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Market:	ASX
Sector:	Gold Mining
EPIC:	RED
Latest Price:	1.38 (-1.79% )
52-week High:	2.35
52-week Low:	1.10
Market Cap:	186.30M

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Red 5

Red 5 (ASX: RED) is focused on gold exploration and production in the Philippines.

Red 5 surface results confirm gold mineralisation potential at LSY prospect

Thursday, October 22, 2009

Perth-based gold explorer Red 5 (ASX: RED) has recorded promising assay results from preliminary geochemical sampling at the company’s LSY prospect in the Philippines.

The company’s share price went up slightly, on the news.

The results include two continuous sampling traverses across the strike of exposed veining and alteration with 83 metres at 1.8 g/t Au (including 38 metres at 2.5 g/t Au) and 86 metres at 1.4 g/t Au (including 31 metres at 1.9 g/t Au).

Individual multi-element grades of up to 51 g/t silver, 0.7% copper, 2.5% lead and 1.9% zinc have also been uncovered.

Stockwork veining exposed at LSY is underlain by historic drilling completed by Suricon, the former mine operator at Siana.

The veining is similar in style to that encountered in many porphyry copper-gold systems, the nearest known example being Boyongan located only 7km north west of Siana and currently the subject of detailed mining studies by Philex Mining.

The results lend strong support to the Suricon drilling data that indicates gold mineralisation extends from surface to at least 120 metres depth.

A 3 to 4 million tonne target could eventually augment the production profile at Siana. Gold grades estimated from the surface sampling and historic drilling, if consistent, imply an initial gold endowment target of 150,000 to 300,000 ounces.

Located 20km north of the company’s Siana Gold Project in Surigao del Norte province of northern Mindanao, LSY is one of several prospects within the recently granted MPSA 280-2009-XIII.

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