Red Mountain Mining completes new Resource estimates

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THE DRILL SERGEANT: Red Mountain Mining (ASX: RMX) has released new Mineral Resource Estimates at much higher-grades across the company’s wholly-owned Batangas gold project, located south of Manila in the Philippines.

The new Mineral Resource Estimates of total Inferred and Indicated Resources of 5.78 million tonnes at an average grade of 2.2 grams per tonne gold containing 408,000 ounces are based on the results of fresh drilling Red Mountain has conducted at Batangas since August 2012.

 

Source: Company announcement

 

The new Mineral Resource Estimates have been produced following a complete revision and interpretation of historical data and parameters, as well as the inclusion of results from a 10 diamond drillhole program Red Mountain completed at Archangel in late 2012 and further surface trenching results at South West Breccia, Lobo.

Red Mountain said it considers the results directly reflect the company’s strategy to transition Batangas’ historic low grade bulk gold tonnages to higher grade resources, which has been supported by a focus on proving up and developing the project’s known high-grade targets.

The company indicated the upgraded Mineral Resource Estimates have been achievd by using a higher grade gold cut-off (0.85g/t gold) for the Indicated and Inferred Mineral Resource Estimates for both the Archangel and South West Breccia (Lobo) gold mineralisation within the Batangas project area.

“Since we acquired the gold project in October 2012, our focus has been to ‘high-grade’ the existing known large tonnage low grade resources and explore for new higher grade prospects,” Red Mountain Mining executive chairman Neil Warburton said in the company’s announcement to the Australian Securities Exchange.

“We are very pleased with the significant increase in grade of the Batangas gold project Mineral Resource Estimates based on using a 0.85 grams per tonne gold cut-off grade and including results from the additional drilling conducted at Archangel last year.

“The company will now focus on expanding the higher grade gold resource base with drilling in progress testing epithermal lode structures at Lobo to replicate the South West Breccia resource grade of plus seven grams per tonne gold.

“The company is very confident that further additional high grade gold resources can be added to the new resource inventory announced today based on our initial drilling results at West Drift, Lobo and other recent results obtained from surface trenching.”