Red Mountain Mining has announced high grade gold results from two areas at its recently acquired Batangas project in the Philippines.
At the Lobo project, channel sampling of trenches southwest of the Southwest Breccia has produced results including 1 metre @ 41.8 grams/tonne gold, 6 metres @ 23.55 grams/tonne gold including 1 metre @ 30.79 grams/tonne gold and 4 metres @ 12.23 grams/tonne gold including 1 metre @ 25.14 grams/tonne gold.
At Archangel, the company has announced a high-grade gold intersection of 2.2 metres @ 36.53 grams/tonne gold including 1 metre @ 62.09 grams/tonne gold from 203 metres below the Kay Tanda resource.
Archangel has a JORC-compliant indicated resource of 393,000 ounces of gold and 1.4 million ounces of silver as well as an inferred 108,000 ounces of gold and 210,000 ounces of silver.
Drilling is also now testing the West Drift lode on the Lobo project, where previous drilling by Red Mountain’s biggest shareholder Mindoro Resources indicates a potential target zone of greater than 400 metres strike length, with increasing gold-grade with depth.
Red Mountain spokesman Jon Dugdale says, “We are very pleased with the initial high-grade results from the Red Mountain program at Batangas. The Batangas gold assets are now owned and operated by Red Mountain, a gold-focused exploration and development company in which Mindoro has a majority stake. We look forward to further encouraging results from the Red Mountain program.”
Meantime, Red Mountain has firm commitments from investors in response to a proposed capital raising share placement. The company aims to raise $1 million via a placement of 8.5 million shares. The proceeds have been earmarked for accelerating the company’s search for high grade gold shoots at Lobo.