Red Mountain Mining (ASX:RMX) has discovered the highest surface grade rock chips to date grading up to 151.6 grams per tonne gold from extensions of the South West Breccia Lode at the Batangas Gold Project, Philippines.
Trenching has also defined a 40 metre strike length extension that is open to the southwest towards Japanese Tunnel and will be tested in an upcoming drill program.
New trenching results are:
7 metres at 20.5g/t gold (Trench 50);
7 metres at 11.5g/t gold including 1 metre at 50.9 g/t gold (Trench 47); and
5 metres at 8.83g/t gold including 1 metre at 29.3g/t gold (Trench 52).
These new results are from trenches in the vicinity of the very high-grade surface rock-chip results made in August that included 90.4g/t gold, 23.1g/t gold and 17.9g/t gold, from extensions to the Main and Hangingwall Lodes at SWB.
Further trenching is in progress, following up previous surface rock-chip result of 31.7g/t gold from the hangingwall of the Tamarind target and test pits/shafts will be developed through the colluvium covering the Tamarind target.
RMX plans to drill test the SWB Extended target to upgrade existing resources of 221,000 tonnes at 6.3 g/t gold as well as the Tamarind target, which offers potential for a brand new SWB-sized system based on the size of the soil anomaly in that area.
Jon Dugdale, managing director, commented:
“These exceptionally high-grade trenching results have defined a very attractive drilling target, to potentially extend the SWB resource.
“Drilling will commence as soon as we complete test pitting of the Tamarind target, with the objective of adding to the high grade resource and potentially making a breakthrough discovery.”
Analysis
Today’s results – including the highest ever grade result from the SWB trend to date - lend further support to a potential link between the SWB and the Japanese Tunnel zone, located 140 metres southwest.
In addition, test pitting is now underway at the Tamarind target, which has the potential to host a SWB-sized system.
Upcoming drilling to test both the SWB extension and Tamarind target will be closely watched.
Share Purchase Plan
The company is currently in the process of raising funds through a Share Purchase Plan that provides eligible Red Mountain shareholders the opportunity to subscribe for up to $15,000 worth of new fully paid ordinary shares.
This is partially underwritten by PAC Partners Pty Ltd to $600,000.
The issue price of the new shares will be determined at the issue date of the new shares under the plan.
It will be based on a 20% discount to the volume weighted average price of the company’s shares traded on the ASX during the 5 days immediately prior to the issue date.
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