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RED MOUNTAIN MINING LIMITED — Capital/Financing Update 2013
Apr 3, 2013
65719_rns_2013-04-03_7226470e-f824-4e04-ae61-44779896e335.pdf
Capital/Financing Update
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4 April 2013
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ASX ANNOUNCEMENT
DRILLING COMMENCED ON NEW HIGH GRADE EPITHERMAL VEIN DISCOVERIES AT LOBO, BATANGAS GOLD PROJECT, THE PHILIPPINES
Perth-based Red Mountain Mining Limited (ASX: RMX) (“the Company”, “Red Mountain”) today commenced drilling the Pica epithermal lode structure, one of at least five parallel epithermal lodes at the Lobo prospect within the Company’s flagship Batangas gold project, located 100 kilometres south of Manila in the Philippines.
A previous (2005) vertical drillhole at Pica , PC02, produced epithermal vein intersections of 1.5m @ 8.5 g/t Au from 29.80m depth and 13.65m @ 2.49 g/t Au from 110m depth.
Mapping by Red Mountain during February and March this year has determined that these veins outcrop and are part of a major northeast-southwest trending structure of more than 2km strike length. The new drillholes will initially test the near surface extent of the veins for open pit mining potential.
Drilling will also commence shortly to test the Japanese Tunnel prospect, located 150m southwest of the Southwest Breccia resource (Indicated and Inferred Mineral Resources 194,000t @ 7.2 g/t Au) where previous surface trenching results of 5m at 10.43g/t Au including 1m at 25.14g/t Au and 2m at 18.12 g/t Au including 1m at 28.69g/t Au were announced on 7[th] January 2013. Further recent trenching, 20m to the southwest of the initial trench, intersected a broad~8m zone of veining including 0.3m @ 3.9 g/t Au and 0.75m @ 2.29 g/t Au before the epithermal veined zone passes into an area of agglomerate and limestone cover. At least three holes are planned to test the Japanese Tunnel prospect (see Figure 2: Longitudinal projection with Southwest Breccia shoot).
Further sampling at the recently discovered Ulupong epithermal vein , located 1km southeast of the Southwest Breccia trend, has produced high-grade gold assays including 0.45m @ 23.39 g/t Au across a vein three metres north along strike from the high grade vein results announced 11[th] March 2013 of 19m @ 9.77 g/t Au including 7m @ 23.58 g/t Au ( Figure 1 ).
Another newly discovered outcropping vein located 300m northeast of the above trench at Ulupong produced an assay of 1m @ 4.56 g/t Au . Further trenching and rock chip sampling will be carried out in this area. All veins sampled at Ulupong have produced high grade gold assays, consistent with the highly anomalous gold soil sampling results along a 2km+ corridor. Infill soil sampling and further trenching will be carried out to define drilling targets.
Red Mountain Executive Chairman, Mr Neil Warburton:
“The sampling and trenching program at Lobo has defined multiple “at surface” highgrade gold drilling targets that will now be drill-tested. This is an exciting phase of the Lobo drilling program that will hopefully add further gold resource targets in addition to Lobo’s West Drift and South West Breccia resources.”
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ASX code: RMX ABN 40 119568106
COMPANY DIRECTORS Neil Warburton Executive Chairman Jon Dugdale Executive Director Keith Rowe Non-Executive Director
CONTACT DETAILS RED MOUNTAIN MINING LTD Head Office Unit 1, 2 Richardson Street West Perth Western Australia 6005 www.redmm.com.au [email protected]
Michael Wolley Non-Executive Director Shannon Coates Company Secretary
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Figure 1: Plan of Lobo Epithermal Gold Structures
ASX code: RMX COMPANY DIRECTORS ABN 40 119568106 Neil Warburton Michael Wolley Executive Chairman Non-Executive Director Jon Dugdale Shannon Coates Executive Director Company Secretary Keith Rowe Non-Executive Director
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CONTACT DETAILS RED MOUNTAIN MINING LTD Head Office Unit 1, 2 Richardson Street West Perth Western Australia 6005 www.redmm.com.au [email protected]
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Figure 2: South West Breccia to Japanese Tunnel Longitudinal Projection
Drilling at West Drift has now defined the vertical extent of a shallow plunging high grade gold shoot, located between ~100m and 150m below surface. Previous high-grade results including LB 76 : 5.2m @ 6.05 g/t Au from 138.25m; LB 67 : 4.6m @ 5.83 g/t Au from 152.8m and LB 70: 6m @ 8.03 g/t Au from 197.8m are associated with a moderately plunging flexure or bend in the lode structure. Deeper drilling below this flexure (LB-77, LB-78, LB-79 and LB-80) produced lower grade gold results summarized in Table 1 below. The interpreted shoot has been defined over a 200m strike length and 50m dip-length and is open to the south(west) and north(east) (see Figure 3 : Longitudinal projection).
The two drilling rigs defining the West Drift “shoot” have been relocated to test the Pica and Japanese Tunnel surface epithermal lode targets while results from West Drift are interpreted. Further drilling is planned to test potential extensions to the shallow plunging shoot and/or test for repeats of the gold shoot at depth.
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ASX code: RMX COMPANY DIRECTORS CONTACT DETAILS ABN 40 119568106 Neil Warburton Michael Wolley RED MOUNTAIN MINING LTD Executive Chairman Non-Executive Director Head Office Jon Dugdale Shannon Coates Unit 1, 2 Richardson Street Executive Director Company Secretary West Perth Western Australia 6005 Keith Rowe www.redmm.com.au Non-Executive Director [email protected]
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Figure 3: West Drift Longitudinal Projection
ASX code: RMX COMPANY DIRECTORS ABN 40 119568106 Neil Warburton Michael Wolley Executive Chairman Non-Executive Director Jon Dugdale Shannon Coates Executive Director Company Secretary Keith Rowe Non-Executive Director
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CONTACT DETAILS RED MOUNTAIN MINING LTD Head Office Unit 1, 2 Richardson Street West Perth Western Australia 6005 www.redmm.com.au [email protected]
| Drill hole | Northing (Grid) |
Easting (Grid) |
Azimuth (Mag) |
Dip | Depth m | From m | To m | DH m | Au g/t | Ag g/t | Cu % | Pb % | Zn % |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| LB 66 | 10,645 | 9,228 | 325° | -85° | 219.05 | 109.9 | 111.9 | 2.0 | 2.98 | 21.2 | 0.29 | 0.32 | 0.33 |
| Including | 109.9 | 110.9 | 1.0 | 4.27 | 26.5 | 0.37 | 0.43 | 0.42 | |||||
| LB 66 | 136.65 | 145.25 | 8.6 | 2.53 | 4.63 | 0.31 | <0.1 | <0.1 | |||||
| Including | 136.65 | 137.65 | 1.0 | 4.62 | 3.3 | 0.24 | <0.1 | <0.1 | |||||
| Including | 143.5 | 144.35 | 0.85 | 5.59 | 16.5 | 0.15 | <0.1 | <0.1 | |||||
| LB 67 | 10,623 | 9,200 | 145° | -84° | 196.45 | 152.8 | 157.4 | 4.6 | 5.83 | 12.9 | 4.11 | <0. 1 | <0.1 |
| Including | 153.8 | 156.6 | 2.8 | 7.79 | 13.6 | 6.57 | <0.1 | <0.1 | |||||
| LB 68 | 10647.3 | 9183.7 | 145° | -87° | 221.8 | 43.4 | 44.95 | 1.55 | 0.06 | 499 | 1.31 | 0.31 | 0.24 |
| Including | 43.4 | 43.9 | 0.5 | 0.11 | 1488 | 3.46 | 0.27 | 0.47 | |||||
| LB 68 | 177.5 | 182.4 | 4.9 | 4.47 | 10.3 | 0.27 | <0.1 | <0.1 | |||||
| Including | 180.3 | 181.85 | 1.55 | 7.37 | 23.7 | <0.1 | <0.1 | 0.2 | |||||
| LB 69 | 10773.5 | 9188.2 | 145° | -82° | 220 | 198.35 | 200.4 | 2.05 | 3.51 | 1.1 | <0.1 | <0.1 | <0.1 |
| LB 70 | 10673.1 | 9165 | 145° | -81° | 229.8 | 197.8 | 204.1 | 6.3 | 8.03 | 2.07 | <0.1 | <0.1 | <0.1 |
| LB 71 | 10773.5 | 9188.2 | 145° | -87° | 220.1 | 196 | 200 | 4.0 | 3.17 | 4.3 | <0.1 | <0.1 | <0.1 |
| LB 72 | 10673.1 | 9165 | 145° | -66° | 189.4 | 170.7 | 172.8 | 2.1 | 2.67 | 4.5 | 0.1 | <0.1 | <0.1 |
| LB 73 | 10798.5 | 9188.5 | 145° | -81° | 198.4 | 170.8 | 180.8 | 10.0 | 2.8 | 5.94 | 0.11 | <0.1 | <0.1 |
| Including | 170.8 | 173.8 | 3.0 | 4.58 | 10.8 | 0.22 | <0.1 | <0.1 | |||||
| Including | 176.8 | 179.8 | 3.0 | 3.49 | 6.3 | <0.1 | <0.1 | <0.1 | |||||
| LB 74 | 10625.4 | 9198.9 | 145° | -80° | 149.85 | 136.4 | 137.6 | 1.2 | 2.3 | 14.1 | 2.0 | <0.1 | <0.1 |
| LB 75 | 10896.0 | 9188.2 | 145° | -50° | 147.6 | 118.1 | 118.75 | 0.65 | 1.06 | 8 | 0.47 | <0.1 | <0.1 |
| Including | 124.2 | 124.6 | 0.4 | 1.97 | 6.5 | 0.23 | <0.1 | <0.1 | |||||
| LB 76 | 10625.1 | 9199.1 | 187° | -73° | 165.4 | 138.25 | 143.45 | 5.2 | 6.05 | 4.21 | 0.64 | <0.1 | <0.1 |
| Including | 139.4 | 140.45 | 1.05 | 16.97 | 1.8 | <0.1 | <0.1 | <0.1 | |||||
| LB 77 | 10674 | 9161 | 325° | -83° | 259.85 | 221.25 | 222.95 | 1.7 | 1.72 | 1.35 | <0.1 | <0.1 | <0.1 |
| LB 78 | 10728 | 9226 | 325° | -71° | 231.25 | 185.4 | 187.35 | 1.95 | 1.69 | 1.28 | <0.1 | <0.1 | <0.1 |
| Including | 185.4 | 186.35 | 0.95 | 2.61 | 1.9 | <0.1 | <0.1 | <0.1 | |||||
| LB-79 | 10637 | 9204 | 303° | -82° | 236.65 | 187.35 | 190.85 | 3.5 | 1.22 | 0.39 | <0.1 | <0.1 | <0.1 |
| LB-80 | 10,825 | 9,190 | 325° | -88° | 225.4 | 171.40 | 173.65 | 2.25 | 1.30 | ||||
| Including | 183.15 | 184.15 | 1.00 | 1.29 | |||||||||
| Including | 195.15 | 196.15 | 1.00 | 1.18 | |||||||||
| Total 15h | 3111 |
Table 1: West Drift Drilling Results Summary
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 15 kilometres. Previous drilling has only tested approximately a 500 metre strike length of the interpreted lode structures, to shallow depth of less than 200 metres. High-grade gold shoots have been identified at South West Breccia (Indicated Resource of 178,000 t @ 7.4 g/t Au 42,0000oz Au and Inferred Resource of 16,000 tonnes @ 5.3 g/t Au; 3,000 oz Au) and the new West Drift gold discovery. Regional trenching and channel sampling has identified new veins/lodes and high-grade targets for further drilling, as discussed in this release.
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ASX code: RMX ABN 40 119568106
COMPANY DIRECTORS Neil Warburton Executive Chairman Jon Dugdale Executive Director Keith Rowe Non-Executive Director
CONTACT DETAILS RED MOUNTAIN MINING LTD Head Office Unit 1, 2 Richardson Street West Perth Western Australia 6005 www.redmm.com.au [email protected]
Michael Wolley Non-Executive Director Shannon Coates Company Secretary
_________________ For further information about Red Mountain Mining please visit www.redmm.com.au or contact:
Company Investors Media Neil Warburton Kevin Skinner Executive Chairman Field Public Relations (+61) 408935014 (+61) 414822631 (+61) 8 9226 5668 (+61)8 82349555 _________________
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 completed the acquisition of significant gold resources and copper gold tenements in the Philippines on 30 October 2012. Since acquisition the company has 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 JORC compliant 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 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 Executive 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.
The information in this report relating to Mineral Resources is based on information compiled by Mr Ted Coupland who is a member of the Australasian Institute of Mining and Metallurgy and has sufficient 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 Coupland is a former full time employee of Cube Consulting Pty Ltd. Mr Coupland consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
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ASX code: RMX ABN 40 119568106
COMPANY DIRECTORS Neil Warburton Executive Chairman Jon Dugdale Executive Director Keith Rowe Non-Executive Director
CONTACT DETAILS RED MOUNTAIN MINING LTD Head Office Unit 1, 2 Richardson Street West Perth Western Australia 6005 www.redmm.com.au [email protected]
Michael Wolley Non-Executive Director Shannon Coates Company Secretary