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Red 5 Linited (ASX:RED) Siana mine build - construction advances

Siana gold mine build ­ construction advances
 
Construction has accelerated markedly in the last month following  the abatement of extreme rainfall associated with an abnormal wet  season. All of the critical concrete pours are complete but regular rainfall continues to interrupt some of the site civil earthworks and cutback mining on certain areas of the upper benches where plastic clays are encountered.
 
Process plant activities in the last month include: concrete pours and handover for the SAG mill platform, ROM surge bin, cyclone tower, surge bin, cyanide mix tanks, elution columns, plant office, workshop and assay laboratory; on-going steel erection for the CIL tank access walkways, cyclone tower and SAG mill platform; installation of CIL and detox tank appurtenances; and vacuum, dry penetration and radiographic testing of the CIL tanks.
 
The majority of the plant equipment has now being sequentially barged to one of two ports near the mine site. A 150 tonne mobile crane (one of only two in the Philippines), the 3x2MW standby power generators, most of the steelwork, the conveyors, cyclone cluster, vibrating screens and tankage are at site. The SAG mill arrived at site on 10 June 2011, later than originally scheduled due to marine insurance requirements to have four bridges on the national highway supplemented with weight distributing steel plate. The major items still outstanding are the pre-fabricated gold room and assay laboratory.
 
The mining fleet movement statistics continue to improve with increasing depth as harder rock is encountered. Parts of the original mine ramp have been exposed and shown to be in good condition as the open pit water level continues to drop with a total of 9 billion litres discharged to date. Mine design changes will still see a second ramp introduced as part of continued risk mitigation measures.
 
Exploration has re-commenced at site for the first time in nearly three years with two drills targeting the northern extension of Panels 1, 2 and 3. The first two holes to 310 and 430 metres depth will be completed by month end. The project build is fully funded with a treasury cash position at 1 June 2011 of $58.5 million (unaudited) and the remaining spend forecast of $42.4 million.
 
the Company will advise a forecast inaugural gold pour date once the SAG mill installation is complete.
 
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