Batangas still glittering

SHARES in Red Mountain Mining were up to 15% on Monday after it reported a sample grading more than 15 grams per tonne gold at its Batangas project in the Philippines.
Batangas still glittering Batangas still glittering Batangas still glittering Batangas still glittering Batangas still glittering

Trenching work at the project's Lobo prospect has produced a 19.4m intersection at 8.24gpt gold including 5m at 15.7gpt.

The result extends a previously established mineralised zone and is interpreted as opening up potential to the northeast of the site's southwest breccia shoot, which holds indicated resources totalling 42,000 ounces of gold.

"This exceptionally thick and high-grade intersection extends what is already a fantastic, outcropping orebody," Red Mountain managing director John Dugdale said.

"Our current focus is to extend the southwest breccia high-grade resource at surface and at depth.'

Additional trenching is in progress in the area, with a follow-up drilling program planned to test for immediate depth extensions.

Last March, scoping study results for Batangas supported a potential 20,000oz-per annum open pit gold operation at $A16.7 million of pre-production capital.

Using a gold price of $1500/oz, the company projected the mine would yield free cash of about $40 million over an initial 4.5-year mine life, with total revenue from gold sales of $133.7 million.

Spot gold was last trading at about $1294/oz.

The company formally launched a definitive feasibility study for the project earlier this month.

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