Red Mountain Mining will commence a staged drilling program to test high-grade gold epithermal lode exploration targets on its Lobo mining property in the Batangas Gold Project.
The initial targets include the at- and near-surface Pica and Japanese Tunnel prospects, based on currently drilled and sampled outcropping mineralization at these prospects only, and limited to a maximum 150 metre depth. The asset is 120km south of Manila.
Red Mountain managing director Jon Dugdale is pleased with the prospects. “We are looking forward to drilling the high-grade vein discoveries to confirm the exploration targets and ultimately define further high-grade resources and enhance our substantial gold resource base at Batangas.”
Total exploration target is estimated in a range of 400,000 to 700,000 tonnes grading from 3.6 grams/tonne to 5.3 grams/tonne gold equivalent for 45,000 to 120,000 gold equivalent ounces. Proposed drilling seeks exploration target validity, and will be completed in two stages over 2 to 4 months.
Stage one begins with drilling two diamond holes at Pica, and three at Japanese Tunnel to confirm thickness and grade of the previously drilled and/or trench channel sampled high-grade gold mineralization. This will allow for further refinement of the exploration target and drill planning.
Stage two will consists of extension and infill drilling at Pica and Japanese Tunnel at sufficient density to define mineral resources.
Total mineral resources at Batangas at a 0.85 grams/tonne gold lower cut off include indicated resources of 2.76 million tonnes @ 2.3 grams/tonne for 208,000 ounces and inferred resources of 3.02 million tonnes @ 2.1 grams/tonne for 200,000 ounces.
The company is focused on upgrading the Batangas resources through discovery of new, high grade, gold zones at Archangel and Lobo. The company will continue drilling to increase the size and grade of the resources at Batangas followed by a study to demonstrate viability of a potential high-margin gold project development.
Red Mountain Mining is a gold explorer and project acquisition company seeking to unlock under-developed gold and polymetallic projects in the greater Asian region via Australian mining efficiencies. The company owns Philippine tenements containing significant gold resources and high-quality copper-gold prospects.