Shares in Red Mountain Mining Limited (ASX:RMX) have jumped more than 25 per cent in morning trade after claiming its scoping study results confirm a low cost, early payback gold project.
The gold explorer says the study has shown the viability of mining and processing existing gold resources at the Batangas project in the Philippines.
The study is also understood to have confirmed the initial gold mining and processing project could potentially recover the $16.7 million pre-production cost in 14 months.
The project is expected to yield free cash for the company of about $40 million over the initial mine life of 4.5 years.
Managing Director Jon Dugdale has described the results as very positive and advised the company will now undertake a definitive feasibility study expected to be finished by the end of 2014.
After soaring more than 450 per cent this year shares in Red Mountain Mining have jumped 25.53 per cent in morning trade to $0.021.
Red Mountain Mining reported a net loss of $1.36 million in the first half of the 2014 financial year.
