Recent drilling at Red Mountain Mining’s Lobo prospect in the Batangas Gold Project has increased the Lobo gold resource by 37,000 ounces, or 82%. The increased resource is expected to have a positive impact on a definitive feasibility study which is expected to be completed by December.
The Lobo resource now stands at 604,000 indicated and inferred tonnes at an average grade of 4.2 grams/tonne gold for 82,000 ounces. The new resource includes re-estimated South West Breccia (SWB) figures which include new drilling and trenching data.
Indicated resources have increased from 93% to 98% of the total 221,000 tonnes @ 6.3 grams/tonne for 45,000 ounces. Maiden mineral resource estimates have also been released for Japanese Tunnel and West Drift, both of which were drilled over the last 18 months. Japanese Tunnel contains 34,000 indicated and inferred tonnes @ 3.0 grams/tonne for 3000 ounces and West Drift contains 350,000 tonnes @ 3.0 grams/tonne for 50,000 ounces.
The total resource for the Batangas project, including Archangel prospect, stands at 6.19 million indicated and inferred tonnes at an average grade of 2.2 grams/tonne gold and 3.3 grams/tonne silver, containing 444,000 ounces of gold and 665,000 ounces of silver. This was estimated using a 0.85 grams/tonne cut-off for open pit resources and 2.0 grams/tonne cut-off for underground resources.
The significant increase in resources at Lobo reflects the company’s continued focus on drilling high grade lode epithermal targets within the 15km strike of mapped structures identified at Lobo, of which only 1km has been drill tested to shallow depth to date, based on outcropping structures.
Red Mountain’s managing director Jon Dugdale says, “We are very pleased with this significant resource increase at Lobo, in line with our strategy of finding more high grade ounces at Lobo to extend the planned mine life.
“The key to the success of this project is the high grade of our initial planned production and the potential to pay back initial capital very quickly and generate high-margin cashflow for day one.” www.redmm.com.au