Resource Mining Corporation's Promising Drilling Results at Mpanda Project
RMI (RMI) Share Update October 2024 Thursday 31st
Resource Mining Corporation Unveils Promising Drilling Results in Tanzania
Resource Mining Corporation Limited (ASX: RMI) has announced encouraging results from its maiden drilling program at the Mpanda copper-gold project in Tanzania, revealing significant mineralization potential.
Instant Summary:
- Successful completion of maiden RC drilling program at Mpanda project.
- Significant intercepts at Kabungu Prospect: 4m at 2.5g/t Au and 0.5% Cu.
- High-grade rock samples with up to 36.7g/t Au and 11.89% Cu.
- 19 anomalous Cu values recorded from Mpanda Ndogo and Stalike Prospects.
- Ongoing exploration activities including auger drilling and soil sampling.
Drilling Program Success
Resource Mining Corporation (RMI) has successfully completed its maiden Reverse Circulation (RC) drilling program at the Mpanda project in Tanzania. The program, which focused on the Kabungu Prospect, yielded significant results, including an intercept of 4 meters at 2.5 grams per tonne (g/t) gold (Au) and 0.5% copper (Cu) from 39 meters depth, and 2 meters at 0.74 g/t Au from 47 meters.
The drilling targeted a 2-kilometer geochemical anomaly that remains largely unexplored. In addition to the drilling results, rock samples from the area returned high-grade gold and copper values, with some samples showing up to 36.7 g/t Au and 11.89% Cu.
Exploration and Future Plans
RMI's exploration efforts also included rock chip sampling from small-scale mines within its tenements, with several samples exceeding 11 g/t Au and 10% Cu. The company is continuing its exploration activities, including auger drilling, trenching, and soil sampling, to further define areas of interest across the Mpanda project.
Additional anomalous copper values were recorded from the Mpanda Ndogo and Stalike Prospects, confirming the potential for epithermal mineralization. The company plans to conduct a ground magnetic survey to better define the structure hosting the mineralization at Kabungu, aiding future drilling programs.
Strategic Acquisitions and Corporate Developments
In February 2024, RMI acquired two large copper-gold exploration projects in Tanzania's Ubendian Orogenic Belt, Mpanda and Mbozi. An independent review confirmed the high prospectivity of these projects, offering opportunities for resource base development.
Post-quarter, RMI secured a funding agreement with RiverFort Global Capital Ltd for a bridging loan of up to $1,000,000, which will be used to advance exploration activities at the Mpanda project and for general working capital.
The promising drilling results at the Mpanda project could positively impact RMI's stock as investors react to the potential for significant mineralization. The high-grade intercepts and ongoing exploration efforts indicate a strong potential for resource development, which may enhance investor confidence and attract further investment.
Investor Reaction:
Analysts are likely to view the results as a positive development, given the high-grade mineralization potential demonstrated by the drilling program. The strategic location of the Mpanda project, coupled with the recent funding agreement, positions RMI well for future growth.
Conclusion:
Investors should keep a close eye on RMI's ongoing exploration activities and future announcements. The company's strategic efforts to unlock the potential of the Mpanda project could offer substantial returns, making it a compelling opportunity in the mineral exploration sector.