Red 5 Limited (ASX: RED) is a Perth, Western Australia based gold exploration company. The Company has significant gold assets offshore and has the intention to move to producer status at the earliest opportunity.
Red 5 sees potential for gold-copper mineralised porphyry at Mapawa
Red 5 (ASX: RED) has reported that a 254 metre intersection at 1.2g/t gold and 0.16% copper was recorded in follow-up drilling at the Mapawa Project in the Philippines, confirming potential for a gold-copper mineralised porphyry.
Hole MDD003 recorded the results within a broader zone of assays returned to date of 290 metres at 1.1g/t gold and 0.15% copper, also from 380 metres.
The company said assays from the upper and lower portions of the hole are awaited but are likely to return modest grades.
The result in MDD003 confirms the potential for a large gold-copper porphyry deposit at Mapawa, 20 kilometres north of Siana, and indicates mineralisation extends over a 600 metre vertical depth.
The discovery hole (MDD001 - 189 metres at 1.0 g/t gold and 0.17% copper) and MDD003 were approximately 200 metres vertically apart within the zone of gold-copper mineralisation.
The earlier scouting hole MDD002, located 380 metres laterally from the discovery hole (and drilled perpendicular to MDD001 and MDD003) recorded a 67 metre intersection at 0.2 g/t gold and 0.15% zinc from 419 metre down hole.
Petrographic analysis indicated the positioning was proximal to the porphyry and that it has passed over the top of the main system.
Greg Edwards, managing director, said shallow drilling has commenced on the upper portion of the system to evaluate the extent of the at and near-surface oxide mineralisation.
Three drill rigs are currently testing this zone with initial results expected soon.
The company said confirmation of the Mapawa gold-copper system has justified an accelerated exploration programme on site to determine the opportunities for an increased production profile in the region.
The Siana project, over a ten year life is expected to deliver 849,000 ounces of gold production at a cash cost of US$351 per ounce.
The Siana orebody remains open below 400 metres vertical.
The project is on schedule for a first gold pour in April 2011. The open pit life-of-mine contract has been awarded to Delta Earthmoving of the Philippines and the EPCM contract to TWP Australia.
Pit dewatering equipment and a new 2.8MW 6.1 metre by 4.2 metre mill (35 week delivery) have been ordered.
