Red Mountain in the right neighbourhood for a high-grade gold find
Link copied to
Special Report: Red Mountain Mining’s Koonenberry project in NSW is right next door to a new high-profile, high-grade gold discovery made by fellow explorer Manhattan Corp (ASX:MHC).
$4.2m market cap Red Mountain (ASX:RMX) has applied for three tenements that will comprise the prospective 657sqkm Koonenberry gold project in north-western NSW.
It’s in a very attractive location, a stone’s throw from the Tibooburra project where last week Manhattan announced a high-grade gold discovery.
The Red Mountain tenure also straddles the northern extension of the Koonenberry gold field, and the contained New Bendigo Fault.
Mineralisation in the targeted belt is associated with regionally significant shears and fault zones (an ancient source of mineralised fluids).
Red Mountain says the three applications are now pending grant, a process which is expected to take about 60 to 90 days.
The tenure is partly covered by sediments (sand, soil) which can ‘mask’ major deposits deeper down.
A targeted geochemical and geophysical program is seen as likely to be effective to potentially delineate a primary source under cover, the company says.
Subject to initial groundwork results this will be followed up with a reconnaissance drilling program.
“RMX shall continue its desktop review of the extensive database that is available as it finalises its strategy for exploration at Koonenberry,” the company says.
“The company notes that it continues to identify and assess additional mineral asset opportunities.”