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RTG Mining Inc. — Regulatory Filings 2014
Oct 9, 2014
47130_rns_2014-10-09_1db3ed2c-4ee3-4904-9496-13e2ebaaae5e.pdf
Regulatory Filings
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Level 2, 338 Barker Road Subiaco WA 6008 Phone: +61 8 6489 2900 www.rtgmining.com
ABN: 70 164 362 850
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NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
RTG ANNOUNCES FURTHER HIGH GRADE INTERCEPTS AND EXTENSIONS TO KNOWN MINERALISATION AT THE MABILO PROJECT
ANNOUNCEMENT TO THE TORONTO STOCK EXCHANGE AND AUSTRALIAN SECURITIES EXCHANGE
9 OCTOBER 2014
The Board of RTG Mining Inc. (“RTG”, “the Company”) ( TSX Code: RTG , ASX Code: RTG ) is pleased to announce further high grade copper, gold and iron intercepts in both the North and South Mineralized Zones at the Mabilo Project in the Philippines.
Drilling targeted at extending the South Mineralised Zone to the North, has intersected further high grade supergene copper mineralisation. With a massive chalcocite intercept of 19.10 meters for 26.16% Copper & 2.18 g/t Au .
Further diamond drilling has continued to extend down dip extension of the South Mineralised Zone with further high grade intercepts. The system continues to remains open at depth.
Highlights of the ongoing drilling program include –
- MDH-073 intersected a chalcocite zone below a significant gold oxide zone.
16.65 meters at 4.45 g/t Au, 0.38%Cu and 44.3%Fe Approximately 6.13g/t Au Equivalent and 19.10 meters at 2.18g/t Au, 26.16% Cu and 28.4% Fe Approximately 47.65g/t Au Equivalent
- MDH-071 continued to extend mineralisation on the same section as MDH066.
35m meters at 2.79g/t Au, 4.47% Cu and 32.54% Fe Approximately 11.37g/t Au Equivalent
- MDH-067 continued to define the down dip and true width of primary magnetite mineralisation.
23 meters at 2.30 g/t Au, 1.76% Cu and 47.43% Fe Approximately 6.46g/t Au Equivalent including 9 meters at 4.12g/t Au, 3.24% Cu and 57.82% Fe Approximately 11.07g/t Au Equivalent
Work on the maiden resource for Mabilo is well underway. The resource will include seventy eight diamond drill holes and remains on track to be released in early November 2014.
Gold Equivalent grade calculations included in this release have been based on assumed commodity prices of US$1220/oz Au, US$6700/t Cu, US$17/oz Ag and US$90/t Fe and the following formula - (((GoldGrade(1220/31.103486))+((CopperGrade/100)6700)+((SilverGrade(17/31.103486))+((IronGrade/100)90)))/ (1220/31.103486)).
ABOUT MABILO
The Mabilo Project is located in Camarines Norte Province, Eastern Luzon, Philippines. It comprises one granted Exploration Permit (EP-014-2013-V) of approximately 498 ha and Exploration Permit Application EXPA-000188-V of 2,820 ha. The Project area is relatively flat and is easily accessed by 15 km of all-weather road from the highway at the nearby town of Labo.
Drilling is ongoing and currently focused on defining the SW down dip extent of the South Mineralised Zone and is targeting the oxide and supergene potential to the North of the South Mineralised Zone.
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Figure 1 –Location of drill holes and sections reported in this release on RTP ground magnetic image.
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Figure 2 – Schematic long section showing isotropic copper grade shells, location of drill holes and significant intercepts of this release and the extension to the magnetic model that has been achieved to date.
MDH-067
An angled hole drilled to test the down dip extent and true thickness intersected in MDH040 reported previously (ASX release by Sierra Mining 3rd April 2014). The hole intersected magnetite skarn from 138.00 meters to 178.40 meters with higher grade intervals characterised by well-developed chalcopyrite inter-grown with magnetite weakly overprinted by silica pyrite (Figure 3). True thickness of the magnetite skarn is approximately 32 meters.
| **MDH-067 ** | From | To | Intercept (m) | Aug/t | Cu % | Ag g/t | Fe % | Mineralisation |
|---|---|---|---|---|---|---|---|---|
| 151.00 | 174.00 | 23.00 | 2.30 | 1.76 | 4.58 | 47.43 | Magnetite Skarn | |
| including | 155.00 | 164.63 | 9.63 | 4.12 | 3.24 | 6.13 | 57.82 | Magnetite Skarn |
Drill core recovery was greater than 88% for reported intervals.
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Figure 3 – Cross section of South Mineralised Zone showing MDH 067 and MDH 040 with geological interpretation and high grade intercept annotated (Section C of Figure 1).
MDH-071
Located 20 meters North East of MDH-066, MDH-071 is an angled hole drilled to further test the continuity of oxide and chalcocite mineralisation intersected in MDH066 (Figure 4). The drill hole intersected oxidised supergene zone 31.00 meters to 59.30 meters with massive chalcocite supergene from 59.30 meters to 63.00 meters. True thickness of the magnetite skarn is approximately 30 meters.
| MDH-071 | From | To | Intercept (m) | Aug/t | Cu % | Ag g/t | Fe % | Mineralisation |
|---|---|---|---|---|---|---|---|---|
| 31.00 | 66.00 | 35.00 | 2.79 | 4.47 | 14.3 | 32.54 | Oxide Gold & Chalcocite Copper |
|
| including | 38.00 | 59.30 | 21.30 | 3.26 | 0.50 | 16.6 | 35.76 | Gold Oxide Zone |
| including | 59.30 | 63.00 | 3.70 | 1.03 | 36.82 | 6.7 | 17.21 | Chalcocite Zone |
Drill core recovery was greater than 82% for reported intervals.
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Figure 4 – Cross section through MDH-071, MDH-029 and MDH-066 on geological interpretation (Section B of Figure 1).
MDH-073
An angled hole designed as an incremental 20m step North West of previously drilled MDH066 reported on (ASX release by RTG Mining 13[th] August 2014). Located 23 meters North East of MDH-029 at the Northern limit of the magnetic model (Figure 2). The drill hole (Figure 5) intersected an oxide zone from the Labo Volcanics overburden at 38.95 meters to 55.60 meters followed by a massive chalcocite zone from 61.90 meters to 81.00m meters with a bleach clay zone separating the two intervals. The bottom of the interval is garnet skarn from 106.00 meters 111.00 meters characterised by massive chalcopyrite garnet and magnetite veinlets. True combined thickness of the oxide mineralisation and chalcocite zone is approximately 48m.
| 48m. | ||||||||
|---|---|---|---|---|---|---|---|---|
| MDH-073 | From | To | Intercept (m) | Aug/t | Cu % | Ag g/t | **Fe % ** | Mineralisation |
| 38.95 | 55.60 | 16.65 | 4.45 | 0.38 | 1.2 | 44.30 | Gold Oxide Zone | |
| and | 61.90 | 81.00 | 19.10 | 2.18 | 26.16 | 9.2 | 28.44 | Chalcocite Copper Zone |
| and | 84.00 | 87.10 | 3.10 | 0.84 | 2.53 | 9.1 | 31.27 | Magnetite Skarn |
| and | 106.00 | 111.00 | 5.00 | 4.87 | 5.65 | 10.8 | 19.15 | Garnet Magnetite Skarn |
Drill core recovery was greater than 94% for reported intervals.
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Figure 5 - Cross Section of South Mineralised Zone showing MDH 073 with the geological interpretation (Section A on Figure 1).
Drillhole MDH-068 located 20m South West of MDH-073 has intersected weakly mineralised calc-silicate altered sediments with minor silica pyrite overprint and breccia zone. No significant assays are reported. The strike of mineralisation continues to vector in the Northern direction towards the North Mineralised zone.
COMPETENT PERSON STATEMENT
The information in this report that relates to Exploration Results at the Mabilo Project is based on information compiled by Robert Ayres BSc (Hons), a Competent Person who is Member of the Australian Institute of Geoscientists. Mr Ayres is a full-time employee of Mt Labo Exploration and Development Company, a Philippine mining company, wholly owned by RTG Mining Limited. Mr Ayres has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” and to qualify as a “Qualified Person” under National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43101”). Mr. Ayres consents to the inclusion in the report of the matters based on his information in the form and the context in which it appears.
ABOUT RTG MINING INC
RTG Mining Inc. is a mining and exploration company listed on the main board of the Toronto Stock Exchange and Australian Securities Exchange Limited. RTG is focused on developing the high grade copper/gold/magnetite Mabilo Project and advancing exploration on the highly prospective Bunawan Project, both in the Philippines, while also identifying major new projects which will allow the Company to move quickly and safely to production.
RTG has an experienced management team (previously responsible for the development of the Masbate Gold Mine in the Philippines through CGA Mining Limited), and has B2Gold as one of its major shareholders in the Company. B2Gold is a member of both the S&P/TSX Global Gold and Global Mining Indices.
ENQUIRIES
Australian Contact President & CEO – Justine Magee
Tel: +61 8 6489 2900 Fax: +61 8 6489 2920 Email: [email protected]
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
This announcement includes certain “forward-looking statements” within the meaning of Canadian securities legislation. Accuracy of mineral resource and mineral reserve estimates and related assumptions and inherent operating risks, are forward-looking statements. Forward-looking statements involve various risks and uncertainties and are based on certain factors and assumptions. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from RTG’s expectations include uncertainties related to fluctuations in gold and other commodity prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs, recovery rates, production estimates and estimated economic return; the need for cooperation of government agencies in the development of RTG’s mineral
projects; the need to obtain additional financing to develop RTG’s mineral projects; the possibility of delay in development programs or in construction projects and uncertainty of meeting anticipated program milestones for RTG’s mineral projects and other risks and uncertainties disclosed under the heading “Risk Factors” in RTG’s Annual Information Form for the year ended 31 December 2013 filed with the Canadian securities regulatory authorities on the SEDAR website at sedar.com.
Appendix 1: Location of Reported Drill Holes
| HOLE ID | Location | Location | GPS | GPS | GPS | Orientation True Nth | Orientation True Nth | Depth |
|---|---|---|---|---|---|---|---|---|
| Coordinates (UTM WGS84) | ||||||||
| Prospect | Purpose | East | North | RL | Dip | Azi | E.O.H (m) | |
| MDH-067 | South B | Metallurgy | 476099 | 1559728 | 113 | -60 | 50 | 196.9 |
| MDH-068 | South A | Resource | 475975 | 1559988 | 114 | -60 | 50 | 224.6 |
| MDH-071 | South A | Resource | 476038 | 1559998 | 108 | -60 | 50 | 141.3 |
| MDH-073 | South A | Resource | 476011 | 1560002 | 109 | -60 | 50 | 124.5 |
MDH-068 Did not intersect significant assay results.
All co-ordinates in UTM-WGS84 (51 N). All collars apart from only surveyed by digital GPS at this stage.
Appendix 2: JORC Code 2012 Edition Table 1 Section 1 Sampling Techniques and Data
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Sampling | Nature and quality of sampling (e.g. | The assay data reported herein is |
| techniques | cut channels, random chips, or | based on sampling of diamond drill |
| specific specialised industry standard measurement tools |
core of PQ, HQ and NQ diameter which was cut with a diamond core |
|
| appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. |
saw. Samples are generally of 1 metre length although occasionally slightly longer or shorter where changes in lithology, core size or core recovery required adjustments; |
|
| Include reference to measures | samples are not more than 2 metres | |
| taken to ensure sample | length. | |
| representivity and the appropriate calibration of any measurement tools or systems used. Aspects of the determination of mineralisation that are Material to |
Half core samples were cut and sent for analysis by an independent ISO- certified laboratory (Intertek McPhar Laboratory) in Manila. |
|
| the Public Report. | Samples were crushed and | |
| pulverised (95% <75 ɥm). Gold was | ||
| analysed by 50 gram fire assay and | ||
| the other elements including copper | ||
| and iron by ICP-MS (Inductively | ||
| Coupled Plasma Mass | ||
| Spectrometry) or ICP-OES | ||
| (Inductively Coupled Plasma | ||
| Optical Emission Spectrometry) | ||
| following a four-acid digest. | ||
| The length of each drill run is | ||
| recorded and the recovery for | ||
| each run calculated on site and | ||
| checked again at the core shed. | ||
| Certified reference standards and | ||
| blank samples were submitted to | ||
| assess the accuracy and | ||
| precision of the results and every | ||
| 20th sample was sawn into two | ||
| and the two quarter core samples | ||
| submitted for analysis separately | ||
| as a duplicate sample. | ||
| Drilling | Drill type (e.g. core, reverse | Drilling was by PQ, HQ and NQ |
| techniques | circulation, open-hole hammer, | diameter, triple tube diamond |
| rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face- sampling bit or other type, whether core is oriented and if so, by what |
coring. Down-hole surveying was completed with a Reflex gyro down- hole instrument due to the highly magnetic mineralisation. The core was not orientated |
|
| method, etc). | ||
| Drill | Method of recording and assessing | Core recovery is initially measured |
| sample | core and chip sample recoveries | on site by trained technicians and |
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| recovery | and results assessed. | again in the core shed by the core |
| Measures taken to maximise | shed geologist. Any core loss is | |
| sample recovery and ensure representative nature of the |
measured, the percentage is calculated and both are recorded in |
|
| samples. Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse |
the geotechnical log for reference when assessing assay results. In instances where core breaks off before the bottom of the hole leading to “apparent poor recovery” |
|
| material. | followed by a core run of >100% | |
| recovery, an adjustment is made in | ||
| the records | ||
| The majority of the mineralisation is | ||
| in fresh rock where recoveries are | ||
| greater than 90%. Most | ||
| mineralisation occurs in wide | ||
| intersections of massive magnetite | ||
| skarn with relatively uniform copper | ||
| and gold grades. Core loss occurs in | ||
| fracture zones but is usually not a | ||
| significant problem i.e. the core lost | ||
| in fracture zones is unlikely to have | ||
| been significantly higher or lower | ||
| grade than the surrounding material. | ||
| In the weathered hematitic oxidised | ||
| zones some core loss is unavoidable, | ||
| but overall recovery is generally | ||
| >90% and the core loss is | ||
| volumetrically minor in the | ||
| mineralised zones. In areas of poor | ||
| recovery, the sample intervals are | ||
| arranged to coincide with drill runs, | ||
| thus areas of different core loss | ||
| percentage are specific to individual | ||
| samples which can be assessed | ||
| when interpreting analytical results | ||
| and modelled in future resource | ||
| estimation studies. Where an area of | ||
| 100% core loss is identified the | ||
| sample intervals are marked to each | ||
| side of the zone and the zone is | ||
| designated “No core” and assigned | ||
| zero value in the various log sheets | ||
| and geochemical database. | ||
| All care is taken to ensure maximum | ||
| recovery of diamond core and | ||
| drillers are informed of the | ||
| importance of core recovery. Any | ||
| areas of poor core recovery are | ||
| sampled separately thus assay | ||
| results can be directly related to core | ||
| recovery. |
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| There is no discernible relationship | ||
| between core recovery and grade. | ||
| The skarn bodies are relatively | ||
| uniform over significant lengths and | ||
| the copper and gold grades are not | ||
| related to clay and fracture zones | ||
| which are the main causes of core | ||
| loss. | ||
| Logging | Whether core and chip samples | Diamond drill core for each entire |
| have been geologically and | drill hole was logged in significant | |
| geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) |
detail in a number of logging sheets including a geological log, a structural log, a geotechnical log and a magnetic susceptibility log for the entire drill hole. Mineralised and sampled intervals are logged individually in a separate quantitative |
|
| photography. | mineral log with percentages of the | |
| The total length and percentage of | different copper minerals being | |
| the relevant intersections logged. | recorded. The logging is appropriate | |
| for mineral resource estimates and | ||
| mining studies, neither of which are | ||
| reported herein | ||
| Most of the geological logging is a | ||
| mixture of qualitative (descriptions | ||
| of the various geological features) | ||
| and quantitative (numbers and angles | ||
| of veins and fracture zones, mineral | ||
| percentages etc.). The quantitative | ||
| mineralisation log and the magnetic | ||
| susceptibility log are quantitative. | ||
| Photographs are taken of all core | ||
| (both wet and dry) prior to the core | ||
| being cut. | ||
| All core, including barren | ||
| overburden is logged in the various | ||
| logging sheets noted above apart | ||
| from the quantitative mineralisation | ||
| log in which only the mineralised | ||
| intervals sent for geochemical | ||
| analysis are logged in greater detail. | ||
| Sub- | If core, whether cut or sawn and | All sampling data reported is from |
| sampling | whether quarter, half or all core | diamond drill core. Samples are of |
| techniques and sample preparation |
taken. If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique. |
sawn half core except for duplicate samples which are quarter core. Half core is bagged and sent to an ISO- certified independent laboratory for analysis. The other half retained for reference and/or further testwork. |
| Quality control procedures adopted | All core samples were dried, crushed | |
| for all sub-sampling stages to | to 95% <10 mm and a 1.5 kgsub- |
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| maximise representivity of samples. | sample is separated using a riffle |
|
| Measures taken to ensure that the | splitter and pulverised to 95% <75 | |
| sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. Whether sample sizes are appropriate to the grain size of the |
μm. A 50 g sub-sample is utilised as a fire-assay charge for gold analysis. The sample preparation technique and sub-sampling is appropriate for the mineralisation. |
|
| material being sampled. | Blank samples and duplicate samples | |
| are submitted routinely to monitor | ||
| the sampling and analytical process | ||
| and to ensure that samples are | ||
| representative of in situ material. | ||
| One in every 20 samples of half core | ||
| is sawn again to produce two quarter | ||
| core duplicate samples which are | ||
| submitted to the laboratory | ||
| separately with different sample | ||
| numbers. A blank sample was | ||
| inserted into sample batches every | ||
| 20th samples. | ||
| The magnetite skarn mineralisation | ||
| occurs in extensive zones of | ||
| magnetite skarn with disseminated | ||
| chalcopyrite, containing gold. The | ||
| sample size of approximately one | ||
| metre core length is suitable in | ||
| respect to the grain size of the | ||
| mineralisation | ||
| Quality of | The nature, quality and | All core samples were analysed at an |
| assay data | appropriateness of the assaying | ISO-certified independent laboratory. |
| and laboratory tests |
and laboratory procedures used and whether the technique is considered partial or total. For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and |
Gold was analysed by 50 g fire assay and the other elements including copper and iron were analysed by ICP-MS or ICP-OES following a four acid digest. The sample preparation and assay techniques used for the assay results reported |
| model, reading times, calibrations | herein are of international industry | |
| factors applied and their derivation, | standard and can be considered total. | |
| etc. Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable |
No geophysical tools were used for any analysis reported herein. Magnetic susceptibility readings are used in magnetic modelling but are |
|
| levels of accuracy (ie lack of bias) | not used to estimate magnetite or Fe | |
| and precision have been | content. | |
| established. | Quality control completed by RTG | |
| included analysis of standards, | ||
| blanks, and duplicates. Commercial | ||
| Certified Reference Materials | ||
| (OREAS 901, 503, 15d, 504, 503b, | ||
| 502,501b,401,40,22c,15d & 112) |
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| were inserted into sample batches | ||
| every 40th sample. A blank sample | ||
| was inserted every 20th sample; the | ||
| blank sample material has been | ||
| sourced and prepared from a local | ||
| quarry. One in every 20 core samples | ||
| is cut into 2 quarter core samples | ||
| which were submitted independently | ||
| with their own sample numbers. In | ||
| addition, Intertek conducted their | ||
| own extensive check sampling as | ||
| part of their own internal QAQC | ||
| processes which is reported in the | ||
| assay sheets. A record of results from | ||
| all duplicates, blanks and standards is | ||
| maintained for ongoing QA/QC | ||
| assessment. Examination of all the | ||
| QAQC sample data indicates | ||
| satisfactory performance of field | ||
| sampling protocols and the assay | ||
| laboratory. | ||
| Verification | The verification of significant |
The geochemical results reported |
| of sampling | intersections by either independent |
herein and the calculated averages |
| and assaying |
or alternative company personnel. The use of twinned holes. Documentation of primary data, data entry procedures, data |
for different lithology types were checked and calculated by two company personnel. |
| verification, data storage (physical | No twinned holes have been drilled. | |
| and electronic) protocols. Discuss any adjustment to assay data. |
Data documentation, verification and storage is conducted in accordance |
|
| with RTG’s Standard Operating | ||
| Procedures Manual for the Mabilo | ||
| Project. The diamond drill core is | ||
| manually logged in significant detail | ||
| in a number of separate excel | ||
| template logging sheets including: | ||
| 1) a geological log of all core, | ||
| recording mineralogy, lithology, | ||
| alteration, degree of oxidation and | ||
| mineralisation; | ||
| 2) a structural log of all core, | ||
| recording alpha angles, structure and | ||
| vein types and quantity and vein | ||
| infill minerals; | ||
| 3) a geotechnical log of all core | ||
| recording RQD, defects, fabrics; | ||
| 4) a quantitative mineralisation log | ||
| of all intervals sampled. | ||
| 5) a magnetic susceptibility log of all | ||
| core; |
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| 6) bulk density data for selected | ||
| samples representing domains | ||
| identified by the project geologist | ||
| Logging is recorded manually on | ||
| logging sheets and transcribed into | ||
| protected Excel spreadsheet | ||
| templates or entered directly into the | ||
| Excel templates. The data are | ||
| validated by both the Project | ||
| Geologist and the company Database | ||
| Manager and uploaded to the | ||
| dedicated project database where | ||
| they are merged with assay results | ||
| reported digitally by the laboratory. | ||
| Hard copies of all logging sheets are | ||
| kept at the Project office in Daet. | ||
| The results from the two quarter core | ||
| duplicate samples are averaged | ||
| before being entered into the | ||
| geochemistry database and reported | ||
| so that all geochemical data | ||
| represents the results from half core | ||
| samples. The assay results reported | ||
| herein include averages of the | ||
| duplicate samples. Samples with | ||
| assay grades below detection level | ||
| are assigned a value of half (50%) | ||
| the lower detection level value when | ||
| averaging intervals for reporting. No | ||
| top cuts of assay data have been | ||
| conducted in the results reported. | ||
| Location of | Accuracy and quality of surveys |
Drill-hole collars are initially |
| data points | used to locate drill holes (collar and | surveyed with a hand-held GPS with |
| down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. Specification of the grid system used. Quality and adequacy of topographic control. |
an accuracy of approximately +/- 5 metres. Completed holes are surveyed by an independent qualified surveyor on a periodic basis using standard differential GPS (DGPS) equipment achieving sub-decimetre accuracy in horizontal and vertical |
|
| position. | ||
| All of the holes reported herein have | ||
| been surveyed with a handheld GPS | ||
| with coordinates provided in | ||
| Appendix 1. This survey will be | ||
| superseded in due course by DGPS | ||
| survey. | ||
| Drill collars are surveyed in UTM | ||
| WGS84 Zone 51N grid which is the | ||
| grid for all project data. |
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| The Mabilo project area is relatively | ||
| flat with total variation in topography | ||
| less than fifteen (15) metres. | ||
| Topographic control is provided by | ||
| DGPS surveying. | ||
| Data | Data spacing for reporting of | The results reported herein are from |
| spacing | Exploration Results. | drill holes with variable spacing but |
| and distribution |
Whether the data spacing and distribution is sufficient to establish |
mostly on a nominal grid with 20 metres between drill holes on 40 |
| the degree of geological and grade continuity appropriate for the |
metre spaced lines. | |
| Mineral Resource and Ore Reserve | The drill holes are at variable spacing |
|
| estimation procedure(s) and | designed to determine the continuity | |
| classifications applied. | and extent of the mineralised skarn | |
| Whether sample compositing has | zones. Based on statistical | |
| been applied. | assessment of drill results to date, the | |
| planned nominal 40 x 20 metre drill | ||
| hole spacing is sufficient to support | ||
| future resource estimation. No | ||
| estimated grades or resource | ||
| estimations are included in this | ||
| report. | ||
| No compositing of intervals in the | ||
| field was undertaken. | ||
| Orientation | Whether the orientation of sampling |
The assay data reported is from large |
| of data in | achieves unbiased sampling of | mineralised magnetite-garnet skarn |
| relation to | possible structures and the extent | bodies. There is no indication that |
| geological structure |
to which this is known, considering the deposit type. If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have |
mineralisation grade within the bodies is affected by internal structures that affect the grade distribution, thus the sampling reported herein is not biased. This is |
| introduced a sampling bias, this | confirmed by the similar results | |
| should be assessed and reported if | obtained from drill holes in multiple | |
| material. | orientations. | |
| There is no bias in the sampling | ||
| reported herein related to drill-hole | ||
| orientation. Orientation of some | ||
| drill-holes has resulted in apparent | ||
| thickness greater than the true | ||
| thickness. The orientation of all holes | ||
| and the interpreted orientation of the | ||
| mineralisation is discussed in the | ||
| report. | ||
| Sample | The measures taken to ensure | Chain of custody is managed by |
| security | sample security. | RTG employees. Core trays are kept |
| at the drill site under constant watch | ||
| by Company employees prior to | ||
| being transported from the drill site | ||
| by Company employees in a | ||
| Companyvehicle to the core shed |
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| where core is logged, sawn and | ||
| prepared for dispatch. | ||
| Remaining core is kept in the | ||
| Company core yard which is in a | ||
| secure compound at the Company | ||
| regional office in Daet town and | ||
| guarded at night. | ||
| Samples are sent directly from the | ||
| core shed to the laboratory packed in | ||
| secured and sealed plastic drums | ||
| using either Company vehicles or a | ||
| local transport company. A standard | ||
| Chain of Custody form is signed by | ||
| the driver responsible for | ||
| transporting the samples upon receipt | ||
| of samples at the core yard and is | ||
| signed by an employee of the | ||
| laboratory on receipt of the samples | ||
| at the laboratory. Completed forms | ||
| are returned to the Company for | ||
| filing. | ||
| Audits or | The results of any audits or reviews | The sampling techniques and QA/QC |
| reviews | of sampling techniques and data. | data are reviewed on an ongoing |
| basis by Company management and | ||
| independent consultants. |
Section 2 Reporting of Exploration Results
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Mineral | Type, reference name/number, | The Mabilo Project is covered by |
| tenement and | location and ownership including | Exploration Permit EP-014-2013-V |
| land tenure status |
agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. The security of the tenure held at |
and Exploration Permit Application EXPA-000188-V. Drilling activity the subject of this announcement is within EP-014-2013-V which was granted in July 2013 for two years, with the option to renew for an additional 4 years. EP-014-2013-V |
| the time of reporting along with | was issued to Mt Labo Exploration | |
| any known impediments to | and Development Corporation (“Mt | |
| obtaining a licence to operate in | Labo”), an associated entity of RTG | |
| the area. | Mining. There is a 1% royalty | |
| payable on net mining revenue | ||
| received by Mt Labo in relation to | ||
| EP-014-2013-V. | ||
| Mt Labo has entered into a joint | ||
| venture agreement with Galeo | ||
| Equipment and Mining Company, | ||
| Inc. (“Galeo”) to partner in exploring | ||
| and developingthe Mabilo and |
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Nalesbitan Projects. Galeo can earn | ||
| up to a 36% interest in the Projects, | ||
| down to 200 metres below surface, | ||
| by contributing approximately | ||
| US$4,250,000 of exploration drilling | ||
| and management services for the | ||
| Projects over a 2 year period. | ||
| In November 2013, Sierra Mining | ||
| Limited (“Sierra”), a now wholly | ||
| owned subsidiary of RTG, and Galeo | ||
| signed a Memorandum of | ||
| Understanding (“MOU”) setting out | ||
| proposed changes to the joint venture | ||
| agreement to remove the depth limit | ||
| of 200 m from the agreement and | ||
| provide for additional drilling of | ||
| 5000 m below 200 m. The MOU also | ||
| provides for Galeo to be granted its | ||
| 36% interest up front with the ability | ||
| for RTG to claw-back any interest | ||
| deemed not earned at the end of the | ||
| claw-back period. The amendments | ||
| to the JV Agreement are subject to | ||
| Sierra shareholder approval. | ||
| Sierra has also entered a second | ||
| MOU with Galeo whereby Galeo can | ||
| earn an additional 6% interest in the | ||
| joint venture by mining the initial 1.5 | ||
| Mt of waste at Mabilo or Nalesbitan | ||
| and other requirements including | ||
| assistance with permitting. The MOU | ||
| is subject to a number of conditions | ||
| precedent, including Sierra | ||
| shareholder approval. | ||
| There are no native title or | ||
| Indigenous ancestral domains claims | ||
| at Mabilo. | ||
| The tenure over the area currently | ||
| being explored at Mabilo is a granted | ||
| Exploration Permit which is | ||
| considered secure. | ||
| Exploration | Acknowledgment and appraisal of | The only significant previous |
| done by other | exploration by other parties. | exploration over the Mabilo project |
| parties | area was a drilling program at another | |
| site within the tenement and a ground | ||
| magnetic survey. RTG or its | ||
| predecessor Sierra, has reported this | ||
| data in previous reports to the ASX | ||
| and used the ground magnetic survey | ||
| as a basis for initial drill siting. | ||
| SubsequentlyRTG conducted its own |
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| ground magnetic survey with closer | ||
| spaced survey lines and reading | ||
| intervals which supersedes the | ||
| historical program. There was no | ||
| known previous exploration in the | ||
| area where the drilling reported | ||
| herein was conducted. | ||
| Geology | Deposit type, geological setting | Mineralisation at Mabilo can be |
| and style of mineralisation. | defined as a magnetite-copper-gold | |
| skarn which developed where the | ||
| magnetite-copper-gold mineralisation | ||
| replaced calcareous horizons in the | ||
| Eocene age Tumbaga Formation in | ||
| the contact zone of a Miocene diorite | ||
| intrusion. | ||
| Drill hole | A summary of all information | The sampling and geochemical |
| Information | material to the understanding of | information contained in this report is |
| the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drillhole collar |
from the second phase of drilling at Mabilo which is ongoing. The easting, northing, elevation, dip, azimuth and end of hole depth of the holes reported herein is documented |
|
o elevation or RL (ReducedLevel – elevation above sea |
in a table included as Appendix 1 to this report. Down hole depths and |
|
| level in metres) of the drill hole | widths of intersections are | |
| collar | documented in the text. The easting, | |
o dip and azimuth of the hole |
northing, elevation and orientation | |
o down hole length and |
for all holes drilled at the Mabilo | |
interception deptho hole length. If the exclusion of this information |
project has been reported in this and previous reports to the ASX. |
|
| is justified on the basis that the | All relevant data has been reported. | |
| information is not Material and this | ||
| exclusion does not detract from | ||
| the understanding of the report, | ||
| the Competent Person should | ||
| clearly explain why this is the | ||
| case. | ||
| Data | In reporting Exploration Results, | Assays of samples of different |
| aggregation | weighting averaging techniques, | lengths are weighted for their length |
| methods | maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated. Where aggregate intercepts incorporate short lengths of high grade results and longer lengths |
when averaging assays for the large intervals reported herein. Where any element in an interval reported is below detection level it is assigned a value of half (50%) of the lower detection level when averaging mineralised intervals for reporting. |
| of low grade results, the | Intervals with no core recovery are | |
| procedure used for such | assigned zero value when averaging | |
| aggregation should be stated and | results. No top or bottom cuts have | |
| some typical examples of such aggregations should be shown in detail. |
been made to the assay data. Composite intervals have reported |
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| The assumptions used for any | based on nominal cut-off grades of | |
| reporting of metal equivalent | 0.5 g/t gold and 0.5% copper. | |
| values should be clearly stated. | The Mabilo skarn mineralisation is | |
| large with a relatively uniform grade. | ||
| Higher or lower grade zones with the | ||
| mineralised bodies are wider than | ||
| sample intervals. The average grades | ||
| reported herein are based on sample | ||
| widths of average 1 metre width. | ||
| Where an average grade contains a | ||
| high grade intersection the high grade | ||
| intersection has also been reported. | ||
| No metal equivalent grades are | ||
| reported herein. | ||
| Relationship | These relationships are | The holes reported herein have been |
| between | particularly important in the | drilled both vertically and inclined. |
| mineralisation | reporting of Exploration Results. |
The orientation of the mineralised |
| widths and intercept lengths |
If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported, |
bodies is based on interpretation of geology from drill holes supported by magnetic modelling which indicates that much of the mineralisation is dipping to the southwest. |
| there should be a clear statement to this effect (eg ‘down hole |
The interpreted orientation of the mineralised bodies is based on |
|
| length, true width not known’). | magnetic modelling and drill-hole | |
| data and is documented in the report. | ||
| The fact that the intersections are in a | ||
| dipping body and therefore not true | ||
| widths is reported and no intervals | ||
| reported herein can be assumed to be | ||
| a true width of the mineralisation. | ||
| Diagrams | Appropriate maps and sections | Plan view maps showing locations of |
| (with scales) and tabulations of | all holes reported along with | |
| intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views. |
magnetic images are included in the report. The interpreted geometry of the host geology and the mineralised skarn bodies is illustrated in cross section. |
|
| Balanced | Where comprehensive reporting of | The report documents the assay |
| reporting | all Exploration Results is not | results of intersections of the |
| practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results. |
mineralised magnetite skarn. Low- grade sample results from adjacent rocks outside the mineralised body are reported. Barren or very low grade results are not reported. Assays |
|
| from drill holes which did not | ||
| intersect mineralisation are not | ||
| reported but their location is shown | ||
| on plans in the report. |
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Other | Other exploration data, if | All meaningful exploration data |
| substantive | meaningful and material, should | concerning the Mabilo Project has |
| exploration data |
be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey |
been reported either in previous reports to the ASX or in the current report to which this table is attached. |
| results; bulk samples – size and | ||
| method of treatment; metallurgical | ||
| test results; bulk density, | ||
| groundwater, geotechnical and | ||
| rock characteristics; potential | ||
| deleterious or contaminating | ||
| substances. | ||
| Further work | The nature and scale of planned | The attached report is an interim |
| further work (e.g. tests for lateral | report on an ongoing drilling program | |
| extensions or depth extensions or large-scale step-out drilling). Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is |
which will systematically test magnetic bodies and step-out targets along strike and between the North Mineralised Zone and the South Mineralised Zone as well as down- dip from these zones. |
|
| not commercially sensitive. |