Red Mountain Mining Planning To Drill High-Grade Gold Veins At Batangas
Seeking Alpha Analyst Since 2009
Red Mountain Mining (ASX: RMX) is planning to commence increase exploration at its prospective Batangas Gold project, which is located 120 kilometres south of Manila in the Philippines.
Batangas hosts a JORC Resource on granted MPSA "mining licences" of: Indicated and Inferred Resources 5.8 million tonnes at 2.2g/t gold for 408,000 ounces (0.85 g/t gold cut off).
The company is planning to commence a staged drilling program to test high-grade gold epithermal lode exploration targets on its Lobo mining property, which includes the Pica and Japanese Tunnel prospects.
Jon Dugdale, managing director, said: "We are looking forward to drilling the near surface, high-grade, vein discoveries at Pica and Japanese Tunnel to confirm the Exploration Targets and ultimately define further high-grade resources and enhance our already substantial gold resource base at Batangas Gold project."
The initial exploration targets include the at and near-surface Pica and Japanese Tunnel prospects, based on currently drilled and sampled outcropping mineralisation at these prospects only, and limited to a maximum depth of 150 metres.
The total exploration target is estimated in a range of 400,000 tonnes to 700,000 tonnes at from 3.6g/t gold equivalent (gold equ.) to 5.3g/t gold equ. for 45,000 gold equ. ounces to 120,000 gold equ. ounces.
Surface trench channel sampling and drilling conducted by Red Mountain and the previous operator has intersected high-grade epithermal gold mineralization in five areas on the Lobo Mineral Production Sharing Agreement, namely South West Breccia, Pica, Japanese Tunnel, West Drift and Ulupong.
Drilling is proposed to test the validity of the Exploration Targets, to be completed in two stages over the next 2 to 4 months (subject to financial capability) as follows:
Five diamond drill holes will be drilled, two at Pica and three at Japanese Tunnel, with the objective of confirming the thickness and grade of the previously drilled and/or trench channel sampled high-grade gold mineralisation.
Red Mountain said that this will allow refinement of the exploration target and planning of further drilling to define potential resources.
Extension and infill drilling at Pica and Japanese Tunnel at sufficient density, such as 40 metres by 20 metres.
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