Australian Mining Firm Ready to Dig for High Grade Gold in Batangas

Batangas City | The Australian mining firm who found high grade gold in Lobo, Batangas on 2012 is ready to roll after receiving supplementary funds from its investors on Friday.

Red Mountain Mining LTD, an Australian based mining firm started its digging exploration after  it acquired the assets of Mindoro Resources, the former mining company in operating in the town of Lobo, Batangas.

The Australian firm since then has discovered high grade gold in its several exploratory holes and plans to continue digging.

“If successful this program has the potential to increase the known Lobo gold resources significantly as the West Drift target area is at least four times larger than the existing South West Breccia resource area immediately to its south,” said Red Mountain Executive Chairman and Acting CEO, Neil Warburton.

The Australian firm has received about P10 million ($220,000) in fresh funds from investors as it takes a step closer to developing a gold mine in Batangas by securing the approval of local government and community officials.

The company said the amount invested by Bluebird Merchant Ventures Ltd.  will be enough to secure all necessary mining permits and other expenses on its first phase of operation.

“The additional Bluebird funding will allow us to continue the DFS and permitting processes at full pace,” Red Mountain managing director Jon Dugdale said in a statement. “We look to develop the Batangas gold project and [turn it into] a cashflow producer as soon as possible.”

Last February, Red Mountain said higher prices of gold and lower prices of petroleum jacked up by half the expected cash flow from the near-surface gold project, now seen to exceed P2 billion over five years.

/Oto Melara/ Assisted Press

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