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Red Mountain Mining Gains Local Philippines Support For Batangas Gold

Red Mountain Mining (ASX:RMX) has received strong local community support for its Batangas Gold Project in the central Philippines with over 1,200 local residents holding a pro-development rally.

Earlier this month, the company defined a new large gold-silver anomaly on the footwall of South West Breccia (SWB) lode at Lobo prospect.

The rally in Lobo City was held in response to the Lobo Municipal Council confirming support for the project but requiring a demonstration of the social acceptability of the development in order to maintain their endorsement.

In addition, a petition backing the Municipal Council's support has been signed by over 3,400 locals to date and will be presented to the Municipal Council and the Government bureaus today.

Jon Dugdale, managing director, said:

"We are very grateful for the overwhelming show of local community support for development of the Batangas Gold Project.

"We have a 12 year track record of funding and supporting social development and environmental and community programs and this is now paying dividends for us.

"Securing local community support is one of the most significant hurdles for any international mining company, and we are delighted to have received this show of support from the local community at Lobo."

Batangas Gold Project

The Batangas Gold Project located 120 kilometres south of Manila currently has a global JORC 2012 Indicated and Inferred Resource of 6.19 million tonnes at 2.2g/t, or 444,000 ounces of contained gold.

This includes the high grade South West Breccia Indicated Resource of 221,000 tonnes at 6.3 g/t gold, of which the majority is in the initial open pit mining inventory of 174,000 tonnes at 6.8g/t gold.

Exploration is ongoing to upgrade resources at Batangas.

Funding from strategic partner Bluebird Merchant Ventures Ltd will allow the company to complete a Definitive Feasibility Study on the project by the third quarter 2015.

Initial results have confirmed low capital and operating costs and recovery of over 100,000 ounces of gold during the initial 5 years of a 10 year production plan.

Final mine development permitting submissions have been endorsed by the Local Government Councils and are now proceeding through the final stages of approval by the central Philippines Government.

Analysis

Red Mountain Mining is a step closer towards securing Philippines Government approval for the Batangas Gold Project.

The local community support highlights the value of the company's social development, environmental and community programs while clearing a key hurdle for any miner.

Two Chinese processing plant operators have expressed interest in toll processing and/or ore purchases from potential early mining of the high grade South West Breccia lode.

This has the potential to deliver cash flow in the short term.

Managing director Jon Dugdale will present at Proactive Investor's Sydney, Melbourne Investor Luncheons in August.

Click here to register for the Sydney Luncheon on Tuesday 4th August or here for the Melbourne Luncheon on Wednesday 5th August.

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.