RMX gets more to chew on

Published at Dec 17, 2015, in Juniors

Red Mountain Mining (ASX:RMX) has a new drilling target on its hands at its Batangas project in the Philippines.

Although the Batangas project is primarily a gold play, it has found a new silver lead along strike from its existing West Drift resource at Lobo, a key area within the project.

Dubbed the ‘Benito’ target, RMX undertook rock chip sampling and trenching at the new area to get a feel for what was there.

It told its shareholders this morning that the results included 4m @ 70.7 grams per tonne of silver, and 1.5m @227 g/t Ag, with 0.42% copper.

Benito is along strike from the West Drift resource, which is characterised by high silver-copper grades at surface.

However, there is high grade gold at depth.

RMX will undertake further soil sampling at Benito before firming up drill targets.

Meanwhile, the timing of a crucial London listing for chief backed Bluebird Merchant Ventures Limited became clearer.

RMX told its shareholders that listing is now expected to happen in January next year, after the UK listing authority accepted Bluebird’s prospectus document. Subsequently, a key funding arrangement has been pushed back to the end of January to allow time for Bluebird to list.

At this stage the plan is for Bluebird to pay an initial $US1.7 million ($A2.4 million) in two tranches to allow Bluebird to take a 25% stake in Red Mountain Mining Singapore, the company which holds the promising gold project.

Exploration on the project will then be funded on a pro-rata basis, but Bluebird will have the option of bumping its stake up to 50.1% for another $1.7 million before September 30 next year.

However, should Bluebird not take up the extra stake it will still have an opportunity to do so, with Bluebird having to chip in $3.8 million to get the interest.

More on RMX

The funding is going towards a definitive feasibility study and drilling at the Batangas Gold Project in the Philippines.

Total mineral resources at Batangas sit at 2.97 million tonnes @ 2.4 grams per tonne gold for 227,000 on an indicated basis, and 3.22MT @ 2.1g/t for 218,000oz on an inferred basis.

RMX’s project in the Philippines

The Lobo area features 82,000 oz on an indicated and inferred basis – including the South West Breccia mine, which will be the first start-up mine at the project.

Free cash flow from production of the first 100,000oz is expected to be $45 million – which recently got a boost by 50% due to increases in the Australia dollar gold price and a drop in the Philippine oil price.

Capex at this stage is expected to be $15 million, a figure set out in a scoping study and feasibility update, but a definitive feasibility study would add more certainty around the numbers.

tags

Gold

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Facebook
Twitter
LinkedIn