Red Mountain secures first gold tenement at Koonenberry
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Special Report: Red Mountain has secured the first of three tenements that make up the highly prospective Koonenberry gold project in north-western NSW.
The tenements contain a relatively high number of historical workings but suffer from a lack of modern exploration.
Little wonder then that Red Mountain Mining (ASX:RMX) is peering with keen interest over the fence at Manhattan Corporation’s (ASX:MHC) adjoining Tibooburra project ,where results of a recently completed drilling program are expected soon.
Previous exploration by its neighbour had yielded a top hit of 7m at 18.16 grams per tonne (g/t) gold, which supports the company’s belief that the area is potentially a significant new gold region.
The tenement and tenement applications that make up Koonenberry cover about 657sqkm of prospective ground in a geological setting that is considered to be analogous to prolific goldfields in Victoria.
It straddles the northern extension of the Koonenburry Gold Field and the contained New Bendigo Fault. Meanwhile, soil and stream sampling along the Warratta structural corridor returned encouraging results.
Red Mountain noted the structural environment was conducive for high-grade mineralisation as evidenced by Manhattan’s exploration success.
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.