Red Mountain Mining has intersected high grade gold at its Pica epithermal target at the Batangas project in the Philippines. The company’s managing director Jon Dugdale says it is the best gold result achieved to date from the Pica target and partially confirms the exploration target.
Diamond drilling intercepted a steeply dipping epithermal quartz-barite-sulphide vein, producing an assay of 2.5 metres from 97.9 metres @ 9.2 grams/tonne gold, 28.4 grams/tonne silver and 8.6% zinc. Within this, a 1 metre zone was encountered at 14.2 grams/tonne gold, 38.6 grams/tonne silver and 9.5% zinc.
Previous surface mapping has traced the Pica structure over a 2km strike length. An exploration target of 45,000 to 75,000 gold ounces equivalent has been estimated for the Pica and nearby Japanese Tunnel prospects, grading 3.6 to 5.3 grams/tonne gold equivalent from 400,000 to 700,000 tonnes of ore.
Jon Dugdale says, “Further drilling along strike will aim to extend the mineralization prior to defining a high-grade vein resource.”
Pica forms part of Red Mountain's Batangas Gold Project in southern Luzon. The company has initiated a scoping study to evaluate the early capital payback potential from high-grade, near-surface deposits at Batangas. It will examine the viability and high-margin potential of the Batangas mining and processing project, and will initially be based on the current indicated and inferred resource of 5.78 million tonnes @ 2.2 grams/tonne gold and 3.3 grams/tonne silver, containing 408,000 ounces of gold and 606,000 ounces of silver at a lower cut-off grade of 0.85 grams/tonne gold.