Perth-based Red Mountain Mining added a second drill rig from this week to increase the work pace on the epithermal-based Lobo prospect on the western side of its wholly owned Batangas gold project, 50 km south of the Philippines capital, Manila. The decision to increase the drilling rate at Lobo follows yet further confirmation of its gold potential, the latest being assay results from new diamond hole drilling beneath the historic Lobo copper open pit – last worked in the late 1960s. The new results, Red Mountain’s Executive Chairman, Neil Warburton says, also reinforce the company’s belief that Lobo’s mineralisation is comparable in style to similar “gold footprints” in Southeast Asia but particularly the Cracow and Pajingo gold mines in northern Queensland.
A second diamond drillhole at Lobo – part of a current 10-hole program – has intersected 4.6 m at 5.83 g/t Au from 152.8 m depth downhole (estimated true width 2.8 m) including 2.0 m at 8.89 g/t Au downhole at Lobo’s West Drift structure.
The new intersection is from Hole LB67 and is part of an initial drilling program by Red Mountain at West Drift to target high grade gold mineralization below the old Lobo copper mine and potentially convert the gold mineralisation to resource inventory.
Warburton said the accelerated drilling program meant work had already commenced on the planned third and fourth holes (LB68-LB69) at West Drift targeting the down plunge extent of the system. The first hole, LB66, returned 8.6 m @ 2.53 g/t Au from 136.6 m depth downhole including 1.0 m @ 4.62 g/t Au.
“The first two holes drilled in this West Drift program confirm the interpretation of increasing gold grade with depth. With the addition of the second drill rig and deeper drilling planned below 100 vertical metres from surface, further gold intercepts are anticipated,” Warburton said.
Recent surface trenching at South West Breccia, a parallel structure immediately to the southeast of West Drift, yielded high gold grades including 1 m @ 30.70 g/t Au.
The latest Lobo results add to Red Mountain’s success to date from drilling further to the east on its Batangas Project with high grade intersects of 2.2 m @ 36.53 g/t gold at the Archangel prospect. This intersection included 1.2 m @ 62.09 g/t Au.
Warburton said Red Mountain remained focused on delivering a significant resource upgrade for Batangas by the third quarter of this calendar year, and commencing in that period, a feasibility study for the project’s maiden commercial production.
The Batangas project covers 270 km² and already contains an Indicated Resource of 10.1 Mt @ 1.2g/t Au for 393,000 oz of gold and 1,427,800 oz of silver, and an Inferred Resource of 3.8 Mt @ 0.88g/t Au for 108,000 oz of gold and 210,000 oz of silver.
Warburton said internal studies on delivering higher grade and less tonnes through a standard CIL treatment facility could deliver a far higher commercial outcome for the company.
All 10 holes to date from the latest Archangel drilling have intersected gold mineralisation.