Red Mountain Mining Expands Gold Exploration with New Licences in Yilgarn
RED MOUNTAIN MINING LIMITED (RMX) Share Update August 2024 Sunday 4th
Red Mountain Mining Acquires Promising Gold Licences in Yilgarn
Red Mountain Mining Limited (ASX: RMX) has announced the acquisition of four exploration licences in the underexplored Kiabye Greenstone Belt, located in the Yilgarn's Murchison Domain. This strategic move aims to bolster the company's gold exploration efforts in Australia.
Instant Summary:
- Acquisition of four exploration licences covering 111km² in the Kiabye Greenstone Belt.
- Historical prospecting indicates strong potential for gold exploration.
- The Kiabye Project complements RMX’s Ontario gold project.
- Successful capital raising will support the initial exploration program at Kiabye.
Details of the Acquisition
Red Mountain Mining Limited (RMX) has successfully acquired four exploration licences in the Kiabye Greenstone Belt, an underexplored gold belt southeast of Mount Magnet in the Yilgarn's Murchison Domain. The newly acquired licences cover an area of 111km², offering significant potential for gold exploration.
The Kiabye Project is strategically located adjacent to the Narndee Igneous Complex, enhancing its geological appeal. Historical exploration in the region has primarily focused on base metals, with limited gold exploration. However, initial soil sampling and shallow drilling have revealed promising gold anomalies, suggesting high residual potential for gold discoveries.
Historical Exploration Insights
Previous exploration efforts in the Kiabye Greenstone Belt have been sporadic and primarily targeted base metals. Notably, Brown Creek Gold conducted soil sampling and shallow rotary air blast (RAB) drilling in the late 1980s, identifying low-order gold-in-soil anomalies. One significant finding from this period was a gold intersection of 1m at 3.45g/t in the last metre of a 14m deep hole.
Further exploration by Marymia Exploration and Maximus Resources in the late 1990s and early 2000s also highlighted the potential for gold, although their focus eventually shifted to base metals. Despite these efforts, less than half of the greenstone belt has been explored, leaving substantial areas with high potential for future gold discoveries.
Next Steps for RMX
With the recent successful capital raising, RMX is now well-funded to commence a comprehensive exploration program at the Kiabye Project. The initial phase will involve infill soil sampling to refine the understanding of gold anomalies, followed by targeted drilling to explore deeper intervals and validate historical findings.
The company plans to leverage recent VTEM and aeromagnetic data, which cover the entire tenement package, to identify and follow up on geophysical anomalies. The exploration program aims to build a robust database of geological information, laying the groundwork for potential gold resource estimation in the future.
The acquisition of these licences significantly enhances RMX's gold exploration portfolio, complementing its existing projects in Ontario, Canada. The strategic location and historical exploration data suggest a high potential for gold discoveries, which could positively impact RMX's stock price as exploration progresses.
Investor Reaction:
Analysts are likely to view this acquisition as a positive development for RMX, given the strategic location and historical indications of gold potential. The successful capital raising also underscores investor confidence in RMX's exploration strategy. However, the actual impact on the stock will depend on the results of the upcoming exploration program.
Conclusion:
Investors should keep a close eye on RMX's exploration activities in the Kiabye Greenstone Belt. The company's strategic acquisition and well-funded exploration program could lead to significant gold discoveries, enhancing RMX's value proposition. Stay tuned for further updates as RMX progresses with its exploration efforts.