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RED MOUNTAIN MINING LIMITED Capital/Financing Update 2013
65719_rns_2013-06-23_f64ba1a6-8246-4065-8d1d-6b02a4fb1cb2.pdf
Capital/Financing Update
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MORE GOLD RESULTS FROM THE ULUPONG HIGH GRADE GOLD DISCOVERY, LOBO, THE PHILIPPINES
Perth-based Red Mountain Mining Limited (ASX: RMX) ("the Company", "Red Mountain") is pleased to announce new high-grade gold surface sample results from the Ulupong gold discovery, at the Lobo prospect within the Company's flagship Batangas Gold Project, located 120 kilometres south of Manila in the Philippines.
Further trenching and surface sampling at the Ulupong Prospect, close to previously announced results including 6.68 g/t gold (Au) and 67.6 g/t silver (Ag) and 5.48 g/t Au and 21.9 g/t Ag from quartz-sulphide boulders (see Figure 1, plan of the Ulupong area), has produced significant new gold results from epithermal veins including 3 metres (m) grading 2.45 g/t Au, 7.07 g/t Ag including 1m @ 4.22 g/t Au, 4.6 g/t Ag. Infill soil sampling has defined a 500m long x 100m wide anomaly in this area. Further trenching is in progress across the entire soil anomaly to assess the width of the mineralised zone and a further 6 samples have been submitted for assay.
In addition, three new vein outcrops were sampled in an area approximately 400m NE of the trench, including a 2m thick quartz vein / breccia outcrop that produced an assay of 2.15 g/t Au (see sample below).
Sample from the new Ulupong trench: highly silicified vein breccia with fine pyrite in grey quartz
ASX code: RMX COMPANY DIRECTORS CONTACT DETAILS Non-Executive Chairman Non-Executive Director Head Office Keith Rowe www.redmm.com.au Non-Executive Director [email protected]
ABN 40 119568106 Neil Warburton Michael Wolley RED MOUNTAIN MINING LTD Jon Dugdale Shannon Coates Unit 1, 2 Richardson Street Managing Director Company Secretary West Perth Western Australia 6005 1
| All assay results are tabulated below: | ||
|---|---|---|
| Sample ID | Au_g/t | Ag_g/t | Cu_ppm | Pb_ppm | Zn_ppm | DESCRIPTION |
|---|---|---|---|---|---|---|
| MGI25308 | 4.22 | 4.6 | 124 | 607 | 535 | 1m clay altered andesitic rock, highlyargillized, weathered, oxidized,specks of chlorite noted. |
| MGI25309 | 0.53 | 13.9 | 147 | 675 | 490 | 1m argillized Breccia, deeplyweathered with few silicified zones.Pyrite as specks and disseminationsin silicified areas. |
| MGI25310 | 2.59 | 2.7 | 162 | 1055 | 508 | 1m deeply weathered, clay alteredwall rock |
| MGI25311 | 0.08 | 1.6 | 176 | 291 | 883 | Clay altered andesitic rock, highlyargillized, weathered, oxidized,specks of chlorite noted. |
| MGI25312 | 1.45 | 2.5 | 61 | 95 | 501 | Argillized Breccia, deeply weatheredwith few silicified zones. Pyrite asspecks and disseminations insilicified areas. |
| SU21868 | 2.15 | 5.1 | 249 | 82 | 24 | clay quartz pyrite altered rock,brecciated texture |
| SU21869 | 0.05 | 2.9 | 10860(1.1%) | 8 | 91 | slightly altered andesite withmalachite (Cu) stains |
| SU21870 | 0.11 | 3.1 | 156 | 35 | 30 | Clay quartz pyrite altered rock,brecciated texture |
The channel sampling results, combined with new soil sampling geochemistry, have defined a greater than one kilometre (km) long corridor of mineralisation at the south-western end of the >2 km long Ulupong structure (see Figure 1 below). Drilling will be planned to test the highgrade veins and soil anomalies at Ulupong as part of the next phase of drilling.
Red Mountain Managing Director, Mr Jon Dugdale, commented: "We continue to receive very encouraging gold (and silver results) from outcropping epithermal veins at Ulupong. We hope to re-commence drilling in the near future to test this new discovery, along with the other high grade, near surface targets at Pica and Japanese Tunnel."
ASX code: RMX COMPANY DIRECTORS CONTACT DETAILS Non-Executive Chairman Non-Executive Director Head Office Keith Rowe www.redmm.com.au
ABN 40 119568106 Neil Warburton Michael Wolley RED MOUNTAIN MINING LTD Jon Dugdale Shannon Coates Unit 1, 2 Richardson Street Managing Director Company Secretary West Perth Western Australia 6005 Non-Executive Director [email protected]
Figure 1: Plan of Ulupong soil anomalies and channel sampling results
The Company also wishes to advise that due to the current market conditions, and a reduction in the level of activity on site at our main Batangas Gold Project, all senior employees of the Company, including directors and executive staff, have taken a 20% reduction in individual remuneration payments. In addition, we have had to reduce employee numbers on site to reflect the reduced level of drilling activity. Although drilling has been temporarily suspended, our experienced Philippine based geological team is still generating exciting gold targets for future drilling.
BACKGROUND - LOBO GOLD PROJECT:
At Lobo, a series of epithermal lodes and breccias have now been mapped over a combined strike length of more than 15km (See Figure2). Previous drilling has only tested approximately a 500m strike length of the interpreted lode structures, to shallow depth of less than 200m. High-grade gold shoots have been identified at South West Breccia (Indicated and Inferred Mineral Resource of 194,000 t @ 7.2 g/t Au 45,000oz Au) and the new West Drift gold discovery. Regional trenching and channel sampling has identified new veins/lodes and highgrade gold targets for further drilling at Ulupong, Pica and Japanese Tunnel. Prospecting and surface sampling of new epithermal veins continues with two independent crews working within the Lobo prospect.
ASX code: RMX COMPANY DIRECTORS CONTACT DETAILS
Non-Executive Chairman Non-Executive Director Head Office Keith Rowe www.redmm.com.au Non-Executive Director [email protected]
ABN 40 119568106 Neil Warburton Michael Wolley RED MOUNTAIN MINING LTD Jon Dugdale Shannon Coates Unit 1, 2 Richardson Street Managing Director Company Secretary West Perth Western Australia 6005
Figure 2: Plan of Lobo Epithermal Gold Structures
_______________________________________________________________________________________________________ For further information about Red Mountain please visit www.redmm.com.au or contact:
| Company Investors | Media |
|---|---|
| Jon Dugdale | Kevin Skinner |
| Managing Director | Field Public Relations |
| (+61) 402 298026 | (+61) 414 822631 |
| (+61) 8 9226 5668 | (+61)8 8234 9555 |
About Red Mountain Mining Limited
Red Mountain Mining (ASX: RMX) is primarily a gold explorer and project acquisition company which listed on the ASX in September 2011. The Company's strategy is to unlock the potential of 'under-developed' gold and polymetallic projects in the greater Asian region by introducing Australian mining methods and improving efficiencies to gain significant production and exploration upside.
The Company holds direct and indirect interests in tenements in the Philippines that contain significant gold resources and several high-quality copper-gold prospects. Total Mineral Resources at Batangas at a 0.85 g/t Au lower cut off include 2.76 million tonnes @ 2.3 g/t Au, 208,000 oz Au and 3.02 million tonnes @ 2.1 g/t Au, 200,000 oz Au for a total of 5.78 million tonnes at 2.2 g/t Au, 408,000oz Au (announced January 30th 2013, 2004 JORC). The Company
ASX code: RMX COMPANY DIRECTORS CONTACT DETAILS
Non-Executive Chairman Non-Executive Director Head Office Keith Rowe www.redmm.com.au Non-Executive Director [email protected]
ABN 40 119568106 Neil Warburton Michael Wolley RED MOUNTAIN MINING LTD Jon Dugdale Shannon Coates Unit 1, 2 Richardson Street Managing Director Company Secretary West Perth Western Australia 6005 4
is focussed on upgrading the Batangas resources through discovery of new, high grade, gold zones at Archangel, and Lobo (eg West Drift, Pica, Ulupong). The Company will continue drilling with the objective of increasing the size and grade of the Mineral Resources at Batangas then completing a scoping study to demonstrate the viability of a potential high-margin gold project development.
Other gold opportunities will be reviewed on a continuous basis.
Competent Person Statement
The information in this report relating to Exploration Results and Mineral Resources is based on information compiled by Mr Jon Dugdale who is a Fellow of the Australasian Institute of Mining and Metallurgy and has sufficient exploration experience which is relevant to the various styles of mineralisation under consideration to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Dugdale is a full time employee and Managing Director of Red Mountain Mining Ltd. Mr Dugdale consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
ASX code: RMX COMPANY DIRECTORS CONTACT DETAILS Non-Executive Chairman Non-Executive Director Head Office Keith Rowe www.redmm.com.au Non-Executive Director [email protected]
ABN 40 119568106 Neil Warburton Michael Wolley RED MOUNTAIN MINING LTD Jon Dugdale Shannon Coates Unit 1, 2 Richardson Street Managing Director Company Secretary West Perth Western Australia 6005