SCOPING STUDY NEARING COMPLETION *FOCUS ON POTENTIAL LOW COST EARLY CASHFLOW GOLD PROJECT Perth-based Red Mountain Mining is pleased to provide a progress update on the Scoping Study that is currently examining the viability of a gold mining and processing operation at the Company’s Batangas Gold Project in the Philippines. The Scoping Study is now focused on mining and processing higher grade, near surface, gold resources initially from the South West Breccia (SWB) resource at the Lobo prospect then the Kay Tanda West resource at the Archangel prospect. The lower tonnage higher-grade focused processing plant is now planned to be located at Lobo, close to the SWB resource and the old Lobo mine. Previously the processing plant was to be located at Archangel, close to the larger but lower grade resource. This new focus at Lobo is expected to greatly reduce capital expenditure and minimise the environmental footprint whilst greatly enhancing overall economic returns. Under the updated plan the processing plant will be located close to the initial planned feed from the high grade SWB resource at Lobo. The Company will also target the highest grade ore at the Kay Tanda West resource at Archangel by transporting it approximately 12km by road to the Lobo processing plant following processing of the SWB resources (see Figure 1 for relative location of Mineral Resources). The initial mining and processing project, the subject of the Scoping Study, will be entirely based on surface mining of existing higher-grade resources. Sedgman Ltd is finalising processing capital and operating costs that are expected to be relatively low, particularly when initially processing the high grade SWB resources at Lobo. Completion of the Scoping Study and financial modeling is expected shortly. Based on a positive economic outcome, the Board of Red Mountain Mining will then contemplate committing to a bankable feasibility study and final permitting to fast track the project to production. Red Mountain Managing Director Jon Dugdale said: “The scoping study is likely to demonstrate a low capital cost, practical, proven technology based gold project that takes advantage of our existing high grade, close to surface, gold resources with demonstrated high recoveries from carbon in leach processing.” “Anything else that we discover at Lobo as a result of our current exploration program will potentially add to the current resource inventory and enhance the economic viability of the planned operation,” said Mr Dugdale.
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