Surface sampling by Red Mountain Mining at the Ulupong discovery has returned high-grade gold results. Ulupong is at the Lobo prospect which forms part of company’s Batangas Gold Project, 120km south of Manila.

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Further trenching and surface sampling at Ulupong, close to previous results including 6.68 grams/tonne gold and 67.6 grams/tonne silver and 5.48 grams/tonne and 21.9 grams/tonne from quartz-sulphide boulders, has produced significant new results from epithermal veins, including 3 metres @ 2.45 grams/tonne gold and 7.07 grams/tonne silver, including 1 metre @ 4.22 grams/tonne gold and 4.6 grams/tonne silver. Infill soil sampling has defined a 500 metre-long by 100 metre-wide anomaly in this area.  

Further trenching is under way across the entire soil anomaly, assessing the width of the mineralized zone and a further six samples have been submitted for under assay.

In addition, three new vein outcrops have been sampled in an area about 400 metres northeast of the trench, including a 2 metre-thick quartz vein/breccia outcrop producing a 2.15 grams/tonne gold assay.

The sampling results, combined with new soil sampling geochemistry, have defined a mineralization corridor more than 1km-long at the southwest end of the more than 2km-long Ulupong structure. Further drilling will test Ulupong’s high-grade veins and soil anomalies in the next drilling phase.

Red Mountain’s managing director Jon Dugdale says, “We continue to receive very encouraging gold and silver results from outcropping epithermal veins at Ulupong. We hope to re-commence drilling in the near future to test this new discovery, along with the other high-grade, near-surface targets at Pica and Japanese Tunnel.”

Total mineral resources at Batangas at a 0.85 grams/tonne gold lower cut-off are 5.78 million tonnes @ 2.2 grams/tonne gold for 408,000 ounces. Red Mountain will continue drilling with the objective of increasing the size and grade of the Batangas resources then completing a study to demonstrate the viability of a potential high-margin gold project development.

Due to the current market conditions and a reduction in the level of activity at Batangas, all senior employees of Red Mountain, including directors and executive staff, have taken a 20% reduction in individual remuneration payments. In addition the company has had to reduce employee numbers on site to reflect the reduced level of drilling activity.

www.redmm.com.au

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