Red Mountain Mining has commenced stage 1 of a drilling program to test high-grade epithermal gold exploration targets on the Lobo prospect at Batangas Gold Project, 120km south of Manila The initial target to be tested will be at Japanese Tunnel.
The first drill hole will test immediately under the high-grade surface trenching results of 5 metres @ 10.43 grams/tonne gold including 1 metre @ 25.14 grams/tonne and 2 metres @ 18.12 grams/tonne announced on January 7, 2013.
Subsequent drilling is planned to test mapped extensions of the structure to the southwest along strike where 20 metres to the southwest of the initial trench, a broad zone of about 8 metres in width intermittently exposed veining where previous outcrop sampling to 5 metres @ 6.63 grams/tonne gold, 9.9 grams/tonne silver and 11.47% copper indicates continued strong mineralization before the veined zone passes into an area of agglomerate, then under limestone cover.
Red Mountain's managing director Jon Dugdale says, “It’s exciting to start drilling again and test these high-grade, near-surface exploration targets at Lobo. Assay results should start flowing from the third week of August, when we can begin to assess the potential to define further high-grade gold resources.”
The company has also completed the placement of all of the shortfall for its pro rata $2.8 million renounceable rights issue offer, as announced on May 15, having received firm commitments to subscribe for the shortfall securities, thereby achieving the total target objective of $2.8 million.
The success of the capital raising means Red Mountain is now fully funded to conduct its current drilling program that is testing defined, high-grade, epithermal gold exploration targets on the Lobo prospect.
In addition to the high-grade resource definition program, Red Mountain will also assign part proceeds from the capital raising to complete a scoping study to demonstrate the viability of a potential high-margin gold project at Batangas.