THE DRILL SERGEANT: Red Gum Resources has celebrated its first day of trading as an ASX-listed entity by announcing it has commenced drilling at its La Negra lead-zinc-silver project, located in northern Chile.
Location map of the La Negra area. Source: Company announcement
“With listing today on the ASX, it gives us great pleasure to report that drilling of Red Gum’s key La Negra project in Chile has commenced on time,” Red Gum Resources managing director Paul Pearson said in the company’s announcement to the Australian Securities Exchange.
“The company’s expertise in Latin America has expedited commencement of field activities in Chile.
“A number of parallel studies and associated geochemical, geophysical and geological projects have also been initiated which will ensure the continuous flow of new information to our shareholders.
“The drilling program is expected to take up to four months, with first results through in February.
“We look forward to reporting these results to shareholders as we progress.”
Red Gum’s La Negra project is located within Region IV in Chile, approximately 360 kilometres NNE of the capital, Santiago and approximately 10 kilometres ENE of the mining town of Combarbalá.
Red Gum has an option to acquire 100 per cent in the property, which comprises 11 separate mining and exploration concessions totalling approximately 2,600 hectares.
The company has attributed an Exploration Target of 10 million tonnes to 70 million tonnes grading 0.21 per cent to 11.75 per cent lead, 0.21 per cent to 11.55 per cent zinc, and 0.03 per cent to 1.1 per cent copper to the La Negra project.
Red Gum said it plans to drill approximately eight deep diamond drill holes designed to test the strike extent and width of the Project’s mineralised zone down to an approximate vertical depth of 400 metres, at 100-150 metre intervals.
The company said it will also drill at least one deeper hole, to test for the possible existence of a porphyry system inferred from geophysical interpretation.