METALLURGICAL leaching results have demonstrated very high gold recoveries for a sample from the high grade South West Breccia indicated resource at the Lobo prospect of Red Mountain Mining’s Batangas Gold Project in southern Luzon. The composite sample grading 8.8 grams/tonne gold showed recoveries of up to 97%.

The excellent recoveries were achieved through fine grinding then standard carbon-in-leach (CIL) testing of the resource material. Also, petrography on recently discovered, exceptionally high grade material grading 34.4 grams/tonne gold, which was part of a trench intersection of 2 metres @ 31.1 grams/tonne, has located free gold and sulphide associated gold that is likely to respond to metallurgical testing in a similar way to nearby South West Breccia via fine grinding and CIL processing.

Other testing of an oxide composite sample grading 2.1 grams/tonne gold and 44.6 grams/tonne silver from the Kay Tanda (West) indicated resource at Archangel prospect, also within Batangas project, indicates very high gold recoveries of up to 98.2% for a fine grind and 97.4% for a standard grind size (75 micron) then CIL testing.

Red Mountain’s managing director Jon Dugdale says, “Everything is coming together now at Batangas. We already have substantial outcropping resources from surface, new high-grade discoveries ready to drill and now this excellent metallurgy demonstrating that very high gold recoveries are achievable through on-site processing. We can now complete our scoping studies, targeting a low cost gold operation.”

The test work results follow a recent bonanza high grade gold discovery of 2.6 metres @ 28.6 grams/tonne from trenching at the Lobo prospect. This intersection on the 500 metre-long South West Breccia Lode structure is 100 metres along strike to the southwest of the previous trench 7 intersection of 2 metres @ 31.1 grams/tonne. Recent sampling on the other, northeast, wall of this trench produced an intersection of 3 metres at 22.2 grams/tonne, confirming the exceptionally high-grades, virtually at surface, in this location.

Red Mountain is well funded to continue its exploration in the Philippines after receiving firm commitments from professional and sophisticated investors in a placement which will net the company Aus$1.02 million. In conjunction, the company’s Board has resolved to raise up to a further Aus$700,000 by offering existing shareholders the opportunity to participate in a share purchase plan.

Funds raised will enable the company to immediately begin the first phase of a drilling program at Lobo which will target immediate, below surface, extensions of the exceptionally high grade epithermal gold lode mineralization intersected in recent trenching.

Drilling will continue with the objective of defining additional high-grade resources to add to the current resource base that includes the South West Breccia shoot with an indicated and inferred resource of 194,000 tonnes @ 7.2 grams/tonne gold, and enhance the potential outcomes of development studies in progress.

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