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RED MOUNTAIN MINING LIMITED — Capital/Financing Update 2014
Jan 27, 2014
65719_rns_2014-01-27_d7e2d2f6-9fb1-4ed2-8483-0df940c2586f.pdf
Capital/Financing Update
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RED MOUNTAIN MINING LTD (ASX:RMX)
ASX ANNOUNCEMENT
28 January 2014
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DRILLING COMMENCED UNDER EXCEPTIONALLY HIGH GRADE TRENCHES
Perth-based Red Mountain Mining has commenced its diamond drilling program testing under previously announced exceptionally high grade Trench 7 results including 2m @ 31.1 g/t Au and 3m @ 22.2 g/t Au (tabled in release 7 January 2014) at its Lobo Prospect on the Batangas Gold Project in the Philippines.
Drilling will initially test immediately under Trench 7, with four diamond drill-core holes planned, then drilling will test along strike to commence defining potential mineral resources.
Drilling is also planned to test under Trench 13 results that include 2.6m @ 28.6 g/t Au (released 7 January 2014), and other areas that are the subject of ongoing trenching with more results due in the near future.
Red Mountain Mining Managing Director Jon Dugdale said, “It’s great to get the drilling program underway. The Philippines based exploration team have done a superb job making these new highgrade surface discoveries. Now we get to see what’s underneath.”
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Figure 1: Trench 7 Cross Section with initial planned drilling
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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About the Lobo Prospect
Surface trench channel sampling and drilling conducted by Red Mountain has intersected high-grade epithermal gold mineralisation in five areas on the Lobo Mineral Production Sharing Agreement (“MPSA” – Philippines equivalent to a Mining Lease), namely South West Breccia (“SWB”), Pica, Japanese Tunnel, West Drift and Ulupong (see Figure 5 below).
Mineral Resources have been defined for the SWB shoot, totaling Indicated and Inferred 194,000t @ 7.2 g/t gold for 45,000 ounces of gold. This includes an Indicated Resource of 178,000t @ 7.4 g/t Au for 42,000 oz Au and an Inferred Resource of 16,000 t @ 5.3 g/t Au for 3,000 oz Au (30 January 2013, JORC 2004).
The Company is focussed on increasing high grade mineral resources through discovery of new, high grade, gold zones at Lobo. Drilling has commenced testing under recent, exceptionally high-grade trenching results from within the, at least, 500m long South West Breccia Lode corridor on the Lobo Prospect including Trench 7, 2m @ 31.1 g/t Au and Trench 13, 2.6m @ 28.6 g/t Au (see release 7 January 2014, Figure 2 below).
Exploration Targets have been defined for the Japanese Tunnel and Pica prospects and a continuous program of soil sampling, mapping and surface trenching continues with the objective of defining targets for drilling to define additional high-grade Mineral Resources on the Lobo Prospect.
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Figure 2: Plan of Lobo MPSA with epithermal lode structures and Exploration Targets
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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]
_________________________________________________________________________________________________________________ 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 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 and exploration 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. Total Mineral Resources at Batangas, at a 0.85 g/t Au lower cut off, include Indicated Resources of 2.76 million tonnes @ 2.3 g/t Au, 208,000 oz Au and Inferred Resources of 3.02 million tonnes @ 2.1 g/t Au, 200,000oz Au for a total of 5.78 million tonnes at 2.2 g/t Au, 408,000oz Au (30 January 2013, JORC 2004).
The Company will continue exploration with the objectives of upgrading Mineral Resources at Batangas and complete a scoping study to demonstrate the potential viability of a gold mining and processing project.
Other gold opportunities will be reviewed on a continuous basis.
Competent Person Statement
The information in this report relating to Exploration Results and Exploration Targets 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 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 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.
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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