Red Mountain Mining (ASX:RMX) has announced preliminary metallurgical test results at its Lobo project in the Philippines. Metallurgical leaching results on a sample grading 8.8g/t gold have revealed a recovery rate of up to 97%, which is extremely high.
This bodes well for the future plans of the company, as Red Mountain will try to prove that its project is viable, but we feel it will have to expand its resource base in order to end up with an acceptable net present value at the Batangas project, as the current JORC-compliant resource estimate of 408,000 ounces of gold at an average grade of 2.2g/t should be seen as just a starting point.
> Click here to read the press release
Disclosure: The author holds no position in Red Mountain Mining. Please see our disclaimer for current positions.
