A new resource estimate at significantly higher grades has been announced at Red Mountain Mining’s Batangas Gold Project. The new indicated and inferred estimate totals 5.78 million tonnes @ 2.2 grams/tonne gold for 408,000 ounces of gold and is based on results from drilling since August last year at the South West Breccia and Lobo prospects as well as a reinterpretation of all previous historical data.
“Since we acquired the project in October 2012, our focus has been to ‘high grade’ the existing known large tonnage low grade resources and explore for new higher grade prospects,” says Red Mountain’s executive chairman Neil Warburton. “We are very pleased with the significant increase in grade of the Batangas project resource estimates including results from the additional drilling conducted at Archangel last year.”
The company will now focus on expanding the higher grade gold resource base with drilling already in progress to test epithermal lode structures at Lobo to replicate the South West Breccia resource grade of plus 7 grams/tonne gold.
“We are very confident that further additional high grade gold resources can be added to the new resource inventory, based on our initial drilling results at West Drift, Lobo and other recent results obtained from surface trenching,” says Neil Warburton.
Three new drill holes at West Drift have intersected the deepest high-grade mineralization to date, which the company says is further confirmation of the trend of increasing gold grade with depth. Highlights include 6.3 metres @ 8.03 grams/tonne gold from 197.8 metres downhole and 4.9 metres @ 4.47 grams/tonne gold from 177.5 metres including 1.55 metres @ 7.37 grams/tonne gold.
In addition, one hole intersected a new lode which produced a very high-grade quartz-sulphide ‘silver lode’ intersection of 1.5 metres @ 499.4 grams/tonne silver including 0.5 metres @ 1488 grams/tonne silver from 43.4 metres downhole independent of the gold lode. “The intersection of high-grade silver at shallow levels is an exciting bonus that will be followed up over the coming months with further sampling and drilling,” says Neil Warburton.
Drilling will continue with two rigs to test what is now a greater than 500 metre-long zone as the company continues to focus on growing and increasing the grade of its resource inventory at Batangas.