Exploration drilling at Red Mountain Mining’s South West Breccia (SWB) lode corridor of the Lobo project in southern Luzon has confirmed high grade mineralization of up to 0.65 metres @ 18 grams/tonne gold under Trench 13.

Notably, the initial drilling results have confirmed that discreet zones of shallow high-grade gold mineralization exist along the 500 metre exposed portion of the SWB corridor.

Drilling is also under way at depth below the planned open pit to better define the depth extensions of the high-grade resource and projected extensions of the shoot for underground mine resource targeting.

The company has drilled 20 holes to date under the phase 1 drilling program with work testing under a previous trench of 11 metres @ 9.3 grams/tonne gold that indicates a possible extension of the high grade SWB lode to the north of the resource.

“We will now target deeper high grade zones within the SWB structure, starting with depth extensions of SWB where drilling is underway,” managing director Jon Dugdale says. “Any additional ounces we find have the potential to further enhance the viability of the Batangas gold project development, to be the subject of a DFS, to commence shortly.”

Red Mountain also completed five holes on the Trench 7 (southwest) side of Japanese Tunnel, producing a peak intersection at depth below Trench 20 of 1.5 metres @ 3.63 grams/tonne gold including 0.5 metres @ 4.73 grams/tonne from 38.7 metres downhole.

This intersection, in combination with other drilling results, indicates that below the previous near-surface high-grade trenching results the lode steepens and is lower grade, but then flattens in dip and strengthens in gold grade with depth.

Deeper drilling is being planned to test below Trench 7 where access has been suspended pending landholder access agreement. Trench 7 has previously returned trenching results of 2 metres @ 31.1 grams/tonne gold and 3 metres @ 22.2 grams/tonne.

Four to five holes are planned to test the northern and depth extensions of the SWB shoot and also to provide metallurgical samples for further testing prior to the planned DFS.

The results of this drilling will be incorporated into a JORC 2012 compliant mineral resource upgrade, prior to the commencement of the planned DFS.

Exploration targets have been defined for the South West Breccia, Japanese Tunnel and Pica prospects and a continuous program of soil sampling, mapping, surface trenching and drilling continues with the objective of defining additional high-grade resources on the Lobo prospect.

Lobo is the focus of the company’s current scoping study. Initial production under the study is planned to be open pit mining inventory from the South West Breccia resource. This will be followed by higher grade mining inventory from Kay Tanda West resources transported from the Archangel MPSA, about 15km by road.
www.redmm.com.au

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