Red Mountain Ready for Broader Exploration Push after New Gold Leads at Kiabye
Red Mountain Mining (ASX: RMX) has reported fresh progress at its Kiabye gold project in Western Australia, including the recovery of gold nuggets and the drilling of multiple targets across the North and South prospects.
The developments form part of a broader June quarter strategy focused on generating high-value results across the company’s Australian and Canadian assets.
Additional updates from the quarter included ongoing work at Armidale, finalised programs at Fry Lake, and a recapitalisation effort anchored by strategic investors.
Drilling Programs Test Structural Gold Targets
Red Mountain completed a 1,000-metre reverse circulation program at Kiabye, testing a series of structurally controlled targets along the greenstone belt.
At Kiabye South, the company drilled four holes along a 2.5-kilometre magnetic trend coinciding with gold-in-soil anomalies, including the historical N15 drill intercept of 1 metre at 3.45 grams per tonne gold.
Based on high-resolution magnetic data, Red Mountain targeted two northeast–southwest trending magnetic anomalies at Kiabye North, subsequently interpreting the structures as potential quartz-vein hosts for gold mineralisation.
Alluvial Nugget Discovery
The company also made a fresh gold nugget discovery using metal detection at the newly named Prospectors Patch in the southeast of the Kiabye licence, recovering six alluvial nuggets totalling 13.1 grams.
The largest of the six weighed 10 grams and showed evidence of proximity to its primary source.
The find supports Red Mountain’s structural interpretation and the company plans to follow up with geological mapping and sampling in the September quarter.
Strong Antimony-Gold Results at Armidale
Meanwhile, Red Mountain advanced soil and rock chip sampling at the Oaky Creek prospect within its Armidale project in New South Wales, confirming multiple high-grade antimony and gold anomalies.
Rock chip results returned up to 28.3% antimony and 0.54g/t gold, supporting the presence of a large, vein-hosted orogenic system analogous to the nearby Hillgrove project owned by Larvotto Resources (ASX: LRV).
The company also identified two new strong soil anomalies located away from known workings that it will target in future work to expose mineralised structures beneath cover.
Sampling at East Hills and Horsley
Red Mountain also plans to sample two additional priority zones at Armidale, the East Hills antimony prospect and the Horsley Station gold target, both of which feature historical workings.
It will collect a total of 1,032 soil samples across these prospects and a nearby magnetic anomaly known as Horsley North, with arsenic pathfinder anomalies already hinting at gold potential along the Peel Fault.
Land access negotiations are underway, with sampling due to be completed in the second half of 2025 as Red Mountain builds out drill-ready targets across the tenement.
Canadian Strategy Strengthened
In Ontario, Canada, the company finalised its summer exploration plans for the Fry Lake gold-copper project, focused primarily on the Flicka Lake claim.
Red Mountain’s planned work includes channel sampling across three high-grade quartz veins and grid-based soil and rock sampling over four new target areas identified in 2024.
The company entered into a partnership agreement with Fladgate Exploration, which will accept equity in lieu of cash payments for up to CAD $60,000 of work—underscoring confidence in the project’s upside.
Capital Management Bolsters Outlook
Red Mountain raised $400,000 during the quarter through convertible notes and secured an additional $650,000 in equity financing post-quarter from strategic investors aligned with Larvotto.
The company will direct the funds toward accelerated work at Armidale, as well as follow-on activity at Fry Lake and Kiabye.
Red Mountain divested two non-core assets—Nannup and the Monjebup rare earths project—during the quarter, to sharpen its focus on priority projects with near-term value potential.