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  • Red Mountain Mining Has High Grade Silver At Lobo 0 comments
    Aug 25, 2014 7:18 PM

    Red Mountain Mining (ASX:RMX) has identified high-grade silver from trenching at the Camo prospect, which has the potential for a "look-alike" to the high grade South West Breccia (SWB) gold zone at shallow depth.

    Camo is the first of five new priority targets to be tested at its Lobo Prospect, which is part of the Batangas Gold Project, located 120 kilometres south of Manila in the Philippines.

    Highlights from Camo include: 4 metres at 379g/t silver, 2.0g/t gold, 0.62% copper, (or 7.1g/t gold equivalent).

    A previous drillhole intersected the lode down plunge to the north of this trench intersection, hitting: 5.5 metres at 487g/t silver, 0.17g/t gold and 1.83% copper from 25.8 metres, or 9.7g/t Au equivalent1 (released pre 2012).

    Camo is located 1.2 kilometres northeast of the South West Breccia, and the new results indicate that RMX are on top of a preserved epithermal system.

    At Lobo, Resources total 604,000 tonnes at 4.2g/t gold for 82,000 ounces of gold.

    These have been identified in three areas:

    - SWB with a total 98% Indicated and 2% Inferred Resource of 221,000 tonnes at 6.3g/t gold;
    - Japanese Tunnel with a total Indicated and Inferred Resource of 34,000 tonnes at 3.0g/t gold; and
    - West Drift with a total Indicated and Inferred Resource of 350,000 tonnes at 3.0g/t gold.

    About Camo

    Camo is also at a 100 metre higher elevation than SWB, and characterised by high silver and copper grades in layered quartz-barite-enargite (Cu-As sulphide) epithermal lode material, indicative of the siliceous cap or sinter zone formed within the upper levels of an epithermal system.

    High grade gold generally occurs below the silver rich siliceous sinter, within the "boiling zone" of the epithermal system.

    This is interpreted to have been eroded at SWB but may lie at shallow depth at Camo.

    Batagas Scoping Study

    The Batagas Scoping Study identified a low cost, early payback potential.

    The projected cash flow is A$40 million in 4.5 years after A$17 million capital. The study was only limited to existing, high-grade, at surface resources


    The new trenching results from Camo represent a very good start as the multi-metal results are equivalent to a grade of 7.1g/t gold equivalent.

    Although only early days, the lode represents a significant target to define a near surface silver-copper and gold resource.

    There is also the potential for a high grade gold zone at depth.

    The next key catalyst will be drilling results. A program is currently being planned and will commence shortly.

    A Definitive feasibility study is underway which will incorporate the new resources discovered following the Scoping Study.

    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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