(MENAFN- ProactiveInvestors)
's () high-grade gold streak has continued finding surface rock-chips and residual boulders that graded over 90g/t gold from the Batangas Gold Project in the Philippines.
These results were supported by other high-grade finds from extensions of the South West Breccia Main Lode and Hangingwall Lode on Lobo including 23.1g/t gold and 17.9g/t gold.
The SWB already hosts an Indicated Resource of 221000 tonnes at 6.3 g/t gold of which the majority is in the initial open pit mining inventory of 174000 tonnes at 6.8g/t gold.
Today's discoveries provide for extensions to the SBW and deliver high priority drilling targets.
The majority of the new results are from sampling surface outcrops and semi-residual boulders that occur along southwest strike projections of the SWB Hangingwall Lode and Main lode and indicate a potential link with the Japanese Tunnel zone located 140 metres southwest of SWB.
Jon Dugdale managing director commented:
“We’ll now fast track the additional trenching and drilling required to add these new zones to the potential resource upgrade.
“We are also looking forward to drilling the new Tamarind target which offers potential for a brand new SWB-sized system based on the size of the soil anomaly in that area.”
Additional samples
In addition a single sample from an outcropping lode northwest and potentially parallel to the Tamarind and Limestone targets 500 metres southwest of SWB produced 31.7 g/t gold.
Analysis
Today's high-grade rock chips not only provide a potential extension to the SWB but could also link it to the Japanese Tunnel zone located 140 metres southwest.
To follow-up trenching to bedrock will be immediately carried out to determine the width and average grade of these new lode occurrences prior to drilling which could add additional gold resources.
Trenching results expected in two weeks.
The objective of the current program is to locate all near surface high grade zones at SWB to allow drilling and a new gold resource update prior to finalising the Definitive Feasibility Study.
External factors a plus for Red Mountain
An increase in the gold price and a drop in oil and steel prices are providing a trifecta of economic benefits for Batangas.
Share Purchase Plan
The company recently launched a Share Purchase Plan that provides the opportunity for eligible Red Mountain shareholders to subscribe for up to $15000 worth of new fully paid ordinary shares.
The issue price of the new shares will be determined at the issue date of the new shares under the plan.
It will be based on a 20% discount to the volume weighted average price of the company’s shares traded on the ASX during the 5 days immediately prior to the issue date.
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