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RED MOUNTAIN MINING LIMITED Capital/Financing Update 2012
65719_rns_2012-09-02_4582aad3-0169-453d-b061-54dc32e856b8.pdf
Capital/Financing Update
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ASX ANNOUNCEMENT 3 September 2012
26.2m @ 4.07g/t from First New Hole at Archangel, Batangas
Red Mountain Mining, (ASX: RMX) ("Red Mountain" or "the Company"), is pleased to announce that it has received the results of the first diamond drill hole from Mindoro Resources Limited's current drilling program at the Archangel gold project, Batangas, in the Philippines. Drill hole KTD 191-12 intersected 26.2m @ 4.07 g/t gold from 19.4m down hole including two high grade intervals of 6m @ 6.12 g/t gold from 19.4m and 8.8m @ 5.36 g/t gold from 36.8m down hole. These intersections are part of a broader interval of 39.25m @ 3.08 g/t gold from 16.4m down hole.
The current drilling program is being funded via a drawdown loan facility from Red Mountain, as previously announced.
The intersection produced by KTD 191-12 concurs well with the interpreted highergrade feeder zone as shown on the cross section below.
Figure 1: Cross Section showing KTD191-12.
ASX code: RMX COMPANY DIRECTORS CONTACT DETAILS ABN 40 119568106 Neil Warburton Michael Wolley RED MOUNTAIN MINING LTD Executive Chairman & Acting CEO Non-Executive Director Head Office Keith Rowe Shannon Coates Unit 1, 2 Richardson Street
Executive Director Company Secretary West Perth Western Australia 6005 www.redmm.com.au [email protected]
Red Mountain shareholders will meet at general meeting in Perth tomorrow, 4 September 2012, where approval will be sought on the acquisition of Mindoro's Philippine gold and copper gold assets which include a 100% interest in the Batangas project, and a 75% interest in the Tapian San Francisco copper-gold project in the far north of Mindanao.
The initial five structural drill hole program will test interpreted higher-grade "feeders" within the Kay Tanda resource area at Archangel. Encouraging results from this first phase of drilling will lead to a systematic program of resource definition and extension drilling.
A total of 414 metres has been completed to date, since the program commenced on 5 August 2012, despite inclement weather conditions at times.
The second drill hole of the program KTD 192-12, testing an interpreted feeder at the eastern side of the Kay Tanda resource, has now been completed at a down hole depth of 267 metres. KTD 192-12 was an angled hole drilled to azimuth grid north (see Figure 2: plan of drill hole locations below), designed to test the vicinity of interpreted subvertical hydrothermal breccia "feeder" zone. The drill hole intersected the mineralised stockwork associated with the majority of the current Kay Tanda resource from surface to 73 metres depth, then intersected a quartz - base metal sulphide "lode" from 180 metres to 181.6 metres before intersecting the targeted hydrothermal breccia from 215 metres to 224 metres. Results are pending.
The third drillhole of the current program, KTD 193-12 has commenced, testing the west Kay Tanda zone (formerly Pulang Lupa).
ASX code: RMX COMPANY DIRECTORS CONTACT DETAILS ABN 40 119568106 Neil Warburton Michael Wolley RED MOUNTAIN MINING LTD Executive Chairman & Acting CEO Non-Executive Director Head Office Keith Rowe Shannon Coates Unit 1, 2 Richardson Street
Executive Director Company Secretary West Perth Western Australia 6005 www.redmm.com.au [email protected]
Figure 2: Plan view of Kay Tanda Resource and planned holes.
Executive Chairman and acting CEO, Mr Neil Warburton said "the Company is pleased with this initial result, which supports our interpretation that potential high grade feeder zones exist within and below the existing near surface Kay Tanda gold resource within the Archangel area at Batangas. Ongoing exploration will continue to target these zones."
All drill hole locations and results to date are summarised in the table below:
| Drill hole | Northing | Easting | Azimuth | Depth | From | To | Interval | Gold | Silver |
|---|---|---|---|---|---|---|---|---|---|
| (Grid) | (Grid) | (Grid) | (m) | (m) | (m) | (m) | g/t | g/t | |
| KTD 191- | 9,900 | 9,965 | 320 | 92.6 | |||||
| 12 | 16.4 | 55.65 | 39.25 | 3.08 | 2.70 | ||||
| Including | 19.4 | 45.6 | 26.2 | 4.07 | 2.50 | ||||
| Including | 19.4 | 25.4 | 6.0 | 6.12 | 5.27 | ||||
| Including | 36.8 | 45.6 | 8.8 | 5.36 | 3.51 | ||||
| KTD 192- | 10,003 | 9,907 | 48 | 267 | Results pending | ||||
| 12 | |||||||||
| KTD 193- | 9,330 | 9,569 | 48 | *54.4 | *Drilling in progress | ||||
| 12 | |||||||||
| Total | 414 |
*Note the Kay Tanda grid north is oriented 48 degrees from magnetic north.
ASX code: RMX COMPANY DIRECTORS CONTACT DETAILS ABN 40 119568106 Neil Warburton Michael Wolley RED MOUNTAIN MINING LTD Executive Chairman & Acting CEO Non-Executive Director Head Office Keith Rowe Shannon Coates Unit 1, 2 Richardson Street
Executive Director Company Secretary West Perth Western Australia 6005 www.redmm.com.au [email protected]
| _____________________________________________________________________________________________________For further information about Red Mountain Mining please visit www.redmm.com.au or | |
|---|---|
| contact:Company Investors | Media |
| Neil Warburton | Kevin Skinner |
| Executive Chairman | Field Public Relations |
| (+61) 408935014 | (+61) 4014822631 |
| (+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 and 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 has recently signed a binding Share Sale Agreement to acquire significant gold resources and copper gold tenements in the Philippines. Other opportunities will be reviewed once the Philippines acquisition has been completed.
Competent Person Statement
The information in this report that relates to Exploration Results is based on information compiled by Jon Dugdale, who is a member of The Australasian Institute of Mining and Metallurgy.
Jon Dugdale is President and CEO of Mindoro Resources Limited and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking 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'. Jon Dugdale consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.
ASX code: RMX COMPANY DIRECTORS CONTACT DETAILS ABN 40 119568106 Neil Warburton Michael Wolley RED MOUNTAIN MINING LTD Executive Chairman & Acting CEO Non-Executive Director Head Office Keith Rowe Shannon Coates Unit 1, 2 Richardson Street
Executive Director Company Secretary West Perth Western Australia 6005 www.redmm.com.au [email protected]