mgb denies petition of greenstone

What’s really interesting is that RED actually knew of the MGB decision 8 days ago on the 6th January 2013 according to the following print media article:

http://www.philstar.com/business/2014/01/13/1278115/mgb-denies-petition-greenstone

MGB DENIES PETITION OF GREENSTONE

By Czeriza Valencia (The Philippine Star) Updated January 13, 2014 - 12:00am

MANILA, Philippines - The Mines and Geosciences Bureau (MGB) has denied the petition of Greenstone Resources Corp. to lift the suspension order on the milling and mining operations in its Siana Gold project in Surigao del Norte.

Mines bureau director Leo Jasareno said the joint validating team of the MGB and the Environmental Management Bureau has determined that the necessary remedial measures for the mine’s compromised tailings storage facility no. 4 have not been completed.

The MGB suspended the mine’s milling operations on June 6 last year after a tension crack was found along the embankment of the tailings pond.

“In concurrence with the team’s recommendation, the MGB rules that the suspension order can be lifted only if a new tailings storage facility is constructed,” Jasareno said.

“With the milling operation suspended, the mining operation of Greenstone is effectively suspended as well,” he added.

Greenstone has been informed of the decision in a letter dated Jan. 6, 2014.

“Indeed, we are cognizant of the impact of the suspension order to investment, employment and the communities. However, environment protection will always be paramount, especially when risks are not adequately addressed,” Jasareno said.

The Siana gold project, which was commissioned last year, is expected to produce a minimum of 849,000 ounces of gold at a cash cost of $400 per ounce over a 10-year life.

The fact the Philippine Star article came out BEFORE the RED announcement probably prompted RED to announce to the ASX today after so much delay. Similar articles in the Business Mirror, Manila Standard and GMA News came out 2 days ago. The shareholders of RED would have eventually become aware when it was reported in the Oz media. Continuous Disclosure? No way!