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Red Mountain Mining Confirms Zones Of High Grade Gold At Lobo, Philippines

Red Mountain Mining's (ASX: RMX) exploration drilling at its South West Breccia (SWB) lode corridor at its Lobo Project, Philippines, has confirmed high grade mineralisation of up to 0.65 metres at 18 grams per tonne gold under Trench 13.

Notably, the initial drilling results have confirmed that discreet zones of shallow high grade gold mineralisation exist along the 500 metre exposed portion of the SWB corridor.

Drilling is also underway at depth below the planned open pit to better define the depth extensions of the high grade resource and projected extensions of the shoot for underground mine resource targeting.

The company has drilled 20 holes to date under the Phase 1 drilling program with work currently testing under a previous trench of 11 metres at 9.3g/t gold that indicates a possible extension of the high grade SWB lode to the north of the resource.

"We will now target deeper high grade zones within the SWB structure, starting with depth extensions of SWB where drilling is underway," managing director Jon Dugdale said.

"Any additional ounces we find have the potential to further enhance the viability of the Batangas gold project development, to be the subject of a DFS, to commence shortly."

Drilling Details

The high grade intersection of 0.65 metres at 18g/t gold from 10 metres downhole depth was produced directly down dip of Trench 13, which had returned 2.6 metres at 28.6g/t gold.

This lode intersection remains open to the south where the lode structure passes under younger limestone.

Red Mountain also completed five holes on the Trench 7 (southwest) side of Japanese Tunnel, producing a peak intersection at depth below Trench 20 of 1.5 metres at 3.63g/t gold including 0.5 metres at 4.73g/t gold from 38.7 metres downhole.

This intersection, in combination with other drilling results, indicates that below the previous near surface high grade trenching results the lode steepens and is lower grade, but then flattens in dip and strengthens in gold grade with depth.

Deeper drilling is being planned to test below Trench 7 where access has been suspended pending landholder access agreement. Trench 7 has previously returned trenching results of 2 metres at 31.1g/t gold and 3 metres at 22.2g/t gold.

Four to five holes are planned to test the northern and depth extensions of the SWB shoot and also to provide metallurgical samples for further testing prior to the planned Definitive Feasibility Study.

The results of this drilling will be incorporated into a JORC 2012 compliant mineral resource upgrade, prior to the commencement of the planned DFS.

Exploration Targets have been defined for the South West Breccia, Japanese Tunnel and Pica prospects and a continuous program of soil sampling, mapping, surface trenching and drilling continues with the objective of defining additional high-grade resources on the Lobo Prospect.

Lobo Prospect

Surface trench channel sampling and drilling has intersected high-grade epithermal gold mineralisation in five areas - SWB, Pica, Japanese Tunnel, West Drift and Ulupong - on the Lobo Mineral Production Sharing Agreement.

Resources of 194,000 tonnes at 7.2g/t, or 45,000 ounces of contained gold, have been defined for the SWB shoot.

This includes an Indicated Resource of 178,000 tonnes at 7.4g/t for 42,000 ounces of contained gold.

Lobo is the focus of the company's current Scoping Study, released last month.

Initial production under the study is planned to be open pit mining inventory from the South West Breccia resource. This will be followed by higher grade mining inventory from Kay Tanda West resources transported from the Archangel MPSA, about 15 kilometres by road.

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