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  • Red Mountain Mining Identifies Five Gold Targets At Lobo 0 comments
    Aug 5, 2014 10:04 PM

    Red Mountain Mining (ASX:RMX) has used a detailed exploration plan to prioritise five new high grade gold and silver-copper drilling targets at its Lobo prospect, which is part of the Batangas Gold Project in the Philippines.

    A drilling rig is on site, with the company to start drilling soon as possible.

    The targets are highly prospective, with Camo yielding rock chip results of up to 729.5g/t silver and 4.39% copper.

    The Signal target has samples including 72.6g/t gold and 42.6g/t gold, while Ulupong has exceptionally high grade surface trenching results such as 19 metres at 9.77g/t gold.

    Surface sampling and trenching is in progress to define the key priority drilling targets.

    Jon Dugdale, managing director, commented:

    "We now understand the controls on high grade gold mineralisation at Lobo and recognise that within most of the 15 kilometres of mapped epithermal structures at Lobo the gold zone is capped by siliceous material and/or silver-copper mineralisation.

    "This opens up potential to drill test both the siliceous, silver-copper rich caps and the primary focus, targeting potential high grade gold zones underneath.

    "The drilling rig is on site and we plan to start drilling the high priority targets as soon as possible."

    Targets

    In total 30 targets were identified throughout the Batangas Gold Project area, and along with the five priority targets, 11 moderate to high priority targets and several regional copper-gold porphyry targets were outlined.

    Lobo

    Red Mountain had recently increased the Lobo Indicated and Inferred Resource by 82% to 604,000 tonnes at 4.2g/t gold for 82,000 ounces.

    This is expected to have a positive impact on the Definitive Feasibility Study expected to be completed by December 2014.

    In addition, the total Resource at Batangas now stands at 6.19 million tonnes at 2.2g/t gold, containing 444,000 ounces.

    Batangas covers an area of 270 square kilometres that is located 120 kilometres south of Manila on the south coast of Luzon Island, and is within a regional province that is strongly endowed with major gold and copper and gold resources and mining projects.

    Scoping Study

    A Scoping Study completed earlier this year had already estimated a low cash cost of A$769 / US$690 per ounce, and a capital cost of A$16.7 million / US$15 million over a mine life of 4.5 years, this could be improved further through the discovery of more high grade deposits.

    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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