Red Mountain Mining (ASX: RMX) has discovered substantial exploration upside at its flagship Batangas Gold Project in the Philippines having confirmed a second high grade gold system.
This new discovery has the potential to increase the gold resources at the Lobo Prospect substantially, as the West Drift target area is at least four times larger than the existing South West Breccia resource area immediately to its south.
The first hole of a planned 10-hole diamond drilling program at the West Drift epithermal lode structure has returned an intersection of 8.6 metres at 2.53 grams per tonne (g/t) gold from 136.6 metres, including 0.85 metres at 5.59g/t gold and 1 metre at 4.62g/t gold.
The second hole in the program has also intersected the strongly mineralised quartz/barite lode structure over a downhole thickness of 10 metres from 147.45 metres.
The Lobo prospect is to the immediate west of the gold resources at Batangas’ Archangel Project and also includes the South West Breccia high grade resource.
Drilling is targeting high grade gold mineralisation below the old Lobo copper mine and potentially converting the gold mineralisation to the resource inventory.
Over 10 kilometres strike length of epithermal vein-breccia structures have been mapped at Lobo, with drilling so far only testing about 500 metres to a depth of less than 150 metres.
The South West Breccia hosts an Indicated Resource of 270,000 tonnes at 6.49g/t for 56,380 contained gold ounces and an Inferred Resource of 61,000 tonnes at 5.35g/t for 10,540 contained gold ounces.
Drilling by previous owners at the West Drift target indicates a target zone of greater than 400 metres strike length, with generally increasing gold grade with depth.
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