New very high grade gold surface results have extended the early mixing zone of the South West Breccia (SWB) lode extended area by up to 50 metres at Red Mountain Mining’s Batangas Gold Project. The best result is 3 metres averaging 24.2 grams/tonne gold, including 1 metre @ 39.5 grams/tonne.
These assay results were from a partially excavated lode in Trench 38 below high-grade boulders that produced previous results of 33.5 grams/tonne, 27.7 grams/tonne and 11.5 grams/tonne.
The new high grade gold zone is the interpreted extension of the SWB Main Lode and extends this zone by 50 metres to the southwest of previous testing on this structure. The lode exposure is interpreted to be steeply dipping and was not tested by a previous vertical hole drilled into the immediate hangingwall.
Other results included Trench 37 extended that intersected 10 metres @ 1.17 grams/tonne from colluvium overlying the hangingwall lode structure.
Red Mountain’s managing director Jon Dugdale says, “There is now significant potential to add to the high grade SWB resource and early mining target through continued trenching and future drill testing.”
A new resource model is being prepared for the outcropping high grade early mining targets within the 500 metre exposed SWB lode corridor which includes SWB Extended, Japanese Tunnel – Trench 7 area and the Limestone Target. This will be integrated with the existing resource model for SWB that includes an indicated resource of 221,000 tonnes grading 6.3 grams/tonne and open pit mining inventory included in the definitive feasibility study in progress of 174,000 tonnes @ 6.8 grams/tonne.
Discussions continue with potential candidates for toll processing and/or ore sales of this early mining resource target that will potentially provide an early cash flow for the company prior to the establishment of processing facilities for the greater resource based project.
Batangas is on the island of Luzon, about 120km south of Manila.