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Red Mountain Mining (ASX:RMX) has this week entered an exclusive 30-day option agreement to acquire the Pioneer Tungsten Project in southwest Montana, in a move that aligns with the company’s strategy to build a portfolio of high-quality critical minerals projects in Tier-1 mining districts.
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Disclaimer: This content was prepared as part of a partnership with Red Mountain Ltd. It is intended to inform investors and should not be taken as financial advice.
The project covers 2,000 hectares and sits adjacent to claims hosting the Gentung Tungsten Deposit, recently purchased by Almonty Industries (ASX:AII).
The Pioneer Tungsten Project that Red Mountain is buying is made up of three distinct areas — Greenstone, Mammoth, and Lost Creek — and is located along the eastern margin of the Mount Torrey Batholith. The region is known for massive garnet skarns up to 25 meters thick, with scheelite mineralisation.
Historical drilling and production data highlight the potential of these prospects, including at Greenstone, where historical (1951) results included intercepts of 10.7 metres at 0.48% WO3 and 5.8 metres at 0.43% WO3. All historical holes in this prospect were mineralised along their entire lengths.
Mammoth, in particular, captures the contact between granodiorite and limestones, geologically equivalent to the Ivanhoe and Gentung orebodies, while Lost Creek previously recorded tungsten up to 0.55%.
Collectively, the Ivanhoe and Lost Creek mines are estimated to have produced approximately 680kt of tungsten ore during the 1950s and 1970s.
Red Mountain anticipates that it will be in a position to rapidly define high-quality, relatively shallow drill targets for testing during its first year of exploration on the Pioneer Tungsten Project,” the Australian explorer wrote today.
And, the company went on, there are already plans for the future. “The location of the project adjacent to Almonty’s planned Gentung Mine may allow Red Mountain to efficiently bring any economic discoveries rapidly to market and position well to potentially engage with the major global tungsten player.”
To exercise the option with Orion, Red Mountain must pay a $30,000 cash fee for the 30-day due diligence period. If the option is exercised, a further $90,000 is payable, followed by annual installments totaling $1.08 million over four years. A final payment of $1.8 million will then secure 100% ownership.
To support this buy (and its broader U.S. growth strategy), Red Mountain just recently closed a $1.6M placement (by issuing 94.2M shares) and extended a $1M standby facility with Strategic Asset Capital Pty Ltd.
RMX has opened up +10.53%, to 2.1cps.
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The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.
