106 - The International Resource Journal

82 AUSTRALIA Red Mountain MiningRed Mountain site geologists logging core from Archangel-2012voting shares once Red Mountain upgrades the IndicatedResource at one of the Philippines assets,Batangas, to 600,000oz of gold and completesa scoping study that demonstrates a viable goldmining project based on more than 50 per centof the Indicated Resource converting to MineralReserve or equivalent by October 2013.Listing on the ASX in September 2011, RedMountain’s charter is to embrace opportunitiesto nurture under-developed gold and polymetallicprojects in Asia through applying well-proven Australianmining methods and technology. The companycompleted its first deal, the AU$10 million acquisitionof Mindoro Resources’ Batangas gold (knownresource) and Tapian San Francisco copper-goldprojects in the Philippines, in October last year.Warburton’s growth strategy for Red Mountainis simple but effective:• Convert low grade high-tonnage goldresources into higher grade near surfacemineablereserves;• Use existing infrastructure to fast trackdevelopment; and• Further explore the company’s large landholdingsand test multiple gold targets toestablish long mine life.What has made Red Mountain stand out isthat since completion of the October acquisition,the company’s drill programs have intersectedsubstantial high grades of gold at Batangas’ Archangeland Lobo deposits, reflecting the calibreof the due diligence undertaken on the Mindoroassets. The results are lending confidence to RedMountain’s objectives for 2013 of continuing theresource drilling in the Philippines; achieving asignificant increase in Batangas’ gold resource;