Red Mountain Mining (ASX:RMX) has further enhanced the potential of its Batangas Gold Project in the Philippines, with a new large gold-silver anomaly defined on the footwall of South West Breccia (SWB) lode at Lobo prospect.
SWB already hosts a high-grade resource of 221,000 tonnes at 6.3g/t gold.
Since this resource, new discoveries have been made at SWB, including:
- Trench 39: 2.1 metres at 14.4g/t gold, including 0.6 metres at 41.5g/t gold from the footwall lode; and
- Trench 38: 3.0 metres at 12.1 g/t gold, including 1.0 metre at 27.2g/t gold from the main lode.
The new target named “Tamarind”, occurs just 400 metres to the south west of the existing high grade SWB resource.
Adding further intrigue, the new anomaly could be as big as the SWB anomaly, and the company said it is projected to continue under the limestone cover.
As usual Red Mountain is looking to test its new targets quickly, with Tamarind drill ready, with drilling planned to commence as soon as possible.
Jon Dugdale, managing director, commented: “The Batangas/Lobo project continues to offer up exciting high-grade targets, and Tamarind is no exception.
“It is associated with a multi-element soil anomaly the size of South West Breccia and we only just detected it on the edge of younger limestone cover.
"The possibility that Tamarind is actually the main SWB lode, in the footwall of previous exceptionally high grades, only adds to the potential.
"Drilling has been planned to test this exciting new target as soon as possible.”
Adding to Tamarind prospectivity
The new Tamarind target is also up-slope, and in the footwall of previously announced and named "Limestone" intersections including:
- Trench 34: 3.5 metres at 25.9g/t gold, including 1.5 metres at 56.8g/t gold; and
- Trench 13: 2.6 metres at 28.6g/t gold, including 1.5 metres at 45.9g/t gold.
Red Mountain said that new interpretations suggest that Limestone is a hanging-wall lode, possibly a down-faulted wedge, displaced from the main or footwall lode by a normal fault.
This could mean that extensions to the main SWB lode structure are associated with the much stronger and larger soil anomaly up slope at Tamarind.
Andesite scree and cobbles obscure outcrop at Tamarind, however the strength and size of the gold, silver, multi-element soil anomaly indicates a “SWB sized” target may exist in this area.
Analysis
A new large gold-silver anomaly named Tamarind has further enhanced the prospectivity of Red Mountain's Batangas project.
Next steps for investors to watch:
- Initial drilling timetable to test the Tamarind anomaly;
- Drilling extensions of the Limestone hanging-wall lode;
- Drilling to test the footwall lode at SWB, under the previous high grade trenching results; and
- Trench sampling results to investigate the footwall lode potential at Japanese Tunnel.
A new discovery could further enhance interest in ore agreements by China based processing facility operators.
Already two Chinese operators have expressed interest in toll processing and/or ore purchases from potential early mining of the SWB lode.
This therefore highlights the cash flow potential of Red Mining in the short term.
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