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  • Red Mountain Mining Continues High Grade Gold Discoveries At Lobo 0 comments
    Apr 30, 2013 10:14 PM

    Red Mountain Mining (ASX: RMX) is building further on the potential to add to the high grade Resource base at its Lobo Prospect in the Philippines with the discovery of more high grade, near surface gold in recent drilling.

    Diamond drilling was carried out on the Pica epithermal vein structure - one of at least five parallel epithermal structures, with an aggregate strike length of over 15 kilometres, at the Lobo prospect.

    This is only the second epithermal vein structure drilled by Red Mountain at Lobo, which forms part of the Batangas Gold Project.

    Notable drill results from the first hole comprised 5 metres at 4.28 grams per tonne (g/t) gold and 15.75g/t silver from 22.4 metres, including 1.3 metres at 9.49g/t gold and 21.5g/t silver.

    The second hole in the two hole program intersected 1.7 metres at 4.4g/t gold from 58.1 metres, with silver results pending.

    The cluster of vein structures intersected by the two holes is interpreted to dip shallowly to the southeast and remain open.

    Jon Dugdale, managing director, commented: "We are very pleased that our drilling and trenching programs continue to generate new high grade gold discoveries for further drilling.

    "The opportunity is there to convert these discoveries to additional high grade resources over the coming months."

    Mapping by Red Mountain continues to locate northeast to southwest striking extensions to the Pica vein structure, which has been mapped over more than 2 kilometres of strike length.

    Further drilling is being planned to test for extensions to the high grade mineralisation intersected, and potentially define a near surface gold and silver resource.

    The initial successful drilling campaign of the West Drift vein located a new high grade gold shoot which is now being geologically interpreted and modelled.

    These latest results also follow on from the recent new surface discovery on the Ulupong epithermal vein of 19 metres at 9.77g/t gold, including 7 metres at 23.58g/t gold, located in the southern portion of the Lobo prospect.

    Lobo prospect

    At Lobo, a series of epithermal lodes and breccia's have now been mapped over a combined strike length of more than 15 kilometres.

    Previous drilling has only tested about 500 metres of strike length of the interpreted lode structures, to a shallow depth of less than 200 metres.

    High grade gold shoots have been identified at the South West Breccia and the new West Drift gold discovery.

    The South West Breccia hosts an Indicated Resource of 178,000 tonnes at 7.4g/t for 42,000 contained gold ounces and an Inferred Resource of 16,000 tonnes at 5.3g/t for 3,000 contained gold ounces.

    Regional trenching and channel sampling has identified new veins/lodes and high grade gold targets for further drilling.

    Batangas gold projects

    The Batangas Project, which covers 270 square kilometres and an entire epithermal gold field, comprises two key gold resources - Lobo and Archangel.

    Red Mountain has two drilling rigs in action at Lobo and a continuous pipeline of drilling targets.

    The company's strategy for the Lobo and Archangel projects is to identify high grade gold targets to be systematically drilled to increase total resources and grade.

    Following on from that Red Mountain plans to establish the scope of a highly profitable gold project by optimising open pits on current resources and targeting higher grade resources to enhance profitability.

    The company will then continue to explore (trenching) and define (drilling) new high grade gold targets to establish a long mine life.

    Red Mountain had a cash position of A$1.5 million at the end of the March 2013 quarter.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

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