A significant new drilling target has been identified at Benito, which is along strike from the West Drift Resource at Lobo, within Red Mountain Mining’s Batangas Gold Project in the Philippines.
A further high grade gold result has also been produced from the Hangingwall (HW) lode of the nearby Tamarind target with one trench returning 2.3 metres @ 10.7 grams/tonne (g/t) gold.
The new Benito target is associated with a major flexure (bend) in the lode that is very similar to the flexure associated with the existing high grade South West Breccia (SWB) resource.
The new trenching and rock chip results include 4 metres @ 70.7 g/t silver and 1.5 metres @ 227.9 g/t silver and 0.42% copper. Along with previous soil sampling results, these results indicate that the Benito lode is higher in the geological silver-copper zone of the epithermal system relative to SWB mineralization but at a similar level to the surface exposure of West Drift.
West Drift is characterized by high silver-copper grades at surface but has high grade gold at depth and a resource that is open to the southwest. Previous intersections at West Drift include 5.2 metres @ 6.05 g/t gold from 138.25 metres; 4.6 metres @ 5.83 g/t gold and 4.1% copper from 152.8 metres; and 6 metres @ 8.03 g/t gold from 197.8 metres.
Further soil sampling will be completed at Benito prior to an initial drilling program.
New results have also been produced for the Tamarind target, including the trench mentioned earlier in the footwall of the previously sampled HW Lode.
Previous results include 3.5 metres @ 25.9 g/t gold and 2.6 metres @ 28.6 g/t gold.
This result indicates that the alteration zone continues into the footwall towards the Tamarind target zone that lies under shallow scree and limestone cover but is associated with a strong multi-element soil anomaly up slope.
A program of 2 to 4 drill holes is planned to test the SWB Extended and Tamarind targets as part of a program that will also include 3 to 5 geotechnical holes for confirmation of ground conditions estimated in the DFS.
The drilling and completion of a Definitive Feasibility Study (DFS) on the proposed Batangas Gold Project development will be funded from the proceeds of strategic funding partner, Bluebird Merchant Ventures Limited’s (BMV) admission to the London Stock Exchange (LSE).
Red Mountain has also secured a Convertible Security Funding Agreement (CSFA) for up to A$300,000. The funding is by way of convertible securities with the Australian Special Opportunity Fund, LP, managed by The Lind Partners, LLC, a New York-based institutional investor.
The CSFA will allow Red Mountain to drawdown up to A$300,000, in a maximum of three monthly tranches, and to issue convertible securities, to be repaid at a face value of 1.1667 times the amount drawn with no interest if the face value is paid within a three month term of each drawdown.
Red Mountain intends to pay the face value of any convertible securities issued within the term from part proceeds expected to be received from BMV.
Funds would be received on its admission to the LSE and associated capital raising, which will also enable Red Mountain Mining Singapore to repay project loans to Red Mountain totalling up to US$1.2 million.