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  • Red Mountain Mining Poised To Raise Lobo Gold Resources 0 comments
    Sep 12, 2013 9:24 PM

    Red Mountain Mining's (ASX: RMX) initial drilling has confirmed that gold-copper mineralisation remains open along strike and at depth at the Japanese Tunnel prospect of its Lobo Gold Project in Batangas, Philippines.

    It has now started drilling at the Pica prospect to test high grade epithermal veins and breccias.

    "The results from the initial Japanese Tunnel program confirm the continuity of the near surface gold-copper mineralisation that remains open in all directions," managing director Jon Dugdale said.

    "We look forward to further drilling at Japanese Tunnel to extend the mineralisation and define a maiden resource."

    Drilling at Lobo is designed to define additional high grade, near surface, gold resources. The project is one of two key projects of the Batangas Projects located about 120 kilometres south of Manila.

    Current JORC Resources are 5.78 million tonnes at 2.2 grams per tonne gold and 3.3g/t silver for 408,000 ounces of gold and 606,000 ounces of silver, most of it at the Archangel Project.

    Japanese Tunnel

    Gold mineralisation has been intersected at all four additional holes completed at the Japanese Tunnel epithermal vein structure.

    Notably, the most westerly hole LB-85, also returned top results intersecting 3.7 metres at 3.06g/t gold, 8.7 g/t silver and 2.26 % copper from 12.3 metres downhole depth including 1.55 metres at 5.97g/t gold, 18.4g/t silver, 4.88% copper and including 0.5 metres at 9.7g/t gold, 34.8g/t silver, 8.29% copper.

    LB 86 tested the structure to the northeast of LB 82, which returned 8.7 metres at 4.34g/t gold, 13.8g/t silver and 0.89% copper from 2.9 metres, intersecting 3.25 metres at 1.36g/t gold, 5.34g/t silver, 0.82 % copper from 19.5 metres including 1.1 metres at 2.02g/t gold, 13.13g/t silver and2.04% copper.

    The intersections in LB 85 and LB 86 have opened up potential to extend the mineralisation to the southwest and northeast respectively.

    Mapping has determined that the structure potentially continues at least 700 metres to the southwest before it is covered by a veneer of post-mineralisation limestone.

    The next appearance of epithermal quartz in this direction is 1.5 km to the southwest at Signal, where previous rockchip samples of sub-cropping epithermal quartz-barite lode graded up to 72.6g/t gold.

    To the northeast, the next epithermal breccia-lode outcrop 60 metres distant produced a peak assay of 3.79 g/t gold.

    Earlier drilling in this initial program had returned 8.7 metres at 4.34g/t gold from 2.9 metres downhole depth including 3.7 metres at 8.62g/t gold and including 0.55 metres at 16.8g/t gold.

    Pica

    Pica had previously produced intersections including PC-05: 5 metres at 4.28g/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.

    Following completion of the next drillhole, drilling will be planned to test along strike to determine strike extent and confirm the Exploration Target.

    The company had estimated an Exploration Target 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.

    Lobo currently has a Resource of 194,000 tonnes at 7.2g/t gold and 1.8g/t silver for 45,000 ounces of contained gold and 11,000 ounces of contained silver.

    Analysis

    The results extend near surface mineralisation at the Japanese Tunnel Prospect, raising the likelihood that Red Mountain will upgrade resources at Lobo.

    Upside potential is also strong with mineralisation remaining open along both strike and depth.

    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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