PFS proves Batangas mine’s low cost, strong cash flow potential

A prefeasibility study (PFS) of ASX-listed junior gold developer Red Mountain Mining’s Batangas gold project, 120 km south of Manilia, in the Philippines, has been completed, demonstrating the low operating costs, high margins and strong cash flow potential of the project. The study concluded that the project would generate A$46-million in free cash flow during the first seven years of production at a gold price of A$1 700/oz. This would be generated by the low operating costs of $735/oz, at an all-in cost of $914/oz. Further, the low upfront capital cost of $16-million would include a new carbon-in-leach processing plant.