Red Mountain scores high-grade gold with first drilling at Mt Maitland
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Special Report: Red Mountain Mining (ASX:RMX) is off to a flying start with maiden drilling at its Mt Maitland project returning significant gold intercepts.
Try shallow high-grade intersections of 1m at 12.7 grams per tonne (g/t) gold from a depth of 37m and 1m at 7.1g/t gold from 110m within broader intersections of 7m at 3.3g/t gold from 34m and 8m at 1.7g/t gold from 107m on for size.
The results from the first four holes to be assayed also neatly confirms that the gold nuggets that the company’s employees were picking off the ground recently were not an anomaly.
Little wonder that shares in RMX are up more than 14 per cent to 1.6c in early trade this morning.
All 27 holes totalling about 1,850m targeting the Mt Maitland South, Lenanphyl, Second Chance South and Jacia prospects have now been completed and assays for the remaining 23 holes are pending.
The company also noted that the shear zone mineralisation at the project remains open to the north, south and at depth, an indicator that there could be more gold to be found with more and deeper drilling.
All four initial assays were taken from the Mt Maitland South prospect, a 550m long outcropping shear zone hosting mineralised sulphidic quartz veining.
The prospect is characterised by numerous historical workings and shafts in addition to several historical drill holes proving endowment along its entire length.
Previous drilling by Talisman Mines in 2011 had returned results such as 12m at 1.58g/t gold from 8m including 2m at 6.35g/t gold and 13m at 2.53 g/t gold.
Gold mineralisation within the latest drilling is associated with sulphidic quartz veining hosted within the vertically dipping, north-south striking altered mafic shear zone.
Red Mountain noted the higher grade core highlights the potential for a high grade system that is currently down dip of these holes.
The 62 sqkm Mt Maitland project stretches out over 19km of highly prospective Archean greenstone belts that have the potential to host more high-grade shear-hosted gold deposit.
It produced gold at a lofty average grade of 19.3g/t gold in the early 1900s.
Adding interest, the project is just 51km from Westgold Resources’ (ASX:WGX) Fortnum gold mining operations, which could potentially support toll treating of ore from Mt Maitland.
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.