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RED MOUNTAIN MINING LIMITED — Capital/Financing Update 2014
Oct 9, 2014
65719_rns_2014-10-09_b57efe0b-c9cd-4947-964e-2e7befa31d28.pdf
Capital/Financing Update
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ASX ANNOUNCEMENT RED MOUNTAIN MINING LTD (ASX:RMX)
10 October 2014
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DRILLING AND SILVER-COPPER TRENCH RESULTS EXTEND CAMO LODE AT LOBO
-
Step out drillhole has intersected 5 metres of mineralised lode from 25 metres down hole
-
Preliminary XRF drillcore results indicate silver (Ag) grades to 122 g/t Ag
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Trench sampling on parallel lode includes 2m @ 128 g/t Ag, 0.93% Copper (Cu) including 1m @ 153 g/t Ag, 1.65% Cu
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Drilling continues to test the Camo lode at depth
Perth, Western Australia based Red Mountain Mining has intersected a 5 metre down hole (~true width) mineralised hydrothermal breccia lode from 25 metres down hole. The intersection is from drillhole LB-122 on the the Camo lode at the Lobo Prospect, Batangas Project, 120 kilometres south of Manila in the Philippines.
LB-122 is a further 25 metre step out on the Camo Lode structure, that has now been extended for 125 metres, and is open to the northeast down plunge.
Hand-held XRF results from LB-122 drillcore include several >100 g/t Ag readings, up to 122 g/t Ag, within the 5 metre mineralised interval. Hand-held XRF results from un-pulverised drill core are an indication of potential grades only. Final assay results from split core are pending.
In addition, a new Trench (8) intersection of 2 metres @ 128 g/t Ag, 0.93% Copper (Cu) including 1 metre @ 153 g/t Ag and 1.65% Cu has been produced from a parallel lode, 100 metres to the northwest of the main Camo Lode. This new lode appears to splay off the main Camo structure (see Figure 1 for location).
Drilling continues at Camo, with drillhole LB-123 targeting 40 metres below the LB-122 intersection (see Figure 2, longitudinal projection).
Red Mountain Mining Managing Director Mr Jon Dugdale said, “The Camo Lode silver-copper discovery continues to grow. Drilling will continue to test the lode down plunge and also target other zones where exciting new trench results have been produced.”
“The ultimate objective is to define a significant, near surface silver-copper resource, as well as targeting a potential high grade gold zone at depth.”
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ASX code: RMX ABN 40 119568106
COMPANY DIRECTORS Neil Warburton Non-Executive Chairman Jon Dugdale Managing Director
CONTACT DETAILS Michael Wolley RED MOUNTAIN MINING LTD Non-Executive Director Head Office Shannon Coates Unit 1, 2 Richardson Street Company Secretary West Perth Western Australia 6005 www.redmm.com.au [email protected]
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Figure 1: Plan of Camo lode with rockchip sample results and drillhole locations
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Figure 2: Camo longitudinal projection, with drilling pierce points and rockchip results
ASX code: RMX COMPANY DIRECTORS ABN 40 119568106 Neil Warburton Non-Executive Chairman Jon Dugdale Managing Director
CONTACT DETAILS Michael Wolley RED MOUNTAIN MINING LTD Non-Executive Director Head Office Shannon Coates Unit 1, 2 Richardson Street Company Secretary West Perth Western Australia 6005 www.redmm.com.au [email protected]
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About the Lobo Prospect
Surface trench channel sampling and drilling conducted by Red Mountain has intersected high-grade epithermal gold and silver copper mineralisation in five areas on the Lobo Mineral Production Sharing Agreement (“MPSA” – Philippines equivalent to a Mining Lease), namely South West Breccia (SWB) - Japanese Tunnel, West Drift, Camo, Pica and Ulupong.
Mineral Resources totaling 604,000t @ 4.2 g/t Au for 82,000 ounces of gold have been defined in three areas at Lobo, including SWB with a total 98% Indicated and 2% Inferred Resource of 221,000t @ 6.3 g/t Au, Japanese Tunnel with a total Indicated and Inferred Resource of 34,000t @ 3.0 g/t Au and West Drift with a total Indicated and Inferred Resource of 350,000t @ 3.0 g/t Au (ASX release 30 June 2014, JORC 2012).
The Company is focussed on increasing high grade resources through discovery of new, high grade, gold zones at Lobo. Five priority targets have been identified on the Lobo prospect area, for high grade gold as well as silvercopper-gold mineralisation at the top of the preserved epithermal systems (see Figure 3).
Sampling of the new target areas continues, with the objective of defining multiple targets for a drilling program that is in progress.
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Figure 3: Plan of Lobo epithermal gold prospect with resources and high priority targets
ASX code: RMX COMPANY DIRECTORS ABN 40 119568106 Neil Warburton Non-Executive Chairman Jon Dugdale Managing Director
CONTACT DETAILS Michael Wolley RED MOUNTAIN MINING LTD Non-Executive Director Head Office Shannon Coates Unit 1, 2 Richardson Street Company Secretary West Perth Western Australia 6005 www.redmm.com.au [email protected]
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For further information about Red Mountain please visit www.redmm.com.au or contact:
| Company Investors Media |
|---|
| Jon Dugdale Matt Birney |
| Managing Director Birney Corporate |
| (+61) 402 298 026 (+61) 419 217 090 |
| (+61) 8 9226 5668 (+61)8 9226 5668 |
| E: [email protected] E: [email protected] |
About Red Mountain Mining Limited and the Batangas Gold Project
Red Mountain Mining (ASX: RMX) is primarily a gold explorer/developer 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 exploration and mining methods and improving efficiencies to gain significant exploration and production upside.
The Company holds a 100% direct and indirect contractual right interest in tenements in the Philippines that contain significant gold resources. Total Mineral Resources at Batangas include Indicated Resources of 2.97 million tonnes @ 2.4 g/t Au, 227,000 oz Au and Inferred Resources of 3.22 million tonnes @ 2.1 g/t Au, 218,000oz Au for a total of 6.19 million tonnes at 2.2 g/t Au, 444,000oz Au (ASX announcement 30 June 2014, JORC 2012). The Company is continuing exploration with the objectives of upgrading Mineral Resources at Batangas.
A Scoping Study (ASX announcement 20 March 2014) has demonstrated a strongly viable, low capital and operating cost, gold development based on initially recovering 90,000oz of gold over 4.5 years. The Company is completing a Definitive Feasibility Study (DFS) on the project, with early indications of an extension to mine life to 5.5 years recovering 100,000oz of gold (ASX release 10 September 2014), and final mine development permitting submissions have been lodged with the Philippines Government (ASX release 3 April 2014) and are proceeding towards approval.
Other gold opportunities will be reviewed on a continuous basis.
Cautionary Statement
The Scoping Study referred to in this announcement is based on lower-level technical and economic assessments, and is insufficient to support estimation of Ore Reserves or to provide assurance of an economic development case at this stage, or to provide certainty that the conclusions of the Scoping Study will be realised. There is a low level of geological confidence associated with inferred mineral resources (that represent 10% of the mining inventory in the Scoping Study) and there is no certainly that further exploration work will result in the determination of indicated Mineral Resources or that the production target itself will be realised. There is no certainty that the Scoping Study production targets or the forecast financial information derived from production targets, will be realised. All material assumptions underpinning the production targets and forecast financial information derived from the production targets, full details of which were released to ASX on 20 March 2014, continue to apply and have not materially changed.
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ASX code: RMX ABN 40 119568106
COMPANY DIRECTORS Neil Warburton Non-Executive Chairman Jon Dugdale Managing 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
Competent Person Statement
The information in this report relating to Mineral Resources and post 1 December 2013 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 2012 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 takes responsibility and consents to the inclusion in the report of the new Exploration Results in the form and context in which it appears. The Company confirms that the form and context in which previously released Mineral Resources and Exploration Results are presented has not been materially modified and it is not aware of any new information or data that materially affects the information included in the relevant market announcements, as detailed in the body of this announcement. All material assumptions and technical parameters underpinning the Mineral Resource estimates continue to apply and have not materially changed.
The information in this report relating to pre December 2013 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 Managing Director of Red Mountain Mining Ltd. Mr Dugdale takes responsibility and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Forward Looking Statements
This announcement contains certain forward looking statements. These forward-looking statements are not historical facts but rather are based on Red Mountain Mining’s current expectations, estimates and projections about the industry in which Red Mountain Mining operates, and beliefs and assumptions regarding Red Mountain Mining’s future performance. Words such as “anticipates”, “expects”, “intends”, “plans”, “believes”, “seeks”, “estimates” “potential” and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors, some of which are beyond the control of Red Mountain Mining, are difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. Red Mountain Mining cautions shareholders and prospective shareholders not to place undue reliance on these forwardlooking statements, which reflect the view of Red Mountain Mining only as of the date of this presentation. The forward-looking statements made in this release relate only to events as of the date on which the statements are made. Red Mountain Mining will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances or unanticipated events occurring after the date of this presentation except as required by law or by any appropriate regulatory authority.
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ASX code: RMX ABN 40 119568106
COMPANY DIRECTORS CONTACT DETAILS Neil Warburton Michael Wolley RED MOUNTAIN MINING LTD Non-Executive Chairman Non-Executive Director Head Office Jon Dugdale Shannon Coates Unit 1, 2 Richardson Street Managing Director Company Secretary West Perth Western Australia 6005 www.redmm.com.au [email protected]
APPENDIX 1: SAMPLING TECHNIQUES AND DATA
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Sampling techniques | • Nature and quality of sampling |
• Trenches (Costeans) through colluvial |
| and Assaying | cover excavated to bedrock have been | |
| • Measures taken to ensure |
sampled at the base of the trench in | |
| sample representivity and the | continuous cut channels with samples | |
| appropriate calibration of any | aggregated over measured 0.5m to 1.0m | |
| measurement tools or systems | intervals. | |
| used. | • Trenching samples obtained from cut | |
| channels at 0.5m to 1.0m intervals weighing | ||
| less than 3kg were transported to Intertek | ||
| Laboratories in Manila, the Philippines, for | ||
| • Aspects of the determination of |
fire assay. | |
| mineralisation that are | • At least 2kg sample was pulverised and a | |
| Material to the Public Report. | 50 gram charge fire assayed with AAS finish | |
| for Gold (Au) and a range of 37 elements via | ||
| Multiple determination by ICP-OES | ||
| (following four acid digest | ||
| (HCl/HNO3/HClO4/HF) with volumetric | ||
| finish) assay including Silver (Ag), Copper | ||
| (Cu),Lead(Pb)and Zinc(Zn). | ||
| Drilling techniques | • Drill type and details | • Diamond core drilling, Triple tube, HQ core |
| size | ||
| Drill sample recovery | • Method of recording and assessing | • Core sample recoveries routinely measured |
| core and chip sample recoveries and | and recorded in spreadsheet database | |
| results assessed. | ||
| • Measures taken to maximise sample | • Triple tube drilling maximising core | |
| recovery and ensure representative | recovery. Samples split half core | |
| nature of the samples. | perpendicular to strike of structures | |
| • Whether a relationship exists | • Recovery maximised (100%). No bias | |
| between sample recovery and grade | generated. | |
| and whether sample bias may have | ||
| occurred due to preferential | ||
| loss/gain of fine/coarse material. | ||
| Logging | • Whether core and chip samples have | • Logging of geology, alteration and |
| been geologically and geotechnically | geotechnical aspects have been recorded in |
|
| logged to a level of detail to support | drilling logs for diamond core drilling. | |
| appropriate Mineral Resource | ||
| estimation, mining studies and | ||
| metallurgical studies. | ||
| • Whether logging is qualitative or | • Logging is qualitative. All drill core | |
| quantitative in nature. Core (or | photographed. | |
| costean, channel, etc) photography. | ||
| • The total length and percentage of | • The entire interval drilled / trenched has | |
| the relevant intersections logged. | been logged. | |
| Sub-sampling | • If core, whether cut or sawn and | • Half core taken, sawn. |
| techniques and | whether quarter, half or all core | |
| sample preparation | taken. | |
| • If non-core, whether riffled, tube | • Non core Trench(Costean)channel samples |
COMPANY DIRECTORS CONTACT DETAILS Neil Warburton Michael Wolley RED MOUNTAIN MINING LTD Non-Executive Chairman Non-Executive Director Head Office Jon Dugdale Shannon Coates Unit 1, 2 Richardson Street Managing Director Company Secretary West Perth Western Australia 6005 www.redmm.com.au [email protected]
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ASX code: RMX ABN 40 119568106
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| sampled, rotary split, etc and | entire sample aggregated, not riffled or | |
| whether sampled wet or dry. | split. | |
| • For all sample types, the nature, | • Aggregated half core . Entire ~2kg sample | |
| quality and appropriateness of the | pulverised at Laboratory prior to fire assay. | |
| sample preparation technique. | This is an appropriate sample preparation | |
| • Quality control procedures adopted | technique that minimises bias. | |
| for all sub-sampling stages to | • Drilling and Channel sampling orthogonal | |
| maximise representivity of samples. | to dip and strike of the lode provides | |
| • Measures taken to ensure that the | continuous sample with even weights that | |
| sampling is representative of the in | maximises representivity. | |
| situ material collected, including for | • Field duplicates regularly sampled. | |
| instance results for field | • Sample sizes at >2kg are well in excess of | |
| duplicate/second-half sampling. | requirements appropriate to the grain size | |
| • Whether sample sizes are | of gold that has been shown by | |
| appropriate to the grain size of the | mineragraphy to be generally less than 50 | |
| material being sampled. | micron. | |
| Quality of assay data | • The nature, quality and | • Fire assay is appropriate for the nature of |
| and laboratory tests | appropriateness of the assaying and | the gold mineralisation being assayed. |
| laboratory procedures used and | ||
| whether the technique is considered | ||
| partial or total. | ||
| • For geophysical tools, | • No geophysical tools used in generating | |
| spectrometers, handheld XRF | exploration results. | |
| instruments, etc, the parameters | ||
| used in determining the analysis | ||
| including instrument make and | ||
| model, reading times, calibrations | ||
| factors applied and their derivation, | ||
| etc. | ||
| • Nature of quality control procedures | • Registered standards have been inserted |
|
| adopted (eg standards, blanks, | every 20 samples. | |
| duplicates, external laboratory | • Levels of accuracy and precision (detection | |
| checks) and whether acceptable | limit) for gold is + or minus 0.005 ppm gold, | |
| levels of accuracy (ie lack of bias) | which is well in excess of the precision | |
| and precision have been established. | required for the level of assays reported. |
|
| Verification of | • The verification of significant | • Significant intersections reported by field |
| sampling and | intersections by either independent | personnel, verified by competent person. |
| assaying | or alternative company personnel. | |
| • The use of twinned holes. | • No twinning of drillholes at this stage. | |
| • Documentation of primary data, | • Primary data logged on paper then data | |
| data entry procedures, data | entry into database, verified by Chief | |
| verification, data storage (physical | Geologist and stored in electronic database, | |
| and electronic) protocols. | regularly backed up. output in spreadsheet | |
| form. Data is verified and compared with | ||
| standard assays using established company | ||
| protocols. | ||
| • Discuss any adjustment to assay | • No adjustments have been made to assay |
ASX code: RMX COMPANY DIRECTORS CONTACT DETAILS ABN 40 119568106 Neil Warburton Michael Wolley RED MOUNTAIN MINING LTD Non-Executive Chairman Non-Executive Director Head Office Jon Dugdale Shannon Coates Unit 1, 2 Richardson Street Managing Director Company Secretary West Perth Western Australia 6005 www.redmm.com.au [email protected]
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| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| data. | data. | |
| Location of data | • Accuracy and quality of surveys used | • Drillholes and Trenches (Costeans) |
| points | to locate drill holes (collar and | accurately surveyed using Nikon Total |
| down-hole surveys), trenches, mine | Station DTM-332 survey equipment. | |
| workings and other locations used | ||
| in Mineral Resource estimation. | • Drillhole and Trench (Costean) locations | |
| • Specification of the grid system used. | surveyed in UTM WGS84 51N grid, |
|
| converted to local Lobo grid. | ||
| • Quality and adequacy of | • Topographic surveys were done using the | |
| topographic control. | Total Station. Control stations were set by | |
| an independent surveyor (McDonald | ||
| Consultant, Inc.) using 2 DGPS (one as a | ||
| base station for correcting diurnal | ||
| variations) and a total station for where | ||
| they could not survey with GPS under thick | ||
| cover. These were tied to known | ||
| government control stations. | ||
| Data spacing and | • Data spacing for reporting of | • Drilling assayed on no more than 1m |
| distribution | Exploration Results. | intervals down hole. Drilling testing |
| • Whether the data spacing and | Trenches (Costeans) excavated every 10m | |
| distribution is sufficient to establish | along the strike of identified mineralisation. | |
| the degree of geological and grade | Data spacing sufficient to establish the | |
| continuity appropriate for the | degree of geological and grade continuity | |
| Mineral Resource and Ore Reserve | appropriate for the Mineral Resource and | |
| estimation procedure(s) and | Ore Reserve estimation procedure(s) | |
| classifications applied. | ||
| • Whether sample compositing has | • Samples have not been composited. | |
| been applied. | ||
| Orientation of data in | • Whether the orientation of sampling |
• Drilling and Trenching (Costeans) |
| relation to geological | achieves unbiased sampling of | established orthogonal to the interpreted |
| structure | possible structures and the extent to | strike and dip of the mapped mineralised |
| which this is known, considering the | structures. | |
| deposit type. | ||
| • If the relationship between the | • No sampling bias interpreted. | |
| drilling orientation and the | ||
| orientation of key mineralised | ||
| structures is considered to have | ||
| introduced a sampling bias, this | ||
| should be assessed and reported if | ||
| material. | ||
| Sample security | • The measures taken to ensure | • Samples secured by senior personnel on |
| sample security. | site and transported directly by company | |
| vehicle to Intertek Laboratories, Manila, the | ||
| Philippines. | ||
| Audits/Reviews | • The results of any audits or reviews | • Internal reviews regularly completed but |
| of sampling techniques and data. | no external audits carried out to date. |
ASX code: RMX COMPANY DIRECTORS CONTACT DETAILS ABN 40 119568106 Neil Warburton Michael Wolley RED MOUNTAIN MINING LTD Non-Executive Chairman Non-Executive Director Head Office Jon Dugdale Shannon Coates Unit 1, 2 Richardson Street Managing Director Company Secretary West Perth Western Australia 6005 www.redmm.com.au [email protected]
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APPENDIX 2: REPORTING OF EXPLORATION RESULTS
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Mineral tenement and | • Type, reference name/number, | • The Batangas Gold Project comprises 2 |
| land tenure status | location and ownership | Mineral Production Sharing Agreements |
| including agreements or | (MPSA’s), 8 Exploration Permits (EP’s) and | |
| material issues with third | four Exploration Permit Applications | |
| parties such as joint ventures, | (EPA’s). | |
| partnerships, overriding | • Red Mountain Mining Ltd has a 100% | |
| royalties, native title interests, | interest in Philippines subsidiary MRL Gold | |
| historical sites, wilderness or | Inc. which in turn has a 100% direct and | |
| national park and | contractual right interest in the Batangas | |
| environmental settings. | gold Project tenements. | |
| • The Lobo and Archangel MPSA’s contain all | ||
| • The security of the tenure held | identified (JORC 2004) resources. | |
| at the time of reporting along | Declaration of Mining Feasibility and | |
| with any known impediments to | Environmental Compliance Certificate will | |
| obtaining a licence to operate in | be required to be approved by the | |
| the area. | Philippines Mines and Geosciences Bureau | |
| of the Department of Energy and Natural | ||
| Resources of the Philippines Government | ||
| before the company has a licence to | ||
| operate. | ||
| Exploration done by | • Acknowledgment and appraisal | • Previous exploration was conducted by |
| other parties | of exploration by other parties. | Mindoro Resources Ltd including extensive |
| drilling, surface geochemistry, geophysics, | ||
| mapping and mineral resource estimation | ||
| toJORC 2004 and NI 43-101 standards. | ||
| Geology | • Deposit type, geological setting | • The gold mineralisation that is the target of |
| and style of mineralisation. | the exploration program is porphyry | |
| related epithermal gold mineralisation | ||
| hosted by intermediate to felsic volcanic | ||
| rocks and intrusions. | ||
| • Two styles of intermediate sulphidation | ||
| epithermal gold mineralisation identified – | ||
| i) andesite hosted stockwork mineralisation | ||
| at e.g. Archangel MPSA and Quartz-Barite- | ||
| Sulphide vein/lode style mineralisation at | ||
| e.g. the Lobo MPSA. | ||
| Drill hole Information | • A summary of all information | • See Table 1, Drillhole/Trenching/Sampling |
| material to the understanding of | locations, RL, dip and azimuth, length. | |
| the exploration results including | • Also significant intersections, from, to, | |
| a tabulation of the following | interval, grade for relevant economic | |
| information for all Material drill | targets gold (Au), Silver (Ag) and copper | |
| holes: | (Cu). | |
o easting and northing of the |
||
| drill hole collar | ||
o elevation or RL (Reduced |
||
| Level – elevation above sea | ||
| level in metres) of the drill | ||
| hole collar |
ASX code: RMX COMPANY DIRECTORS CONTACT DETAILS ABN 40 119568106 Neil Warburton Michael Wolley RED MOUNTAIN MINING LTD Non-Executive Chairman Non-Executive Director Head Office Jon Dugdale Shannon Coates Unit 1, 2 Richardson Street Managing Director Company Secretary West Perth Western Australia 6005 www.redmm.com.au [email protected]
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| Criteria | JORC Code explanation | Commentary |
|---|---|---|
o dip and azimuth of the hole |
||
o down hole length and |
||
| interception depth | ||
o hole length. |
||
| Data aggregation | • In reporting Exploration Results, | • Exploration results from drilling and trench |
| methods | weighting averaging techniques, | (Costean) sampling have been weighted by |
| maximum and/or minimum | interval. | |
| grade truncations (eg cutting of | • No high-grade cuts have been applied as | |
| high grades) and cut-off grades | maximum grade (12 g/t Au) is less than | |
| are usually Material and should | five times the approximate mean grade. | |
| be stated. | ||
| • Where aggregate intercepts | • Lower cut-off grade of 1 g/t Au has | |
| incorporate short lengths of | generally been applied to significant | |
| high grade results and longer | intersections. | |
| lengths of low grade results, the | ||
| procedure used for such | • Aggregate drilling and trenching intercepts | |
| aggregation should be stated | do not incorporate longer lengths of low | |
| and some typical examples of | grade results. | |
| such aggregations should be | ||
| shown in detail. | ||
| • The assumptions used for any | • No metal equivalent reported. | |
| reporting of metal equivalent | ||
| values should be clearly stated. | ||
| Relationship between | • These relationships are | • Drilling and trenches (Costeans) have been |
| mineralisation widths | particularly important in the | drilled/excavated and sampled as close to |
| and intercept lengths | reporting of Exploration Results. | orthogonal to the strike and dip of the lode |
| • If the geometry of the | structures as possible and, as such, the | |
| mineralisation with respect to | intersection lengths are a close | |
| the drill hole angle is known, its | approximation of true width. | |
| nature should be reported. | ||
| • If it is not known and only the | ||
| down hole lengths are reported, | ||
| there should be a clear | ||
| statement to this effect (eg | ||
| ‘down hole length, true width | ||
| _not known’). _ | ||
| Diagrams | • Appropriate maps and sections | • See Figures 1 to 3 and Table 1. |
| (with scales) and tabulations of | ||
| intercepts should be included for | ||
| any significant discovery being | ||
| reported These should include, | ||
| but not be limited to a plan view | ||
| of drill hole collar locations and | ||
| appropriate sectional views. | ||
| Balanced reporting | • Where comprehensive reporting | • All significant drilling and trench |
| of all Exploration Results is not | exploration results reported | |
| 10 |
ASX code: RMX COMPANY DIRECTORS CONTACT DETAILS ABN 40 119568106 Neil Warburton Michael Wolley RED MOUNTAIN MINING LTD Non-Executive Chairman Non-Executive Director Head Office Jon Dugdale Shannon Coates Unit 1, 2 Richardson Street Managing Director Company Secretary West Perth Western Australia 6005 www.redmm.com.au [email protected]
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| practicable, representative | ||
| reporting of both low and high | ||
| grades and/or widths should be | ||
| practiced to avoid misleading | ||
| reporting of Exploration Results. | ||
| Other substantive | • Other exploration data, if | • Mineragraphy on SWB and Trench 7 |
| exploration data | meaningful and material, should | samples indicates that gold is “free” or |
| be reported including (but not | associated with sulphide minerals | |
| limited to): geological | indicating that there is no significant | |
| observations; geophysical | supergene enrichment | |
| survey results; geochemical | • Metallurgical leaching results (release, | |
| survey results; bulk samples – | 24/01/2014) for drillcore from both South | |
| size and method of treatment; | West Breccia resources on the Lobo | |
| metallurgical test results; bulk | Prospect and the oxide and transitional | |
| density, groundwater, | oxide resources at Kay Tanda on the | |
| geotechnical and rock | Archangel Prospect, indicate that a fine | |
| characteristics; potential | grind of the resource material to 37 micron | |
| deleterious or contaminating | and 75 micron respectively exhibit high | |
| substances. | total gold recoveries of up to 97% (48 | |
| hours leaching). | ||
| Further work | • The nature and scale of planned | • Drilling to be continued to test identified |
| further work (eg tests for lateral | mineralised zones on a 20m x 20m spacing |
|
| extensions or depth extensions | as detailed in the release. | |
| or large-scale step-out drilling). | ||
| • Diagrams clearly highlighting | • See Figures 1 to 3 | |
| the areas of possible extensions, | ||
| including the main geological | ||
| interpretations and future | ||
| drilling areas, provided this | ||
| information is not commercially | ||
| sensitive. |
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ASX code: RMX ABN 40 119568106
COMPANY DIRECTORS Neil Warburton Non-Executive Chairman Jon Dugdale Managing 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