Mindoro Resources Ltd. is all set to drill three new holes for further tests on two areas in its flagship Batangas gold project, which previously yielded samples indicating high-grade gold veins.
Following these plans, the company also intends to drill additional holes to define the boundaries of the two new gold resources dubbed Pica and Japanese Tunnel.
Mindoro Resources, through its majority owned, Australia-based unit Red Mountain Mining Ltd., is raising up to $2.6 million to fund exploration activities in the Batangas project.
The exercise, announced last May 15, involves a rights issue concerning existing shareholders who want to provide the needed funds by subscribing to additional shares. Red Mountain is listed on the Australian Securities Exchange.
“We are looking forward to completing the current rights issue then commencing drilling to test these exciting, near-surface, high-grade gold targets,” Red Mountain managing director Jon Dugdale said in a statement.
Two of the five planned drill holes are for Pica, where previous results “included strong gold and silver grades associated with the multiple stacked veins.”
Samples from Pica at five meters below the surface indicated 4.28 grams of gold a ton of material and, at 22.4 meters deep, 15.75 grams of silver a ton.
Three planned drill holes are for the Japanese Tunnel, where previous results indicated 10.43 grams of gold a ton at 5 meters deep.