Red Mountain Mining (ASX:RMX) will benefit from exploration for large copper-gold systems at no initial cost under a farm-out of a non-core tenement package at the Batangas Project to Korean private company JIWON Resource Corp.
JIWON will earn up to 75% of Exploration Permit 009 in the Philippines by spending US$2 million over a three year period.
Other Exploration Permits within the designated Joint Venture Area can be added to the JV.
The Exploration Permits are located outside the planned Batangas Gold Project development area, which is in the final stages of permitting and completion of the Definitive Feasibility Study.
RMX has continued to find high grade gold at the project with the discovery of surface rock-chips and residual boulders grading over 90 grams per tonne at the South West Breccia Main Lode.
The SWB already hosts an 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.
Jon Dugdale, managing director, commented:
“This joint venture LOI provides a second exciting exploration opportunity for the company, with JIWON targeting large copper-gold systems within our exploration permits, at no initial cost to Red Mountain.
“Our primary focus will remain on advancing the Batangas Gold Project to development and production, as well as drill testing new targets such as Tamarind, but it’s great to have a second string to our bow in an area that we have always considered to be highly prospective.”
Letter of Intent
Under the Letter of Intent, JIWON is required to meet the minimum funding commitment of US$400,000 within one year of the latter of signing the LOI or the renewal of the El Paso Exploration Permit.
It can then earn a 51% of the EL Paso (or other Exploration Permit’s as nominated within the JV area of influence) through expenditure of an additional US$600,000 within a further 1 year.
Should JIWON meet the minimum funding commitment, it may form a contributing joint venture with Red Mountain’s wholly-owned subsidiary MRL Gold based on their respective interests.
JIWON may continue to earn an additional 24% (total 75%) of EL Paso through additional expenditure of US$1 million over an additional 1 year.
Upon earning 75%, the Korean company will form a contributing 75%:25% joint venture with Red Mountain to fund continued exploration and other related activities with MRL Gold.
Previous exploration for porphyry copper-gold systems on EL Paso returned intersections of copper mineralisation including 42.2 metres at 0.5% copper from 6 metres including 10.5 metres at 0.95% copper (EPDD-001).
Extensive mapping, soil geochemical sampling and geophysics - Induced Polarisation (IP) and magnetics, have defined new targets for further drilling.
These targets will be the focus of the initial JIWON drilling program.
Analysis
The farm-in by JIWON provides Red Mountain Mining with exposure to exploration for large copper-gold systems at no initial cost.
Previous work has already returned copper intersections of 10.5 metres at 0.95% while other work has defined targets for drilling by JIWON.
The company is continuing work to locate all near surface, high grade zones at SWB to allow drilling and a new gold resource update prior to finalising the Definitive Feasibility Study for the Batangas Gold Project.
It recently launched a Share Purchase Plan to raise up to $1 million. This is underwritten by PAC Partners Pty Ltd to $600,000.
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