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RED MOUNTAIN MINING LIMITED — Capital/Financing Update 2015
Mar 16, 2015
65719_rns_2015-03-16_4ae8caf3-1e0c-4399-8601-d86bf22b6581.pdf
Capital/Financing Update
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ASX ANNOUNCEMENT RED MOUNTAIN MINING LTD (ASX:RMX) 17 MARCH 2015
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NEW VERY HIGH GRADE GOLD RESULTS ENHANCE EARLY MINING TARGET
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New, very high grade gold surface results extend the early mining targets: - 9m @ 28.9 g/t Au , main South West Breccia Lode, approximate true width,
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11m @ 19.1 g/t Au , overlying Colluvium Zone.
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Bluebird Partnership funds exploration and the Definitive Feasibility Study (DFS)
Perth, Western Australia: Red Mountain Mining Limited ( ASX:RMX ) is pleased to announce additional, very high grade gold results from its early mining resource definition program at South West Breccia (SWB) on its Lobo Prospect at the Batangas Gold Project in the Philippines.
The two new Trenching intersections are from the surface projection of the SWB resource and include Trench 37: 9 metres (m) @ 28.9 g/t gold (Au) from the SWB Main Lode and 11m @ 19.1 g/t Au from the overlying colluvium zone (see plan Figure 1). These surface intersections extend the early mining target to the northeast of previous trenching ( Trench 36: 4.5m @ 14.8 g/t Au and 6.0m @ 13.0 g/t Au , ASX release 2 March 2015).
The near surface early mining target zones include multiple high grade gold lode outcrops along the 500 metre SWB trend including: South West Breccia Extended, Japanese Tunnel, the Trench 7 Zone and the Limestone Target (see plan Figure 2). Resource modelling is in progress to determine the extent of additional shallow drilling required to define a Measured Resource in these areas. Drilling will also be planned to test for extensions of the high grade zones, including at the Limestone Target where results of up to Trench 34: 3.5m @ 25.9 g/t Au occur on the edge of, and project below, younger limestone cover (see ASX release 2 February 2015).
Discussions are in progress with potential candidates for toll processing and/or ore sales of this early mining resource target. It is intended that these early mining targets will provide an early cashflow for the Company whilst the DFS and final permitting for the greater resource based, on-site processing project is progressing.
Meanwhile, receipt of additional funding from the recently completed Rights Issue and Placement (ASX release 11 March 2015), as well as funding from Bluebird Merchant Ventures Ltd (BMVL) under the funding and partnership agreement (for material terms of the Agreement see ASX announcements on 16 December 2014 and 23 December 2014) has allowed the Definitive Feasibility Study (DFS) to be fast tracked. The main focus of the remainder of the DFS will be on final process engineering and residue storage facility designs, to determine final capital costs for the Lobo processing facilities.
Red Mountain Managing Director Jon Dugdale said: “This project regularly produces exceptional gold grades from the surface and we are looking forward to the opportunity to start mining these very high grade zones.
“Near term funding arrangements are in place so we can now push ahead with our very exciting early mining and exploration programs, as well as complete the DFS and final permitting for the larger scale processing project.”
Michael Wolley Non-Executive Director Shannon Coates Company Secretary
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ASX code: RMX COMPANY DIRECTORS ABN 40 119568106 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]
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Figure 1: Plan of South West Breccia with new trenching results and early mining targets
ASX code: RMX COMPANY DIRECTORS ABN 40 119568106 Neil Warburton Non-Executive Chairman Jon Dugdale Managing Director
Michael Wolley Non-Executive Director Shannon Coates Company Secretary
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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: Plan of South West Breccia Lode structure with high-grade early mining targets and new results
| Trenching | North (Grid) |
East (Grid) |
Dip | Azi Mag |
From m |
To m |
Length m |
Au g/t |
|---|---|---|---|---|---|---|---|---|
| Trench 37 Main | 10,168 | 10,060 | 30° | 136° | 5.0 | 14.0 | 9.0 | 28.9 |
| Trench 37 Coll. | 10,169 | 10,060 | 90° | 0° | 5.0 | 16.0 | 11.0 | 19.1 |
Table 1: New Trenching results, South West Breccia Lode, Lobo.
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]
ASX code: RMX COMPANY DIRECTORS ABN 40 119568106 Neil Warburton Michael Wolley Non-Executive Chairman Non-Executive Director Jon Dugdale Shannon Coates Managing Director Company Secretary
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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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About Red Mountain Mining Limited and the Batangas Gold Project
Red Mountain Mining (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 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.
The Company announced Agreement with London backed, BVI registered, BMVL on 23 December 2014 which includes a two stage funding arrangement totalling US$5.5 million (~A$6.7 million), earning BMVL up to 50% of the currently wholly owned subsidiary, Red Mountain Mining Singapore Ltd, which is the holder of the Philippines based Batangas Gold Project assets.
Funding under the Agreement with BMVL will allow the Company to complete a 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 production (ASX announcement 20 November 2014 and updated 23 January 2015).
Final mine development permitting submissions have been lodged with the Philippines Government (ASX announcement 3 April 2014) and are proceeding towards approval.
Other gold opportunities will be reviewed on a continuous basis.
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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
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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.
Competent Person Statement
The historic 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. 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 and historic information in this report relating to pre December 2013 Exploration Results is also based on information compiled by Mr Jon Dugdale who 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 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.
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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]
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APPENDIX 1: SAMPLING TECHNIQUES AND DATA
| Criteria | JORC | Code explanation | Commentary | Commentary |
|---|---|---|---|---|
| Sampling | • | Nature and quality of | • | Trenches (Costeans) through |
| techniques | sampling and Assaying | colluvial cover excavated to bedrock | ||
| • | Measures taken to ensure | have been sampled at the base of the | ||
| sample representivity and the | trench in continuous cut channels | |||
| appropriate calibration of | with samples aggregated over | |||
| any measurement tools or | measured 0.5m to 1.0m intervals. | |||
| systems used. | • | Trenching samples obtained from cut | ||
| channels at 0.5m to 1.0m intervals | ||||
| weighing less than 3kg were | ||||
| transported to Intertek Laboratories | ||||
| • | Aspects of the determination | in Manila, the Philippines, for fire | ||
| of mineralisation that are | assay. | |||
| Material to the Public Report. | • | At least 2kg sample was pulverised | ||
| and a 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 | • | Drill type and details | • | Diamond core drilling, Triple tube, |
| techniques | HQ core size | |||
| Drill sample | • | Method of recording and | • | Core sample recoveries routinely |
| recovery | assessing core and chip | measured and recorded in | ||
| sample recoveries and results | spreadsheet database | |||
| assessed. | ||||
| • | Measures taken to maximise | • | Triple tube drilling maximising core | |
| sample recovery and ensure | recovery. Samples split half core | |||
| representative nature of the | perpendicular to strike of structures | |||
| samples. | • | Recovery maximised (100%). No bias | ||
| • | Whether a relationship exists | generated. | ||
| between sample recovery and | ||||
| grade and whether sample | ||||
| bias may have occurred due | ||||
| to preferential loss/gain of | ||||
| fine/coarse material. | ||||
| Logging | • | Whether core and chip | • | Logging of geology, alteration and |
| samples have been | geotechnical aspects have been | |||
| geologically and | recorded in drilling logs for diamond | |||
| geotechnically logged to a | core drilling. | |||
| level of detail to support | ||||
| appropriate Mineral Resource | ||||
| estimation, mining studies |
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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
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| Criteria | JORC | Code explanation | Commentary | Commentary |
|---|---|---|---|---|
| and metallurgical studies. | • | Logging is qualitative. All drill core | ||
| • | Whether logging is | photographed. | ||
| qualitative or quantitative in | ||||
| nature. Core (or costean, | • | The entire interval drilled / trenched | ||
| channel, etc) photography. | has been logged. | |||
| • | The total length and | |||
| percentage of the relevant | ||||
| intersections logged. | ||||
| Sub-sampling | • | If core, whether cut or sawn | • | Half core taken, sawn. |
| techniques and | and whether quarter, half or | |||
| sample | all core taken. | |||
| preparation | • | If non-core, whether riffled, | • | Non core Trench (Costean) channel |
| tube sampled, rotary split, etc | samples entire sample aggregated, | |||
| and whether sampled wet or | not riffled or split. | |||
| dry. | • | Aggregated half core . Entire ~2kg | ||
| • | For all sample types, the | sample pulverised at Laboratory | ||
| nature, quality and | prior to fire assay. This is an | |||
| appropriateness of the sample | appropriate sample preparation | |||
| preparation technique. | technique that minimises bias. | |||
| • | Quality control procedures | • | Drilling and Channel sampling | |
| adopted for all sub-sampling | orthogonal to dip and strike of the | |||
| stages to maximise | lode provides continuous sample with | |||
| representivity of samples. | even weights that maximises | |||
| • | Measures taken to ensure that | representivity. | ||
| the sampling is representative | • |
Field duplicates regularly sampled. | ||
| of the in situ material | • | Sample sizes at >2kg are well in | ||
| collected, including for | excess of requirements appropriate | |||
| instance results for field | to the grain size of gold that has been | |||
| duplicate/second-half | shown by mineragraphy to be | |||
| sampling. | generally less than 50 micron. | |||
| • | Whether sample sizes are | |||
| appropriate to the grain size | ||||
| of the material being | ||||
| sampled. | ||||
| Quality of | • | The nature, quality and | • | Fire assay is appropriate for the |
| assay data and | appropriateness of the | nature of the gold mineralisation | ||
| laboratory | assaying and laboratory | being assayed. | ||
| tests | procedures used and whether | |||
| the technique is considered | ||||
| partial or total. | ||||
| • | For geophysical tools, | • | No geophysical tools used in | |
| spectrometers, handheld XRF | generating exploration results. | |||
| instruments, etc, the | ||||
| parameters used in | ||||
| determining the analysis | ||||
| including instrument make |
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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ASX code: RMX ABN 40 119568106
COMPANY DIRECTORS Neil Warburton Non-Executive Chairman Jon Dugdale Managing Director
Michael Wolley Non-Executive Director Shannon Coates Company Secretary
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| Criteria | JORC | Code explanation | Commentary | Commentary |
|---|---|---|---|---|
| and model, reading times, | ||||
| calibrations factors applied | ||||
| and their derivation, etc. | • | Registered standards have been | ||
| • | Nature of quality control | inserted every 20 samples. | ||
| procedures adopted (eg | • | Levels of accuracy and precision | ||
| standards, blanks, duplicates, | (detection limit) for gold is + or | |||
| external laboratory checks) | minus 0.005 ppm gold, which is well | |||
| and whether acceptable levels | in excess of the precision required for | |||
| of accuracy (ie lack of bias) | the level of assays reported. | |||
| and precision have been | ||||
| established. | ||||
| Verification of | • | The verification of significant | • | Significant intersections reported by |
| sampling and | intersections by either | field personnel, verified by competent | ||
| assaying | independent or alternative | person. | ||
| company personnel. | ||||
| • | The use of twinned holes. | • | No twinning of drillholes at this | |
| • | Documentation of primary | stage. | ||
| data, data entry procedures, | • | Primary data logged on paper then | ||
| data verification, data | data entry into database, verified by | |||
| storage (physical and | Chief Geologist and stored in | |||
| electronic) protocols. | electronic database, regularly backed | |||
| up. output in spreadsheet form. Data | ||||
| is verified and compared with | ||||
| standard assays using established | ||||
| • | Discuss any adjustment to | company protocols. | ||
| assay data. | • | No adjustments have been made to | ||
| assay data. | ||||
| Location of | • | Accuracy and quality of | • | Drillholes and Trenches (Costeans) |
| data points | surveys used to locate drill | accurately surveyed using Nikon | ||
| holes (collar and down-hole | Total Station DTM-332 survey | |||
| surveys), trenches, mine | equipment. | |||
| workings and other locations | ||||
| used in Mineral Resource | • | Drillhole and Trench (Costean) | ||
| estimation. | locations surveyed in UTM WGS84 | |||
| • | Specification of the grid | 51N grid, converted to local Lobo | ||
| system used. | grid. | |||
| • | Topographic surveys were done using | |||
| • | Quality and adequacy of | the Total Station. Control stations | ||
| topographic control. | 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. |
Michael Wolley Non-Executive Director Shannon Coates Company Secretary
CONTACT DETAILS RED MOUNTAIN MINING LTD Head Office Unit 1, 2 Richardson Street West Perth Western Australia 6005
www.redmm.com.au
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ASX code: RMX ABN 40 119568106
COMPANY DIRECTORS Neil Warburton Non-Executive Chairman Jon Dugdale Managing Director
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| Criteria | JORC | Code explanation | Commentary | Commentary |
|---|---|---|---|---|
| Data spacing | • | Data spacing for reporting of | • | Drilling assayed on no more than 1m |
| and | Exploration Results. | intervals down hole. Drilling testing | ||
| distribution | • | Whether the data spacing and | Trenches (Costeans) excavated every | |
| distribution is sufficient to | 10m along the strike of identified | |||
| establish the degree of | mineralisation. Data spacing | |||
| geological and grade | sufficient to establish the degree of | |||
| continuity appropriate for the | geological and grade continuity | |||
| Mineral Resource and Ore | appropriate for the Mineral Resource | |||
| Reserve estimation | and Ore Reserve estimation | |||
| procedure(s) and | procedure(s) | |||
| classifications applied. | ||||
| • | Whether sample compositing | • | Samples have not been composited. | |
| has been applied. | ||||
| Orientation of | • | Whether the orientation of | • | Drilling and Trenching (Costeans) |
| data in | sampling achieves unbiased | established orthogonal to the | ||
| relation to | sampling of possible | interpreted strike and dip of the | ||
| geological | structures and the extent to | mapped mineralised structures. | ||
| structure | which this is known, | |||
| considering the deposit type. | • | No sampling bias interpreted. | ||
| • | If the relationship between | |||
| the 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 | • | The measures taken to ensure | • |
Samples secured by senior personnel |
| security | sample security. | on site and transported directly by | ||
| company vehicle to Intertek | ||||
| Laboratories, Manila, the Philippines. | ||||
| Audits/Reviews | • |
The results of any audits or | • | Internal reviews regularly completed |
| reviews of sampling | but no external audits carried out to | |||
| techniques and data. | date. |
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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
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APPENDIX 2: REPORTING OF EXPLORATION RESULTS
| Criteria | JORC | Code explanation | Commentary | Commentary |
|---|---|---|---|---|
| Mineral | • | Type, reference | • | The Batangas Gold Project comprises 2 |
| tenement and | name/number, location and | Mineral Production Sharing | ||
| land tenure | ownership including | Agreements (MPSA’s), 8 Exploration | ||
| status | agreements or material | Permits (EP’s) and four Exploration | ||
| issues with third parties such | Permit Applications (EPA’s). | |||
| as joint ventures, | • | Red Mountain Mining Ltd has a 100% | ||
| partnerships, overriding | interest in Philippines subsidiary MRL | |||
| royalties, native title | Gold Inc. which in turn has a 100% | |||
| interests, historical sites, | direct and contractual right interest in | |||
| wilderness or national park | the Batangas gold Project tenements. | |||
| and environmental settings. | • | The Lobo and Archangel MPSA’s | ||
| contain all identified (JORC 2004) | ||||
| • | The security of the tenure | resources. Declaration of Mining | ||
| held at the time of reporting | Feasibility and Environmental | |||
| along with any known | Compliance Certificate will be required | |||
| impediments to obtaining a | to be approved by the Philippines | |||
| licence to operate in the area. | 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 | • | Acknowledgment and | • | Previous exploration was conducted by |
| done by other | appraisal of exploration by | Mindoro Resources Ltd including | ||
| parties | other parties. | extensive drilling, surface | ||
| geochemistry, geophysics, mapping | ||||
| and mineral resource estimation to | ||||
| JORC 2004 and NI 43-101 standards. | ||||
| Geology | • | Deposit type, geological | • | The gold mineralisation that is the |
| setting and style of | target of the exploration program is | |||
| mineralisation. | 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 | • | A summary of all information | • |
See Table 1, |
| Information | material to the | Drillhole/Trenching/Sampling | ||
| understanding of the | locations, RL, dip and azimuth, length. | |||
| exploration results including | • | Also significant intersections, from, to, | ||
| a tabulation of the following | interval, grade for relevant economic | |||
| informationfor all Material | targetsgold(Au), Silver(Ag) and |
Michael Wolley Non-Executive Director Shannon Coates Company Secretary
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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ASX code: RMX ABN 40 119568106
COMPANY DIRECTORS Neil Warburton Non-Executive Chairman Jon Dugdale Managing Director
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| Criteria | JORC | Code explanation | Commentary | Commentary |
|---|---|---|---|---|
| drill holes: | copper (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 | ||||
o dip and azimuth of |
||||
| the hole | ||||
o down hole length and |
||||
| interception depth | ||||
o hole length. |
||||
| Data | • | In reporting Exploration | • | Exploration results from drilling and |
| aggregation | Results, weighting averaging | trench (Costean) sampling have been | ||
| methods | techniques, maximum and/or | weighted by interval. | ||
| minimum grade truncations | • | No high-grade cuts have been applied | ||
| (eg cutting of high grades) | as maximum grade (12 g/t Au) is less | |||
| and cut-off grades are usually | than five times the approximate mean | |||
| Material and should be | grade. | |||
| 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 | ||
| aggregation should be stated | intercepts do not incorporate longer | |||
| and some typical examples of | lengths of low 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 | • | These relationships are | • | Drilling and trenches (Costeans) have |
| between | particularly important in the | been drilled/excavated and sampled | ||
| mineralisation | reporting of Exploration | as close to orthogonal to the strike and | ||
| widths and | Results. | dip of the lode structures as possible | ||
| intercept | • | If the geometry of the | and, as such, the intersection lengths | |
| lengths | mineralisation with respect | are a close approximation of true | ||
| to the drill hole angle is | width. | |||
| known, its nature should be | ||||
| reported. | ||||
| • | If it is not known and only the | |||
| down hole lengths are |
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
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| Criteria | JORC | Code explanation | Commentary | Commentary |
|---|---|---|---|---|
| reported, there should be a | ||||
| clear statement to this effect | ||||
| (eg ‘down hole length, true | ||||
| _width not known’). _ | ||||
| Diagrams | • | Appropriate maps and | • | See Figures 1 and 2 and Table 1. |
| sections (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 | • | Where comprehensive | • | All significant drilling and trench |
| reporting | reporting of all Exploration | exploration results reported | ||
| Results is not practicable, | ||||
| representative reporting of | ||||
| both low and high grades | ||||
| and/or widths should be | ||||
| practiced to avoid misleading | ||||
| reporting of Exploration | ||||
| Results. | ||||
| Other | • | Other exploration data, if | • | Mineragraphy on SWB and Trench 7 |
| substantive | meaningful and material, | samples indicates that gold is “free” or | ||
| exploration | should be reported including | associated with sulphide minerals | ||
| data | (but not limited to): | indicating that there is no significant | ||
| geological observations; | supergene enrichment | |||
| geophysical survey results; | • | Metallurgical leaching results (release, | ||
| geochemical survey results; | 24/01/2014) for drillcore from both | |||
| bulk samples – size and | South West Breccia resources on the | |||
| method of treatment; | Lobo Prospect and the oxide and | |||
| metallurgical test results; | transitional oxide resources at Kay | |||
| bulk density, groundwater, | Tanda on the Archangel Prospect, | |||
| geotechnical and rock | indicate that a fine grind of the | |||
| characteristics; potential | resource material to 37 micron and 75 | |||
| deleterious or contaminating | micron respectively exhibit high total | |||
| substances. | gold recoveries of up to 97% (48 hour | |||
| leaching). | ||||
| Further work | • | The nature and scale of | • | Drilling to be continued to test |
| planned further work (eg | identified mineralised zones on a 20m | |||
| tests for lateral extensions or | x 20m spacing as detailed in the | |||
| depth extensions or large- | release. | |||
| scale step-out drilling). |
12
ASX code: RMX COMPANY DIRECTORS ABN 40 119568106 Neil Warburton Michael Wolley Non-Executive Chairman Non-Executive Director Jon Dugdale Shannon Coates Managing Director Company Secretary
CONTACT DETAILS
RED MOUNTAIN MINING LTD Head Office Unit 1, 2 Richardson Street West Perth Western Australia 6005 www.redmm.com.au [email protected]
==> picture [169 x 47] intentionally omitted <==
| Criteria | JORC | Code explanation | Commentary | Commentary |
|---|---|---|---|---|
| • | Diagrams clearly | • | See Figures 1 and 2 | |
| highlighting the areas of | ||||
| possible extensions, including | ||||
| the main geological | ||||
| interpretations and future | ||||
| drilling areas, provided this | ||||
| information is not | ||||
| commercially sensitive. |
13
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