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RED MOUNTAIN MINING LIMITED Interim / Quarterly Report 2013
65719_rns_2014-01-20_0d1e5e71-33db-4a3e-bcd7-41f3491d0f92.pdf
Interim / Quarterly Report
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ASX ANNOUNCEMENT RED MOUNTAIN MINING LTD (ASX:RMX) 21 January 2014
December Quarter 2013 Report
HIGHLIGHTS
- Exceptionally high-grade surface trenching intersections were produced from recently discovered extensions to the South West Breccia lode structure on the Lobo Prospect, including 2.0 metres at 31.1 g/t gold (Au) including 1.0m @ 60.2 g/t Au from Trench 7, (ASX release 6 November 2013), and 2.6m @ 28.6 g/t Au including 1.5m @ 45.9 g/t Au from Trench 13, (ASX release 7 January 2014).
- In addition, sampling of the shallow dipping colluvium layer, eroded from the high-grade bedrock lodes, produced results released 9 January 2014 including 1.8 metres at 55.9 g/t gold (Au), vertically from surface, including 0.9m @ 110.9 g/t Au from Trench 7 and 1.2m @ 17.2 g/t Au from 1.2m vertical depth including 0.6m @ 31.2 g/t Au from Trench 13.
- The new high-grade trench intersections are located within a 500m long corridor extending south west from the South West Breccia Resource (Indicated and Inferred Resource 194,000t @ 7.2 g/t Au: JORC 2004), before the structure passes under a thin layer of younger limestone that continues for over 1km before the lode structure emerges to the southwest where previously sampled surface colluvial float grades of up to 79.6 g/t Au occur at Signal (See Figure 2).
- Drilling is planned to commence in late January 2014 to test for extensions of the exceptionally high grade epithermal gold lode mineralisation with the objective of defining additional high grade mineral resources to add to the current resource base.
- The Independent Scoping Study continued to examine the viability and potential of a mining and processing gold project based on existing resources, and is nearing completion. A low capital cost, high-grade focussed, processing option is being examined at Lobo, in light of the new discoveries of additional at surface gold mineralisation - potentially amenable to open pit mining.
- The Company had circa A$1m in cash and no debt as at 31 December 2013.
- A placement together with a Share Purchase Plan for existing shareholders, announced 15 January 2014, seeks to raise up to A$1.7 million to fund the drilling program and further trenching.
Figure 1: Batangas Gold Project with Resources (JORC 2004), Philippines
BATANGAS GOLD PROJECT
Lobo Trenching Results
A program of soil sampling and surface prospecting was conducted to the southwest of the South West Breccia resources and the Japanese Tunnel target, where previous drilling reported last quarter produced a peak intersection of LB-82: 3.7m @ 8.6 g/t Au and LB-85: 1.55m @ 5.97g/t Au, 4.88% Cu that indicated that the mineralised lode was open to the southwest.
The results of the soil sampling and subsequent surface rockchip sampling identified a 500m strike extension to the Southwest Breccia – Japanese Tunnel epithermal lode corridor before it passes under shallow dipping limestone to the southwest (see Figures 2 and 3 below).
Trenching (Trench 7) commenced below an epithermal lode surface-subcrop rockchip sample result of 15.9 g/t Au, 18.7 g/t Silver (Ag), excavated through approximately 1.5m of soil, colluvium and subcrop before intersecting a 2m wide quartz-barite-sulphide breccia lode 100m directly along strike from the Japanese Tunnel drilling.
ASX code: RMX COMPANY DIRECTORS CONTACT DETAILS Non-Executive Chairman Non-Executive Director Head Office
Trench 7 produced an exceptionally high grade intersection across a steep north-westerly dipping lode structure of 2m @ 31.1 g/t Au including 1.0m @ 60.2 g/t Au. Further sampling on the other, northeast, wall of Trench 7 produced an intersection of 3m @ 22.2 g/t Au including 1m @ 41.5 g/t Au, confirming the exceptionally high-grades, virtually at surface, in this location.
Trenching along strike from Trench 7, 12m to the east in Trench 10, produced significant results of 3m @ 5.71 g/t Au including 0.5m @ 20.58 g/t Au. The lode is somewhat narrower to the west in Trench 9 but remains open to the northeast (towards Japanese Tunnel) and southwest where further trenching is planned (Figure 5).
Figure 2: Lobo Epithermal Gold Prospect with exploration targets
Trenching a further 100m southwest of Trench 7 produced another exceptionally high grade intersection in Trench 13 of 2.6 metres at 28.6 g/t gold (Au) including 1.5m @ 45.9 g/t Au.
The Trench 13 result is from a northwest dipping lode displaced slightly down slope by surface slumping. Trench 11, 7m to the southwest, intersected the same lode grading 1.3m @ 8.68 g/t Au including 0.8m @ 13.6 g/t Au and 10m to the southwest Trench 14 intersected limestone cover that conceals the lode (see Figure 6 below). The limestone cover continues for over 1km before the lode structure emerges to the southwest where previously sampled surface colluvial float grades of up to 79.6 g/t Au occur at Signal (See Figure 2).
Trenching results to date are summarised in Table 1 below:
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| Trench | North(Grid) | East(Grid) | Azi(Mag) | Dip | Fromm | Tom | Width | Aug/t | Agg/t | Cu% | Description |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Trench 7 SW | 9,870 | 9,999 | 270° | 0° | 1.0 | 4.0 | 2.0 | 31.1 | 8.4 | 0.12 | Qtz-Ba-S-Breccia |
| Including | 2.0 | 3.0 | 1.0 | 60.2 | 13.0 | 0.11 | Qtz-Ba-S-Breccia | ||||
| Trench 7 NE | 9,880 | 9,999 | 270° | 0° | 1.0 | 4.0 | 3.0 | 22.2 | 10.9 | 0.20 | Qtz-Ba-S-Breccia |
| Including | 2.0 | 3.0 | 1.0 | 41.5 | 10.0 | 0.15 | Qtz-Ba-S-Breccia | ||||
| Trench 9 | 9,870 | 9,991 | 36° | 0° | 0.0 | 0.4 | 0.4 | 1.50 | 3.7 | 0.11 | Qtz-Ba-S-Breccia |
| Trench 10 | 9,892 | 10,002 | 300° | 0° | 0.5 | 3.5 | 3.0 | 5.71 | 5.8 | 0.05 | Qtz-Ba-S-Breccia |
| Including | 2.5 | 3.0 | 0.5 | 20.6 | 10.6 | 0.08 | Qtz-Ba-S-Breccia | ||||
| Trench 11 | 9,758 | 9,990 | 329° | 0° | 0.5 | 1.8 | 1.3 | 8.68 | 10.4 | 0.02 | Q-B Breccia + Wall |
| Including | 0.5 | 1.3 | 0.8 | 13.6 | 20.6 | 0.03 | Qtz-Ba-S-Breccia | ||||
| Trench 12 | 9,903 | 10,003 | 300° | 0° | NSR | Deep Cover, to extend | |||||
| Trench 13 SW | 9,762 | 9,991 | 347° | 0° | 1.5 | 4.1 | 2.6 | 28.6 | 11.8 | 0.03 | Qtz-Ba-S-Breccia |
| Including | 1.5 | 3.0 | 1.5 | 45.9 | 11.8 | 0.04 | Qtz-Ba-S-Breccia | ||||
| Trench 13 NE | 9,762 | 9,991 | 339° | 0° | 1.0 | 4.0 | 3.0 | 6.16 | 9.5 | 0.05 | Q-B Breccia + Wall |
| Including | 1.5 | 2.0 | 0.5 | 14.5 | 12.9 | 0.07 | Qtz-Ba-S-Breccia | ||||
| Trench 14 | 9,751 | 9,988 | 150° | 0° | NSR | Limestone Cover |
Table 1: South West Breccia epithermal lode trenching results.
Figure 3: Plan of the South West Breccia lode with new high grade trenching results
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]
The discovery of two new epithermal potential gold shoots brings to four the number of potential shoots identified within the 500m strike length along the South West Breccia lode corridor, in addition to the Indicated and Inferred resources of 194,000t at 7.2 g/t Au (2004 JORC) at South West Breccia (SWB) that remain open at depth, and the initial drilling results from Japanese Tunnel of up to 3.7m @ 8.6 g/t Au from 2.9m down hole, including 0.55m @ 16.8 g/t Au in diamond drillhole LB-82.
Figure 4: Longitudinal Projection of South West Breccia lode with trenching results
ASX code: RMX COMPANY DIRECTORS CONTACT DETAILS Non-Executive Chairman Non-Executive Director Head Office
Figure 6: Trench 13 area, plan of trenching 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]
Further, high-grade gold results were produced from vertical sampling through the shallow dipping layer of colluvial boulders and rubble eroded from the high-grade bedrock lodes. The peak results from the colluvium layer include additional sampling of Trench 7 that produced an intersection of 1.8 metres at 55.9 g/t gold (Au), vertically from surface, including 0.9m @ 110.9 g/t Au and additional results from Trench 13, 100m southwest of Trench 7, from vertical sampling of a colluvium boulder of 1.2m @ 17.2 g/t Au from 1.2m vertical depth including 0.6m @ 31.2 g/t Au.
| Trench | Northing | Easting | Dip | From | To | Thick | Au g/t | Ag g/t | Cu % |
|---|---|---|---|---|---|---|---|---|---|
| Trench 7 A | 9,878 | 9,997 | -90 | 0.0 | 1.0 | 1.0 | 10.7 | 6.4 | 0.07 |
| Trench 7B | 9,880 | 9,998 | -90 | 0.0 | 1.8 | 1.8 | 55.9 | 8.3 | 0.10 |
| Including | 0.9 | 1.8 | 0.9 | 110.9 | 14.5 | 0.14 | |||
| Trench 9 A | 9,870 | 9,996 | -90 | 0.0 | 1.2 | 1.2 | 0.44 | 2.4 | 0.04 |
| Trench 9 B | 9,870 | 9,999 | -90 | 0.0 | 1.0 | 1.0 | 0.35 | 2.1 | 0.07 |
| Trench 10 A | 9,892 | 10,003 | -90 | 1.0 | 2.7 | 1.7 | 4.83 | 5.0 | 0.04 |
| Including | 1.9 | 2.7 | 0.9 | 8.10 | 5.8 | 0.05 | |||
| Trench 10 B | 9,891 | 10,001 | -90 | 0.0 | 2.6 | 2.6 | 2.24 | 1.8 | 0.05 |
| Trench 10 C | 9,890 | 9,999 | -90 | 0.0 | 1.7 | 1.7 | 2.25 | 2.4 | 0.04 |
| Trench 10 D | 9,889 | 9,996 | -90 | 0.0 | 1.0 | 1.0 | 1.83 | 2.6 | 0.06 |
| Trench 13 A | 9,985 | 9,763 | -90 | 1.0 | 1.4 | 0.4 | 0.09 | 2.4 | 0.01 |
| Trench 13 B | 9,987 | 9,762 | -90 | 0.8 | 1.3 | 0.5 | 5.13 | 3.2 | 0.04 |
| Trench 13 C | 9,990 | 9,762 | -90 | 1.2 | 2.4 | 1.2 | 17.2 | 7.5 | 0.03 |
| Including | 1.2 | 1.8 | 0.6 | 31.2 | 12.0 | 0.04 | |||
| Trench 16 A | 9,986 | 9,768 | -90 | 0.0 | 0.6 | 0.6 | 0.21 | <0.5 | 0.01 |
| Trench 16 B | 9,988 | 9,768 | -90 | 0.0 | 1.9 | 1.9 | 0.34 | 3.29 | 0.02 |
| Trench 16 C | 9,991 | 9,768 | -90 | 0.0 | 0.9 | 0.9 | 0.04 | 1.22 | 0.02 |
| SWB Test Pit 1 | 10,025 | 10,106 | -90 | 0.0 | 0.9 | 0.9 | 4.54 | 1.77 | 0.02 |
| Including | 0.0 | 0.2 | 0.2 | 10.5 | 14.5 | 0.14 | |||
| SWB Test Pit 2 | 10,016 | 10,071 | -90 | 0.0 | 0.6 | 0.6 | 0.39 | 2.3 | 0.02 |
| SWB Test Pit 3 | 10,037 | 10,104 | -90 | 0.0 | 1.1 | 1.1 | 7.46 | 8.8 | 0.04 |
| Including | 0.0 | 0.6 | 0.6 | 12.4 | 12.3 | 0.03 |
The further trenching results from the colluvium layer are shown in Table 2 below:
Table 2: South West Breccia lode, colluvium layer trenching and test pitting results
Other results from the colluvium layer along strike from both Trench 7 and Trench 13 indicate a continuous layer of mineralised colluvium rubble that remains open along strike and down slope in both locations.
Figure 7 shows the location plan of the latest colluvium trenching results within the 500m long South West Breccia Lode corridor.
Figure 7: Plan of the South West Breccia Lode with high-grade colluvium trenching results
Drilling is planned, to commence late January 2014, to test below the outstanding trenching results.
Initial drilling will test immediately below Trench 7 (Figure 8) and Trench 13 (Figure 9), then drill-testing will continue along strike and at depth with the objective of defining additional high-grade resources and to upgrade the overall resource base.
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Figure 8: Trench 7 Cross Section, with Trench results and planned drilling
Figure 9: Trench 13 Cross Section, with Trench results and planned drilling
Mining and Processing Scoping Study
The independent scoping study into a gold mining and processing plant at Red Mountains Batangas Gold Project continued during the quarter and is nearing completion.
Two main options are being examined:
- i) A processing plant at Archangel, processing the Archangel (Kay Tanda) "stock work" resource and transporting the high grade South West Breccia resource to the central processing plant. Targeting average production of 30,000 oz Au per annum for >5 years.
- ii) A smaller, lower capital cost, processing plant at Lobo, initially processing South West Breccia high grade resources only then processing potential additional resources discovered through the new, planned, drilling campaign. Targeting production of 15,000oz per annum for >5 years.
Additional metallurgical testing has been completed with final reporting due shortly. All current defined Mineral Resources are contained within granted Mineral Production Sharing Agreements ("MPSA's - the Philippines equivalent of Mining Leases) and the majority of the near surface Mineral Resources at Southwest Breccia (SWB), Lobo and Kay Tanda, Archangel, are in the Indicated Resource category.
COMPANY STATUS AND OUTLOOK
Expenditure during the quarter was reduced significantly relative to previous quarters to A$0.7 million despite continued exploration. The trenching program is particularly cost effective and overheads have been reduced due to corporate savings.
The exceptionally high grade gold trenching results produced during the quarter will be drill tested with the objective of defining additional high grade resources. Achievement of this objective will enhance the results of the mining scoping studies that are focused on establishing the viability of a low capital cost, rapid start up, gold mining and processing operation.
The Company continues to focus on safe and efficient exploration in harmony with local communities and the environment. No lost time safety or environmental incidents occurred during the quarter.
Cash at 31 December 2013 was circa A$1m with no debt. A placement and Share Purchase Plan for existing shareholders, announced 15 January 2014, seeks to raise up to A$1.7 million to fund the drilling program and further trenching.
_____________________________________________________________________________________________________ For further information about Red Mountain 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 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]
About Red Mountain Mining Limited
Red Mountain Mining (ASX: RMX) is primarily a gold explorer and project acquisition company which listed on the ASX in September 2011. The Company's strategy is to unlock the potential of 'under-developed' gold and polymetallic projects in the greater Asian region by introducing Australian mining methods and improving efficiencies to gain significant production and exploration upside.
The Company holds direct and indirect interests in tenements in the Philippines that contain significant gold resources and several high-quality copper-gold prospects.
Total 2004 JORC Mineral Resources at Batangas, at a 0.85 g/t Au lower cut off, include Indicated Resources of 2.76 million tonnes @ 2.3 g/t Au, 208,000 oz Au and Inferred Resources of 3.02 million tonnes @ 2.1 g/t Au, 200,000oz Au for a total of 5.78 million tonnes at 2.2 g/t Au, 408,000oz Au (announced January 30th 2013, 2004 JORC). The Company is focussed on upgrading the Batangas resources through discovery of new, high grade, gold zones at Lobo (e.g. SWB - Japanese Tunnel zone, Pica, West Drift, Ulupong).
The Company will continue exploration with the objectives of increasing the size and grade of the Mineral Resources at Batangas and complete a scoping study to demonstrate the potential viability of a gold mining and processing project.
Other gold opportunities will be reviewed on a continuous basis.
Competent Person Statement
The information in this report relating to Exploration Results and Exploration Targets is based on information compiled by Mr Jon Dugdale who is a Fellow of the Australasian Institute of Mining and Metallurgy and has sufficient exploration experience which is relevant to the various styles of mineralisation under consideration to qualify as a Competent Person as defined in 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Dugdale is a full time employee and Managing Director of Red Mountain Mining Ltd. Mr Dugdale takes responsibility and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
The information in this report relating to Mineral Resources is based on information compiled by Mr Jon Dugdale who is a Fellow of the Australasian Institute of Mining and Metallurgy and has sufficient exploration experience which is relevant to the various styles of mineralisation under consideration to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Dugdale is a full time employee and Managing Director of Red Mountain Mining Ltd. Mr Dugdale takes responsibility and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
ASX code: RMX COMPANY DIRECTORS CONTACT DETAILS Non-Executive Chairman Non-Executive Director Head Office
APPENDIX 1: SAMPLING TECHNIQUES AND DATA
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Samplingtechniques | •Nature and quality of samplingand Assaying•Measures taken to ensuresample representivity and theappropriate calibration of anymeasurement tools or systemsused.•Aspects of the determination ofmineralisation that areMaterial to the Public Report. | •Trenches (Costeans) through colluvialcover excavated to bedrock have beensampled at the base of the trench incontinuous cut channels with samplesaggregated over measured 0.5m to 1.0mintervals.•Trenching samples obtained from cutchannels at 0.5m to 1.0m intervals weighingless than 3kg were transported to IntertekLaboratories in Manila, the Philippines, forfire assay.•At least 2kg sample was pulverised and a50 gram charge fire assayed with AAS finishfor Gold (Au) and a range of 37 elements viaMultiple determination by 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 | •No new drilling reported this release. |
| Drill samplerecovery | •Method of recording and assessingcoreand chip sample recoveries andresults assessed.•Measures taken to maximise samplerecovery and ensure representativenature of the samples.•Whether a relationship existsbetween sample recovery and gradeand whether sample bias may haveoccurred due to preferentialloss/gain of fine/coarse material. | •No new drilling reported this release. |
| Logging | •Whether core and chip samples havebeen geologically and geotechnicallylogged to a level of detail to supportappropriate Mineral Resourceestimation, mining studies andmetallurgical studies. | •Logging of geology, alteration andgeotechnical aspects have been recorded inTrenches to requirements for diamond coredrilling. |
| •Whether logging is qualitative orquantitative in nature. Core (orcostean, channel, etc) photography.•The total length and percentage ofthe relevant intersections logged. | •Trenches (Costeans) have beenphotographed.•The entire interval trenched to bedrock has | |
| Sub-samplingtechniques andsample | •If core, whether cut or sawn andwhether quarter, half or all coretaken. | been logged.•No new drilling reported this release. |
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| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| preparation | •If non-core, whether riffled, tubesampled, rotary split, etc andwhether sampled wet or dry.•For all sample types, the nature,quality and appropriateness of thesample preparation technique.•Quality control procedures adoptedfor all sub-sampling stages tomaximise representivity of samples.•Measures taken to ensure that thesampling is representative of the insitu material collected, including forinstance results for fieldduplicate/second-half sampling.•Whether sample sizes areappropriate to the grain size of thematerial being sampled. | •Non core Trench (Costean) channel samplesentire sample aggregated, not riffled orsplit.•Aggregated channel sampling along thewalls of the Trench. Entire 2kg samplepulverised at Laboratory prior to fire assay.This is an appropriate sample preparationtechnique that minimises bias.•Channel sampling orthogonal to dip andstrike of the lode provides continuoussample with even weights that maximisesrepresentivity.•Field duplicates regularly sampled.•Sample sizes at >2kg are well in excess ofrequirements appropriate to the grain sizeof gold that has been shown bymineragraphy to be generally less than 50micron. |
| Quality of assaydata andlaboratory tests | •The nature, quality andappropriateness of the assaying andlaboratory procedures used andwhether the technique is consideredpartial or total.•For geophysical tools,spectrometers, handheld XRFinstruments, etc,the parametersused in determining the analysisincluding instrument make andmodel, reading times, calibrationsfactors applied and their derivation,etc.•Nature of quality control proceduresadopted (eg standards, blanks,duplicates, external laboratorychecks) and whether acceptable | •Fire assay is appropriate for the nature ofthe gold mineralisation being assayed.•No geophysical tools used in generatingexploration results.•Registered standards have been insertedevery 20 samples.•Levels of accuracy and precision (detection |
| levels of accuracy (ie lack of bias)and precision have been established. | limit) for gold is + or minus 0.005 ppm gold,which is well in excess of the precisionrequired for the level of assays reported. | |
| Verification ofsampling andassaying | •The verification of significantintersections by either independentor alternative company personnel.•The use of twinned holes.•Documentation of primary data,data entry procedures, dataverification, data storage (physicaland electronic) protocols. | •No new drilling reported this release.•No new drilling reported this release.•Primary data is received in spreadsheetform and electronically transferred to thecompany database and output inspreadsheet form. Data is verified andcompared with standard assays using |
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 |
|---|---|---|
| •Discuss any adjustment to assaydata. | established company protocols.•No adjustments have been made to assaydata. | |
| Location of datapoints | •Accuracy and quality of surveys usedto locate drill holes (collar anddown-hole surveys), trenches, mineworkings and other locations used | •Trenches (Costeans) accurately surveyedusing Nikon Total Station DTM-332 surveyequipment. |
| in Mineral Resource estimation.•Specification of the grid system used. | •Trench (Costean) locations surveyed inUTM WGS84 51N grid, converted to localLobo grid. | |
| •Quality and adequacy oftopographic control. | •Topographic surveys were done using theTotal Station. Control stations were set byan independent surveyor (McDonaldConsultant, Inc.) using 2 DGPS (one as abase station for correcting diurnalvariations) and a total station for wherethey could not survey with GPS under thickcover. These were tied to knowngovernment control stations. | |
| Data spacingand distribution | •Data spacing for reporting ofExploration Results.•Whether the data spacing anddistribution is sufficient to establishthe degree of geological and gradecontinuity appropriate for theMineral Resource and Ore Reserveestimation procedure(s) andclassifications applied.•Whether samplecompositing hasbeen applied. | •Trenches (Costeans) excavated every 5m to10m along the strike of identifiedmineralisation. Channel sampling every0.5m to 1.0m in some cases duplicated oneither wall of the 1m wide Trench.•Data spacing sufficient to establish thedegree of geological and grade continuityappropriate for the Mineral Resource andOre Reserve estimation procedure(s)•Sample have not been composited. |
| Orientation ofdata in relationto geologicalstructure | •Whether the orientation of samplingachieves unbiased sampling ofpossible structures and the extent towhich this is known, considering thedeposit type. | •Sampling conducted in Trenches (Costeans)established orthogonal to the interestedstrike and dip of the mapped mineralisedstructures. |
| •If the relationship between thedrilling orientation and theorientation of key mineralisedstructures is considered to haveintroduced asampling bias, thisshould be assessed and reported ifmaterial. | •No sampling bias interpreted. | |
| Sample security | •The measures taken to ensuresample security. | •Samples secured by senior personnel onsite and transported directly by companyvehicle to Intertek Laboratories, Manila, thePhilippines. |
| Audits/Rreviews | •The results of any audits or reviewsof sampling techniques and data. | •Internal reviews regularly completed butno external audits carried out to date. |
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 |
|---|---|---|
| Mineral tenementand land tenurestatus | •Type, reference name/number,location and ownershipincluding agreements ormaterial issues with thirdparties such as joint ventures,partnerships, overridingroyalties, native title interests,historical sites, wilderness ornational park andenvironmental settings.•The security ofthe tenure heldat the time of reporting alongwith any known impediments toobtaining a licence to operate inthe area. | •The Batangas Gold Project comprises 2Mineral Production Sharing Agreements(MPSA's), 8 Exploration Permits (EP's) andfour Exploration Permit Applications(EPA's).•Red Mountain Mining Ltd has a 100%interest in Philippines subsidiary MRL GoldInc. which in turn has a 100% direct andcontractual right interest in the Batangasgold Project tenements.•The Lobo and Archangel MPSA's contain allidentified (JORC 2004) resources.Declaration of Mining Feasibility andEnvironmental Compliance Certificate willbe required to be approved by thePhilippines Mines and Geosciences Bureauof the Department of Energy and NaturalResources of the Philippines Governmentbefore the company has a licence tooperate |
| Exploration done byother parties | •Acknowledgment and appraisalof exploration by other parties. | •Previous exploration was conducted byMindoro Resources Ltd including extensivedrilling, surface geochemistry, geophysics,mapping and mineral resource estimationto JORC 2004 and NI 43-101 standards. |
| Geology | •Deposit type, geological settingand style of mineralisation. | •The gold mineralisation that is the target ofthe exploration program is porphyryrelated epithermal gold mineralizationhosted by intermediate to felsic volcanicrocks and intrusions.•Two styles of intermediate sulphidationepithermal gold mineralisation identified –i) andesite hosted stockwork mineralisationat e.g. Archangel MPSA and Quartz-BariteSulphide vein/lode style mineralization ate.g. the Lobo MPSA. |
| Drill holeInformation | •A summary of all informationmaterial to the understanding ofthe exploration results includinga tabulation of the followinginformation for all Material drillholes:easting and northing of theodrill hole collarelevation or RL (ReducedoLevel –elevation above sealevel in metres) of the drillhole collar | •See Table 1, Trenching (Costean) locations,RL, dip and azimuth, length.•Trenching (Costean) data only, no newdrilling information reported in thisrelease. |
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 |
|---|---|---|
| dip and azimuth of the holeodown hole length andointerception depthhole length.o | ||
| Data aggregationmethods | •In reporting Exploration Results,weighting averaging techniques,maximum and/or minimumgrade truncations (eg cutting ofhigh grades) and cut-off gradesare usually Material and shouldbe stated. | •Exploration results from Trench (Costean)sampling have been weighted by interval.•No high-grade cuts have been applied asmaximum grade (60.2 g/t Au) isapproximately less than five times the meangrade.•Lower cut-off grade of 1 g/t Au has beenapplied. |
| •Where aggregate interceptsincorporate short lengths ofhigh grade results and longerlengths of low grade results, theprocedure used for suchaggregation should be statedand some typical examples ofsuch aggregations should beshown in detail. | •Aggregate Trenching intercepts do notincorporate longer lengths of low graderesults. | |
| •The assumptions used for anyreporting of metal equivalentvalues should be clearly stated. | •No metal equivalent reported. | |
| Relationshipbetweenmineralisationwidths and interceptlengths | •These relationships areparticularly important in thereporting of Exploration Results.•If the geometry of themineralisation with respect tothe drill hole angle is known, itsnature should be reported.•If it is not known and only thedown hole lengths are reported,there should be a clearstatement to this effect (eg'down hole length, true widthnot known'). | •Trenches (Costeans) have been excavatedand sampled as close to orthogonal to thestrike and dip of the lode structures aspossible and, as such, the intersectionlengths are a close approximation of truewidth. |
| Diagrams | •Appropriate maps and sections(with scales) and tabulations ofintercepts should be included forany significant discovery beingreported These should include,but not be limited to a plan viewof drill hole collar locations andappropriate sectional views. | •See Figures 1 to 3 and Table 1. |
| Balanced reporting | •Where comprehensive reportingof all Exploration Results is notpracticable, representative | •All Trench exploration results reported |
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 |
|---|---|---|
| reporting of both low and highgrades and/or widths should bepracticed to avoid misleadingreporting of Exploration Results. | ||
| Other substantiveexploration data | •Other exploration data, ifmeaningful and material, shouldbe reported including (but notlimited 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 Trench 7 samplesindicates that gold is "free" and associatedwith sulphide minerals indicating that thereis no significant supergene enrichment(Plate 1). |
| Further work | •The nature and scale of plannedfurther work (eg tests for lateralextensions or depth extensionsor large-scale step-out drilling).•Diagrams clearly highlightingthe areas of possible extensions,including the main geologicalinterpretations and futuredrilling areas, provided thisinformation is not commerciallysensitive. | •Further Trenching then drilling required todefine mineral resources.•See Figures 1 to 9 |
Rule 5.5
Appendix 5B
Mining exploration entity and oil and gas 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, 01/05/2013
Name of entity
RED MOUNTAIN MINING LIMITED
ABN Quarter ended ("current quarter")
40 119 568 106 31 December 2013
Consolidated statement of cash flows
| Cash flows related to operating activities | Current quarter$A'000 | Year to date(6 months) | |
|---|---|---|---|
| $A'000 | |||
| 1.1 | Receipts from product sales and relateddebtors | 50 | 67 |
| 1.2 | Payments for(a) exploration & evaluation(b) development(c) production(d) administration | (400)--(390) | (1,373)--(941) |
| 1.3 | Dividends received | - | - |
| 1.4 | Interest and other items of a similar naturereceived | 7 | 8 |
| 1.5 | Interest and other costs of finance paid | - | - |
| 1.6 | Income taxes paid | - | - |
| 1.7 | Other (provide details if material) | - | - |
| Net Operating Cash Flows | (733) | (2,239) | |
| 1.8 | Cash flows related to investing activitiesPayment for purchases of:(a) prospects | - | - |
| (b) equity investments | - | - | |
| (c) other fixed assets | (12) | (12) | |
| 1.9 | Proceeds from sale of:(a) prospects | - | - |
| (b) equity investments | - | - | |
| (c) other fixed assets | - | - | |
| 1.10 | Loans to other entities | - | - |
| 1.11 | Loans repaid by other entities | - | - |
| 1.12 | Other (provide details if material) | - | - |
| (12) | (12) | ||
| Net investing cash flows | |||
| 1.13 | Total operating and investing cash flows(carried forward) | (745) | (2,251) |
- See chapter 19 for defined terms.
| 1.13 | Total operating and investing cash flows(brought forward) | (745) | (2,251) |
|---|---|---|---|
| 1.141.151.161.171.181.19 | Cash flows related to financing activitiesProceeds from issues of shares, options, etc.Proceeds from sale of forfeited sharesProceeds from borrowingsRepayment of borrowingsDividends paidOther (provide details if material) | ------ | 2,163----- |
| Net financing cash flows | - | 2,163 | |
| Net increase (decrease) in cash held | (745) | (88) | |
| 1.201.21 | Cash at beginning of quarter/year to dateExchange rate adjustments to item 1.20 | 1,64620 | 99118 |
| 1.22 | Cash at end of quarter | 921 | 921 |
Payments to directors of the entity, associates of the directors, related entities of the entity and associates of the related entities
| Current quarter$A'000 | ||
|---|---|---|
| 1.23 | Aggregate amount of payments to the parties included in item 1.2 | 75 |
| 1.24 | Aggregate amount of loans to the parties included in item 1.10 | |
| 1.25 | Explanation necessary for an understanding of the transactionsDirector fees and executive salaries. |
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
+ See chapter 19 for defined terms.
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$A'000 | Amount used$A'000 | ||
|---|---|---|---|
| 3.1 | Loan facilities | - | - |
| 3.2 | Credit standby arrangements | 40 | - |
Estimated cash outflows for next quarter
| $A'000 | ||
|---|---|---|
| 4.1 | Exploration and evaluation | *538 |
| 4.2 | Development | - |
| 4.3 | Production | - |
| 4.4 | Administration | 197 |
| Total | 735 |
*expected to be funded from existing cash and capital raising cash flows
Reconciliation of cash
| Reconciliation of cash at the end of the quarter (asshown in the consolidated statement of cash flows)to the related items in the accounts is as follows. | Current quarter$A'000 | Previous quarter$A'000 | |
|---|---|---|---|
| 5.1 | Cash on hand and at bank | 882 | 807 |
| 5.2 | Deposits at call | 39 | 839 |
| 5.3 | Bank overdraft | - | - |
| 5.4 | Other (provide details) | - | - |
| Total: cash at end of quarter (item 1.22) | 921 | 1,646 |
+ See chapter 19 for defined terms.
| Tenement | Nature of interest | Interest at | Interest at | ||
|---|---|---|---|---|---|
| reference | (note (2)) | beginning | end of | ||
| and | of quarter | quarter | |||
| location | |||||
| 6.1 | Interests in miningtenements andpetroleum tenementsrelinquished, reducedor lapsed | ||||
| 6.2 | Interests in miningtenements andpetroleum tenementsacquired or increased |
Changes in interests in mining tenements and petroleum tenements
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 persecurity (seenote 3) (cents) | Amount paid upper security (seenote 3) (cents) | ||
|---|---|---|---|---|---|
| 7.1 | Preference+securities(description) | ||||
| 7.2 | Changes duringquarter(a) Increasesthrough issues(b) Decreasesthrough returnsof capital, buybacks,redemptions | ||||
| 7.3 | +Ordinarysecurities | 481,442,016 | 481,442,016 | - | - |
| 7.4 | Changes duringquarter(a) Increasesthrough issues(b) Decreasesthrough returnsof capital, buybacks | 1 | 1 | ||
| 7.5 | +Convertibledebtsecurities(description) |
+ See chapter 19 for defined terms.
Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report
| 7.6 | Changes duringquarter(a) Increasesthrough issues(b) Decreasesthroughsecuritiesmatured,converted | (50,000,000)PerformanceShares | - | ||
|---|---|---|---|---|---|
| 7.7 | Options | Exercise price | Expiry date | ||
| (description and | 140,678,999 | 140,678,999 | $0.015 | 30 June 2014 | |
| conversion | 97,839,477 | 97,839,477 | $0.03 | 30 June 2016 | |
| factor) | 27,728,125 | - | $0.20 | 30 June 2014 | |
| 15,000,000 | - | $0.20 | 15 Sept 2016 | ||
| 7.8 | Issued during | ||||
| quarter | |||||
| 7.9 | Exercised | ||||
| during quarter | |||||
| 7.10 | Expired during | ||||
| quarter | |||||
| 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 /does not* (delete one) give a true and fair view of the matters disclosed.
(Director/Company secretary)
Sign here: ............................................................ Date: 21 January 2014
SHANNON COATES
Print name: .........................................................
+ See chapter 19 for defined terms.
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 and petroleum 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 or petroleum tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.
- 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.