mapawa potential

Based on RED's recent announcements, we know that Mapawa may provide feedstock for the Siana operation, sourced from a shallow gold cap, with an indication of 3 - 4 million tonnes at around 2g/t.

This shallower Mapawa resource is yet to be included into cashflow forecasts, as it is yet to be confirmed as a JORC compliable resource. RED's initial drilling at Mapawa will confirm/deny the existence of this shallow resource but more drilling will likely be required to finalise its inclusion into cashflow forecasts. It is likely to contribute 5 - 10 cents to Siana valuation, but obviously where it is scheduled into the production profile has an impact on overall value to RED (wrt value cps). It can provide a means to continue production at close to the 1 mtpa nameplate capacity of the mill when in fact underground operations (at higher grades) would reduce overall annual production rate. Thus it could increase overall gold production at times when underground ore otherwise becomes the main contributor to the operation.

The deeper potential of Mapawa, however, is the main prize!
Based on the IP work carried out RED has indicated that the target, down to 25m m depth, demonstrates an anomaly footprint that is 900 metres in diameter. If we consider this as being the upside case (and lets assume a cube of 900 metres x 900 metres, for simplifying discussion purposes):

Potential maximum tonnage of the deeper anomaly - ie 900 (n-s) x 900 (e-w) x 1.0 metre (depth) 2.5 (bulk density)= 2.025 million tonnes per vertical metre.

If we assume that the "true" potential is something lesser than those dimensions, say 75% of n-s, 33% of e-w, then the potential tonnage reduces to - 506,250 tonnes PER VERTICAL METRE.

In the case of Boyongan, I understand that the depth to the top of main mineralisation is 100 metres, and that the orebody extends to 1,000 metres!!!

If we are conservative for Mapawa, and assume that the fullest extent of any copper-gold resource is maximum 400 metres vertical:
ie 400 x 506,250 = 202.5 million tonnes.
This clearly is a considerable target, and would considerably dwarf current RED valuation, notwithstanding that it would need a completely different processing facitility and associated infrastructure to complete.

The aim of this post is to give some insight into the POTENTIAL that Mapawa could bring. Drilling is due to commence on Mapawa soon, if it hasn't already started!