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Red Metal mobilises second rig for lead-silver drilling at Maronan

Last updated: 13:40 13 Oct 2014 AEDT, First published: 12:40 13 Oct 2014 AEDT

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Red Metal (ASX:RDM) should trade higher with a second drill rig mobilised to site and now drilling the first of two proposed deep holes to test the vertical continuity of lead-zinc-silver mineralisation at its Maronan project in Queensland.

Drilling on Maronan has identified multiple horizons of strong lead and silver mineralisation within a 60 metre true thickness of banded carbonate-sulphide rock and iron formation. 

These rocks are interpreted to have originated on the deep ocean floor around thermal vents perhaps like modern-day black smokers. 

About one third of the prospective carbonate sequence at Maronan is strongly mineralised with lead and silver and it is speculated that the whole sequence could become mineralised as drilling transitions from the vent apron region towards the theoretical vent core at depth. 

Red Metal’s new geological model predicts that the Maronan mineralisation should zone with depth towards semi-massive lead mineralisation typical of the high-grade mineralisation at the core of the giant Cannington deposit located 90 kilometres to the south.

The first deep hole is designed to intersect the target horizons about 500 metres below the recently reported mineralisation. 

This hole is expected to take about 6 weeks to complete.

Earlier this month the company raised $5.1 million via issue of 30 million shares at $0.17 to fund this and further exploration.

 

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