(MENAFN - ProactiveInvestors - Australia) Red Mountain Mining (ASX: RMX) continues to confirm the trend of increasing gold grade with depth at its Lobo prospect at the Batangas project with drilling returning peak results of 4 metres at 11.18 grams per tonne gold.
This intersection was part of a broader 6.3 metre at 8.03g/t gold interval from 197.8 metres depth at hole LB-70 at the West Drift, the deepest high-grade intersection there to date.
A second hole intersected 4.9 metres at 4.47g/t gold from 177.5 metres including 1.55 metres at 7.37g/t gold while another hold intersected a new lode which produced a very high-grade quartz-sulphide intersection of 1.5 metres at 499.4g/t silver including 0.5 metres t 1,488g/t silver from 43.4 metres.
The new silver lode is shallow dipping, has now been mapped at surface and is open along strike. Sampling of the silver lode at surface and in other drillholes intersecting the lode has been completed and results are expected shortly.
"The high-grade gold and low copper intersection in LB-70 at West Drift, Lobo, is very significant as the results indicate the transition to a low sulphidation zone generally associated with higher-grade gold deposits. The new drilling is defining a high-grade gold-shoot that is open at depth, and to the east and west," executive chairman Neil Warburton said.
"Drilling will continue with two rigs to test what is now a >500m long zone that appears to plunge shallowly to the west, as the Company continues to focus on growing and increasing the grade of its resource inventory at Batangas.
"The intersection of high-grade silver at shallow levels is an exciting bonus that will be followed up over the coming months with further sampling and drilling".
Red Mountain has also extended gold mineralisation at West Lode with a second rig drilling a hole about 100 metres north of the that intersected 2.05 metres at 3.51g/t gold from 198.35 metres.
The drilling program targets high grade gold mineralisation below the old Lobo copper mine and potentially convert the gold mineralisation to mineral resource inventory in accordance with the JORC Code.
Batangas hosts Inferred and Indicated Resources totalling 5.78 million tonnes at an average grade of 2.2 grams per tonne (g/t) for 408,000 contained gold ounces.
This represents a geological resource that can be converted into a "mineable reserve", which has over 5 million tonnes grading in excess of 2.2g/t gold.
Red Mountain is planning to bring in a third drilling rig this month to accelerate the drilling program and target high grade prospects at Lobo.
The high grade gold intersections at depth are indicative of the strategy to increase the grade and resource.
There are plenty of catalysts and "triggers" for the valuation of just 7.75 million to move higher in coming months. Proactive Investors stays with its share price target of over 0.20 for Red Mountain.