Red Mountain Mining's (ASX:RMX) managing director Jon Dugdale has once again bought a line of one million shares on market, buying the shares at $0.045 for consideration of $4500.
The Indirect interest is for the Dugdale Superannuation Fund A/C, which now holds nine million shares and several lines of options.
Continued buying by directors is usually a bullish sign for a stock.
Dugdale told Proactive Investors:
"I am taking the opportunity to increase my personal stake in the company, as I believe the delivery of our key milestones towards cash-flow from our Batangas gold project have not yet been factored into the current valuation.
"As previously announced, we continue to focus on the early mining cash-flow potential of the project, as well as larger scale on site gold processing, the subject of the DFS.
"The price of gold in Australian dollars still comfortably sits above A$1500 an ounce, providing the potential for significant margins at Batangas."
The Batangas Gold Project is located in the low-cost operating environment of the Philippines, and recently hosted a visit from personnel from a China based processing facility operator.
A deal with a third party toll operator would significantly de-risk the project, and put it on the road to initial cash flow.
Batangas currently has a global JORC 2012 Indicated and Inferred Resource of 6.19 million tonnes at 2.2g/t, or 444,000 ounces of contained gold, including the high grade South West Breccia Indicated resource of 221,000 tonnes at 6.3 g/t gold, of which the majority is in the initial open pit mining inventory of 174,000 tonnes at 6.8g/t gold.
Upcoming catalysts:
- All permitting inputs completed and the Definitive Feasibility Study by the third quarter 2015.
- Exploration results from ongoing sampling and potentially drilling.
- A new resource model.
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