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Red Mountain Mining Limited (“RMX” or the “Company”) is pleased to advise that it has received geochemical results for 284 soil samples collected during September from the Company’s 100%-owned Flicka Lake prospect in Ontario, Canada. The soil sampling was undertaken in parallel with a rock grab sampling program (refer ASX announcement: 6 November 2024). Samples were taken from around 400 locations within the Flicka Lake claims and 91 rock grab samples and 284 soil samples were collected and submitted for multielement geochemical analysis.
HIGHLIGHTS
- Exceptionally high gold assay results from Flicka Lake in Canada received potentially supporting the discovery of a new Gold and Copper Region
- In soil Gold values returned from two areas include:
- 17.8ppm (17.8 g/t Au), 6.32ppm (6.32 g/t Au) and 1.11ppm (1.11 g/t Au) returned from North of the project area.
- 0.816ppm (0.816 g/t Au) returned for a single sample from the northwest of the claims.
- These results suggest potential for a large concealed high grade vein-hosted gold mineralisation similar to that seen at the Flicka Zone
- Results from the north and northwest of the Flicka Lake project area indicate the potential for near-surface high grade quartz-vein hosted gold mineralisation
- Polymetallic copper-rich soil anomalies with values of up to 2420ppm Cu indicate the potential of Flicka Lake for volcanic-hosted base metal sulfide mineralisation, particularly in the northern part of the tenement
- Potential high grade Copper discovery provides material potential exploration upside given the program was focused on Gold
- The Company will follow up these positive gold and base metal results and the previously identified Flicka Zone prospect with further exploration as soon as practically possible
High Gold in Soil Values Highlight New Gold prospects within the Flicka Lake Claims
Four soil samples from the northern portion of the project area returned exceptionally high gold values of contained 17.8ppm (17.8 g/t Au), 6.32ppm (6.32 g/t Au) and 1.11ppm (1.11 g/t Au) gold. A further sample from the northwest of the project area contained 0.816ppm gold (0.816 g/t Au).
Highly Significant Copper Results
19 samples contained over 200ppm Cu, with peak values of 2420ppm and 1630ppm. The highest copper value of 2420ppm was returned for sample 1291262, located approximately 400m north of the Flicka Zone. Copper results (see Table 1 and Figure 2).
The gold values returned for the soil samples are shown on Figure 1 with 22 samples, listed on Table 1. As outlined in RMX’s ASX announcement of 30 October 2024, the rock and soil sampling program was designed to test ten orogenic gold target zones defined using available geological and geophysical data for the Flicka Lake tenement. Soil sampling was undertaken primarily in areas that lacked surface outcrop, where rock sampling was not possible.
Figure 1: RMX soil gold results for the Flicka Lake project. Values for samples with > 0.1ppm Au are shown. The Fry Lake #9 prospect lies outside of the RMX mineral claims area.
The Company’s geochemical results are consistent with the results of detailed soil sampling from the high- grade Flicka Zone reported by Troon Ventures in their 2003 Assessment Report. Troon reported isolated values of up to 1.19ppm gold (1.19 g/t Au) immediately adjacent to mineralised quartz veins1.
RMX’s results from the north and northwest of the Flicka Lake project area indicate the potential for near- surface high grade quartz-vein hosted gold mineralisation, likely similar in style and tenor to the mineralisation rock chip sampled by RMX at the Flicka Zone (refer ASX Announcement 6 November 2024).
Click here for the full ASX Release
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OPINION — Goldenomics 103: Gold Protects and Performs
By Darren Brady Nelson
US President Donald Trump’s “Liberation Day” tariffs certainly caused quite the stir in the markets on April 2.
Gold dropped about 6 percent, and silver 12 percent. A week later, a pause was announced, which ended on August 1. Gold and silver have since risen approximately 11 percent and 24 percent, respectively.
Six month gold and silver price performance.
Source: Trading Economics (gold) and (silver).
Unless you are a professional, or even amateur, trader, it is best to look at gold and silver investment with a perspective of years or decades, rather than just days, weeks or even months. Since the start of the COVID-19 panic in March 2020, gold and silver have exploded 123 percent and 192 percent.
10 year gold and silver price performance.
Source: Trading Economics (gold) and (silver).
In the shorter term, the gold price is driven by what economist John Maynard Keynes called “animal spirits.” In the longer term, it is driven by “monetary spirits.” And not just as protection, but also for performance. The Presidential Gold Guide highlights both in chapters four and five.
Source: Fisher Liberty Gold.
Gold unsurprisingly protects
Economist and investor Mark Skousen has wisely noted that: “Since we left the gold standard in 1971, both gold and silver have become superior inflation hedges.” Gold has more than countered the results of inflation, as measured by CPI, and the drivers of inflation, as measured by M3.
And the numbers back that up. The Gold Protects chart below compares the gold price, CPI and M3 in terms of cumulative growth of each from 1971 to 2025. That is throughout the whole era of gold as an investment, which officially started in 1974 once private ownership was restored.
During this era, gold grew by 541 percent, CPI by 214 percent and M3 by 384 percent. Annual average growth for gold was 10 percent, CPI at 4 percent and M3 at 7 percent. Maximums were 92 percent, 14 percent and 29 percent, respectively. CPI only failed to grow twice, ie. 0 percent in 2009 and 2015. M3 decreased twice, by -4 percent in 2023 and -6 percent in 2024.
Gold surprisingly performs
The highly respected In Gold We Trust (IGWT) report states: “When dealing with the specific level of gold allocation, it is advisable to differentiate between safe-haven gold and performance gold. The Big Long strategy emphasizes the potential of performance gold in the coming years.”
IGWT thus recommends an investment portfolio "rule of thumb" that includes 15 percent in “safe-haven gold” and 10 percent in “performance gold.” The Gold Performs chart below compares gold price, S&P 500 and nominal GDP in terms of cumulative growth of each from 1971 to 2025.
Gold grew by 541 percent, the S&P 500 by 484 percent and GDP by 339 percent. Annual average growth for gold was 10 percent, with the S&P 500 at 9 percent and GDP at 6 percent. Maximums were 92 percent, 45 percent and 14 percent, respectively. Gold did have a higher standard deviation of 27 percent, compared to 17 percent for the S&P 500 and 3 percent for GDP.
Animal and monetary spirits
Gold protects as a hedge or safe haven, not just from inflation, but from the flip side of that same coin of the boom-bust cycle. Both are driven, in the longer term, not by “animal spirits,” but by “monetary spirits.”
Inflation is when money inflation has a widespread impact as price inflation. A bubble is when money increases have a more concentrated impact such as in certain asset values. The bubble eventually bursts when “monetary spirits” are finally reined in by monetary realities.
I say “monetary spirits” because of the role of fiat money, as indicated by, say, M3. When money supply outstrips money demand in a localized way, then that is a bubble, and when in a general way, that is inflation.
The former shows up in certain asset, wholesale and/or producer prices, whilst the latter shows up in CPI. Asset prices include the S&P 500. But nominal GDP is also "ginned up" as it is ultimately a price times quantity measure as well. Price is expressed in money terms.
Conclusion
Gold can have ups and downs, as standard deviation indicates, due to the “animal spirits” of fear and uncertainty, that tend to be daily, weekly or monthly. Yet gold both protects and performs due to the “monetary spirits” of inflation and boom-bust, which tend to be decennially.
In particular, gold performs when the S&P 500 does not, like in the aftermaths of the 2001/2002 dot-com collapse, the 2008/2009 global financial crisis and 2020/2021 COVID-19 lockdowns.
Therefore, when it comes to gold, “follow the money” of central bank “money printing” and fractional reserve bank “fountain pen money,” for both superior inflation protection and boom-bust performance.
And besides, Skousen rightly "begged the question" as follows: “Gold and Silver have always had value, never gone to zero. Can you say the same for stocks and bonds?”
About Darren Brady Nelson
Darren Brady Nelson is chief economist with Fisher Liberty Gold and policy advisor to The Heartland Institute. He previously was economic advisor to Australian Senator Malcolm Roberts. He authored the Ten Principles of Regulation and Reform, and the CPI-X approach to budget cuts.
Click here to read Goldenomics 101: Follow the Money, and here to read Goldenomics 102: The Shadow Price of Gold.
