Red Mountain hits high-grade gold at Pica

THE DRILL SERGEANT: Red Mountain Mining (ASX: RMX) has encountered high-grade gold mineralisation at the Pica epithermal gold target, on the Lobo prospect, situated within the company’s Batangas gold project, located south of Manila in the Philippines.

According to the company, diamond drilling (PC 07-13) has intersected a steeply dipping epithermal quartz-barite-sulphide vein and produced an intersection of:

–    2.5 metres at 9.2 grams per tonne gold, 28.4 grams per tonne silver, 8.6 per cent zinc from 97.9 metres downhole, including 1 metre at 14.2g/t gold, 38.6g/t silver, 9.5 per cent zinc.

“This is the best gold result achieved to date from the Pica target, and partially confirms the Exploration Target,” Red Mountain Mining managing director Jon Dugdale said in the company’s announcement to the Australian Securities Exchange.

“Further drilling along strike will aim to extend the mineralisation prior to defining a high-grade vein resource.”

Red Mountain explained that drilling it has completed to date at Pica has been focused on defining the extent and orientation of the high-grade vein system on one cross section, 9555N.

 

Pica Cross Section through PC 07-13 with epithermal gold-silver-base metal veins. Source: Company announcement

 

The company has now commenced further drilling 25m to the northeast along strike from the results described above, with the objective of extending the strike extent of the mineralisation and further confirming the Exploration Target announced in July 2012.

Previous surface mapping has traced the Pica structure, intermittently developed over a two kilometre strike length to the northeast and southwest.