Red Mountain intersects big gold in the Philippines

THE DRILL SERGEANT: Red Mountain Mining (ASX: RMX) has completed drilling at the Lobo prospect within the company’s Batangas gold project, in the Philippines.

The company said new drilling intersections encountered on the West Drift epithermal lode system have continued to define a high-grade gold shoot at Lobo.

 

West Drift longitudinal projection with potential extent of gold system. Source: Company announcement

 

Red Mountain released three new drilling intersections from West Drift including:

–    6.3 metres at 8.03 grams per tonne gold from 197.8 metres downhole (estimated true width 5.6m), including 4 metres at 11.18 grams per tonne gold.
 
The company indicated this to be the deepest high-grade intersection it has hit on West Drift to date, and that it considers it to be further confirmation of the trend of increasing gold grade with depth.

Other drilling results included:

–    4.9m at 4.47g/t gold from 177.5m downhole (est. true width 3.8m), including 1.55m at 7.37g/t gold; and

–    1.5m at 499.4g/t silver, including 0.5m at 1,488g/t silver from 43.4m down hole independent of the gold lode.

Red Mountain described the new silver lode as shallow dipping and has now mapped it at surface and is open along strike.

Sampling of the silver lode at surface and in other drillholes intersecting the lode has been completed and results are expected shortly.

“The high-grade gold and low copper intersection in LB-70 at West Drift, Lobo, is very significant as the results indicate the transition to a low sulphidation zone generally associated with higher-grade gold deposits,” Red Mountain executive chairman Neil Warburton said in the company’s announcement to the Australian Securities Exchange.

“The new drilling is defining a high-grade gold-shoot that is open at depth, and to the east and west.

“Drilling will continue with two rigs to test what is now a greater than 500 metres long zone that appears to plunge shallowly to the west, as the company continues to focus on growing and increasing the grade of its resource inventory at Batangas.

“The intersection of high-grade silver at shallow levels is an exciting bonus that will be followed up over the coming months with further sampling and drilling.”