Red Mountain Mining's (ASX: RMX) shares are expected to open higher following the company delivering some more bonanza grade trenching results from the Lobo Prospect on its Batangas Gold Project in the Philippines.
- New trenching intersects: 4.9 metre lode at 24.9g/t gold, including 0.5 metres at 136.9g/t gold; and
- Second ongoing trench intersects: 1.75 metres at 41g/t gold, including 0.5 metres at 125.5 g/t gold.
The new trenching followed up previous high grade colluvium sampling 30 metres to the west of the South West Breccia resource. Trench 19 was excavated to bedrock, up slope from the high grade colluvium, intersecting a 2.6 metre, true width, lode then another vein in the footwall.
Jon Dugdale, managing director, commented:
"This is yet another exceptionally high grade surface discovery by the Philippines based exploration team. Drilling has started so there is plenty more news to come as we strive to build a substantial high-grade gold resource."
Drilling commences at Trench 7; results soon
Drilling has commenced on the lode under Trench 7, which has been intersected and is being cored.
Highlighting the prospectivity of this area, previous results from trenching at Trench 7 include: 2.0 metres at 31.1g/t gold; and 3.0 metres at 22.2g/t gold.
The drilling is 200 metres to the south west.
Trench 13 which previously yielded: 2.6 metres at 28.6g/t gold; is 350 metres to the southwest along strike.
Trenching is continuing to the east of Trench 7 towards Japanese Tunnel, and northeast of South West Breccia at Acacia prospect.
97% gold leach recovery from Lobo
Earlier in the month Red Mountain delivered some impressive metallurgy results, which include a 97% gold leach recovery from a South West Breccia resource sample at Lobo.
The company demonstrated the very high recoveries from a composite sample grading 8.8 g/t gold, with the recoveries achieved through fine grinding then standard Carbon in Leach (NASDAQ:CIL) testing of the resource material.
These latest high-grade gold trenching results add further to the potential of Red Mountain substantially increasing the current Indicated and Inferred Resource of 5.78 million tonnes at 2.2g/t gold for 408,000 ounces.
The company also continues to build a case that Lobo could be a low capital start-up, which would allow Red Mountain to get into production within a short time frame.
The high recoveries of 97% could further maximise revenue from any processed material.
The next key news for Red Mountain will be drilling results near Trench 7, more trenching results and the Scoping Study.
Jon Dugdale is presenting at "Stars in 2014 Series" in Sydney. CLICK HERE for registration details.
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