Red Mountain Mining has received further high grade gold results that could extend the existing South West Breccia Resource at Lobo prospect within its Batangas Gold Project in the southern Luzon.
This includes extending the previous Trench 19 to 8.35 metres @ 18.3 grams/tonne gold from 4.9 metres @ 24.9 grams/tonne and new results from Trench 21 of 6 metres @ 31.2 grams/tonne, including 1 metre @ 122.6 grams/tonne.
Trench 19 is 40 metres to the southwest of previous drilling intersections that form part of the South West Breccia (SWB) indicated and inferred resource of 194,000 tonnes @ 7.2 grams/tonne gold while Trench 21 is 30 metres southwest of this drilling.
“These new results are significant because they have the potential to extend the footprint and upgrade our existing South West Breccia resource very quickly,” Red Mountain’s managing director Jon Dugdale says.
Another trench (Trench 20), 30 metres southwest of Japanese Tunnel and 60 metres northeast of Trench 7, has intersected a 2 metre-wide quartz-barite-sulphide breccia lode under deep soil and colluvium cover, indicating that they may link into one continuous mineralized shoot. Results are pending for this new trench.
Drilling is in progress and will systematically test this zone over the coming months with the objective of adding to the mineral resource.
Red Mountain’s latest trenching results could quickly extend and upgrade existing resources at the South West Breccia given their proximity. They also add another page to the case that the company is building for Lobo having low capital start-up, which would enable it to being production within a short time frame.
High recoveries of 97% from recent gold leach test work just adds to this potential by maximizing revenue from any processed material.