 5 said it would retain employees to ensure continued regulatory compliance and to facilitate ongoing strong community relations.
In February 2016, Red 5 said an updated mineral resource estimate for the Siana project jacked up the inferred gold resource by 52 percent to 551,000 ounces, bolstering prospects for a shift to underground operations.