Perth, Sept 21, 2006 (ABN Newswire) - A mine development decision is expected by December on a US$45 million gold project being developed in the Philippines by ASX-listed Red 5 Limited.

The Company said today the bankable feasibility study for its 90% owned Siana gold project on the isle of Mindanao, was on track for completion by next month.

Red 5 Exploration Director, Mr Lance Govey, told the Paydirt Asia Pacific Downunder Conference in Perth today that this would allow a mine decision and financing arrangements to be completed by December.

"We expect to be dewatering at Siana by March next year with open-pit pre-stripping commencing no later than May," Mr Govey said.

"The issues of plant supply have been sidestepped - up to 75 weeks now for a ball mill - by sourcing this item from Cebu and the rolls crusher out of Western Australia," he said.

Red 5 is due to commence mining Siana by the second quarter of 2008 at a rate of 60,000 ounces per annum, with the first gold pour scheduled for June 2008.

The project has a total Indicated and Inferred Resource of 14.5 million tonnes grading 2.5 grams per tonne gold for 1.179 million ounces.

Mr Govey told delegates there was considerable potential to extend Siana below its open-pit and drilling was ongoing to scope out a potential Stage 2 development to take the mining underground.