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RED MOUNTAIN MINING LIMITED — Interim / Quarterly Report 2013
Apr 23, 2013
65719_rns_2013-04-23_15614362-8830-40de-b2a8-c573bf32f67f.pdf
Interim / Quarterly Report
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24 APRIL 2013
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ASX ANNOUNCEMENT
March Quarter 2013 Report
HIGHLIGHTS
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New JORC Mineral Resource Estimates at Archangel and Lobo, within the Batangas Gold Project: Indicated and Inferred Mineral Resources of 5.78 million tonnes grading 2.2 g/t gold for 408,000 ounces of gold using a 0.85g/t lower gold cut off grade.
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Drilling delineated high-grade epithermal gold shoot discovery at West Drift, Lobo including intersections of LB 76: 5.2m @ 6.05 g/t Au from 138.25m; LB 67: 4.6m @ 5.83 g/t Au from 152.8m and LB 70: 6m @ 8.03 g/t Au from 197.8m.
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Surface sampling and trenching discovered a new high grade gold, epithermal vein at Ulupong, Lobo where sampling along the vein assayed 19 metres at 9.77 g/t gold including 7 metres at 23.58 g/t gold.
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Surface sampling at Japanese Tunnel, located 150m southwest of the Southwest Breccia resource (Indicated and Inferred Mineral Resources 194,000t @ 7.2 g/t Au) produced surface trenching results of 5m at 10.43g/t Au including 1m at 25.14g/t Au and 2m at 18.12 g/t Au including 1m at 28.69g/t Au.
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Post quarter end, drilling commenced testing Pica epithermal lode structure, one of at least five parallel epithermal lodes at the Lobo project, where a previous (2005) vertical drillhole intersected 1.5m @ 8.5 g/t Au from 29.80m depth and 13.65m @ 2.49 g/t Au from 110m depth. Results are pending.
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The Company remains in a sound financial position, with $1.5 million in cash as at 31[st] March 2013 .
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ASX code: RMX COMPANY DIRECTORS ABN 40 119568106 Neil Warburton Executive Chairman Keith Rowe Non-Executive Director
CONTACT DETAILS Jon Dugdale RED MOUNTAIN MINING LTD Managing Director Head Office Michael Wolley Unit 1, 2 Richardson Street Non-Executive Director West Perth Western Australia 6005 Shannon Coates www.redmm.com.au Company Secretary [email protected]
Portfolio of Projects in Key Mining Districts of The Philippines:
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Figure 1: Red Mountain Mining Philippines Projects Location
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ASX code: RMX ABN 40 119568106
COMPANY DIRECTORS Neil Warburton Executive Chairman Keith Rowe Non-Executive Director
CONTACT DETAILS Jon Dugdale RED MOUNTAIN MINING LTD Managing Director Head Office Michael Wolley Unit 1, 2 Richardson Street Non-Executive Director West Perth Western Australia 6005 Shannon Coates www.redmm.com.au Company Secretary [email protected]
BATANGAS UPGRADED MINERAL RESOURCE ESTIMATES, JANUARY 2013
New Indicated and Inferred Mineral Resource Estimates for Archangel (Kay Tanda) and Lobo (South West Breccia) within the Batangas gold project were released on the 30[th] January 2013.
The new Mineral Resource Estimates for the Batangas project using a 0.85 g/t cut-off grade are summarized in Table 1 below :
Table 1: Batangas Mineral Resource Estimates, 0.85 g/t cut-off, 30[th] January, 2013
| Deposit | Resource | Tonnes | Au | Au | Ag | Ag |
|---|---|---|---|---|---|---|
| Category | **g/t ** | Oz | **g/t ** | Oz | ||
| Inferred | 3,004,000 | 2.0 |
197,000 | 1.3 |
124,000 | |
| Archangel | Indicated | 2,582,000 | 2.0 |
165,000 | 5.7 |
471,000 |
| *Total | 5,586,000 | 2.0 | 363,000 | 3.3 | 595,000 | |
| 1,000 | ||||||
| Inferred | 16,000 | 5.3 |
3,000 | 1.7 |
||
| SWB | Indicated | 178,000 | 7.4 |
42,000 | 1.8 | 10,000 |
| *Total | 194,000 | 7.2 | 45,000 | 1.8 | 11,000 | |
| Total Inferred | 3,020,000 | 2.1 | 200,000 | 1.3 |
125,000 | |
| Batangas | Total Indicated | 2,760,000 | 2.3 | 208,000 | 5.4 |
481,000 |
| *Total | 5,780,000 | 2.2 | 408,000 | 3.3 | 606,000 |
*Note: Inferred Resource Estimates are combined with Indicated Resource Estimates in the totals based on The JORC Code (December) 2012 Edition that states under section 26 that if details of individual categories are provided then categories may be reported in combined form.
The new Mineral Resource Estimates have been produced following a complete revision and interpretation of historical data and parameters, inclusion of results from a 10 diamond drillhole program at Archangel completed in late 2012 and further trenching results at South West Breccia, Lobo. The mineral resource estimates using a 0.85 g/t Au cut off average 2.2 g/t Au, twice the grade of the previous mineral resource estimates, and enforces the company’s strategy to focus on bringing the higher grade areas of the total resource to production.
The previous Mineral Resource Estimates were Indicated: 10.15mt @ 1.2 g/t Au for 393,000oz Au and Inferred: 3.8mt @ 0.88 g/t Au for 108,000oz Au for a total of 13.95mt @ 1.1 g/t Au for 501,000oz Au using a 0.3g/t cut off grade for oxide material and 0.5g/t cut off grade for “fresh” material. .
Appendix 1 includes the criteria used and the Geological evidence and Knowledge used to support the new Mineral Resource Estimates.
Appendix 2 contains the new Batangas Mineral Resource Estimates at different cut-off grades of 0.3 g/t Au, 0.5 g/t Au, 0.85 g/t Au and 1.0 g/t Au.
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ASX code: RMX ABN 40 119568106
COMPANY DIRECTORS Neil Warburton Executive Chairman Keith Rowe Non-Executive Director
CONTACT DETAILS Jon Dugdale RED MOUNTAIN MINING LTD Managing Director Head Office Michael Wolley Unit 1, 2 Richardson Street Non-Executive Director West Perth Western Australia 6005 Shannon Coates www.redmm.com.au Company Secretary [email protected]
LOBO DRILLING AND TRENCHING, BATANGAS
West Drift Drilling
Drilling continued to define the West Drift high-grade gold shoot at Lobo, Batangas. A total 14 holes for 2,915.15 metres of drilling were completed during the quarter. The total program at West Drift is 16 holes for 3,330.65 metres.
Drilling has defined the vertical extent of a shallow plunging high grade gold shoot, located between ~100m and 150m below surface. High-grade results including LB 76 : 5.2m @ 6.05 g/t Au from 138.25m; LB 67 : 4.6m @ 5.83 g/t Au from 152.8m and LB 70: 6m @ 8.03 g/t Au from 197.8m are associated with a moderately plunging flexure or bend in the lode structure. The interpreted shoot has been defined over a 200m strike length and 50m dip-length and is open to the south(west) and north(east) (see Figure 2, longitudinal projection, below).
The completion of the initial drilling phase at West Drift will allow interpretation and resource modeling of the West Drift gold “shoot”, as well as evaluation of the potential for further drilling to test potential extensions to the shallow plunging shoot and/or test for repeats of the gold shoot at depth.
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Figure 2: West Drift Longitudinal Projection
West Drift drilling results received during the March quarter are summarised in Table 2.
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COMPANY DIRECTORS Neil Warburton Executive Chairman Keith Rowe Non-Executive Director
CONTACT DETAILS Jon Dugdale RED MOUNTAIN MINING LTD Managing Director Head Office Michael Wolley Unit 1, 2 Richardson Street Non-Executive Director West Perth Western Australia 6005 Shannon Coates www.redmm.com.au Company Secretary [email protected]
ASX code: RMX ABN 40 119568106
Table 2: Summary of results from West Drift, Lobo Q1 2013:
| Drill hole | Northing (Grid) |
Easting (Grid) |
Az (Mag) |
Dip | Depth m | From m | To m | DH m | Au g/t | Ag g/t | Cu % |
Pb % |
Zn % |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| LB 68 | 10647.3 | 9183.7 | 145° | -87° | 221.8 | 43.4 | 44.95 | 1.55 | 0.06 | 499.4 | 1.31 | 0.31 | 0.24 |
| Including | 43.4 | 43.9 | 0.5 | 0.11 | 1488 | 3.46 | 0.27 | 0.47 | |||||
| LB 68 | 177.5 | 182.4 | 4.9 | 4.47 | 10.3 | 0.27 | <0.1 | <0.1 | |||||
| Including | 180.3 | 181.85 | 1.55 | 7.37 | 23.7 | <0.1 | <0.1 | 0.2 | |||||
| LB 69 | 10773.5 | 9188.2 | 145° | -82° | 220 | 198.35 | 200.4 | 2.05 | 3.51 | 1.1 | <0.1 | <0.1 | <0.1 |
| LB 70 | 10673.1 | 9165.0 | 145° | -81° | 229.8 | 197.8 | 204.1 | 6.3 | 8.03 | 2.07 | <0.1 | <0.1 | <0.1 |
| LB 71 | 10773.5 | 9188.2 | 145° | -87° | 220.1 | 196 | 200 | 4.0 | 3.17 | 4.3 | <0.1 | <0.1 | <0.1 |
| LB 72 | 10673.1 | 9165.0 | 145° | -66° | 189.4 | 170.7 | 172.8 | 2.1 | 2.67 | 4.5 | 0.1 | <0.1 | <0.1 |
| LB 73 | 10798.5 | 9188.5 | 145° | -81° | 198.4 | 170.8 | 180.8 | 10.0 | 2.80 | 5.94 | 0.11 | <0.1 | <0.1 |
| Including | 170.8 | 173.8 | 3.0 | 4.58 | 10.8 | 0.22 | <0.1 | <0.1 | |||||
| Including | 176.8 | 179.8 | 3.0 | 3.49 | 6.3 | <0.1 | <0.1 | <0.1 | |||||
| LB 74 | 10625.4 | 9198.9 | 145° | -80° | 149.85 | 136.4 | 137.6 | 1.2 | 2.30 | 14.1 | 2.0 | <0.1 | <0.1 |
| LB 75 | 10896.0 | 9188.2 | 145° | -50° | 147.6 | 118.1 | 118.75 | 0.65 | 1.06 | 8 | 0.47 | <0.1 | <0.1 |
| 124.2 | 124.6 | 0.4 | 1.97 | 6.5 | 0.23 | <0.1 | <0.1 | ||||||
| LB 76 | 10625.1 | 9199.1 | 187° | -73° | 165.4 | 138.25 | 143.45 | 5.2 | 6.05 | 4.21 | 0.64 | <0.1 | <0.1 |
| Including | 139.4 | 140.45 | 1.05 | 16.97 | 1.8 | <0.1 | <0.1 | <0.1 | |||||
| LB 77 | 10674.0 | 9161.0 | 325° | -83° | 259.85 | 221.25 | 222.95 | 1.7 | 1.72 | 1.35 | <0.1 | <0.1 | <0.1 |
| LB 78 | 10728.0 | 9226.0 | 325° | -71° | 231.25 | 185.4 | 187.35 | 1.95 | 1.69 | 1.28 | <0.1 | <0.1 | <0.1 |
| Including | 185.4 | 186.35 | 0.95 | 2.61 | 1.9 | <0.1 | <0.1 | <0.1 | |||||
| LB-79 | 10637.0 | 9204.0 | 303° | -82° | 236.65 | 187.35 | 190.85 | 3.5 | 1.22 | 0.39 | <0.1 | <0.1 | <0.1 |
| LB-80 | 10825.3 | 9189.8 | 325° | -88° | 225.4 | 171.40 | 178.15 | 6.75 | 0.81 | 3.9 | 0.3 | <0.1 | <0.1 |
| Including | 171.40 | 173.65 | 2.25 | 1.30 | 2.2 | 0.14 | <0.1 | <0.1 | |||||
| 183.13 | 184.15 | 1.00 | 1.29 | 2.6 | <0.1 | <0.1 | <0.1 | ||||||
| 195.15 | 196.15 | 1.00 | 1.18 | 1.4 | <0.1 | <0.1 | <0.1 | ||||||
| LB-81 | 10727.8 | 9185.5 | 145° | -80° | 219.65 | 136.85 | 138.45 | 1.60 | <0.1 | 9.00 | 0.24 | <0.1 | <0.1 |
| 143.75 | 146.35 | 2.60 | <0.1 | 5.28 | 0.18 | <0.1 | <0.1 | ||||||
| Total Q1 | 2915.15 |
Lobo Trenching and Channel Sampling
The regional trenching / channel sampling program was focused on locating high-grade veins in the Lobo area during the March quarter. Samples were collected from four key epithermal lode structures:
i) Japanese Tunnel ii) Ulupong iii) Pica iv) Calumpang
Additional sampling at Japanese Tunnel , located 150m southwest of the Southwest Breccia resource (Indicated and Inferred Mineral Resources 194,000t @ 7.2 g/t Au),
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CONTACT DETAILS Jon Dugdale RED MOUNTAIN MINING LTD Managing Director Head Office Michael Wolley Unit 1, 2 Richardson Street Non-Executive Director West Perth Western Australia 6005 Shannon Coates www.redmm.com.au Company Secretary [email protected]
ASX code: RMX COMPANY DIRECTORS ABN 40 119568106 Neil Warburton Executive Chairman Keith Rowe Non-Executive Director
produced surface trenching results of 5m at 10.43g/t Au including 1m at 25.14g/t Au and 2m at 18.12 g/t Au including 1m at 28.69g/t Au . Further trenching 20m to the southwest of the initial trench, intersected a broad ~8m zone of veining including 0.3m @ 3.9 g/t Au and 0.75m @ 2.29 g/t Au before the epithermal veined zone passes into an area of agglomerate and limestone cover. At least three holes are planned to test the Japanese Tunnel prospect during the June quarter (see Figure 3, longitudinal projection with South West Breccia shoot).
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Figure 3: Longitudinal Projection, Japanese Tunnel and South West Breccia
At Ulupong a continuous 19 metre surface channel of 1m spaced samples along the strike of an exposed epithermal quartz-barite vein produced an intersection of 19m @ 9.77 g/t gold including 7m @ 23.58 g/t gold and including 0.8m @ 94.78 g/t gold announced 11[th] March 2013.
The vein is at the western end of an extensive zone of anomalous gold soil geochemistry at Ulupong-Sawahan that extends for more than two kilometres in a northeastsouthwest direction, sub parallel to the South West Breccia and West Drift epithermal gold vein systems (see Figure 4 below). Further sampling at Ulupong produced highgrade gold assays including 0.45m @ 23.39 g/t Au across a vein three metres north along strike from the high grade vein results announced 11[th] March 2013. In addition another newly discovered outcropping vein located 300m northeast of the above trench
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ASX code: RMX ABN 40 119568106
COMPANY DIRECTORS Neil Warburton Executive Chairman Keith Rowe Non-Executive Director
CONTACT DETAILS Jon Dugdale RED MOUNTAIN MINING LTD Managing Director Head Office Michael Wolley Unit 1, 2 Richardson Street Non-Executive Director West Perth Western Australia 6005 Shannon Coates www.redmm.com.au Company Secretary [email protected]
at Ulupong produced an assay of 1m @ 4.56 g/t Au . Further trenching and rock chip sampling will be carried out in this area. Infill soil sampling and further trenching will be carried out to define drilling targets.
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Figure 4: The Lobo Epithermal Gold Structures
At Pica epithermal lode structure a previous (2005) vertical drillhole at Pica , PC02, produced epithermal vein intersections of 1.5m @ 8.5 g/t Au from 29.80m depth and 13.65m @ 2.49 g/t Au from 110m depth. Mapping by Red Mountain during February and March this year has determined that these veins outcrop and are part of a major northeast-southwest trending structure of more than 2km strike length. Drilling completed early in April tested these vein structures up-dip. Results are due shortly.
At Calumpang-Balisong, a sub parallel epithermal vein located 0.5km north west of West Drift, sampling along a large quartz-barite vein produced an intersection of 18m @ 1.11 g/t Au .
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ASX code: RMX ABN 40 119568106
COMPANY DIRECTORS Neil Warburton Executive Chairman Keith Rowe Non-Executive Director
CONTACT DETAILS RED MOUNTAIN MINING LTD Head Office Unit 1, 2 Richardson Street West Perth Western Australia 6005 www.redmm.com.au [email protected]
Jon Dugdale Managing Director Michael Wolley Non-Executive Director Shannon Coates Company Secretary
METALLURGICAL TEST WORK
During the quarter metallurgical test work was carried out to test the South West Breccia resource material.
A series of standard leaching tests were conducted on “fresh” South West Breccia samples grading 7 g/t gold.
The results indicated that 86% gold recovery can be achieved from fresh, sulphide material using a standard CIL/CIP flowsheet but with relatively high cyanide consumption of over 1 kg/t and a grind size of 80% passing 75μm.
Further work will be undertaken to improve recovery and reduce cyanide consumption, including tests on a 10:1 blend of Kay Tanda (Archangel) to South West Breccia (Lobo) resource material with an average head grade of ~2/g/t Au. Previous agitation cyanide leach testing on Kay Tanda resource material averaging 1 g/t Au produced recoveries of 93.4% for oxide and 88.6% for “transitional” material at a grind size of 80% passing 75μm .
COMPANY STATUS AND OUTLOOK
The Company remains in a sound financial position, with $1.5 million in cash and no debt as at 31st March 2013.
The company has discovered new high grade epithermal veins at Lobo that will be the focus of drilling programs aimed at expanding the higher-grade resource base and building a platform for establishing a future stand-alone gold operation.
For further information about Red Mountain Mining please visit www.redmm.com.au or contact:
Company Media Jon Dugdale Kevin Skinner Managing Director Field Public Relations (+61) 402298026 (+61)414822631 (+61 8) 9226 5668 (+61 8) 82349555
About Red Mountain Mining Limited
Red Mountain Mining (ASX: RMX) is primarily a gold explorer and project acquisition company incorporated in Australia in May 2006. The Company’s strategy is to unlock the potential of ‘under-developed’ gold and polymetallic projects in the Asian region by introducing Australian mining methods and improving efficiencies to gain significant production and exploration upside.
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ASX code: RMX COMPANY DIRECTORS ABN 40 119568106 Neil Warburton Executive Chairman Keith Rowe Non-Executive Director
CONTACT DETAILS Jon Dugdale RED MOUNTAIN MINING LTD Managing Director Head Office Michael Wolley Unit 1, 2 Richardson Street Non-Executive Director West Perth Western Australia 6005 Shannon Coates www.redmm.com.au Company Secretary [email protected]
Competent Persons Statement
The information in this report relating to Exploration Results is based on information compiled by Mr Jon Dugdale who is a Fellow of the Australasian Institute of Mining and Metallurgy and has sufficient exploration experience which is relevant to the various styles of mineralisation under consideration to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Dugdale is a full time employee and Executive Director of Red Mountain Mining Ltd. Mr Dugdale consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
The information in this report relating to Mineral Resources is based on information compiled by Mr Ted Coupland who is a member of the Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the various styles of mineralisation under consideration to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Coupland is a former full time employee of Cube Consulting Pty Ltd. Mr Coupland consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
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ASX code: RMX ABN 40 119568106
COMPANY DIRECTORS Neil Warburton Executive Chairman Keith Rowe Non-Executive Director
CONTACT DETAILS RED MOUNTAIN MINING LTD Head Office Unit 1, 2 Richardson Street West Perth Western Australia 6005 www.redmm.com.au [email protected]
Jon Dugdale Managing Director Michael Wolley Non-Executive Director Shannon Coates Company Secretary
Appendix 1:
Criteria and the Geological evidence and knowledge used to support the Batangas Mineral Resource Estimates
Resource Parameters for the Archangel Deposit
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Gold mineralisation at Archangel occurs as a stockwork of quartz and quartzcarbonate-base metal veins and hydrothermal breccia’s hosted by andesitic volcanics and volcanoclastics generally overlying and intruded by dacitic and dioritic intrusions and dykes. Higher-grades are associated with discrete steeply dipping veins within the hydrothermal breccia’s and close to the intrusive-volcanic contacts. Oxidation is generally restricted to the top 30m of the deposit but penetrates deeper in more altered and veined zones. Some supergene enrichment of gold is associated with the more oxidized zones near surface. The mineralized horizon continues to the northwest under younger volcanic and volcanoclastics, dipping moderately to the northwest. Mineralisation is also open to the northeast where previous rockchip sampling and trenching has produced significant results for example at Lumbangan Ridge.
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A summary of the drill holes at Archangel is tabulated below.
| Deposit | Diamond Holes | Diamond M | RC Holes | RC M | Total Holes | Total m |
|---|---|---|---|---|---|---|
| Archangel | 53 | 10,464.2 | 160 | 18,294 | 213 | 28,758 |
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Archangel resource is reported above a 0.85 g/t gold lower cut off grade. It is considered that material above a 0.85 g/t cut off grade has reasonable prospects of economic extraction through open pit mining and carbon in pulp (CIP) cyanide leach processing. Metallurgical test work by the previous owners resulted in recoveries of around 86%.
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Reverse Circulation (RC) Holes of 5 and quarter inch diameter were sampled for assay except those that contained soil overburden or back-fill material. The RC samples were split down to 1/8 volume by the Jones Splitter, and these reduced samples were bagged for analysis. The samples for analysis were split directly into pre-labeled, high-density, polyethylene plastic bags. Sampling interval was set at 2 metres (7,571 samples), then at 1 metre (3,073 samples).
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The diamond drill holes commence with PQ size, reducing to HQ and NQ sizes at depth. Core is half cut predominantly at 1 metre and 2 metre intervals, and dispatched for offsite analysis.
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All gold determinations were carried out by standard 50g fire assay with AAS finish at Mcphar Geoservices (Philippines) Inc. in Manila until 2009, then by Intertek Testing Services Philippines, Inc. in Muntinlupa, Metro Manila.
-
Field duplicates, coarse rejects and pulps are retained on the Batangas site for storage.
-
Diamond holes have been surveyed by techniques unaffected by magnetism using Eastman single-shot survey camera (Eastman-US Mine) and more recently the Camteq Proshot Dual digital multi-shot surveying instrument.
-
Drillhole collar locations and elevation are surveyed by total station.
-
The resources have been drilled up to 450 vertical metres below surface or an average of 135 metres on an average 50 m x 50 m drill pattern.
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ASX code: RMX ABN 40 119568106
COMPANY DIRECTORS Neil Warburton Executive Chairman Keith Rowe Non-Executive Director
CONTACT DETAILS RED MOUNTAIN MINING LTD Head Office Unit 1, 2 Richardson Street West Perth Western Australia 6005 www.redmm.com.au [email protected]
Jon Dugdale Managing Director Michael Wolley Non-Executive Director Shannon Coates Company Secretary
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Densities were derived from an extensive database of specific gravity off-site measurements.
-
For both RC and Diamond, a blank and certified standard were inserted in every 20-25 samples. Standard results are routinely checked to ensure values are within tolerance and the whole batch submitted for reanalysis if this is exceeded. The laboratory inserts their internal blank and standard for every subset of 20 samples.
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The Archangel resource was modelled and estimated using conventional 3D wireframing and block modelling within Surpac and Isatis software packages.
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The mineralised domains were constructed to encapsulate all potentially mineralised material within two broad alteration envelopes. The mineralised domains coincided with a low grade cut-off of around 0.1-0.2 g/t Au.
-
Drill hole samples were coded within the mineralisation envelopes and downhole composites of 2m were generated.
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Indicator variography was carried out for ten grade thresholds.
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Multiple Indicator Kriging (MIK) was used to estimate gold grades into parent panels of 20m x 20m x 5m (xyz) within individual mineralised domains.
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A change of support was performed using the Indirect Log-Normal Shortcut method to estimate the likely grade-tonnage distribution of 4m x 4m x 2.5m (x,y,z) Selective Mining Units (SMU’s). SMU’s were localised into a block model with a block size equal to the SMU.
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Silver was estimated by Ordinary Kriging (OK).
-
No assay capping was applied to the gold data prior to MIK estimation. A modest assay top-cut was applied to silver composites prior to OK estimation.
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The resource was classified as Indicated and Inferred. Indicated material was restricted to areas where drilling is 40m x 40m or closer.
Resource Parameters for the South West Breccia Deposit
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High grade gold mineralisation at South West Breccia (SWB) is hosted by steeply dipping quartz-barite breccia veins with a lower grade halo hosted by clay-pyritequartz altered to propylitically altered andesitic volcanics and volcanoclastics. Oxidation is generally restricted to the top 10m to 20m of the deposit but penetrates deeper in more altered and veined zones. Some supergene enrichment of gold is associated with the more oxidized zones near surface. The mineralized structure continues to the southwest where previous rockchip sampling and trenching has produced high grade results for example at Japanese Tunnels.
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The resources include data from diamond drillholes and some surveyed channel sampling in surface trenching. A summary of the drill holes and trenches at SWB is tabulated below.
| tabulated below. | ||||
|---|---|---|---|---|
| Deposit | Diamond Holes | Diamond Metres | Trenches | Trenchingm |
| Southwest Breccia | 37 | 2,656.50 | 5 | 46.50 |
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SWB resource is reported above a 0.85 g/t gold lower cut off grade.
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The first 27 diamond drill holes commenced with HQ size, reducing to NQ in some sections, while the last 10 drill holes commenced with PQ size, at times reducing to HQ size down hole. Core is half cut predominantly at 2 metre intervals for LB 01 to LB 26, and 1 meter intervals for the 2011 drill cores.
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ASX code: RMX COMPANY DIRECTORS CONTACT DETAILS ABN 40 119568106 Neil Warburton Jon Dugdale RED MOUNTAIN MINING LTD Executive Chairman Managing Director Head Office Keith Rowe Michael Wolley Unit 1, 2 Richardson Street Non-Executive Director Non-Executive Director West Perth Western Australia 6005 Shannon Coates www.redmm.com.au Company Secretary [email protected]
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The trenches were sampled using continuous channel sampling at one metre intervals. Each trench sample was surveyed.
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All gold determinations were carried out by standard 50g fire assay at Mcphar Geoservices (Philippines) Inc. in Manila from 2003 to 2004, then by Intertek Testing Services Philippines, Inc. in Muntinlupa, Metro Manila from 2011 to 2012.
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Field duplicates, coarse rejects, pulps retained on Batangas site for storage.
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• LB02, LB03, and LB05 to LB13 (11 drillholes) have been surveyed by techniques unaffected by magnetism using Eastman single-shot survey camera.
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Drillhole collar locations and elevation were surveyed by total station.
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• The resources have been drilled to 165 vertical metres below surface on an average 15m x 15m drill pattern from surface to 60m below surface and 15m (horizontal) x 30m (vertical) from 60m to 120m depth below surface.
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Densities were derived from a database of specific gravity measurements made by Mcphar Laboratory.
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Mcphar Laboratory inserts internal blank and standard every 30-sample charge. Every tenth sample and samples with "anomalous" results, i.e., samples having abnormally high or low results within a sample batch, are routinely checked. Drill core check samples were also conducted; one sample in every 20 samples from LB 01 to LB 15 was assayed at Intertek Testing Services in Indonesia to ascertain reliability of results from the primary laboratory.
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For the latter 10 drill holes (LBDD008, LBDD010, and LB58-11 to LB65-11), external blank and certified standard were inserted in every 20-25 samples, or less for batches with <20 samples. Standard results are routinely checked to ensure values are within tolerance and the whole batch submitted for reanalysis if this is exceeded.
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The SWB resource was modeled and estimated using conventional 3D wireframing and block modeling within Surpac and Isatis software packages.
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The mineralised domains were constructed geologically to define a single high-grade internal quartz-pyrite vein breccia and an outer lower grade alteration envelope. The high-grade mineralised domain coincided with a low grade cut-off of around 0.7-1.0 g/t Au. The surrounding low-grade alteration halo has a lower cut-off of around 0.1 g/t Au.
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Drill hole samples were coded within the mineralisation envelopes and downhole composites of 2m were generated.
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Variography was carried out to define the spatial continuity of each domain.
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Ordinary Kriging (OK) was used to estimate gold and silver grades into parent panels of 2m x 8m x 4m (xyz) within individual mineralised domains. Statistical analysis indicated that no assay capping of gold values was required prior to estimation of the high grade domain. A modest assay topcut was applied to silver composites prior to OK estimation.
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The resource was classified as Indicated and Inferred. Indicated material was restricted to areas where drilling is 20m x 20m or closer.
12
ASX code: RMX COMPANY DIRECTORS ABN 40 119568106 Neil Warburton Jon Dugdale Executive Chairman Managing Director Keith Rowe Michael Wolley Non-Executive Director 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]
Appendix 2:
Batangas Mineral Resource Estimates at different cut-off grades
Archangel - January 2013
| Archangel - January 2013 | Archangel - January 2013 | Archangel - January 2013 | Archangel - January 2013 | Archangel - January 2013 | Archangel - January 2013 | Archangel - January 2013 |
|---|---|---|---|---|---|---|
| Cut-Off Aug/t | Rescat | Tonnes | Aug/t | Au Oz | Ag g/t | Ag Oz |
| Archangel >0.3 g/t Au | Inferred | 15,526,000 | 0.8 | 384,000 | 1.4 | 686,000 |
| Indicated | 11,231,000 | 0.8 | 298,000 | 3.8 | 1,379,000 | |
| Total Ind+Inf | 26,758,000 | 0.8 | 682,000 | 2.4 | 2,064,000 | |
| Archangel >0.5 g/t Au | Inferred | 7,308,000 | 1.2 | 284,000 | 1.4 | 324,000 |
| Indicated | 5,838,000 | 1.2 | 232,000 | 4.6 | 871,000 | |
| Total Ind+Inf | 13,147,000 | 1.2 | 516,000 | 2.8 | 1,194,000 | |
| Archangel >0.85 g/t Au | Inferred Indicated |
3,004,000 2,582,000 |
2.0 2.0 |
197,000 165,000 |
1.3 5.7 |
124,000 471,000 |
| Total Ind+Inf | 5,586,000 | 2.0 | 363,000 | 3.3 | 595,000 | |
| Archangel >1.0 g/t Au | Inferred | 2,324,000 | 2.4 | 178,000 | 1.2 | 93,000 |
| Indicated | 1,985,000 | 2.3 | 148,000 | 6.1 | 387,000 | |
| Total Ind+Inf | 4,309,000 | 2.4 | 326,000 | 3.5 | 480,000 | |
| South-West Breccia - January 2013 | ||||||
| Cut-Off Aug/t | Rescat | Tonnes | Aug/t | Au Oz | Ag g/t | Ag Oz |
| SWB >0.3 g/t Au | Inferred | 70,000 | 1.5 | 3,000 | 1.7 | 4,000 |
| Indicated | 259,000 | 5.2 | 43,000 | 1.8 | 15,000 | |
| Total Ind+Inf | 329,000 | 4.4 | 47,000 | 1.8 | 19,000 | |
| SWB >0.5 g/t Au | Inferred | 27,000 | 3.3 | 3,000 | 1.6 | 1,000 |
| Indicated | 198,000 | 6.7 | 43,000 | 1.8 | 12,000 | |
| Total Ind+Inf | 226,000 | 6.3 | 46,000 | 1.8 | 13,000 | |
| SWB >0.85 g/t Au | Inferred Indicated |
16,000 178,000 |
5.3 7.4 |
3,000 42,000 |
1.9 1.8 |
1,000 10,000 |
| Total Ind+Inf | 194,000 | 7.2 | 45,000 | 1.8 | 11,000 | |
| SWB >1.0 g/t Au | Inferred | 16,000 | 5.3 | 3,000 | 1.9 | 1,000 |
| Indicated | 176,000 | 7.4 | 42,000 | 1.8 | 10,000 | |
| Total Ind+Inf | 192,000 | 7.3 | 45,000 | 1.8 | 11,000 | |
| Total Batangas - January 2013 | ||||||
| Cut-Off Aug/t | Rescat | Tonnes | Aug/t | Au Oz | Ag g/t | Ag Oz |
| Batangas >0.3 g/t Au | Inferred | 15,597,000 | 0.8 | 388,000 | 1.4 | 689,000 |
| Indicated | 11,490,000 | 0.9 | 342,000 | 3.8 | 1,394,000 | |
| Total Ind+Inf | 27,087,000 | 0.8 | 730,000 | 2.4 | 2,083,000 | |
| Batangas >0.5 g/t Au | Inferred | 7,336,000 | 1.2 | 287,000 | 1.4 | 325,000 |
| Indicated | 6,037,000 | 1.4 | 275,000 | 4.5 | 882,000 | |
| Total Ind+Inf | 13,373,000 | 1.3 | 562,000 | 2.8 | 1,207,000 | |
| Batangas >0.85 g/t Au | Inferred Indicated |
3,020,000 2,760,000 5,780,000 |
2.1 2.3 2.2 |
200,000 208,000 408,000 |
1.3 5.4 3.3 |
125,000 481,000 606,000 |
| Total Ind+Inf | ||||||
| Batangas >1.0 g/t Au | Inferred | 2,340,000 | 2.4 | 180,000 | 1.2 | 94,000 |
| Indicated | 2,161,000 | 2.7 | 190,000 | 5.7 | 397,000 | |
| Total Ind+Inf | 4,501,000 | 2.6 | 370,000 | 3.4 | 491,000 |
13
COMPANY DIRECTORS Neil Warburton Executive Chairman Keith Rowe Non-Executive Director
Jon Dugdale Managing Director 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]
ASX code: RMX ABN 40 119568106
Appendix 5B Mining exploration entity quarterly report
Rule 5.3
Appendix 5B
Mining exploration entity quarterly report
Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10
Name of entity
RED MOUNTAIN MINING LIMITED
| ABN 40 119 568 106 |
Quarter ended (“current quarter”) |
|---|---|
| 40 119 568 106 | 31 March 2013 |
Consolidated statement of cash flows
| Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material) Net Operating Cash Flows |
Current quarter $A’000 |
Year to date (9 months) $A’000 |
|---|---|---|
| (35) (849) 0 0 (582) 0 15 0 0 0 |
42 (2,141) 0 0 (1,604) 0 52 0 0 0 |
|
| (1,451) | (3,651) | |
| Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (Business acquisition-cash received) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward) |
0 0 (56) 0 0 0 0 0 0 |
0 0 (57) 0 0 0 0 0 183 |
| (56) | 126 | |
| (1,507) | (3,525) |
| 1.13 Total operating and investing cash flows (brought forward) |
(1,507) | (3,525) | ||
|---|---|---|---|---|
- See chapter 19 for defined terms.
Appendix 5B Page 1
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Appendix 5B Mining exploration entity quarterly report
| Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other (provide details if material) Net financing cash flows |
(53) 0 0 0 0 0 |
998 0 0 0 0 0 |
|---|---|---|
| (53) | 998 | |
| Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end of quarter |
(1,560) 3,251 (188) |
(2,527) 4,380 (350) |
| 1,503 | 1,503 | |
Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities
Current quarter $A'000 1.23 Aggregate amount of payments to the parties included in item 1.2 186 1.24 Aggregate amount of loans to the parties included in item 1.10 0 1.25 Explanation necessary for an understanding of the transactions
Non-cash financing and investing activities
-
2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows
-
2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest
Financing facilities available
Add notes as necessary for an understanding of the position.
Amount available Amount used $A’000 $A’000
- See chapter 19 for defined terms.
Appendix 5B Page 2
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Appendix 5B Mining exploration entity quarterly report
| 3.1 Loan facilities 3.2 Credit standby arrangements |
0 | 0 |
|---|---|---|
| 40 | 4 | |
Estimated cash outflows for next quarter
| Estimated cash outflows for next quarter | |
|---|---|
| 4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration |
$A’000 |
| 733 | |
| 393 | |
| Total | 1,126 |
Reconciliation of cash
| Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows. |
Current quarter $A’000 |
Previous quarter $A’000 |
|---|---|---|
| 5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details) |
1,435 | 2,682 |
| 68 | 569 | |
| 0 | 0 | |
| 0 | 0 | |
| Total: cash at end of quarter(item 1.22) | 1,503 | 3,251 |
Changes in interests in mining tenements
| 6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased |
Tenement reference | Nature of interest (note (2)) |
Interest at beginning ofquarter |
Interest at end of quarter |
|---|---|---|---|---|
- See chapter 19 for defined terms.
Appendix 5B Page 3
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Appendix 5B Mining exploration entity quarterly report
Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights together with prices and dates.
| Total number | Number quoted | Issue price per security (see note 3) (cents) |
Amount paid up per security (see note3) (cents) |
|
|---|---|---|---|---|
| 7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions |
- | - | - | - |
| - | - | - | - | |
| 7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs |
187,572,026 Fully Paid Ordinary Shares 50,000,000 Performance Shares |
73,058,875 | - | - |
| 8,512,000 Fully Paid Ordinary Shares |
8,512,000 | 12.5 | 12.5 | |
| 7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted |
- | - | - | - |
| - | - | - | - |
- See chapter 19 for defined terms.
Appendix 5B Page 4
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Appendix 5B Mining exploration entity quarterly report
| 7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter |
58,287,474 | - | Exercise price 1,718,433 at $0.20 27,728,125 at $0.20 15,000,000 at $0.20 1,000,000 at $0.20 4,420,458 at $0.25 4,420,458 at $0.35 2,000,000 at $0.25 _2,000,000 at$0.50 _ |
Expiry date 12/09/2013 30/06/2014 15/09/2016 30/10/2017 31/07/2014 31/07/2016 01/07/2014 01/07/2016 |
|---|---|---|---|---|
| - | - | - | - | |
| - | - | - | - | |
| - | - | - | - | |
| 7.11 Debentures (totals only) |
- | - | ||
| 7.12 Unsecured notes(totals only) |
- | - |
Compliance statement
-
1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5).
-
2 This statement does give a true and fair view of the matters disclosed.
==> picture [108 x 30] intentionally omitted <==
Sign here: _____ (Company secretary)
Date: 24 April 2013
Print name: SHANNON COATES
Notes
-
1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.
-
2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.
-
See chapter 19 for defined terms.
Appendix 5B Page 5
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Appendix 5B Mining exploration entity quarterly report
-
3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities .
-
4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report.
-
5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.
== == == == ==
- See chapter 19 for defined terms.
Appendix 5B Page 6
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