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RTG Mining Inc. — Regulatory Filings 2014
Aug 19, 2014
47130_rns_2014-08-19_b6285559-e7b4-4e26-9395-9e8bf8dffa7c.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

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
RTG ANNOUNCES GRANTING OF THE BUNAWAN EXPLORATION PERMIT EP-033-XIII.
ANNOUNCEMENT TO THE TORONTO STOCK EXCHANGE AND AUSTRALIAN SECURITIES EXCHANGE 20 AUGUST 2014
The Board of RTG Mining Inc. ("RTG", "the Company") (TSX Code: RTG, ASX Code: RTG) is pleased to announce the granting of Exploration Permit EP-033-XIII for the Bunawan Project in the Philippines.
The granted EP covers an area of 677 hectares in the Rosario area in Agusan del Sur, Mindanao (see Figure 1) and is in a similar geological setting as the adjacent high grade Co-O mine held by Medusa Mining Limited. Highlights of the approved EP area include:
- Previous site investigation programs over the area including detailed mapping, rock chip sampling, a ground magnetic survey and stream sediment sampling have identified several highly prospective areas and walk up drill targets including Mahunoc, Imbudo and Baleleng (see Figure 2).
- The geology of mineralisation is consistent with representing the very upper levels of an epithermal vein system similar to Co-O (historic production at an average grade of 10,93g/t Au1 ) and Diwalwal (production to date of approximately 2.7m ozs2 ) and is coincident with a 1.5km + 100 ppb gold in soil anomaly overlying a major structure along the diatreme margin. (see Figure 3).
- EP-033-XIII covers the eastern part of the Mahunoc diatreme dome complex and is contiguous with the significant artisanal mining area of Red Mountain (see Figure 1).

Figure 1- Location Plan with Regional Geology Showing Both the Co-O and Mahunoc Diatreme Complexes

Figure 2 – TMI Image of Ground Magnetic Data

Figure 3 – Soil Sampling Data
Given the highly prospective nature of the EP, the Company is keen to commence a drilling program and is well positioned in the region in terms of both local community issues and near term access to drill rigs.
COMPETENT PERSON
The information in this report relating to exploration results, mineral resources or ore reserves is based on information provided to Mr Robert McLean by RTG Mining Inc. Mr McLean is an independent consultant geologist and is a corporate member of the Australian Institute of Mining and Metallurgy. Mr McLean has the relevant qualifications, experience, competence and independence to be considered an "Expert" under the definitions provided in the Valmin Code and "Competent Person" under the JORC Code. Mr McLean consents to the inclusion in the report of the matters based on the information he has been provided 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: JORC Code 2012 Edition Table 1 Sampling Techniques and Data
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Samplingtechniques | Nature and quality of sampling (e.g. cutchannels, random chips, or specificspecialised industry standardmeasurement tools appropriate to theminerals under investigation, such asdown hole gamma sondes, or handheldXRF instruments, etc). These examplesshould not be taken as limiting the broadmeaning of sampling.Include reference to measures taken toensure sample representivity and theappropriate calibration of anymeasurement tools or systems used.Aspects of the determination ofmineralisation that are Material to thePublic Report. | The data reported includes the results of aminus 40 mesh soil sampling program.Samples were collected from the soil Chorizon on the average at approximately 40to 50cm depth below surface and submittedto the Intertek Laboratory in Manila wherethe minus 40 mesh (425µm) fraction wassieved for analysis. A quartz wash wasconducted before each sample during thesample preparation and a new pot was usedfor each fire assay in order to minimise anypotential contamination.Twenty field duplicate samples wereincluded in the soil sample and show goodcorrelation. Gold at higher levels show somevariation but it does not affect thedistribution or intensity of the Au anomaliesidentified.Field work reported herein includes theresults of mapping a ground magneticsurvey and soil sampling. No drilling hasbeen conducted at Bunawan |
| Drillingtechniques | Drill type (e.g. core, reverse circulation,open-hole hammer, rotary air blast, auger,Bangka, sonic, etc) and details (eg corediameter, triple or standard tube, depth ofdiamond tails, face-sampling bit or othertype, whether core is oriented and if so, bywhat method, etc). | No drilling has been conducted atBunawan |
| Drillsamplerecovery | Method of recording and assessing coreand chip sample recoveries and resultsassessed.Measures taken to maximise samplerecovery and ensure representativenature of the samples.Whether a relationship exists betweensample recovery and grade and whethersample bias may have occurred due topreferential loss/gain of fine/coarsematerial. | No drilling has been conducted atBunawan. |
| Logging | Whether core and chip samples havebeen geologically and geotechnicallylogged to a level of detail to supportappropriate Mineral Resource estimation,mining studies and metallurgical studies.Whether logging is qualitative orquantitative in nature. Core (or costean,channel, etc.) photography.The total length and percentage of therelevant intersections logged. | No drilling has been conducted at Bunawan. |
| Subsamplingtechniquesand sample | If core, whether cut or sawn and whetherquarter, half or all core taken.If non-core, whether riffled, tube sampled,rotary split, etc and whether sampled wetor dry. | No drilling has been conducted at Bunawan.Soil samples were collected from the soil Chorizon on average at approximately 40 to 50cmdepth below surface and submitted to theIntertek Laboratory in Manila where the minus |
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| preparation | For all sample types, the nature, qualityand appropriateness of the samplepreparation technique.Quality control procedures adopted for allsub-sampling stages to maximiserepresentivity of samples.Measures taken to ensure that thesampling is representative of the in situmaterial collected, including for instanceresults for field duplicate/second-halfsampling.Whether sample sizes are appropriate tothe grain size of the material beingsampled. | 40 mesh (425µm) fraction was sieved foranalysis. A quartz wash was conducted beforeeach sample during sample preparation and anew pot was used for each fire assay in order tominimise any potential contamination.Twenty field duplicates were included in thesoil sample program. Duplicates were treated inthe same manner and sieved at the laboratoryrather than in the field.Twenty field duplicate samples were included inthe soil sample program. Duplicates werecollected from separate but adjacent pits.Large samples (approx. 5Kg) were collected andsieved. The initial sample size is consideredappropriate. |
| Quality ofassay dataandlaboratorytests | The nature, quality and appropriateness ofthe assaying and laboratory proceduresused and whether the technique isconsidered partial or total.For geophysical tools, spectrometers,handheld XRF instruments, etc, theparameters used in determining theanalysis including instrument make andmodel, reading times, calibrations factorsapplied and their derivation, etc.Nature of quality control proceduresadopted (e.g. standards, blanks,duplicates, external laboratory checks)and whether acceptable levels ofaccuracy (ie lack of bias) and precisionhave been established. | Gold analysis was by fire assay / AAS finish toa detection limit of 5 ppb. Silver [0.5], arsenic[3], copper [1], lead [3] and zinc [1] wereassayed by aqua regia digest/ICP/MS todetection levels noted above in ppm. Thetechniques are considered total.No geophysical tools were used for any analysisconducted.Field duplicates were collected during the soilsampling program. No blanks or standards wereused. The laboratory conducted and reported itsown internal standards. |
| Verificationof samplingandassaying | The verification of significant intersectionsby either independent or alternativecompany personnel.The use of twinned holes.Documentation of primary data, data entryprocedures, data verification, data storage(physical and electronic) protocols.Discuss any adjustment to assay data. | No drilling has been conducted or intervalsreported at Bunawan.Data documentation, verification and storage isconducted in accordance with the Company'sStandard Operating Procedures Manual and isstored in an appropriate database.No top cuts or averages have been conducted onany of the assay results. |
| Location ofdata points | Accuracy and quality of surveys used tolocate drill holes (collar and down-holesurveys), trenches, mine workings andother locations used in Mineral Resourceestimation.Specification of the grid system used.Quality and adequacy of topographiccontrol. | Soil sample sites and ground magnetic surveypoints were sited with a hand held GPS with anaccuracy of+/- 5 metres which is consideredappropriate for the exploration programsconducted.Co-ordinates are on a UTM Grid; WGS84(52N).The Bunawan area is moderately hilly.Exploration work was conducted usingcommercially available 1:50,000 contouredtopographic maps which is appropriate for thework reported. |
| Dataspacinganddistribution | Data spacing for reporting of ExplorationResults.Whether the data spacing and distributionis sufficient to establish the degree ofgeological and grade continuity | Soil sampling was conducted on 100 x100mgrid.The sample spacing is appropriate for theexploration program and anomaly continuityreported. No resources or reserves have been |
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| appropriate for the Mineral Resource andOre Reserve estimation procedure(s) andclassifications applied.Whether sample compositing has beenapplied. | estimated.No compositing of intervals in the field havetaken place. | |
| Orientationof data inrelation togeologicalstructure | Whether the orientation of samplingachieves unbiased sampling of possiblestructures and the extent to which this isknown, considering the deposit type.If the relationship between the drillingorientation and the orientation of keymineralised structures is considered tohave introduced a sampling bias, thisshould be assessed and reported ifmaterial. | The sampling was conducted on a 100 x 100 mgrid thus there is no bias in respect to theorientation of structures and geochemicalanomalies.No drilling has been conducted at Bunawan. |
| Samplesecurity | The measures taken to ensure samplesecurity. | Chain of custody is managed by the Company'semployees. Soil samples were initially stored inthe Company's compound and then transportedby Company vehicles to a local transportcompany which transported the samples to thelaboratory in Manila. |
| Audits orreviews | The results of any audits or reviews ofsampling techniques and data. | The sampling techniques and QA/QC data arereviewed on an ongoing basis by Companymanagement and independent consultants andare considered to be appropriate for the earlystage of exploration reported. |
Section 2: Reporting of Exploration Results
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Mineraltenement andland tenurestatus | Type, reference name/number, locationand ownership including agreements ormaterial issues with third parties such asjoint ventures, partnerships, overridingroyalties, native title interests, historicalsites, wilderness or national park andenvironmental settings.The security of the tenure held at thetime of reporting along with any knownimpediments to obtaining a licence tooperate in the area. | EP-033-XIII is a partial approval of theapplication for Exploration Permit of BunawanMining Corporation denominated as EXPA000037-XIII involving a 677 hectare portion ofthe 3,046.9 hectare applied area situated inRosario, Agusan del Sur. |
| The EP referred to in this announcement isgranted for 2 years, with the option to renew fora further 4 years. | ||
| RTG mining has a 40% ownership in BunawanMining Corporation. | ||
| The tenure over the area reported in thisannouncement is a granted Exploration Permitand is considered secure. | ||
| Explorationdone by otherparties | Acknowledgment and appraisal ofexploration by other parties. | The exploration results reported are based onwork done by Sierra Mining prior to its mergerwith the Company. There was no otherexploration conducted at the project prior toSierra's work apart from artisanal prospectingand small scale production. |
| Geology | Deposit type, geological setting and styleof mineralisation. | The results of exploration conducted to dateindicate the potential for the discovery ofsheeted epithermal quartz veins hosting gold andsilver mineralisation associated with a structural |
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| zone along the margin of the Mahunoc diatreme. | ||
| Drill holeInformation | A summary of all information material tothe understanding of the explorationresults including a tabulation of thefollowing information for all Material drillholes:oeasting and northing of the drill holecollaroelevation or RL (Reduced Level –elevation above sea level in metres)of the drill hole collarodip and azimuth of the holeodown hole length and interceptiondepthohole length.If the exclusion of this information isjustified on the basis that the informationis not Material and this exclusion doesnot detract from the understanding of thereport, the Competent Person shouldclearly explain why this is the case. | No drilling has been conducted at Bunawan |
| Dataaggregationmethods | In reporting Exploration Results,weighting averaging techniques,maximum and/or minimum gradetruncations (e.g. cutting of high grades)and cut-off grades are usually Materialand should be stated.Where aggregate intercepts incorporateshort lengths of high grade results andlonger lengths of low grade results, theprocedure used for such aggregationshould be stated and some typicalexamples of such aggregations shouldbe shown in detail.The assumptions used for any reportingof metal equivalent values should beclearly stated. | No top or bottom cuts or averaging of assay datahas been carried out.No metal equivalent grades are reported. |
| Relationshipbetweenmineralisationwidths andinterceptlengthsDiagrams | These relationships are particularlyimportant in the reporting of ExplorationResults.If the geometry of the mineralisation withrespect to the drill hole angle is known,its nature should be reported.If it is not known and only the down holelengths are reported, there should be aclear statement to this effect (eg 'downhole length, true width not known').Appropriate maps and sections (withscales) and tabulations of interceptsshould be included for any significant | No drilling has been conducted at Bunawan.Maps summarising the results of the previousexploration are reported |
| Balancedreporting | discovery being reported These shouldinclude, but not be limited to a plan viewof drill hole collar locations andappropriate sectional views.Where comprehensive reporting of allExploration Results is not practicable,representative reporting of both low andhigh grades and/or widths should bepracticed to avoid misleading reportingof Exploration Results. | No drilling has been conducted at Bunawan. |
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Othersubstantiveexplorationdata | Other exploration data, if meaningful andmaterial, should be reported including(but not limited to): geologicalobservations; geophysical surveyresults; geochemical survey results; bulksamples – size and method of treatment;metallurgical test results; bulk density,groundwater, geotechnical and rockcharacteristics; potential deleterious orcontaminating substances. | A map summarising the results of a groundmagnetic survey is included. The results of thesurvey (readings every 5m on 100m spacednorth-south oriented lines) were reported to theASX by Sierra Mining previously. |
| Further work | The nature and scale of planned furtherwork (e.g. tests for lateral extensions ordepth extensions or large-scale step-outdrilling).Diagrams clearly highlighting the areasof possible extensions, including themain geological interpretations andfuture drilling areas, provided thisinformation is not commercially sensitive. | A drilling program is warranted, but the detailsof total metres and drill hole locations has notbeen finalised. |