Red Mountain is shaping up into an emerging Australian gold explorer Pic: Getty
Mining
Special Report: A previously producing project with multiple walk-up drill targets, and another under application — Red Mountain Mining (ASX:RMX) is establishing itself as a gold player to watch.
Red Mountain’s 62sqkm Mt Maitland project in Western Australia was first discovered in 1898 and produced gold at an average grade of 19.3 grams per tonne (g/t).
It stretches out over 19km of highly prospective Archean greenstone belts with significant potential to host high-grade shear-hosted gold deposits, and is within 50km of major gold operations that provide multiple toll treatment options.
Limited, shallow reverse circulation (RC) drilling at multiple prospects has defined pervasive mineralisation in main north-south corridors that are untested for kilometres along strike.
Importantly for Red Mountain, these prospects contain multiple walk-up targets that provide the potential for near-term activity and newsflow.
Previous exploration returned high-grade surface and sub-surface assay results that confirm the belt has potential to host a significant gold mineralising system.
These include gold in soil anomalies stretching out over 13km of strike with peak values of up to 2,724 parts per billion and rock chip samples of up to 62g/t gold and 8.8 per cent copper.
Additionally, drilling by Talisman Mines in 2011 at the Mt Maitland South prospect returned results including 12m at 1.58g/t gold from 8m including 2m at 6.35g/t gold and 13m at 2.53 g/t gold.
Little wonder then that the company has applied for additional tenements that will bring the total project size up to 78sqkm.
Red Mountain is preparing for a 3,000m drill program in an area that hosts 21 targets, five of them high-priority, and where fresh rock chip samples have returned up to 6g/t gold, 58g/t silver and 7.44 per cent copper.
The initial phase of 1,000m of RC will test the Lenanphyl and Jacia areas. The program will also test the previously undrilled Second Chance South prospect.
Drill rig contractors have been approached and approval for the Program of Work is expected imminently.
The company has also applied for three tenements that will comprise the prospective 657sqkm Koonenberry gold project in north-western NSW.
It is a stone’s throw from Manhattan Corporation’s (ASX:MHC) Tibooburra project and is in a geological setting that is considered analogous to the prolific Victorian goldfields.
Manhattan’s previous drilling had made a top hit of 7m at 18.16g/t gold and results from its second drill campaign are imminent, which could further highlight the prospectivity of the ground that Red Mountain is sitting on.
Despite a relatively high number of historical workings, there has been a distinct lack of modern exploration at Koonenberry.
As such, no primary source of alluvial gold has been found to date, which presents an opportunity for Red Mountain to make a major discovery.
This article was developed in collaboration with Red Mountain Mining, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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