Red Mountain intersects gold at Zhongqu

THE DRILL SERGEANT: China‐focused gold company Red Mountain Mining has intersected gold mineralisation during an initial underground drilling program at the company’s Zhongqu project in Gansu Province, China.

The Stage 1 drilling program intersected gold mineralisation with the best results including:

–    31 metres at 4.61 grams per tonne gold, including 4 metres at 9.51 grams per tonne gold and 8 metres at 10.07 grams per tonne gold;

–    14.3m at 4.50 g/t gold, including 6m at 7.14 g/t gold and 3m at 6.27 g/t gold;

–    8m at 7.65 g/t gold; and

–    4m at 5.71 g/t gold.

Red Mountain has an agreement to acquire 51 per cent of the Zhongqu project.

So far the company has drilled 17 holes for 2,352 metres at the Xinqu operating gold mine, which is one of three main exploration target areas within the Zhongqu project.

Drilling commenced from the deepest working “6 Level” of the Xinqu mine, which has been mining hematitic brecciated ore at or near a granodiorite ‐ limestone contact.

This encountered mineralisation in 13 of 17 drillholes with intercepts encountering the same style of mineralisation as seen in the Xinqu mine.

The spatial orientation of the limestone hosted structures has yet to be fully understood but they have returned significant gold intersections.

The company’s main objectives for the drilling program are to expand and better understand the known mineralisation at Xinqu.

It also represents the first stage in bringing the gold prospects at the project into JORC Code compliance.

“We are encouraged by the width and tenor of the gold ore system as it confirms that the project is capable of hosting mine grade mineralisation amenable to modern mechanised underground mining methods,” Red Mountain chief executive officer Andrew Richards said in the company’s announcement to the Australian Securities Exchange.

“These results will contribute to the estimation of an initial resource model by Red Mountain Mining.

“The deepest intersection was approximately 200 metres vertically below the 6 Level and only 400 metres below surface.

“This is considered shallow by Australian standards and easily accessed by a decline.”

Red Mountain has a further round of underground drilling of approximately 2,000m planned to commence in October.

This has been designed for the company to gain a better understanding of the newly encountered mineralisation as well carrying out some infill drilling to establish tonnage potential.

Two shallow metallurgical drill holes will be drilled to test each style of mineralisation.