Adding interest there is a potential near term path to cash flow at the project, as a second Chinese processing plant operator has expressed interest in toll processing and/or ore purchases.
The latest trenching highlights from the South West Breccia (SWB) Lode structure include:
- Footwall Lode: Trench 39: 2.1 metres at 14.4g/t gold, including 0.6 metres at 41.5g/t gold; and
- Main Lode: Trench 38: 3.0 metres at 12.1g/t gold, including 1.0 metre at 27.2g/t gold.
The new Footwall Lode open to the southwest and northeast, further trenching in progress.
Jon Dugdale, managing director, commented:
"The discovery of a new high grade footwall lode at SWB opens up potential along the entire SWB Lode system.
"Further trenching, in progress, and ultimately drilling will test for extensions of this structure.
"Recent results are being incorporated into a new resource estimate, to be assessed for its early mining and toll processing and/or ore sales potential."
Recent trenching results
Today's results adding to recent high-grade results including:
- 4.5 metres at 14.8g/t gold;
- 9 metres at 28.9g/t gold;
- 11 metres at 19.1g/t gold; and
- 3.5 metres at 25.9g/t gold.
Early mining potential has Chinese interest
Once the new gold resource model for the high grade SWB Lode corridor is completed, the surface zone will be evaluated for early mining and potential toll processing and/or ore sales to either a Philippines or China based processing facility operator.
A second Chinese processing plant operator has expressed interest in toll processing and/or ore purchases from potential early mining of the SWB lode.
Red Mountain said that this operator is visiting the Lobo site on 19 - 20 June and will take samples for metallurgical test work.
This work will determine the viability of generating a high grade gold concentrate then transporting to, and processing at, their southern China based facility.
The latest high grade trenching results further enhance the potential of an early mining program at Batangas. There are more trenching results to flow through in the near-term.
A second Chinese processing plant operator has expressed interest in toll processing and/or ore purchases.
This would put Red Mountain on the road to cash flow, while significantly de-risking the project.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.