Greenstone adds Siana, sells Ravensthorpe

Perth-based Greenstone Resources has inked a deal to acquire an 80% interest in the Siana gold project in the Surigao gold district in the Philippines, by completing a bankable feasibility study within five years.

The project’s indicated resource is currently pegged at 5.26 million tonnes grading 4.2 grams gold per tonne for 710,000 contained ounces of gold, based on a cutoff grade of 2 grams gold. At a cutoff grade of 1 gram, the resource climbs to 7.71 million tonnes running 3.3 grams gold. The resources lie immediately below the open pit to a depth of about 150 metres.

Greenstone says the project has excellent potential to open to the resource up to the north, south and down dip.

Past production from the Siana gold mine totals 4.9 million tonnes averaging 6.3 grams gold. Open pit mining stopped after a pit-wall failure, and flooding after continuous cyclonic rains in 1990. Earlier underground mining operated targeted a 9-gram-per-tonne cut-off resource leaving behind large volumes of mineralized wall rock.

Siana is situated 6 km northwest of the recently announced 15 million ounce gold equivalent Boyongan resource, owned by equal partners Anglo American (AAUK-Q) and Philex Gold (PGI-V). Anglo can earn an additional 30% interest by completing a bankable feasibility study.

Greenstone envisages the project as a large-scale open-pit with the possibility of future underground mining.

The company has begun preliminary engineering studies. Reverse circulation and diamond is slated to begin within the next two. The holes will aim to verify previous results and test several other new targets. Back in Western Australia, the company continues with its plan to divest of some of its non-gold assets.Under the deal, International Base Metals will acquire, for A$2.45 million, the Ravensthorpe nickel, base metals and tantalum projects in the southwest of Western Australia, plus the Ajana base metals prospect in central WA. The A$2.45 million comprises A$500,000 in cash and a 15% stake in IBM valued at A$1.5 million. The remaining A$500,000, subject to IBML shareholder approval, will be applied to the subscription of another 4.9% of IBML. Greenstone shareholders will also receive priority allocation in the IBML IPO on a 1-for-20 basis, subject to a minimum subscription. The deal has a maximum allocation of 25% of the shares to be offered.