Hi Jto_1 again. In reference to your questions re the economic...

Hi Jto_1 again.

In reference to your questions re the economic viability of Boyongan, I provide you with the following facts to consider, but I confirm that I have limited knowledge of the detailed economic evaluation that has been undertaken by AngloAmerican/Philex.

1. As I have noted on a different thread, i understand that Boyongan mineralisation, also considered of porphyry genesis, actually is buried under a highly weathered barren top, and mineralisation only becomes more coherent below about 100 metres. I understand from others that Boyongan was not considered by Anglo because of the excessive waste stripping requirement prior to opening up the resource below, notwithstanding that the deeper mineralisation exists down to at least 1,000 metres depth.

2. There is conjecture between Anglo American (who farmed-in to the property from Philex) as to the economics at the date of the scoping study being undertaken. At the conclusion of that study Philex re-acquired Anglo's stake, and continues to pursue avenues to develop the project - but its resources, being in the 100 - 200 million tonnes range, would have problems making things work with such a large pre-strip unless additional tonnage was available. I understand the Bayugo project, about 1 km away, was another possible prospect, of smaller dimensions but similar porphyry origins, that could assist in making the development of boyongan being economic.

3. I am not familiar with the original scoping study parameters used, and whether Boyongan is economic based on today's commodity prices is conjectural. However, any inference that because Boyongan does not work therefore Mapawa can't work is erroneous based on the simple observation that the cap zone at Mapawa is very attractive as a feedstock, in the event of its development (for a potential porphyry project at depth), into the existing Siana gold project due to its similar metallurgical ore characteristics of the shallow Mapawa material.

4. Similarly, any inference that the Philippines is unlikely to host an economic porphyry copper/gold deposit is also fallacious - you only need to consider the past mining history at the Atlas Toledo project on Cebu Island (a few hundred kms to the northwest of Mapawa) which was a major source of copper until the early 1990's, and the giant Tampakan resource (due to be developed based on a resource of 2.4 odd BILLION tonnes at 0.6% Cu and 0.2 g/t Au) located to the south of Mapawa but also on the Island of Mindanao confirms the potential of the region to host economic porphyry deposits (there are also other smaller historically mined porphyry copper deposits on Mindanao Island along the Philippines fault, including Amacan and Masara deposits).

5. Mapawa, with its gold-bearing cap, may in fact, provide a key to assisting with the economic viability of Boyongan (subject of course to Mapawa deeper resources be confirmed).

With your comment regarding imputed value of net $20 million assigned to Philex related to Boyongan and its other projects, I have already noted that Mapawa has been assigned NIL value in RED's valuation DESPITE is likely to host at least a significant 3 - 4 million tonnes of ore grade material suitable as feed to the Siana operation.