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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 clarifies statement on Mapawa target mineralisation announcement

Thursday, October 22, 2009

Red 5 (ASX: RED) has reiterated information on the company’s Mapawa target mineralisation statement as requested by the ASX.

Target mineralisation at the company’s LSY prospect within the Mapawa Gold Project in the Philippines, contains an estimated three to four million tonnes with an estimated gold endowment of 150,000 to 300,000 ounces, as stated in an announcement yesterday.

The Perth-based company said the estimate “was based on previous drilling in the 1990’s (40 diamond drill holes) by the previous owner Suricon, and as clearly stated it does not form part of any current Mineral Resource”.

Suricon also owned and operated the Siana Gold Mine, currently the subject of a development application by Red 5 interests in the Philippines.

The company undertook diamond drilling at Siana using the same procedures as those at the LSY prospect.

Red 5’s intensive drilling at Siana confirmed within reason the approximate grade, tonnage and physical dimensions that can be estimated using Suricon data only.

The Suricon data for the LSY prospect at Mapawa was modelled by an Australian independent consulting group for Red 5, using modern techniques and software to yield an estimated target tonnage and gold endowment based on the historic drilling. The target is yet to be tested.

New drilling is currently in the planning stage.

Today, shares in Red 5 were higher, increasing 0.5c, or 3.6 per cent, to 14.5c.

As stated the surface sampling results quoted confirm those recorded at and near surface in the historic drilling.

In accordance with JORC requirements in relation to the reporting of target size and type, it is herewith stated that the potential quantity and grade is provided as a range, is conceptual in nature, and that there has been insufficient recent exploration to define a Mineral Resource.

While this property would comfortably fall into the advanced exploration category it is uncertain if further exploration will result in the determination of a Mineral Resource, notwithstanding that the mineralisation is close to surface, close to infrastructure, within trucking distance of a planned process plant and the gold price is currently in excess of US$1,000 per ounce.

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