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Red Mountain Mining Intersects Gold Grading 16.8 Grams Per Tonne At Lobo In Philippines

Red Mountain Mining (ASX: RMX) has intersected gold grading up to 16.8 g/t gold from diamond drilling at the Lobo Gold project in the the Philippines.

The program is designed to prove up more high grade gold ounces near surface over the coming months. Total resources at Batangas are 5.78 million tonnes at 2.2 g/t Au for 408,000 ounces of gold.

The intersection, from the new drill program included 8.7 metres at 4.34 g/t gold (Au) from 2.9 metres downhole depth including 3.7 metres at 8.62 g/t Au and including 0.55 metres at 16.8 g/t Au.

Drilling was testing the interestingly named Japanese Tunnel epithermal vein structure at Lobo following previous high-grade surface trenching results of 4 metres at 12.23 g/t Au including 1 metre at 25.14 g/t Au.

Red Mountain Managing Director, Mr Jon Dugdale: "This result is a great start to our new drilling program at Lobo, which is ultimately aiming to define additional high grade, near surface, gold resources over the coming months".

Progress

Three holes have been completed at Japanese Tunnel, with two additional drillholes planned to initially scope the high grade zone either side of the discovery outcrop.

Surface mapping and trench sampling has encountered a further epithermal breccia-lode outcrop 60 metres to the northeast of this area, between Japanese Tunnel and South West Breccia (Indicated and Inferred resource of 194,000 tonnes at 7.2 g/t Au) that produced a peak assay of 3.79 g/t Au.

This would indicated that the mineralized structure continues in this direction.

Exploration target

There is an Exploration Target has for the Pica and Japanese Tunnel prospects, estimated in a range of 400,000 tonnes to 700,000 tonnes grading from 3.6 g/t gold equivalent (Au equ.) to 5.3 g/t Au equ. for 45,000 Au equ. ounces to 120,000 Au equ. ounces,

Strategy

The company is focussed on upgrading the Batangas resources through discovery of new, high grade, gold zones at Archangel, and Lobo (eg Japanese Tunnel, West Drift, Pica, Ulupong).

Drilling will continue to increase the size and grade of the gold resource at Batangas then completing a scoping study to demonstrate the viability of a potential high-margin gold project development.

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