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Red Mountain Mining Appoints Jon Dugdale As Managing Director

Red Mountain Mining (ASX:RMX) has appointed Jon Dugdale as managing director after signalling the change in December 2012.

Previously, Dugdale was president and CEO of Mindoro. Mindoro is the largest shareholder of Red Mountain with a holding of 55.80 per cent.

Dugdale is a geologist with 26 years mining, investment and corporate experience in Australia and the Asian region. He was involved with the exploration and development of several discoveries made by the MPI exploration team, including Silver Swan nickel deposit in Western Australia and Golden Gift gold deposit in Stawell, Victoria, Australia.

Non executive chairman

From 1 May 2013, executive chairman, Neil Warburton, will assume the role of non-executive chairman of Red Mountain.

Neil Warburton said, "the addition of Jon as the company's managing director brings a wealth of exploration and corporate knowledge to our Board as well as detailed understanding of the Philippines mining industry where our main assets are located.

"The Board looks forward to growing the company's gold base and taking the existing resources to development and production under Jon's stewardship."

Project background

Red Mountain completed the acquisition of significant gold resources and copper gold tenements in the Philippines on 30 October 2012.

Since acquisition the company has focussed on upgrading the Batangas resources through discovery of new, high grade, gold zones at Archangel, and Lobo (eg West Drift, Pica, Ulupong).

Drilling will continue at Batangas with the objective of increasing the size and grade of JORC Resource at Batangas then completing a scoping study to demonstrate the viability of a potential high-margin gold project development.

Near term focus

Red Mountain's near term focus on high grade targets could prove rewarding given the prospective geological setting of the projects and technical expertise of the company.

Exploration success could translate to low capex / opex and high cash margin operations. The company is well leveraged to exploration success given the established management team, Philippines well established mining codes and good infrastructure.

Red Mountain held cash reserves of $3.3 million in February 2013 to fund drilling campaigns.

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