Red Mountain Mining has discovered a new high grade lode on its Lobo prospect at the Batangas Gold Project in Luzon, 120km south of Manila. High-grade gold surface trench results have confirmed the new lode in the footwall of the main South West Breccia (SWB) lode structure.
The new results include a true width trench intersection across the new Footwall Lode of 2.1 metres @ 14.4 grams/tonne gold, including 0.6 metres @ 41.5 grams/tonne. In addition, further excavation of Main Lode, to the southwest, produced a true width intersection of 3.0 metres @ 12.1 grams/tonne, including 1.0 metre @ 27.2 grams/tonne.
Both the new SWB Footwall Lode and the SWB Main Lode intersections are open to the southwest where additional mapping and sampling is in progress.
The new results will be incorporated into a new SWB Lode corridor resource model which will include all recent high-grade surface trenching intersections produced during the 2015 trenching program.
This new model will be integrated with the existing indicated resource of 221,000 tonnes grading 6.3 grams/tonne for 44,800 ounces at SWB, which is part of the total Batangas indicated and inferred resource of 6.19 million tonnes @ 2.2 grams/tonne for 440,000 ounces.
Once the new resource model is completed, the surface zone will be evaluated for early mining and potential toll processing and/or ore sales to either a Philippines of China based processing facility operator.
A second Chinese processing plant operator has expressed interest in toll processing and /or ore purchases from potential early mining of the SWB lode. This operator will visit the Lobo site on June 19 and 20 and will take samples for metallurgical test work to determine the viability of generating a high grade gold concentrate then transporting to, and processing at, their southern China based facility.
Meanwhile, Red Mountain has received an additional US$220,000 from strategic partner Bluebird Merchant Ventures to fast-track the definitive feasibility study for the Batangas project. Proceeds will also be used to progress all permitting inputs to allow final approval of the key environmental and mining permits.
The additional funding takes the total provided by Bluebird under the Strategic Financing Partnership Agreement to US$500,000. This comprises part of the stage 1 commitment of US$1 million to fund completion of the DFS and permitting.