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RED MOUNTAIN MINING LIMITED Capital/Financing Update 2015
65719_rns_2015-12-16_ddc79c49-095a-422b-ae4e-76065c169702.pdf
Capital/Financing Update
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ASX ANNOUNCEMENT RED MOUNTAIN MINING LTD (ASX:RMX) 17 DECEMBER 2015
NEW DRILLING TARGET DEFINED AND FINANCING UPDATE
- New drilling target defined at Benito along strike from West Drift Resource at Lobo
- New trenching results at Tamarind enhance drilling target and show [email protected] g/t gold
- Drilling planned to commence immediately following Strategic Partner listing in London
Perth, Western Australia: Red Mountain Mining Limited (ASX:RMX) is pleased to announce that a significant new drilling target has been identified at Benito, which is along strike from the West Drift Resource at Lobo, within the company's Batangas Gold Project in the Philippines. In addition, a further high grade gold result has been produced from the Hangingwall (HW) lode of the nearby Tamarind Target, Trench 11/53: 2.3m @ 10.7 g/t Au.
The new Benito Target is associated with a major flexure (bend) in the lode that is very similar to the flexure associated with the existing high grade South West Breccia (SWB) resource. The new trenching and rock chip results include 4m @ 70.7 g/t Silver (Ag) and 1.5m @ 227.9 g/t Ag, 0.42% Cu (see Figure 1 below) and along with previous soil sampling results, indicate that the Benito lode is higher in the geological silver-copper zone of the epithermal system relative to SWB mineralisation but at a similar level to the surface exposure of West Drift.
West Drift is characterised by high silver-copper grades at surface (e.g. previous Lobo copper mine), but has high grade gold at depth and a resource that is open to the southwest. Previous intersections at West Drift include LB 76: 5.2m @ 6.05 g/t Au from 138.25m (ASX release 1 March 2013); LB 67: 4.6m @ 5.83 g/t Au and 4.1% Copper (Cu) from 152.8m (ASX release 9 January 2013) and LB 70: 6m @ 8.03 g/t Au from 197.8m (ASX release 5 February 2013). Further soil sampling will be completed at Benito prior to an initial drilling program.
New results have also been produced for the Tamarind target, including Trench 11/53: 2.3m @ 10.7 g/t Au in the footwall of the previously sampled HW Lode. Previous results include Trench 34: 3.5m @ 25.9 g/t Au (ASX release 2 February 2015) and Trench 13: 2.6m @ 28.6 g/t Au (ASX release 12 February 2014). This result indicates that the alteration zone continues into the footwall towards the Tamarind target zone that lies under shallow scree and limestone cover but is associated with a strong multi-element soil anomaly up slope. The HW Lode is interpreted to have been offset by a normal fault from the Main Lode/Tamarind target. Drilling is planned to test the Tamarind target as shown on the cross section Figure 3 below.
Drilling is also planned to test the extensions to Main Lode, immediately south west of the SWB resource (SWB Extended) where previous trenching results of Trench 50: 7m @ 20.5 g/t Au; Trench 47: 7m @ 11.5 g/t Au and Trench 52: 5m @ 8.83 g/t Au (ASX release 07 August 2015) were produced.
| Outcrop | North(Grid) | East(Grid) | RL | Fromm | Tom | Lengthm | Au g/t | Ag g/t | Cu % |
|---|---|---|---|---|---|---|---|---|---|
| BENITO Tr 1-13 | 10,538 | 9,324 | 190 | 0.0 | 1.5 | 1.5 | <0.01 | 227.9 | 0.42 |
| BENITO NE Tr | 10,606 | 9,298 | 140 | 0.0 | 4.0 | 4.0 | <0.01 | 70.7 | 0.09 |
| including | 3.0 | 4.0 | 1.0 | 0.01 | 120.3 | 0.17 | |||
| SWB TR53/TR11 | 9,745 | 9,993 | 125 | 0.0 | 2.3 | 2.3 | 10.7 | 7.19 | 0.05 |
The new results with locations are tabulated below:
ASX code: RMX COMPANY DIRECTORS CONTACT DETAILS Non-Executive Chairman Non-Executive Director Head Office
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 www.redmm.com.au [email protected]
Figure 1: Plan of Benito and West Drift Lodes, Lobo Prospect, with new high-grade Ag surface results
Figure 2: Plan of SWB Lode and Tamarind Target, Lobo Prospect, Trench and Soil Ag surface results
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 www.redmm.com.au [email protected]
A program of 2 to 4 drill holes is planned to test the SWB Extended and Tamarind targets as part of a program that will also include 3 to 5 geotechnical holes for confirmation of ground conditions estimated in the DFS. The Lobo MPSA exploration period has expired so consent will be required from the Mines and Geosciences Bureau (MGB) to carry out the proposed drilling.
Figure 3: Cross Section through HW Lode and Tamarind Target, Lobo Prospect, with planned drilling
The drilling and completion of the Definitive Feasibility Study (DFS) on the proposed Batangas Gold Project development will be funded from the proceeds of strategic funding partner, Bluebird Merchant Ventures Limited (BMV) admission to the London Stock Exchange (LSE) (Listing). Listing is now expected to occur in January 2016 and a firm date is expected in the near future following approval of the BMV Prospectus by the UK Listing Authority. The parties to the Strategic Funding Agreement (the Agreement) have agreed to extend the date of admission to on or before 31 January 2016.
The parties have also extended the loan agreement whereby RMX will loan up to the total of Stage 1B funding, pursuant to the Agreement, to the RMX subsidiary company that holds the Philippines Batangas Gold Project Assets, Red Mountain Mining Singapore (RMMS). On listing BML will settle the remainder of Stage 1A (USD 500,000) and the Stage 1B payment (USD 700,000) and RMMS will repay all outstanding loans to RMX up to USD 1.2 million with interest and costs. On completion of the Stage 1A and 1B funding , BMV will be entitled to a 25% stake in RMMS, and continued funding will be via an incorporated JV through RMMS in proportion 25% BMV: 75% RMX until BMV either elect to Sole Fund or Stage 2 Conditions are met, including completion of the DFS and permitting.
ASX code: RMX COMPANY DIRECTORS CONTACT DETAILS
Non-Executive Chairman Non-Executive Director Head Office
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 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 Ltd (ASX:RMX) is a gold exploration and development 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 direct and indirect contractual right interest in tenements in the Philippines that contain significant gold resources totalling Indicated and Inferred 6.19 million tonnes at 2.2 g/t Au for 444,000oz Au (JORC 2012, see ASX announcement 30 June 2014).
The Company's objectives include development of gold production at the Batangas Gold Project, while continuing to focus on increasing the mineral resource base.
The Company announced a new Strategic Financing Agreement (the Agreement) with Bluebird Merchant Ventures Ltd (BMV) on 15 October 2015. The Agreement includes a two stage funding arrangement totalling up to US$5.5M, that will earn BMV up to 50.1% of wholly owned subsidiary, Red Mountain Mining Singapore Ltd (RMMS), that holds the Company's interests in the Batangas Gold Project in the Philippines, with the project to operate under an Incorporated Joint Venture (JV).
Stage 1 funding of US $1.7M under the Agreement will earn BMV 25% of RMMS and will allow the JV to complete a Definitive Feasibility Study (DFS) on the project, with initial results confirming low capital and operating costs and recovery of over 100,000 ounces of gold during the initial 5 years of a 10 year production plan (ASX announcement 20 November 2014 and updated 23 January 2015).
Final permitting to allow development of the Batangas Gold Project is being progressed through the Philippines Government approval process.
The Company is on the lookout for other advanced gold development and exploration opportunities, with a particular focus on Australia and advanced gold projects, which will be reviewed on a continuous basis.
For more details about Red Mountain Mining Ltd see http://www.redmm.com.au/
Cautionary Statement
The production targets referred to in this announcement were first released to ASX on 20 November 2014 and updated on 23 January 2015. They are preliminary and there is no certainty that the production targets or the forecast financial information derived from the production targets, will be realised. All material assumptions underpinning production targets or forecast financial information derived from production targets continue to apply and have not materially changed.
ASX code: RMX COMPANY DIRECTORS CONTACT DETAILS Non-Executive Chairman Non-Executive Director Head Office
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 www.redmm.com.au [email protected]
Competent Person Statement
The historic 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 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. The Company confirms that the form and context in which the information is 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 new Exploration Results are also based on information compiled by Mr Jon Dugdale. Mr Dugdale takes responsibility for 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 forward-looking 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.
ASX code: RMX COMPANY DIRECTORS CONTACT DETAILS Non-Executive Chairman Non-Executive Director Head Office Jon Dugdale Shannon Coates Unit 1, 2 Richardson Street
ABN 40 119568106 Neil Warburton Michael Wolley RED MOUNTAIN MINING LTD 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 |
|---|---|---|
| Samplingtechniques | •Nature and quality ofsampling and Assaying•Measures taken to ensuresample representivity andthe appropriate calibrationof any measurement toolsor systems used.•Aspects of thedetermination ofmineralisation that areMaterial to the PublicReport. | •Trenches (Costeans) through colluvialcover excavated to bedrock have beensampled at the base of the trench incontinuous cut channels with samplesaggregated over measured 0.5m to1.0m intervals.•Trenching samples obtained from cutchannels at 0.5m to 1.0m intervalsweighing less than 3kg weretransported to Intertek Laboratories inManila, the Philippines, for fire assay.•At least 2kg sample was pulverisedand a 50 gram charge fire assayed withAAS finish for Gold (Au) and a range of37 elements via Multiple determinationby ICP-OES (following four acid digest(HCl/HNO3/HClO4/HF) with volumetricfinish) assay including Silver (Ag),Copper (Cu), Lead (Pb) and Zinc (Zn). |
| Drillingtechniques | •Drill type and details | •Diamond core drilling, Triple tube, HQcore size |
| Drill samplerecovery | •Method of recording andassessing core and chip samplerecoveries and resultsassessed.•Measures taken to maximise | •Core sample recoveries routinelymeasured and recorded in spreadsheetdatabase•Triple tube drilling maximising core |
| sample recovery and ensurerepresentative nature of thesamples.•Whether a relationship existsbetween sample recovery andgrade and whether sample biasmay have occurred due topreferential loss/gain offine/coarse material. | recovery. Samples split half coreperpendicular to strike of structures•Recovery maximised (100%). No biasgenerated. | |
| Logging | •Whether core and chip sampleshave been geologically andgeotechnically logged to a levelof detail to support appropriateMineral Resource estimation,mining studies and metallurgicalstudies. | •Logging of geology, alteration andgeotechnical aspects have beenrecorded in drilling logs for diamondcore drilling. |
| •Whether logging is qualitative orquantitative in nature. Core (orcostean, channel, etc) | •Logging is qualitative. All drill corephotographed. |
ASX code: RMX COMPANY DIRECTORS CONTACT DETAILS
Non-Executive Chairman Non-Executive Director Head Office
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 www.redmm.com.au [email protected]
| Criteria | JORC Code explanation | Commentary | ||
|---|---|---|---|---|
| photography.•The total length and percentageof the relevant intersectionslogged. | •The entire interval drilled / trenchedhas been logged. | |||
| Sub-samplingtechniques andsamplepreparation | •If core, whether cut or sawn andwhether quarter, half or all coretaken.•If non-core, whether riffled, tubesampled, rotary split, etc andwhether sampled wet or dry.•For all sample types, the nature,quality and appropriateness ofthe sample preparationtechnique.•Quality control proceduresadopted for all sub-samplingstages to maximiserepresentivity of samples.•Measures taken to ensure thatthe sampling is representativeof the in situ material collected,including for instance results forfield duplicate/second-halfsampling.•Whether sample sizes areappropriate to the grain size of | •Half core taken, sawn.•Non core Trench (Costean) channelsamples entire sample aggregated, notriffled or split.•Aggregated half core . Entire ~2kgsample pulverised at Laboratory priorto fire assay. This is an appropriatesample preparation technique thatminimises bias.•Drilling and Channel samplingorthogonal to dip and strike of the lodeprovides continuous sample with evenweights that maximises representivity.•Field duplicates regularly sampled.•Sample sizes at >2kg are well inexcess of requirements appropriate tothe grain size of gold that has beenshown by mineragraphy to be generallyless than 50 micron. | ||
| Quality ofassay data andlaboratorytests | the material being sampled.•The nature, quality andappropriateness of the assayingand laboratory procedures usedand whether the technique isconsidered partial or total.•For geophysical tools,spectrometers, handheld XRFinstruments, etc, theparameters used in determiningthe analysis includinginstrument make and model,reading times, calibrationsfactors applied and theirderivation, etc.•Nature of quality controlprocedures adopted (egstandards, blanks, duplicates,external laboratory checks) andwhether acceptable levels ofaccuracy (ie lack of bias) and | •Fire assay is appropriate for the natureof the gold mineralisation beingassayed.•No geophysical tools used ingenerating exploration results.•Registered standards have beeninserted every 20 samples.•Levels of accuracy and precision(detection limit) for gold is + or minus0.005 ppm gold, which is well in excessof the precision required for the level of7 |
ASX code: RMX COMPANY DIRECTORS CONTACT DETAILS
Non-Executive Chairman Non-Executive Director Head Office
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 www.redmm.com.au [email protected]
| Criteria | JORC Code explanation | Commentary | ||
|---|---|---|---|---|
| precision have beenestablished. | assays reported. | |||
| Verification ofsampling andassaying | •The verification of significantintersections by eitherindependent or alternativecompany personnel.•The use of twinned holes.•Documentation of primary data,data entry procedures, dataverification, data storage(physical and electronic)protocols.•Discuss any adjustment toassay data. | •Significant intersections reported byfield personnel, verified by competentperson.•No twinning of drillholes at this stage.•Primary data logged on paper thendata entry into database, verified byChief Geologist and stored in electronicdatabase, regularly backed up. outputin spreadsheet form. Data is verifiedand compared with standard assaysusing established company protocols.•No adjustments have been made toassay data. | ||
| Location ofdata points | •Accuracy and quality of surveysused to locate drill holes (collarand down-hole surveys),trenches, mine workings andother locations used in MineralResource estimation.•Specification of the grid systemused.•Quality and adequacy oftopographic control. | •Drillholes and Trenches (Costeans)accurately surveyed using Nikon TotalStation DTM-332 survey equipment.•Drillhole and Trench (Costean)locations surveyed in UTM WGS8451N grid, converted to local Lobo grid.•Topographic surveys were done usingthe Total Station. Control stations wereset by an independent surveyor(McDonald Consultant, Inc.) using 2DGPS (one as a base station forcorrecting diurnal variations) and a totalstation for where they could not surveywith GPS under thick cover. Thesewere tied to known government controlstations. | ||
| Data spacinganddistribution | •Data spacing for reporting ofExploration Results.•Whether the data spacing anddistribution is sufficient toestablish the degree ofgeological and grade continuityappropriate for the MineralResource and Ore Reserveestimation procedure(s) andclassifications applied.•Whether sample compositinghas been applied. | •Drilling assayed on no more than 1mintervals down hole. Drilling testingTrenches (Costeans) excavated every10m along the strike of identifiedmineralisation. Data spacing sufficientto establish the degree of geologicaland grade continuity appropriate for theMineral Resource and Ore Reserveestimation procedure(s)•Samples have not been composited. |
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 www.redmm.com.au [email protected]
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Orientation ofdata in relationto geologicalstructure | •Whether the orientation ofsampling achieves unbiasedsampling of possible structuresand the extent to which this isknown, considering the deposittype.•If the relationship between thedrilling orientation and theorientation of key mineralisedstructures is considered to haveintroduced a sampling bias, thisshould be assessed andreported if material. | •Drilling and Trenching (Costeans)established orthogonal to theinterpreted strike and dip of themapped mineralised structures.•No sampling bias interpreted. |
| Samplesecurity | •The measures taken to ensuresample security. | •Samples secured by senior personnelon site and transported directly bycompany vehicle to IntertekLaboratories, Manila, the Philippines. |
| Audits/Reviews | •The results of any audits orreviews of sampling techniquesand data. | •Internal reviews regularly completedbut no external audits carried out todate. |
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 www.redmm.com.au [email protected]
APPENDIX 2: REPORTING OF EXPLORATION RESULTS
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Mineraltenement andland tenurestatus | •Type, referencename/number, location andownership includingagreements or material issueswith third parties such as jointventures, partnerships,overriding royalties, native titleinterests, historical sites,wilderness or national parkand environmental settings.•The security of the tenure heldat the time of reporting alongwith any known impedimentsto obtaining a licence tooperate in the area. | •The Batangas Gold Project comprises 2Mineral Production Sharing Agreements(MPSA's), 8 Exploration Permits (EP's)and four Exploration Permit Applications(EPA's).•Red Mountain Mining Ltd has a 100%interest in Philippines subsidiary MRLGold Inc. which in turn has a 100% directand contractual right interest in theBatangas gold Project tenements.•The Lobo and Archangel MPSA's containall identified (JORC 2004) resources.Declaration of Mining Feasibility andEnvironmental Compliance Certificate willbe required to be approved by thePhilippines Mines and GeosciencesBureau of the Department of Energy andNatural Resources of the PhilippinesGovernment before the company has alicence to operate. |
| Explorationdone by otherparties | •Acknowledgment andappraisal of exploration byother parties. | •Previous exploration was conducted byMindoro Resources Ltd includingextensive drilling, surface geochemistry,geophysics, mapping and mineralresource estimation to JORC 2004 and NI43-101 standards. |
| Geology | •Deposit type, geologicalsetting and style ofmineralisation. | •The gold mineralisation that is the targetof the exploration program is porphyryrelated epithermal gold mineralisationhosted by intermediate to felsic volcanicrocks and intrusions.•Two styles of intermediate sulphidationepithermal gold mineralisation identified –i) andesite hosted stockworkmineralisation at e.g. Archangel MPSAand Quartz-Barite-Sulphide vein/lode stylemineralisation at e.g. the Lobo MPSA. |
| Drill holeInformation | •A summary of all informationmaterial to the understandingof the exploration resultsincluding a tabulation of thefollowing information for allMaterial drill holes:easting and northing of theodrill hole collarelevation or RL (Reducedo | •See Table 1, Drillhole/Trenching/Samplinglocations, RL, dip and azimuth, length.•Also significant intersections, from, to,interval, grade for relevant economictargets gold (Au), Silver (Ag) and copper(Cu). |
ASX code: RMX COMPANY DIRECTORS CONTACT DETAILS
Non-Executive Chairman Non-Executive Director Head Office
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 www.redmm.com.au [email protected]
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Level – elevation abovesea level in metres) of thedrill hole collardip and azimuth of the holeodown hole length andointerception depthhole length.o | ||
| Dataaggregationmethods | •In reporting ExplorationResults, weighting averagingtechniques, maximum and/orminimum grade truncations(eg cutting of high grades)and cut-off grades are usuallyMaterial and should be stated. | •Exploration results from drilling and trench(Costean) sampling have been weightedby interval.•No high-grade cuts have been applied asmaximum grade (12 g/t Au) is less thanfive times the approximate mean grade. |
| •Where aggregate interceptsincorporate short lengths ofhigh grade results and longerlengths of low grade results,the procedure used for suchaggregation should be statedand some typical examples ofsuch aggregations should beshown in detail.•The assumptions used for anyreporting of metal equivalentvalues should be clearly | •Lower cut-off grade of 1 g/t Au hasgenerally been applied to significantintersections.•Aggregate drilling and trenching interceptsdo not incorporate longer lengths of lowgrade results.•No metal equivalent reported. | |
| stated. | ||
| Relationshipbetweenmineralisationwidths andinterceptlengths | •These relationships areparticularly important in thereporting of ExplorationResults.•If the geometry of themineralisation with respect tothe drill hole angle is known,its nature should be reported.•If it is not known and only thedown hole lengths arereported, there should be aclear statement to this effect(eg 'down hole length, truewidth not known'). | •Drilling and trenches (Costeans) havebeen drilled/excavated and sampled asclose to orthogonal to the strike and dip ofthe lode structures as possible and, assuch, the intersection lengths are a closeapproximation of true width. |
| Diagrams | •Appropriate maps andsections (with scales) andtabulations of intercepts | •See Figures 1 - 3 and Table 1. |
ASX code: RMX COMPANY DIRECTORS CONTACT DETAILS
Non-Executive Chairman Non-Executive Director Head Office
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 www.redmm.com.au [email protected]
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| should be included for anysignificant discovery beingreported These shouldinclude, but not be limited to aplan view of drill hole collarlocations and appropriatesectional views. | ||
| Balancedreporting | •Where comprehensivereporting of all ExplorationResults is not practicable,representative reporting ofboth low and high gradesand/or widths should bepracticed to avoid misleadingreporting of ExplorationResults. | •All significant drilling and trenchexploration results reported |
| Othersubstantiveexplorationdata | •Other exploration data, ifmeaningful and material,should be reported including(but not limited to): geologicalobservations; geophysicalsurvey results; geochemicalsurvey results; bulk samples –size and method of treatment;metallurgical test results; bulkdensity, groundwater,geotechnical and rockcharacteristics; potentialdeleterious or contaminatingsubstances. | •Mineragraphy on SWB and Trench 7samples indicates that gold is "free" orassociated with sulphide mineralsindicating that there is no significantsupergene enrichment•Metallurgical leaching results (release,24/01/2014) for drillcore from both SouthWest Breccia resources on the LoboProspect and the oxide and transitionaloxide resources at Kay Tanda on theArchangel Prospect, indicate that a finegrind of the resource material to 37 micronand 75 micron respectively exhibit hightotal gold recoveries of up to 97% (48hours leaching). |
| Further work | •The nature and scale ofplanned further work (eg testsfor lateral extensions or depthextensions or large-scalestep-out drilling).•Diagrams clearly highlightingthe areas of possibleextensions, including the maingeological interpretations andfuture drilling areas, providedthis information is notcommercially sensitive. | •Drilling to be continued to test identifiedmineralised zones on a 20m x 20mspacing as detailed in the release.•See Figures 1 - 3 |
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 www.redmm.com.au [email protected]