Red Mountain Mining kicks off Batanga Scoping Study

THE DRILL SERGEANT: Red Mountain Mining (ASX: RMX) has commenced an independent Scoping Study at the company’s Batangas project, located south of Manila in the Philippines.

Red Mountain indicated the Scoping Study will examine the viability and high-margin potential of the Batangas mining and processing project.

The Scoping Study will initially be based on the project’s current JORC code-compliant Indicated and Inferred mineral resources, which total 5.78 million tonnes at 2.2 grams per tonne gold and 3.3g/t silver, containing 408,000 ounces of gold and 606,000 ounces of silver at a lower cut-off grade of 0.85g/t gold.

 

Batangas gold project, Lobo, with Mineral Resources. Source: Company announcement

 

The company said it will continue to target high-grade near surface mineralisation at its Japanese Tunnel and Pica prospects and any new results from its current drilling campaign will be added to the mineral resource estimate and Scoping Study inventory.

All current mineral resources are contained within granted Mineral Production Sharing Agreements (MPSA’s – the Philippines equivalent of Mining Leases) and the majority of the near surface mineral resources at Southwest Breccia (SWB), Lobo, and Kay Tanda, Archangel, are in the Indicated Resource category.

“The commencement of the Scoping Study represents a significant milestone for Red Mountain shareholders,” Red Mountain Mining managing director Jon Dugdale said in the company’s announcement to the Australian Securities Exchange.

“With our near surface, high-grade mineralisation at Lobo we are targeting a high early cash flow project and we are looking forward to the Scoping Study confirming our expectations.”