Red Mountain Mining has intersected new high-grade gold mineralization at the Lobo prospect within the flagship Batangas Gold Project. The high-grade gold was discovered in near surface diamond drilling intersections from the Pica epithermal vein structure.
Best results include 5 metres @ 4.28 grams/tonne gold and 15.75 grams/tonne silver from 22.4 metres including 1.3 metres @ 9.49 grams/tonne gold and 21.5 grams/tonne silver. A second hole intersected 1.7 metres @ 4.4 grams/tonne gold from 58.1 metres downhole.
The Pica vein is one of at least five over a 15km strike within the Lobo prospect. It is the second vein to be drilled by Red Mountain.
The company’s managing director Jon Dugdale says, “We are very pleased that our drilling and trenching programs continue to generate new high-grade gold discoveries for further drilling. The opportunity is there to convert these discoveries to additional high-grade resources over coming months.”
At Lobo prospect, a series of epithermal lodes and breccias have been mapped over a combined strike length of 15km.
High-grade gold shoots have been identified at the South West Breccia which has an indicated resource of 178,000 tonnes @ 7.4 grams/tonne gold for 42,000 ounces of gold, and an inferred resource of 16,000 tonnes @ 5.3 grams/tonne gold for 3000 ounces of gold.
Red Mountain completed its acquisition of the Batangas project in October 2012 from Mindoro Resources and will continue drilling in a bid to increase the size and grade of a JORC-compliant resource, and then complete a scoping study to demonstrate the viability of a potential high-margin gold project development.