Red Mountain Mining (ASX: RMX) will use up to five diamond core holes to target high grade gold feeder-zones at the Batangas Project in the Philippines.
Batangas currently hosts a JORC Indicated Resource of 393,000 gold ounces and Inferred Resource of 108,000 gold ounces.
Each hole will be structurally oriented and logged to provide maximum information on high-grade vein/ breccia orientations, with the results providing information for potential additional resource definition and expansion.
Red Mountain is targeting a resource upgrade in the March quarter of 2013, with a scoping study around mid-2013.
In regards to the project, Red Mountain recently signed a Binding Share Sale Agreement with Mindoro Resources (ASX: MDO) for the acquisition of Batangas and Tapian San Francisco gold and copper-gold assets in the Philippines, through the issue of shares by the company.
Consideration for the transaction includes a placement:
– 100,000,000 non-voting shares in Red Mountain Mining; and
- 50,000,000 performance shares in Red Mountain Mining that convert into Non-Voting Shares upon increasing the indicated resource to 600,000 ounces and delivering an “economically viable” scoping study
– Non-voting shares convert to voting shares once distributed to Mindoro shareholders
There is also a commercial loan, and upon execution of sale agreement, Red Mountain will enter into a secured loan agreement up to A$1 million on usual commercial terms to Mindoro to commence focussed drilling of Archangel higher grade gold resource targets
Mindoro Resources has now drawn the initial A$200,000.
Proactive Investors is a market leader in the investment news space, providing ASX “Small and Mid-cap” company news, research reports, StockTube videos and One2One Investor Forums.