Red Mountain (ASX:RMX) riding high on Koonenberry grant; Announced busy quarterly report

  • November 03, 2020 08:42 PM AEDT
  • Team Kalkine
Red Mountain (ASX:RMX) riding high on Koonenberry grant; Announced busy quarterly report

Summary

  • Red Mountain announced the official grant of Koonenberry Gold Project tenement, EL8997, adjoining the high-grade gold discovery of Tibooburra Gold Project.
  • Drilling at Mt Maitland Gold Project is to commence in the first week of November 2020. Total of 18 holes with a combined meterage of 1,300m is planned. Site preparation and other pre-drilling activities completed.
  • Red Mountain raised A$800,000 during the September quarter through placement and has announced firm commitments to raise additional A$360,000.
Gold MTF non-AMP

The Australian mineral explorer Red Mountain Mining Limited (ASX:RMX) released its quarterly report for the period ended on 30 September 2020. The company provided operational activity update on its projects.

Operational Highlights

Mt Maitland High-Grade Gold Project

Red Mountain is planning to start the drilling program on Mt Maitland High-Grade Gold Project from the first week of November 2020. The company has reported the successful completion of the heritage clearance survey, a prerequisite before the drilling operations.

Red Mountain has planned to drill 18 holes with a total meterage of approximately 1,300 m Reverse Circulation (RC) drilling. The site preparation and other pre-drilling activities have been completed.

Koonenberry Gold Project

Red Mountain announced the official grant of Koonenberry Gold Project tenement, EL8997, adjoining the high-grade gold discovery of Tibooburra Gold Project. The Manhattan Corporation operates the Tiboobura Gold Project and recently announced a new high-grade gold discovery on the project.

Red Mountain has already paid the security deposit and annual levy for the project. After receiving the provisional license of the tenement earlier, RMX has started the preliminary assessment of historical mining data. The company is also keeping a tap on the RC drilling data from the adjoining Tibooburra Gold Project.

Batangas Gold Project

Red Mountain retains its net smelter royalty in the Batangas Gold Project located in the Philippines.

Mukabe-Kasari Copper Cobalt Project (DRC)

Minrom Consulting, a Johannesburg based geologic consultant, is helping RMX to supervise the soil sampling program on the project. The report submitted by Minrom concludes that the project has potential for a stratiform copper mineralised body with potential cobalt mineralisation. 

The positive outcomes of the report have convinced RMX to extend its exclusive rights for exploration for the next twelve months ending on September 30, 2021.

The company is planning to work out an exploration program with Minoram Consulting. The exploration work will include the following components:

  1. Detailed Field Mapping

To study the stratigraphic sequence and structural characteristics, the company has planned an extensive lithology study and structural mapping program. 

  1. Airborne Geophysical Survey

To delineate subsurface geological anomaly, airborne electromagnetic and magnetic geophysical survey is planned to cover the entire project area and locate the possible mineralisation targets.

  1. Diamond Core Drilling

Drilling is the only way to crosscheck the findings and interpretation of the geophysical survey. Red Mountain has planned diamond core drilling to study the subsurface stratigraphy and mineralisation intersections.

Projects in Pipeline

Red Mountain has announced that the company has reached an agreement for 100% acquisition of the Mt Mansbridge Heavy Rare Earths Project from the ARD Group.

The acquisition deal will include cash consideration of A$ 100,000 and issuance of 50 million shares to ARD Group. Shareholders’ approval for issuance of 50 million shares is still pending, and Red Mountain is planning to put before the proposal in the next General Meeting.

Mt Mansbridge Heavy Rare Earths Project holds three tenements in the Kimberly region, Western Australia, with a total area of 280 square kilometres. The Killi Killi prospect in the project has deposits of rare earth mineral xenotime. Red Mountain is trying to tap on the opportunity if any commercial and economic reserve available.

More Read: “Red Mountain Mining (ASX:RMX) to acquire 100% of Mt Mansbridge Project”

Red Mountain raised A$800,000 during the September quarter through Placements and has announced firm commitments to raise A$360,000 further. The company will issue 30,000,000 ordinary shares at an issue price of A$0.012 per share.

Red Mountain reported a total cash reserve of A$1.676 million at the end of September quarter.

Share Price Movement

The stocks of the company closed at A$0.014 with a market cap of A$18.03 million as on 03 November 2020.

 

 


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