The first target is Japanese Tunnel, where surface trenching had returned 5 metres at 10.43 grams per tonne gold, including 1 metre at 25.14g/t gold, and 2 metres at 18.12g/t gold, including 1 metre at 28.69g/t gold.
Subsequent drilling is planned to test mapped extensions of the structure to the south west along strike where a broad 8 metre wide zone of intermittently exposed veining about 20 metre southwest of the initial trench indicates continued strong mineralization before the veined zone passes into an area of agglomerate, then under limestone cover.
Previous outcrop sampling of this zone had returned 5 metres at 6.63g/t gold, 9.9g/t silver and 11.47% copper.
"It's exciting to start drilling again and test these high grade, near surface, Exploration Targets at Lobo," managing director Jon Dugdale said.
"Assay results should start flowing from the thirdweek of August, when we can begin to assess the potential to define further high-grade gold resources."
The company had previously estimated an Exploration Target in the range of 400,000 tonnes to 700,000 tonnes at from 3.6g/t gold equivalent (gold equ.) to 5.3g/t gold equ. for 45,000 gold equ. ounces to 120,000 gold equ. ounces for the Japanese Tunnel and Pica epithermal vein/lode mineralisation targets.
The first stage program consists of five diamond drill holes, three at Japanese Tunnel and two at Pica.
This will confirm the thickness and grade of previously drilled and/or sampled high grade gold mineralisation, allowing refinement of the Exploration Target and planning of further drilling to define potential mineral resources.
The second stage will involve extension and infill drilling at the two targets at sufficient density to define mineral resources.
During the June 2013 quarter, the company had drilled two diamond drillholes at the Pica target at Lobo that intersected multiple epithermal veins.
This produced peak intersections at PC-05 of 5 metres at 4.28g/t gold and 15.75g/t silver from 22.4 metres downhole including 1.3 metres at 9.49g/t gold, 21.5g/t silver as well as 1.7 metres at 4.4g/t gold and 34.8g/t silver from 58.1 metres downhole at PC-06.
The cluster of vein structures are interpreted to dip shallowly to the south-east and remain open in all directions.
Mapping by the company continues to locate northeast-southwest striking extensions to the Pica vein structure which has been mapped over more than a 2 kilometres 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.
It is also planning to carry out drilling to test high grade veins and soil anomalies at the Ulupong target where recent trenching and surface sampling and infill soil sampling returned a notable result of 3 metres grading 2.45 grams per tonne gold and 7.07g/t silver including 1 metre at 4.22g/t gold and 4.6g/t silver.
These sampling results and new soil sampling geochemistry have defined a greater than one kilometre long corridor of mineralisation at the south-western end of the more than 2 kilometre long Ulupong structure.
Red Mountain had $1 million in cash and cash equivalents as of 30 June 2013.
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.