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  • Red Mountain Mining To Evaluate Gold Processing Potential At Batangas In The Philippines 0 comments
    Sep 18, 2013 2:37 AM

    Red Mountain Mining (ASX: RMX) has initiated a Scoping Study to evaluate the early capital payback potential from high-grade, near surface deposits at its Batangas project in the Philippines.

    The study will examine he viability and high-margin potential of the Batangas mining and processing project, and will initially be based on the current Indicated and Inferred resource.

    The resource is 5.78 million tonnes at 2.2 g/t gold and 3.3 g/t silver, containing 408,000 ounces of gold and 606,000 ounces of silver at a lower cut-off grade of 0.85 g/t gold.

    The resources have the potential to increase, with Red Mountain continuing to target
    high grade near surface mineralisation at its Japanese Tunnel and Pica prospects, with any new results the drilling campaign to be added to the resource estimate and Scoping Study inventory.

    Mineralisation remains open along strike and at depth at the Japanese Tunnel prospect.

    Jon Dugdale, managing director, commented: "The commencement of the Scoping Study represents a significant milestone for Red Mountain shareholders.

    "With our near surface, high-grade mineralisation at Lobo we are targeting a high early cash flow project and we are looking forward to the Scoping Study confirming our expectations."

    All current resources are contained within granted Mineral Production Sharing Agreements, which is the Philippines equivalent of Mining Leases.

    Sedgman Limited has been appointed to complete the processing engineering study with specialist work on other aspects of the study.

    These include: Crystal Sun Consulting - mining and infrastructure options; Minercon International Inc. - metallurgy; Technotrix Consultancy Services Inc. - environmental and social; and Resource Development Consultants Ltd - geotechnical, processing site, tailings storage facility.

    The Scoping Study is expected to be completed by early December 2013.

    Analysis

    The Scoping Study has the potential to unlock gold processing options at Batangas, with the study to evaluate the early capital payback potential from high-grade, near surface deposits - which could lead to cashflows.

    The study could be further enhanced as Red Mountain is currently targeting in a drilling program high grade near surface mineralisation at its Japanese Tunnel and Pica prospects.

    Importantly - any new results will be added to the resource estimate and Scoping Study inventory.

    New gold intersections are likely given that gold-copper mineralisation remains open along strike and at depth at the Japanese Tunnel prospect.

    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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