RED MOUNTAIN MINING LIMITED 
By Up to 97% gold leach recovery from South West Breccia Resource sample at Lobo
Free gold & sulphide associated gold located in high-grade Trench 7 sample petrography
Up to 98% gold leach recovery from Kay Tanda Resource sample at Archangel
Perth-based Red Mountain Mining today released excellent metallurgical leaching results demonstrating very high gold recoveries, up to 97%, for a composite sample grading 8.8 g/t gold (Au) from its high grade South West Breccia Indicated Resource, at its Lobo Prospect within the Batangas Gold Project in the Philippines.
The excellent recoveries were achieved through fine grinding then standard Carbon in Leach (CIL) testing of the resource material.
Also, petrography on recently discovered, exceptionally high grade material grading 34.4 g/t Au (part of the Trench 7 intersection of 2m @ 31.1 g/t Au announced 6 November 2013), has located free gold and sulphide associated gold that is likely to respond to metallurgical testing in a similar way to nearby South West Breccia via fine grinding and CIL processing.
Other testing of an oxide composite sample grading 2.1 g/t Au and 44.6 g/t silver (Ag) from the Indicated Resource at Kay Tanda (West), at the Archangel Prospect, also within the Batangas Project, indicates very high gold recoveries of up to 98.2% for a fine grind and 97.4% for a standard grind size (75 micron) then Carbon in Leach (CIL) testing.
Red Mountain Managing Director Jon Dugdale said:
"Everything is coming together now at Batangas. We already have substantial outcropping resources from surface, new high-grade discoveries ready to drill and now this excellent metallurgy demonstrating that very high gold recoveries are achievable through on-site processing. We can now complete our scoping studies, targeting a low cost gold operation."
The metallurgical test work was conducted by Minercon Laboratories (non NATA registered) based in Manila, the Philippines. The results have been critically reviewed and interpreted by Jamie Beresford, a metallurgist of 27 years experience with Sedgman Limited. Sedgman are completing scoping studies on a proposed gold processing treatment facility on the Batangas Gold Project.
Samples were selected from drill core within the transition to fresh zone of the South West Breccia Indicated Resource at Lobo, and the oxide and transition zone of the Kay Tanda (West) Indicated Resource at Archangel, and composited to approximately 10kg. Grades are indicative of likely mining inventory head grades based on open pit designs in progress. Samples were crushed to -10mm and 1kg samples ground to the various mesh sizes before bottle-roll leaching was carried out, with samples taken for analysis at set time intervals, up to 48 hours, to determine recovery. The metallurgical recovery results are tabulated below with mesh sizings and 24 and 48 hour leach times.
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ASX code: RMX | COMPANY DIRECTORS | CONTACT DETAILS | |
ABN 40 119568106 | Neil Warburton | Michael Wolley | RED MOUNTAIN MINING LTD |
Non-Executive Chairman | Non-Executive Director | Head Office | |
Jon Dugdale | Shannon Coates | Unit 1, 2 Richardson Street | |
Managing Director | Company Secretary | West Perth Western Australia 6005 | |
www.redmm.com.au | |||
info@redmm.com.au |
Sample Location | Head Assays g/t (ppm) | Grind | Recovery % 48 hours | Recovery % 24 hours | |||
Gold (Au) | Silver (Ag) | Micron | Au | Ag | Au | Ag | |
South West Breccia Transition/Fresh Kay Tanda West Oxide Kay Tanda West Transition | 8.8 8.8 8.8 8.8 8.8 2.1 2.1 2.1 1.3 1.3 1.3 | 1.7 1.7 1.7 1.7 1.7 44.6 44.6 44.6 0.40 0.40 0.40 | 37 44 53 74 105 53 74 105 53 74 105 | 96.7% 95.3% 87.5% 83.5% 74.1% 98.2% 97.4% 91.5% 96.8% 97.5% 97.5% | 89.4% 46.7% 95.1% 98.3% 98.9% 85.6% 81.1% 79.8% N/A N/A N/A | 91.7% 90.0% 83.7% 80.7% 70.5% 94.3% 91.3% 86.2% 88.0% 92.5% 92.7% | 89.7% 46.0% 95.4% 44.7% 29.0% 80.4% 72.9% 75.2% N/A N/A N/A |
In addition to the metallurgy, petrography by Roger Townend and Associates on samples from a Trench 7 sample grading 34.4 g/t Au, along strike from South West Breccia, located fine, free gold in quartz (Photomicrograph 1) and in association with sulphides, mostly pyrite with galena (Photomicrograph 2), that indicates that this recently discovered, exceptionally high grade, gold mineralization will respond to metallurgical testing in a similar way to South West Breccia, via fine grinding to liberate the sub 50 micron gold then standard CIL processing.
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ASX code: RMX COMPANY DIRECTORS CONTACT DETAILS
ABN 40 119568106 Neil Warburton Michael Wolley RED MOUNTAIN MINING LTD
Non-Executive Chairman Non-Executive Director Head Office
Jon Dugdale Shannon Coates Unit 1, 2 Richardson Street
Managing Director Company Secretary West Perth Western Australia 6005
www.redmm.com.au info@redmm.com.au
Photomicrograph 2: Gold (electrum, a gold-silver alloy) in pyrite in Trench 7 sample grading 34.4 g/t Au.
For further information about Red Mountain please visit www.redmm.com.au or contact:
Jon Dugdale Matt Birney
Managing Director Birney Corporate (+61) 402 298 026 (+61) 419 217 090 (+61) 8 9226 5668 (+61)8 9226 5668
E : jon.dugdale@redmm.com.auE : matt@birneycorporate.com.au
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ASX code: RMX COMPANY DIRECTORS CONTACT DETAILS
ABN 40 119568106 Neil Warburton Michael Wolley RED MOUNTAIN MINING LTD
Non-Executive Chairman Non-Executive Director Head Office
Jon Dugdale Shannon Coates Unit 1, 2 Richardson Street
Managing Director Company Secretary West Perth Western Australia 6005
www.redmm.com.au info@redmm.com.au
About Red Mountain Mining Limited and the Batangas Gold Project
Red Mountain Mining (ASX: RMX) is primarily a gold explorer and project acquisition company which listed on the ASX in September 2011. The Company's strategy is to unlock the potential of 'under-developed' gold and polymetallic projects in the greater Asian region by introducing Australian mining and exploration methods and improving efficiencies to gain significant production and exploration upside.
The Company holds direct and indirect interests in tenements in the Philippines that contain significant go ld resources. Total 2004 JORC Mineral Resources at Batangas, at a 0.85 g/t Au lower cut off, include Indicated Resources of 2.76 million tonnes @ 2.3 g/t Au, 208,000 oz Au and Inferred Resources of 3.02 million tonnes
@ 2.1 g/t Au, 200,000oz Au for a total of 5.78 million tonnes at 2.2 g/t Au, 408,000oz Au (announced January
30th 2013, 2004 JORC).
The Company is focussed on upgrading the Batangas resources through discovery of new, high grade, gold zones at Lobo. Drilling is planned to test under recent, exceptionally high-grade trenching results from within the, at least, 500m long South West Breccia Lode corridor on the Lobo Prospect including 2m @ 31.1 g/t Au from Trench 7 and 2.6m @ 28.6 g/t Au from Trench 13 (see Figure 2 below).
The Company will continue exploration with the objectives of upgrading Mineral Resources at Batangas and complete a scoping study to demonstrate the potential viability of a gold mining and processing project.
Other gold opportunities will be reviewed on a continuous basis.
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ASX code: RMX COMPANY DIRECTORS CONTACT DETAILS
ABN 40 119568106 Neil Warburton Michael Wolley RED MOUNTAIN MINING LTD
Non-Executive Chairman Non-Executive Director Head Office
Jon Dugdale Shannon Coates Unit 1, 2 Richardson Street
Managing Director Company Secretary West Perth Western Australia 6005
www.redmm.com.au info@redmm.com.au
Figure 2: Plan of Lobo MPSA with epithermal lode structures and Exploration Targets Competent Person StatementThe information in this report relating to Exploration Results and Exploration Targets is based on information compiled by Mr Jon Dugdale who is a Fellow of the Australasian Institute of Mining and Metallurgy and has sufficient exploration experience which is relevant to the various styles of mineralisation under consideration to qualify as a Competent Person as defined in 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Dugdale is a full time employee and Managing Director of Red Mountain Mining Ltd. Mr Dugdale takes responsibility and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
The information in this report relating to Mineral Resources is based on information compiled by Mr Jon Dugdale who is a Fellow of the Australasian Institute of Mining and Metallurgy and has sufficient exploration experience which is relevant to the various styles of mineralisation under consideration to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Dugdale is a full time employee and Managing Director of Red Mountain Mining Ltd. Mr Dugdale takes responsibility and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
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ASX code: RMX COMPANY DIRECTORS CONTACT DETAILS
ABN 40 119568106 Neil Warburton Michael Wolley RED MOUNTAIN MINING LTD
Non-Executive Chairman Non-Executive Director Head Office
Jon Dugdale Shannon Coates Unit 1, 2 Richardson Street
Managing Director Company Secretary West Perth Western Australia 6005
www.redmm.com.au info@redmm.com.au
APPENDIX 1: SAMPLING TECHNIQUES AND DATACriteria | JORC Code explanation | Commentary |
Sampling techniques | Nature and quality of sampling and Assaying Measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. Aspects of the determination of mineralisation that are Material to the Public Report. | Trenches (Costeans) through colluvial cover excavated to bedrock have been sampled at the base of the trench in continuous cut channels with samples aggregated over measured 0.5m to 1.0m intervals. Trenching samples obtained from cut channels at 0.5m to 1.0m intervals weighing less than 3kg were transported to Intertek Laboratories in Manila, the Philippines, for fire assay. At least 2kg sample was pulverised and a 50 gram charge fire assayed with AAS finish for Gold (Au) and a range of 37 elements via Multiple determination by ICP-OES (following four acid digest (HCl/HNO3/HClO4/HF) with volumetric finish) assay including Silver (Ag), Copper (Cu), Lead (Pb) and Zinc (Zn). |
Drilling techniques | Drill type and details | No new drilling reported this release. |
Drill sample recovery | Method of recording and assessing core and chip sample recoveries and results assessed. Measures taken to maximise sample recovery and ensure representative nature of the samples. Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. | No new drilling reported this release. |
Logging | Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. The total length and percentage of the relevant intersections logged. | Logging of geology, alteration and geotechnical aspects have been recorded in Trenches to requirements for diamond core drilling. Trenches (Costeans) have been photographed. The entire interval trenched to bedrock has been logged. |
Sub-sampling techniques and sample | If core, whether cut or sawn and whether quarter, half or all core taken. | No new drilling reported this release. |
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ASX code: RMX COMPANY DIRECTORS CONTACT DETAILS
ABN 40 119568106 Neil Warburton Michael Wolley RED MOUNTAIN MINING LTD
Non-Executive Chairman Non-Executive Director Head Office
Jon Dugdale Shannon Coates Unit 1, 2 Richardson Street
Managing Director Company Secretary West Perth Western Australia 6005
www.redmm.com.au info@redmm.com.au
Criteria | JORC Code explanation | Commentary |
preparation | If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique. Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. Whether sample sizes are appropriate to the grain size of the material being sampled. | Non core Trench (Costean) channel samples entire sample aggregated, not riffled or split. Aggregated channel sampling along the walls of the Trench. Entire 2kg sample pulverised at Laboratory prior to fire assay. This is an appropriate sample preparation technique that minimises bias. Channel sampling orthogonal to dip and strike of the lode provides continuous sample with even weights that maximises representivity. Field duplicates regularly sampled. Sample sizes at >2kg are well in excess of requirements appropriate to the grain size of gold that has been shown by mineragraphy to be generally less than 50 micron. |
Quality of assay data and laboratory tests | The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established. | Fire assay is appropriate for the nature of the gold mineralisation being assayed. No geophysical tools used in generating exploration results. Registered standards have been inserted every 20 samples. Levels of accuracy and precision (detection limit) for gold is + or minus 0.005 ppm gold, which is well in excess of the precision required for the level of assays reported. |
Verification of sampling and assaying | The verification of significant intersections by either independent or alternative company personnel. The use of twinned holes. Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. | No new drilling reported this release. No new drilling reported this release. Primary data is received in spreadsheet form and electronically transferred to the company database and output in spreadsheet form. Data is verified and compared with standard assays using established company protocols. |
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ASX code: RMX COMPANY DIRECTORS CONTACT DETAILS
ABN 40 119568106 Neil Warburton Michael Wolley RED MOUNTAIN MINING LTD
Non-Executive Chairman Non-Executive Director Head Office
Jon Dugdale Shannon Coates Unit 1, 2 Richardson Street
Managing Director Company Secretary West Perth Western Australia 6005
www.redmm.com.au info@redmm.com.au
Criteria | JORC Code explanation | Commentary |
Discuss any adjustment to assay data. | No adjustments have been made to assay data. | |
Location of data points | Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. Specification of the grid system used. Quality and adequacy of topographic control. | Trenches (Costeans) accurately surveyed using Nikon Total Station DTM-332 survey equipment. Trench (Costean) locations surveyed in UTM WGS84 51N grid, converted to local Lobo grid. Topographic surveys were done using the Total Station. Control stations were set by an independent surveyor (McDonald Consultant, Inc.) using 2 DGPS (one as a base station for correcting diurnal variations) and a total station for where they could not survey with GPS under thick cover. These were tied to known government control stations. |
Data spacing and distribution | Data spacing for reporting of Exploration Results. Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. Whether sample compositing has been applied. | Trenches (Costeans) excavated every 5m to 10m along the strike of identified mineralisation. Channel sampling every 0.5m to 1.0m in some cases duplicated on either wall of the 1m wide Trench. Data spacing sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) Sample have not been composited. |
Orientation of data in relation to geological structure | Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material. | Sampling conducted in Trenches (Costeans) established orthogonal to the interested strike and dip of the mapped mineralised structures. No sampling bias interpreted. |
Sample security | The measures taken to ensure sample security. | Samples secured by senior personnel on site and transported directly by company vehicle to Intertek Laboratories, Manila, the Philippines. |
Audits/Rreviews | The results of any audits or reviews of sampling techniques and data. | Internal reviews regularly completed but no external audits carried out to date. |
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ASX code: RMX COMPANY DIRECTORS CONTACT DETAILS
ABN 40 119568106 Neil Warburton Michael Wolley RED MOUNTAIN MINING LTD
Non-Executive Chairman Non-Executive Director Head Office
Jon Dugdale Shannon Coates Unit 1, 2 Richardson Street
Managing Director Company Secretary West Perth Western Australia 6005
www.redmm.com.au info@redmm.com.au
APPENDIX 2: REPORTING OF EXPLORATION RESULTSCriteria | JORC Code explanation | Commentary |
Mineral tenement and land tenure status | Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area. | The Batangas Gold Project comprises 2 Mineral Production Sharing Agreements (MPSA's), 8 Exploration Permits (EP's) and four Exploration Permit Applications (EPA's). Red Mountain Mining Ltd has a 100% interest in Philippines subsidiary MRL Gold Inc. which in turn has a 100% direct and contractual right interest in the Batangas gold Project tenements. The Lobo and Archangel MPSA's contain all identified (JORC 2004) resources. Declaration of Mining Feasibility and Environmental Compliance Certificate will be required to be approved by the Philippines Mines and Geosciences Bureau of the Department of Energy and Natural Resources of the Philippines Government before the company has a licence to operate.. |
Exploration done by other parties | Acknowledgment and appraisal of exploration by other parties. | Previous exploration was conducted by Mindoro Resources Ltd including extensive drilling, surface geochemistry, geophysics, mapping and mineral resource estimation to JORC 2004 and NI 43-101 standards. |
Geology | Deposit type, geological setting and style of mineralisation. | The gold mineralisation that is the target of the exploration program is porphyry related epithermal gold mineralization hosted by intermediate to felsic volcanic rocks and intrusions. Two styles of intermediate sulphidation epithermal gold mineralisation identified - i) andesite hosted stockwork mineralisation at e.g. Archangel MPSA and Quartz-Barite- Sulphide vein/lode style mineralization at e.g. the Lobo MPSA. |
Drill hole Information | A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole collar o elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar | See Table 1, Trenching (Costean) locations, RL, dip and azimuth, length. Trenching (Costean) data only, no new drilling information reported in this release. |
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ASX code: RMX COMPANY DIRECTORS CONTACT DETAILS
ABN 40 119568106 Neil Warburton Michael Wolley RED MOUNTAIN MINING LTD
Non-Executive Chairman Non-Executive Director Head Office
Jon Dugdale Shannon Coates Unit 1, 2 Richardson Street
Managing Director Company Secretary West Perth Western Australia 6005
www.redmm.com.au info@redmm.com.au
Criteria | JORC Code explanation | Commentary |
o dip and azimuth of the hole o down hole length and interception depth o hole length. | ||
Data aggregation methods | In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated. Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. The assumptions used for any reporting of metal equivalent values should be clearly stated. | Exploration results from Trench (Costean) sampling have been weighted by interval. No high-grade cuts have been applied as maximum grade (60.2 g/t Au) is approximately less than five times the mean grade. Lower cut-off grade of 1 g/t Au has been applied. Aggregate Trenching intercepts do not incorporate longer lengths of low grade results. No metal equivalent reported. |
Relationship between mineralisation widths and intercept lengths | These relationships are particularly important in the reporting of Exploration Results. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg 'down hole length, true width not known'). | Trenches (Costeans) have been excavated and sampled as close to orthogonal to the strike and dip of the lode structures as possible and, as such, the intersection lengths are a close approximation of true width. |
Diagrams | Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views. | See Figures 1 to 3 and Table 1. |
Balanced reporting | Where comprehensive reporting of all Exploration Results is not practicable, representative | All Trench exploration results reported |
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ASX code: RMX COMPANY DIRECTORS CONTACT DETAILS
ABN 40 119568106 Neil Warburton Michael Wolley RED MOUNTAIN MINING LTD
Non-Executive Chairman Non-Executive Director Head Office
Jon Dugdale Shannon Coates Unit 1, 2 Richardson Street
Managing Director Company Secretary West Perth Western Australia 6005
www.redmm.com.au info@redmm.com.au
Criteria | JORC Code explanation | Commentary |
reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results. | ||
Other substantive exploration data | Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances. | Mineragraphy on Trench 7 samples indicates that gold is "free" or associated with sulphide minerals indicating that there is no significant supergene enrichment (Photomicrographs 1 and 2 this release). Metallurgical leaching results (this release, 24/01/2014) for drillcore from both South West Breccia resources on the Lobo Prospect and the oxide and transitional oxide resources at Kay Tanda on the Archangel Prospect, indicate that a fine grind of the resource material to 37 micron and 75 micron respectively exhibit high total gold recoveries of up to 97% (48 hours leaching). |
Further work | The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive. | Further Trenching then drilling required to define mineral resources. See Figures 1 to 2 |
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ASX code: RMX COMPANY DIRECTORS CONTACT DETAILS
ABN 40 119568106 Neil Warburton Michael Wolley RED MOUNTAIN MINING LTD
Non-Executive Chairman Non-Executive Director Head Office
Jon Dugdale Shannon Coates Unit 1, 2 Richardson Street
Managing Director Company Secretary West Perth Western Australia 6005
www.redmm.com.au info@redmm.com.au
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