A second high grade gold system has been confirmed at Red Mountain Mining’s Lobo prospect within its flagship Batangas project south of Manila.
Results from the first of 10 diamond drill holes at the West Drift epithermal structure has returned an intersection of 8.6 metres @ 2.53 grams/tonne gold from 136.6 metres including 0.85 metres @ 5.59 grams/tonne gold and 1 metre @ 4.62 grams/tonne gold.
This new intersection is part of an initial drill program to target high grade gold mineralization below the historic Lobo copper mine and potentially convert the gold mineralization to resource inventory. The Lobo prospect is to the west of the Archangel project and takes in the South West Breccia high grade resource.
“The result from the first hole is very encouraging and highlights the underexplored nature of the Batangas gold project,” says Red Mountain’s executive chairman Neil Warburton. “An additional drilling rig will be commissioned in the second week of January to fast track the drilling program at West Drift. This program has the potential to increase the known Lobo gold resources significantly as the West Drift area is at least four times larger than the South West Breccia resource area to the south.”
Red Mountain has recently acquired the Batangas project from Mindoro Resources. The company has firm commitments from investors in response to a proposed capital raising share placement and aims to raise $1 million via a placement of 8.5 million shares. The proceeds have been earmarked for accelerating Red Mountain’s search for high grade gold shoots at Lobo.