Red Mountain Mining has planned the next stage of diamond drilling to test the Pica and Japanese Tunnel high-grade gold discoveries, which are part of the Lobo section of the Batangas Gold Project in southern Luzon. The company is undertaking a rights issue, funds from which will be used for the drilling program.
Two more holes are planned to test the multiple east-dipping high-grade veins at Pica where previous drilling returned strong gold and silver grades, including 5 metres @ 4.28 grams/tonne gold and 15.75 grams/tonne silver from 22.4 metres, and 1.7 metres @ 4.4 grams/tonne gold, 34.6 grams/tonne silver and 2.5% lead from 58.1 metres.
Further drilling will then be planned along strike with the objective of defining a new gold resource at Pica.
Drilling is also planned to test the Japanese Tunnel prospect, 150 metres southwest of the Southwest Breccia resource which has indicated and inferred resources of 194,000 tonnes at 7.2 grams/tonne gold.
Previous trenching at Japanese Tunnel has returned 5 metres @ 10.43 grams/gold including 1 metre at 25.14 grams/tonne and 2 metres @ 18.12 grams/tonne including 1 metre at 28.69 grams/tonne. Further trenching, 20 metres to the southwest of the initial trench, intersected a broad veining zone of about 8 metres, including 0.3 metres @ 3.9 grams/tonne and 0.75 metres @ 2.29 grams/tonne. Three initial holes will further test the prospect before additional drilling can be planned with the aim of defining a new mineral resource.
Red Mountain’s managing director Jon Dugdale says, “We are looking forward to completing the current rights issue then commencing drilling to test these exciting, near surface, high-grade gold targets.”