Red Mountain Mining has started drilling the Pica epithermal lode structure at the Lobo prospect within the Batangas Gold Project. Pica is one of at least five parallel lodes at the prospect which is about 100km south of Manila.
A 2005 drill hole at the high-grade vein confirmed intersections of 1.5 metres @ 8.5 grams/tonne gold from 29.8 metres and 13.65 metres @ 2.49 grams/tonne gold from 110 metres.
Mapping by Red Mountain during February and March has determined that these veins outcrop and are part of a major northeast-southwest trending structure of more than 2km strike length. The new holes will initially test the near-surface extent of the veins for open pit mining potential.
The company’s executive chairman Neil Warburton says, “The sampling and trenching program at Lobo has defined multiple at surface high-grade gold drilling targets that will now be drill-tested. This is an exciting phase of the Lobo drilling program that will hopefully add further gold resource targets in addition to Lobo’s West Drift and South West Breccia resources.”
Lobo’s series of epithermal lodes and breccias have now been mapped over a combined strike length of more than 15km. High-grade gold shoots have been identified at South West Breccia with an indicated resource of 178,000 tonnes @ 7.4 grams/tonne gold for 42,000 ounces and an inferred resource of 16,000 tonnes @ 5.3 grams/tonne for 3000 ounces, and the new West Drift gold discovery. Regional trenching and channel sampling has identified new veins and high-grade targets for further drilling.
Testing of the Japanese Tunnel prospect, which is about 150 metres southwest of the Southwest Breccia resources, is also under way.
Sampling at the recently discovered Ulupong epithermal vein, 1km southeast of the Southwest Breccia has produced high-grade gold assays including 0.45 metres @ 23.39 grams/tonne. Another newly discovered outcropping vein 300 metres northeast of the Ulupong trench has produced an assay of 1 metre @ 4.56 grams/tonne.
Red Mountain has focussed on upgrading the Batangas project resources since its acquisition of the copper-gold tenements in October 2012. The company will continue drilling with the objective of increasing the size and grade of JORC-compliant resources at Batangas before completing a scoping study to demonstrate the viability of a potential high-margin gold project development.