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RTG Mining Inc. Regulatory Filings 2014

Aug 13, 2014

47130_rns_2014-08-13_b4fdc866-5867-4d6d-abd2-9b74e76d167d.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 FURTHER HIGH GRADE INTERCEPTS AND EXTENSIONS TO KNOWN MINERALISATION AT THE MABILO PROJECT

ANNOUNCEMENT TO THE TORONTO STOCK EXCHANGE AND AUSTRALIAN SECURITIES EXCHANGE 13 AUGUST 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 high grade supergene copper mineralisation. With a total down hole intercept of 64.20 meters for 7.91% Copper and 2.96 g/t Gold, the hole is the best down hole intercept drilled at the Mabilo project to-date.

Continuing diamond drilling on two sections has confirmed the down dip extension of the South Mineralised Zone with further high grade intercepts, the system remains open at depth and to the South.

Highlights of the ongoing drilling program include –

MDH-060 intersected magnetite skarn from 193 meters to 235 meters. Magnetite skarn is partly brecciated with silica-pyrite overprinting. The high grade interval is characterised by well-developed chalcopyrite with coarse grained intergrowths with magnetite and fine grained disseminated chalcopyrite.

16 meters at 2.84 g/t Au, 3.04% Cu and 45.89% Fe Approximately 9.0 g/t Au equivalent

MDH-065 intersected magnetite skarn from 175 meters to 217 meters. The magnetite skarn is similar in style to MDH-060, brecciated with silica pyrite overprinting. Chalcopyrite occurs as disseminations within magnetite clasts and as coarse grained chalcopyrite intergrowths with magnetite.

20 meters at 1.96 g/t Au, 2.84% Cu and 43.24% Fe Approximately 7.8g/t Au equivalent

MDH-066 intersected high grade supergene copper dominated by massive chalcocite and capped with an oxide copper zone with instances of native copper. Down hole supergene was intercepted from 48.20 meters to 89.50 meters with a zone of primary magnetite from 89.50 meters to 92.05 meters.

64 meters at 2.96 g/t Au, 7.91% Cu and 44.57% Fe Approximately 17.3 g/t Au equivalent

Figure 1 –Location of drill holes and sections reported in this release on RTP ground magnetic image.

Gold equivalent calculations are based on US$1300/ oz Au, US$7000/t Cu and US$100/ t iron.

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.

South Mineralised Zone

Drilling has concentrated on the South Mineralised Zone which is substantially larger than the North Mineralised Zone.

Re-logging of the drill holes and three dimensional modelling in this Zone has facilitated better targeting for future holes. An updated long section view of isotropic copper grade shells is illustrated below (Figure 2).

Drilling on two sections targeting the down dip of previously reported MDH-053 and MDH-057 has confirmed mineralisation extends down dip by approximately fifty meters and remains open at depth.

All intercepts reported below have core recoveries better than 92%.

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-060

An angled hole drilled to test the down dip extent of MDH-057. The hole intersected magnetite skarn from 182.10 meters to 235.20 meters. Higher grade intervals are characterised by well-developed chalcopyrite inter-grown with magnetite weakly overprinted by silica pyrite (Figure 3). True thickness of magnetite skarn is approximately 32 meters.

MDH-060 From To Intercept (m) Au ppm Cu % Ag ppm Fe % Mineralisation
135.80 141.00 5.20 3.49 3.44 13.1 19.35 Breccia Magnetite Skarn
and 181.00 232.00 51.00 1.63 1.90 19.0 41.35 Magnetite Skarn
including 182.10 188.00 5.90 1.48 2.08 25.7 25.81 Breccia Magnetite Skarn
and including 193.25 231.00 37.75 1.81 2.11 19.9 46.81 Magnetite Skarn
Including 210.00 226.00 16.00 2.84 3.04 22.4 45.89 Magnetite Skarn
Including 210.00 213.00 3.00 4.11 5.01 22.6 47.52 Magnetite Skarn
and 268.00 274.00 6.00 2.20 0.90 4.0 36.23 Garnet Magnetite Skarn

Figure 3 – Cross section of South Mineralised Zone showing MDH 060 and MDH 057 with geological interpretation and high grade intercept annotated (Section A of Figure 1).

MDH-065

Located ~40 meters North West of MDH-060, MDH-065 is an angled hole drilled to further test the down dip extent of MDH-053 (Figure 4). The hole intersected magnetite skarn from 179.35 meters to 217.00 meters. Mineralisation is characterised by coarse grained chalcopyrite intergrown with magnetite and breccias with weak silica pyrite overprint. True thickness of magnetite skarn is approximately 32 meters.

MDH-065 From To Intercept (m) Au ppm Cu % Ag ppm Fe % Mineralisation
169.00 208.00 39.00 1.46 1.75 22.0 36.47 Magnetite Skarn
including 185.00 205.00 20.00 1.96 2.84 37.0 43.24 Magnetite Skarn
and including 193.00 204.00 11.00 2.59 3.38 37.32 41.77 Magnetite Skarn
and including 187.00 190.45 3.45 1.34 2.55 43.17 44.63 Magnetite Skarn

Figure 4 – Cross section through MDH-065, MDH-053 and MDH-055 on geological interpretation (Section B of Figure 1).

MDH-066

An angled hole designed to follow up supergene mineralisation reported in MDH-029 (ASX release by Sierra Mining 3rd April 2014). Located approximately 30 meters North East of MDH-029 (Figure 5) and at the Northern limit of the magnetic model, the hole intersected an oxide zone from 37.80 meters to 56.00 meters followed by a massive chalcocite zone from 56.00 meters to 89.50m meters. The bottom of the interval is magnetite skarn from 89.50 meters 92.05 meters characterised by weakly overprinted chalcocite and silica pyrite. True thickness in this part of the system has not been determined, all results are reported as down hole intervals.

MDH-066 From To Intercept (m)Au ppm Cu % Ag ppm Fe % Mineralisation
Oxide, Supergene &
37.80 102.00 64.20 2.96 7.91 16.0 44.57 Magnetite Skarn
including 37.80 56.00 18.20 5.20 0.42 13.75 40.36 Oxide
including 56.00 89.50 33.50 2.35 14.20 21.6 50.39 Supergene
including 89.50 102.00 12.50 1.21 1.61 3.0 30.66 Magnetite skarn
and 137.80 149.00 11.20 0.50 0.74 1.0 7.18 Garnet Skarn

Figure 5 - Cross Section of South Mineralised Zone showing MDH 065 with the geological interpretation (Section C on Figure 1).

Further drilling has continued to the North and East of MDH-066 and has intersected further oxide and supergene mineralisation (MDH-071; Figure 5) from 32.25 meters to 62.10 meters down hole. Drill core is currently being processed.

Drilling to the North West of MDH-029 has intersected mineralised calc-silicate altered sediments with silica pyrite overprint. The strike of mineralisation continues to vector in the Northern direction towards the North Mineralised zone, drilling is ongoing.

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 43- 101"). 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.

HOLE ID Location GPSCoordinates (UTM WGS84) Orientation True Nth Depth
Prospect East North RL Dip Azi E.O.H (m)
MDH-060 South B Geotechnical 476152 1559665 118 -70 50 297.60
MDH-065 South B Resource 476126 1559700 120 -70 50 262.70
MDH-066 South A Metallurgy 476026 1559992 113 -60 50 171.90

Appendix 1: Location of Reported Drill Holes

All co-ordinates in UTM-WGS84 (51 N). All collars apart from MDH-38 only surveyed by digital GPS at this stage.

The potential quantity and grade is conceptual in nature, and there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.

Appendix 2: JORC Code 2012 Edition Table 1 Section 1 Sampling Techniques and Data

Criteria JORC Code explanation Commentary
Samplingtechniques Nature and quality of sampling (e.g.cut channels, random chips, orspecific specialised industrystandard measurement toolsappropriate to the minerals underinvestigation, such as down holegamma sondes, or handheld XRFinstruments, etc). These examplesshould not be taken as limiting thebroad meaning of sampling.Include reference to measurestaken to ensure samplerepresentivity and the appropriatecalibration of any measurementtools or systems used.Aspects of the determination ofmineralisation that are Material tothe Public Report. The assay data reported herein isbased on sampling of diamond drillcore of PQ,HQand NQdiameterwhich was cut with a diamond coresaw. Samples are generally of 1metre length although occasionallyslightly longer or shorter wherechanges in lithology, core size orcore recovery required adjustments;samples are not more than 2 metreslength.Half core samples were cut and sentfor analysis by an independent ISOcertified laboratory (IntertekMcPhar Laboratory) in Manila.Samples were crushed andpulverised (95% <75 ɥm). Gold wasanalysed by 50 gram fire assay andthe other elements including copperand iron by ICP-MS (InductivelyCoupled Plasma MassSpectrometry) or ICP-OES(Inductively Coupled PlasmaOptical Emission Spectrometry)following a four-acid digest.The length of each drill run isrecorded and the recovery foreach run calculated on site andchecked again at the core shed.Certified reference standards andblank samples were submitted toassess the accuracy andprecision of the results and every20th sample was sawn into twoand the two quarter core samplessubmitted for analysisseparatelyas a duplicate sample.
Drillingtechniques Drill type (e.g. core, reversecirculation, open-hole hammer,rotary air blast, auger, Bangka,sonic, etc) and details (eg corediameter, triple or standard tube,depth of diamond tails, facesampling bit or other type, whethercore is oriented and if so, by whatmethod, etc). Drilling was by PQ,HQand NQdiameter, triple tube diamondcoring. Down-hole surveying wascompleted with a Reflex gyro downhole instrument due to the highlymagnetic mineralisation. The corewas not orientated
Drillsamplerecovery Method of recording and assessingcore and chip sample recoveriesand results assessed.Measures taken to maximisesample recovery and ensurerepresentative nature of the Core recovery is initially measuredon site by trained technicians andagain in the core shed by the coreshed geologist. Any core loss ismeasured, the percentage iscalculated and both are recorded in
Criteria JORC Code explanation Commentary
samples.Whether a relationship existsbetween sample recovery andgrade and whether sample biasmay have occurred due topreferential loss/gain of fine/coarsematerial. the geotechnical log for referencewhen assessing assay results. Ininstances wherecore breaks offbefore the bottom of the holeleading to "apparent poor recovery"followed by a core run of >100%recovery, an adjustment is made inthe records
The majority of the mineralisation isin fresh rock where recoveries aregreater than 90%. Mostmineralisation occurs in wideintersections of massive magnetiteskarn with relatively uniform copperand gold grades. Core loss occurs infracture zones but is usually not asignificant problem i.e. the core lostin fracture zones is unlikely to havebeen significantly higher or lowergrade than the surrounding material.In the weathered hematitic oxidisedzones some core loss is unavoidable,but overall recovery is generally>90% and the core loss isvolumetrically minor in themineralised zones. In areas of poorrecovery, the sample intervals arearranged to coincide with drill runs,thus areas of different core losspercentage are specific to individualsamples which can be assessedwhen interpreting analytical resultsand modelled in future resourceestimation studies. Where an area of100% core loss is identified thesample intervals are marked to eachside of the zone and the zone isdesignated "No core" and assignedzero value in the various log sheetsand geochemical database.
All care is taken toensure maximumrecovery of diamond core anddrillers are informed of theimportance of core recovery. Anyareas of poor core recovery aresampled separately thus assayresults can be directly related to corerecovery.
There is no discernible relationshipbetween core recovery and grade.The skarn bodies are relativelyuniform over significant lengths andthe copper and gold grades are notrelated to clay and fracture zones
Criteria JORC Code explanation Commentary
which are the main causes of coreloss.
Logging Whether core and chip sampleshave been geologically andgeotechnically logged to a level ofdetail to support appropriateMineral Resource estimation,mining studies and metallurgicalstudies.Whether logging is qualitative orquantitative in nature. Core (orcostean, channel, etc.)photography.The total length and percentage ofthe relevant intersections logged. Diamond drill core for each entiredrill hole was logged in significantdetail in a number of logging sheetsincluding a geological log, astructural log, a geotechnical log anda magnetic susceptibility log for theentire drill hole. Mineralised andsampled intervals are loggedindividually in a separate quantitativemineral log with percentages of thedifferent copper minerals beingrecorded. The logging is appropriatefor mineral resource estimates andmining studies, neither of which arereported herein
Most of the geological logging is amixture of qualitative (descriptionsof the various geological features)and quantitative (numbers and anglesof veins and fracture zones, mineralpercentages etc.). The quantitativemineralisation log and the magneticsusceptibility log are quantitative.Photographs are taken of all core(both wet and dry) prior to the corebeing cut.
All core, including barrenoverburden is logged in the variouslogging sheets noted above apartfrom the quantitative mineralisationlog in which only the mineralisedintervals sent for geochemicalanalysis are logged in greater detail.
Subsamplingtechniquesand samplepreparation If core, whether cut or sawn andwhether quarter, half or all coretaken.If non-core, whether riffled, tubesampled, rotary split, etc andwhether sampled wet or dry.For all sample types, the nature,quality and appropriateness of thesample preparation technique.Quality control procedures adoptedfor all sub-sampling stages tomaximise representivity of samples.Measures taken to ensure that thesampling is representative of the insitu material collected, including forinstance results for fieldduplicate/second-half sampling. All sampling data reported is fromdiamond drill core. Samples are ofsawn half core except for duplicatesamples which are quarter core. Halfcore is bagged and sent to an ISOcertified independent laboratory foranalysis. The other half retained forreference and/or further testwork.All core samples were dried, crushedto 95% <10 mm and a 1.5 kg subsample is separated using a rifflesplitter and pulverised to 95% <75μm. A 50 g sub-sample is utilised asa fire-assay charge for gold analysis.The sample preparation technique
Criteria JORC Code explanation Commentary
Whether sample sizes areappropriate to the grain size of the and sub-sampling is appropriate forthe mineralisation.
material being sampled. Blank samples and duplicate samplesare submitted routinely to monitorthe sampling and analytical processand to ensure that samples arerepresentative of in situ material.One in every 20 samples of half coreis sawn again to produce two quartercore duplicate samples which aresubmitted to the laboratoryseparately with different samplenumbers. A blank sample wasinserted into sample batches every20th samples.
The magnetite skarn mineralisationoccurs in extensive zones ofmagnetite skarn with disseminatedchalcopyrite, containing gold. Thesample size of approximately onemetre core length is suitable inrespect to the grain size of themineralisation
Quality ofassay dataandlaboratorytests The nature, quality andappropriateness of the assayingand laboratory procedures usedand whether the technique isconsidered partial or total.For geophysical tools,spectrometers, handheld XRFinstruments, etc, the parametersused in determining the analysisincluding instrument make andmodel, reading times, calibrationsfactors applied and their derivation, All core samples were analysed at anISO-certified independent laboratory.Gold was analysed by 50 g fire assayand the other elements includingcopper and iron were analysed byICP-MS or ICP-OES following afour acid digest. The samplepreparation and assay techniquesused for the assay results reportedherein are of international industrystandard and can be considered total.
etc.Nature of quality control proceduresadopted (e.g. standards, blanks,duplicates, external laboratorychecks) and whether acceptablelevels of accuracy (ie lack of bias)and precision have been No geophysical tools were used forany analysis reported herein.Magnetic susceptibility readings areused in magnetic modelling but arenot used to estimate magnetite or Fecontent.
established. Quality control completed by RTGincluded analysis of standards,blanks, and duplicates. CommercialCertified Reference Materials(OREAS 901, 503, 15d, 504, 503b,502, 501b, 401, 40, 22c, 15d & 112)were inserted into sample batchesevery 40th sample. A blank samplewas inserted every 20th sample; theblank sample material has beensourced and prepared from a localquarry. One in every 20 core samplesis cut into 2 quarter core samplesPage 12 of 20
Criteria JORC Code explanation Commentary
which were submitted independentlywith their own sample numbers. Inaddition, Intertek conducted theirown extensive check sampling aspart of their own internal QAQCprocesses which is reported in theassay sheets. A record of results fromall duplicates, blanks and standards ismaintained for ongoing QA/QCassessment. Examination of all theQAQC sample data indicatessatisfactory performance of fieldsampling protocols and the assaylaboratory.
Verificationof samplingandassaying The verification of significantintersections by either independentor alternative company personnel.The use of twinned holes.Documentation of primary data,data entry procedures, data The geochemical results reportedherein and the calculated averagesfor different lithology types werechecked and calculated by twocompany personnel.
verification, data storage (physical No twinned holes have been drilled.
and electronic) protocols.Discuss any adjustment to assaydata. Data documentation, verification andstorage is conducted in accordancewith RTG's Standard OperatingProcedures Manual for the MabiloProject. The diamond drill core ismanually logged in significant detailin a number of separate exceltemplate logging sheets including:
1) a geological log of all core,recording mineralogy, lithology,alteration, degree of oxidation andmineralisation;
2) a structural log of all core,recording alpha angles, structure andvein types and quantity and veininfill minerals;
3) a geotechnical log of all corerecording RQD, defects, fabrics;
4) aquantitative mineralisation logof all intervals sampled.
5) a magnetic susceptibility log of allcore;
6) bulk density data for selectedsamples representing domainsidentified by the project geologist
Logging is recorded manually onlogging sheets and transcribed intoprotected Excel spreadsheettemplates or entered directly into theExcel templates. The data are
Criteria JORC Code explanation Commentary
validated by both the ProjectGeologist and the company DatabaseManager and uploaded to thededicated project database wherethey are merged with assay resultsreported digitally by the laboratory.Hard copies of all logging sheets arekept at the Project office in Daet.
The results from the two quarter coreduplicate samples are averagedbefore being entered into thegeochemistry database and reportedso that all geochemical datarepresents the results from half coresamples. The assay results reportedherein include averages of theduplicate samples. Samples withassay grades below detection levelare assigned a value of half (50%)the lower detection level value whenaveraging intervals for reporting. Notop cuts of assay data have beenconducted in the results reported.
Location ofdata points Accuracy and quality of surveysused to locate drill holes (collar anddown-hole surveys), trenches, mineworkings and other locations usedin Mineral Resource estimation.Specification of the grid systemused.Quality and adequacy oftopographic control. Drill-hole collars are initiallysurveyed with a hand-held GPS withan accuracy of approximately +/-5metres. Completed holes aresurveyed by an independent qualifiedsurveyor on a periodic basis usingstandard differential GPS (DGPS)equipment achieving sub-decimetreaccuracy in horizontal and verticalposition.
All of the holes reported herein havebeen surveyed with a handheld GPSwith coordinates provided inAppendix 1. This survey will besuperseded in due course by DGPSsurvey.
Drill collars are surveyed in UTMWGS84 Zone 51N grid which is thegrid for all project data.
The Mabilo project area is relativelyflat with total variation in topographyless than fifteen (15) metres.Topographic control is provided byDGPS surveying.
Dataspacinganddistribution Data spacing for reporting ofExploration Results.Whether the data spacing anddistribution is sufficient to establishthe degree of geological and grade The results reported herein are fromdrill holes with variable spacing butmostly on a nominal grid with 20metres between drill holes on 40metre spaced lines.
Criteria JORC Code explanation Commentary
continuity appropriate for theMineral Resource and Ore Reserveestimation procedure(s) andclassifications applied.Whether sample compositing hasbeen applied. The drill holes are at variable spacingdesigned to determine the continuityand extent of the mineralised skarnzones. Based on statisticalassessment of drill results to date, theplanned nominal 40 x 20 metre drillhole spacing is sufficient to supportfuture resource estimation. Noestimated grades or resourceestimations are included in thisreport.
No compositing of intervals in thefield was undertaken.
Orientationof data inrelation togeologicalstructure Whether the orientation of samplingachieves unbiased sampling ofpossible structures and the extentto which this is known, consideringthe deposit type.If the relationship between thedrilling orientation and theorientation of key mineralisedstructures is considered to haveintroduced a sampling bias, thisshould be assessed and reported ifmaterial. The assay data reported is from largemineralised magnetite-garnet skarnbodies. There is no indication thatmineralisation grade within thebodies is affected by internalstructures that affect the gradedistribution, thus the samplingreported herein is not biased. This isconfirmed by the similar resultsobtained from drill holes in multipleorientations.
There is no bias in the samplingreported herein related to drill-holeorientation. Orientation of somedrill-holes has resulted in apparentthickness greater than the truethickness. The orientation of all holesand the interpreted orientation of themineralisation is discussed in thereport.
Samplesecurity The measures taken to ensuresample security. Chain of custody is managed byRTG employees. Core trays are keptat the drill site under constant watchby Company employees prior tobeing transported from the drill siteby Company employees in aCompany vehicle to the core shedwhere core is logged, sawn andprepared for dispatch.
Remaining core is kept in theCompany core yard which is in asecure compound at the Companyregional office in Daet town andguarded at night.
Samples are sent directly from thecore shed to the laboratory packed insecured and sealed plastic drumsusing either Company vehicles or alocal transport company. A standard
Criteria JORC Code explanation Commentary
Chain of Custody form is signed bythe driver responsible fortransporting the samples upon receiptof samples at the core yard and issigned by an employee of thelaboratory on receipt of the samplesat the laboratory. Completed formsare returned to the Company forfiling.
Audits orreviews The results of any audits or reviewsof sampling techniques and data. The sampling techniques and QA/QCdata are reviewed on an ongoingbasis by Company management andindependent consultants.
Section 2 Reporting of Exploration Results
-- -- -- -- -------------------------------------------- --
Criteria JORC Code explanation Commentary
Mineraltenement andland tenurestatus Type, reference name/number,location and ownership includingagreements or material issueswith third parties such as jointventures, partnerships, overridingroyalties, native title interests,historical sites, wilderness ornational park and environmentalsettings.The security of the tenure held atthe time of reporting along withany known impediments toobtaining a licence to operate inthe area. The Mabilo Project is covered byExploration Permit EP-014-2013-Vand Exploration Permit ApplicationEXPA-000188-V. Drilling activitythe subject of this announcement iswithin EP-014-2013-V which wasgranted in July 2013 for two years,with the option to renew for anadditional 4 years. EP-014-2013-Vwas issued to Mt Labo Explorationand Development Corporation ("MtLabo"), an associated entity of RTGMining. There is a 1% royaltypayable on net mining revenuereceived by Mt Labo in relation toEP-014-2013-V.
Mt Labo has entered into a jointventure agreement with GaleoEquipment and Mining Company,Inc. ("Galeo") to partner in exploringand developing the Mabilo andNalesbitan Projects. Galeo can earnup to a 36% interest in the Projects,down to 200 metres below surface,by contributing approximatelyUS$4,250,000 of exploration drillingand management services for theProjects over a 2 year period.
In November 2013, Sierra MiningLimited ("Sierra"), a now whollyowned subsidiary ofRTG, and Galeosigned a Memorandum ofUnderstanding ("MOU") setting outproposed changes to the joint ventureagreement to remove the depth limit
Criteria JORC Code explanation Commentary
of 200 m from the agreement andprovide for additional drilling of5000 m below 200 m. The MOU alsoprovides for Galeo to be granted its36% interest up front with the abilityfor RTG to claw-back any interestdeemed not earned at the end of theclaw-back period. The amendmentsto the JV Agreement are subject toSierra shareholder approval.
Sierra has also entered a secondMOU with Galeo whereby Galeo canearn an additional 6% interest in thejoint venture by mining the initial 1.5Mt of waste at Mabilo or Nalesbitanand other requirements includingassistance with permitting. The MOUis subject to a number of conditionsprecedent, including Sierrashareholder approval.
There are no native title orIndigenous ancestral domains claimsat Mabilo.
The tenure over the area currentlybeing explored at Mabilo is a grantedExploration Permit which isconsidered secure.
Explorationdone by otherparties Acknowledgment and appraisal ofexploration by other parties. The only significant previousexploration over the Mabilo projectarea was a drilling program at anothersite within the tenement and a groundmagnetic survey. RTG or itspredecessor Sierra, has reported thisdata in previous reports to the ASXand used the ground magnetic surveyas a basis for initial drill siting.Subsequently RTG conducted its ownground magnetic survey with closerspaced survey lines and readingintervals which supersedes thehistorical program. There was noknown previous exploration in thearea where the drilling reportedherein was conducted.
Geology Deposit type, geological settingand style of mineralisation. Mineralisation at Mabilocan bedefined as a magnetite-copper-goldskarn which developed where themagnetite-copper-gold mineralisationreplaced calcareous horizons in theEocene age Tumbaga Formation inthe contact zone of a Miocene dioriteintrusion.
Criteria JORC Code explanation Commentary
Drill holeInformation A summary of all informationmaterial to the understanding ofthe exploration results including atabulation of the followinginformation for all Material drillholes:oeasting and northing of the drillhole collaroelevation or RL (ReducedLevel – elevation above sealevel in metres) of the drill holecollarodip and azimuth of the holeodown hole length andinterception depthohole length.If the exclusion of this informationis justified on the basis that theinformation is not Material and thisexclusion does not detract fromthe understanding of the report,the Competent Person shouldclearly explain why this is thecase. The sampling and geochemicalinformation contained in this report isfrom the second phase of drilling atMabilo which is ongoing. Theeasting, northing, elevation, dip,azimuth and end of hole depth of theholes reported herein is documentedin a table included as Appendix 1 tothis report. Down hole depths andwidths of intersections aredocumented in the text. The easting,northing, elevation and orientationfor all holes drilled at the Mabiloproject has been reported in this andprevious reports to the ASX.All relevant data has been reported.
Dataaggregationmethods In reporting Exploration Results,weighting averaging techniques,maximum and/or minimum gradetruncations (e.g. cutting of highgrades) and cut-off grades areusually Material and should bestated.Where aggregate interceptsincorporate short lengths of highgrade results and longer lengthsof low grade results, theprocedure used for suchaggregation should be stated andsome typical examples of suchaggregations should be shown indetail.The assumptions used for anyreporting of metal equivalentvalues should be clearly stated. Assays of samples of differentlengths are weighted for their lengthwhen averaging assays for the largeintervals reported herein. Where anyelement in an interval reported isbelow detection level it is assigned avalue of half (50%) of the lowerdetection level when averagingmineralised intervals for reporting.Intervals with no core recovery areassigned zero value when averagingresults. No top or bottom cuts havebeen made to the assay data.Composite intervals have reportedbased on nominal cut-off grades of0.5 g/t gold and 0.5% copper.The Mabilo skarn mineralisation islarge with a relatively uniform grade.Higher or lower grade zones with themineralised bodies are wider thansample intervals. The average gradesreported herein are based on samplewidths of average 1 metre width.Where an average grade contains ahigh grade intersection the high gradeintersection has also been reported.No metal equivalent grades arereported herein.
Relationshipbetweenmineralisation These relationships areparticularly important in thereporting of Exploration Results. The holes reported herein have beendrilled both vertically and inclined.The orientation of the mineralised
Criteria JORC Code explanation Commentary
widths andinterceptlengths If the geometry of themineralisation with respect to thedrill hole angle is known, its natureshould be reported.If it is not known and only thedown hole lengths are reported, bodies is based on interpretation ofgeology from drill holes supported bymagnetic modelling which indicatesthat much of the mineralisation isdipping to the southwest.
there should be a clear statementto this effect (eg 'down holelength, true width not known'). The interpreted orientation of themineralised bodies is based onmagnetic modelling and drill-holedata and is documented in the report.The fact that the intersections are in adipping body and therefore not truewidths is reported and no intervalsreported herein can be assumed to bea true width of the mineralisation.
Diagrams Appropriate maps and sections(with scales) and tabulations ofintercepts should be included forany significant discovery beingreported These should include,but not be limited to a plan view ofdrill hole collar locations andappropriate sectional views. Plan view maps showing locations ofall holes reported along withmagnetic images are included in thereport. The interpreted geometry ofthe host geology and the mineralisedskarn bodies is illustrated in crosssection.
Balancedreporting Where comprehensive reporting ofall Exploration Results is notpracticable, representativereporting of both low and highgrades and/or widths should bepracticed to avoid misleadingreporting of Exploration Results. The report documents the assayresults of intersections of themineralised magnetite skarn. Lowgrade sample results from adjacentrocks outside the mineralised bodyare reported. Barren or very lowgrade results are not reported. Assaysfrom drill holes which did notintersect mineralisation are notreported but their location is shownon plans in the report.
Othersubstantiveexplorationdata Other exploration data, ifmeaningful and material, shouldbe reported including (but notlimited to): geologicalobservations; geophysical surveyresults; geochemical surveyresults; bulk samples – size andmethod of treatment; metallurgicaltest results; bulk density,groundwater, geotechnical androck characteristics; potentialdeleterious or contaminatingsubstances. All meaningful exploration dataconcerning the Mabilo Project hasbeen reported either in previousreports to the ASX or in the currentreport to which this table is attached.
Further work The nature and scale of plannedfurther work (e.g. tests for lateralextensions or depth extensions orlarge-scale step-out drilling).Diagrams clearly highlighting theareas of possible extensions,including the main geologicalinterpretations and future drillingareas, provided this information is The attached report is an interimreport on an ongoing drilling programwhich will systematically testmagnetic bodies and step-out targetsalong strike and between the NorthMineralised Zone and the SouthMineralised Zone as well as downdip from these zones.
Criteria JORC Code explanation Commentary
not commercially sensitive.