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Red Mountain Mining Finds New Silver-Gold Zone In Philippines

Red Mountain Mining (ASX:RMX) has identified a second silver-gold zone at Camo with the anomaly providing another drilling target, at Camo Prospect while extending the target to over 500 metres in strike length.

This comes just a day after the company secured access to standby equity capital of up to $3 million to continue drill testing the five new priority targets.

Camo is part of the Lobo Prospect and the Batangas Gold Project in the Philippines.

The location of the second anomaly indicates that the potential target is larger than initially thought. Camo is 1.2 kilometres along strike northeast of the high grade South West Breccia (SWB) resource.

The new, second target zone has been identified through interpretation of silver and gold soil anomalies and new mapping that has located a linking northeast-southwest lode trend between the current area being drilled and the new second zone.

Drilling is currently testing below the first target zone.

Jon Dugdale, managing director, commented: "The location of the second silver-gold anomaly at Camo indicates we have a much bigger target than first thought.

"It also indicates that the system is plunging shallowly to the northeast and that the high grade gold target may lie beneath the anomaly.

"The drilling will tell the story and the program is well underway."

Drilling program

The current drilling program is testing below the first target zone, associated with highly anomalous silver in soil sampling and immediately down plunge to the northeast of high grade surface rockchip and trenching results.

These include: 729g/t silver, 1.45g/t gold and 4.4% copper and 487g/t silver, 1.45g/t gold and 1.09% copper, along with Trench C1-14: 4 metres at 379g/t silver, 2.0 g/t gold, 0.62% copper (or 7.1g/t gold equivalent.)

The drilling, and surface mapping, has indicated that the lode structure trends northeast-southwest, parallel to the SWB grid orientation, and projects towards a second zone characterised by highly anomalous silver and gold in soil sampling.

The high gold, with silver, in soil sampling indicates the second zone may represent "leakage" from the buried gold or "boiling" zone at depth.

Drilling will continue along strike to the northeast and towards the second target zone with the objective to identify a high grade gold zone at depth

About Camo

Camo is at a 100 metre higher elevation than SWB, and characterised by high silver and copper grades in layered quartz-barite-enargite 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.

The Camo lode therefore represents a significant target to define a near surface silver-copper and gold resource, with potential for a high grade gold zone at depth.

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