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RTG Mining Inc. Interim / Quarterly Report 2014

Jul 30, 2014

47130_rns_2014-07-30_d2b3d116-c866-417d-a3aa-744446d906e5.pdf

Interim / Quarterly Report

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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

JUNE 2014 QUARTERLY REPORT

ANNOUNCEMENT TO THE TORONTO STOCK EXCHANGE AND AUSTRALIAN SECURITIES EXCHANGE

30 JULY 2014

HIGHLIGHTS

Limited ("Sierra") Successful implementation of the schemes of arrangement andacquisition by RTG of all of the outstanding shares of Sierra Mining
Cash and liquid assets on hand as at 30 June 2014 of US$10.687M
Step out drilling of the Southern Mineralised Zone extended mineralizationto the south-east by 150m
Down dip drilling of the Southern Mineralised Zone has extended depth by125m
Drilling on the north-eastern end of the Southern Mineralised Zones hasintersected broad widths of supergene Copper
southern direction Drilling of the North Mineralised Zone has extended mineralization in the
Summary of significant step out and in fill intercepts for the quarter
Hole ID Intercept width Grade (g/t Au) DownholeDepth From
MDH-053 47.05m 1.64 g/t Au, 1.40 % Cu and 55.76% Fe 108m
MDH-057 24.7m 3.41 g/t Au, 2.98 % Cu and 51.56% Fe 129m
MDH-046 40.45m 1.81 g/t Au, 1.38 % Cu and 41.26 % Fe 237.3m
MDH-048 104.6m 1.78 g/t Au, 1.79% Cu and 43.41% Fe 43m

MABILO PROJECT

Background

The Mabilo Project is located in Camarines Norte Province, Eastern Luzon, Philippines. It is comprised of one granted Exploration Permit (EP-014-2013-V) of approximately 498 ha and one Exploration Permit Application (EXPA-000188-V) of 2,820 ha. The Project area is relatively flat and is easily accessed by 15 km of allweather road from the highway at the nearby town of Labo.

Massive magnetite mineralisation containing significant copper and gold grades occurs as replacement bodies together with mineralized garnet skarn and calcsilicate altered rocks within a sequence of hornfelsed sediments of the Eocene aged Tumbaga Formation. The garnet and magnetite skarn rocks were extensively altered by argillic retrograde alteration and weathering prior to being covered by 25-60 metres of post mineralisation Quaternary volcaniclastics (tuff and lahar deposits) of the Mt Labo Volcanic Complex. The deposits are localised along the margins of a diorite stock which does not outcrop within the Exploration Permit.

The primary copper mineralisation (predominantly chalcopyrite with lesser bornite) occurs as disseminated blebs and aggregates interstitial to magnetite grains and in voids within the magnetite. A strong correlation between gold and copper values in the un-weathered magnetite skarn indicates the gold is hosted by the chalcopyrite. A late stage phase of sulphide mineralisation (predominantly pyrite) veins and locally brecciates the magnetite mineralisation.

Figure 1. RTP ground magnetic image with modelled South, North and East magnetic bodies.

In places the more shallow upper parts of the magnetite skarn bodies were weathered to form hematite skarn. Copper in the weathered zone was remobilised forming high-grade supergene copper zones (chalcocite and native copper) at the base of the weathering profile. The gold was more variable, remobilised throughout the hematite skarn and is domained within garnet skarn and calc-silicate altered country rocks in places. The average iron grade of the hematite skarn is consistent with the magnetite skarn.

Sierra discovered the mineralisation in 2012 during a reconnaissance drilling program targeted on magnetic anomalies from a ground magnetic survey conducted by a former explorer. Sierra subsequently conducted a new ground magnetic survey in early 2013, remodeled the data and commenced a second phase of drilling in mid 2013.

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. Drilling is ongoing and fifty seven holes had been completed at the end of the Quarter with further drilling ongoing.

South Body

Drilling has been concentrated on the South Mineralised Zone extending strike towards the South East and down dip. Recent advances in 3D modeling indicate the previously termed South A and South B Bodies are offset by a late fault with mineralization extending across the zone, with the South A body being uplifted relative to the South B body facilitating oxidation and supergene development.

Drilling in the June quarter focused on extending the strike length to the limits of the magnetic model. Recent drilling, returning high grade copper and gold, has extended the continuation of mineralised strike beyond the current magnetic model extents. Further drilling down dip and 3D modeling also confirms the potential of a large tabular shaped body which strikes NW and dips variably to the SW at approximately 50-60 degrees (Figure ).

Figure 2. Magnetic model and Isotropic Copper grade shell model

The magnetic modeled body is approximately 340 meters long. Recent drilling has extended the strike length by 120m to the South East (Figure ). The total strike length of the South mineralized zone is now approximately 360m and remains open in both the southern and northern directions. Recent drilling has confirmed the mineral system extends down dip by more than 125m in the SW direction. Assay results of down dip drill holes MDH-65 and MDH-60 have not been received, limited geology observations from these to recent holes indicate the true width of the magnetite skarn is approximately 30m. The system remains open at this depth and is beyond the reliable penetration depth of the magnetic modeling.

Significant intersections returned from the South Body during the Quarter are listed below and the hole locations are shown in figure 4. A full list of drilling undertaken during the quarter is reported in Appendix 1.

Figure 3. RTP ground magnetic image with completed drill holes and ongoing drilling. Drill hole locations during the June Quarter (yellow), Drill hole results awaited (green), previously reported drill holes (black) and current drilling (red).

MDH-038 and MDH-044 both targeted up dip extension of mineralization in a position drilled towards the North East, proximal to intrusive diorite. Both drill holes were weakly mineralized. New insights into the system with 3D modeling reveal lateral lithological variation in this part of the system resulted in poorly developed magnetite skarn. Lithology is predominately garnet skarn and calc silicates.

MDH-046

A vertical hole drilled to test the down dip extent of the high grade mineralisation intersected in MDH-016 and MDH-040. Mineralised magnetite skarn was intersected in two intervals between the marble as shown in the table below.

MDH-046 From To Intercept (m) Au ppm Cu % Ag ppm Fe %
237.30 277.75 40.45 1.81 1.38 25.00 41.26
and 284.25 288.45 4.20 2.13 1.96 16.50 50.55

Figure 4. Geology interpretation of MDH046

MDH-053

A vertical hole drilled to test the strike continuation of the high grade mineralisation in MDH-040 and MDH-016. The hole intersected magnetite-chalcopyrite mineralisation from 108 to 182.8 metres, visually consistent with the results from MDH-040 and MDH-016. Significantly the hole also intersected an extensive zone of mixed magnetite-garnet skarn from 187.8m to 221.1m overlying a zone of garnet skarn/hornfelsed sediments containing chalcopyrite along fractures to the EOH at 243.9m.

MDH-053 From To Intercept (m) Au ppm Cu % Ag ppm Fe %
108.00 155.05 47.05 1.64 1.40 5.06 55.76
including 108.00 116.30 8.30 2.31 2.06 3.55 61.61
including 118.50 122.90 4.40 1.68 1.28 2.56 55.57
including 125.00 132.00 7.00 1.04 0.88 2.11 55.14
including 136.00 155.05 19.05 1.98 1.65 8.77 54.82
And 160.00 178.00 18.00 3.12 1.25 7.51 42.16
And 183.40 185.00 1.60 5.79 2.25 28.85 4.63
And 187.85 206.00 18.15 3.29 0.80 5.82 41.73

Figure 5. Geological interpretation of MDH-053 and recently completed drill hole MDH-065

MDH-055

An angled hole drilled from the same collar as MDH-053 to test the up dip continuity of the mineralisation in MDH-053. The hole intersected a zone of mixed magnetitechalcopyrite, pyrite and garnet skarn over 30.75 metres consistent with the intersection in MDH-44 along strike to the NW.

MDH-055 From To Intercept (m) Au ppm Cu % Ag ppm Fe %
112.00 122.00 10.00 1.16 0.47 1.72 43.64
and 126.00 137.00 11.00 0.76 0.30 0.49 50.62
and 148.00 157.90 9.90 2.12 0.54 1.63 10.33

MDH-056

An angled hole to test the down dip extent of the mineralisation in holes MDH-018 and MDH-019. Initial attempt to drill the target was abandoned (MDH-051) at 166 meters due to drilling difficulties. The hole was re-drilled (as MDH-56) and intersected weak mineralisation. Geology consists of brecciated magnetite skarn strongly overprinted by argilic alteration. The hole ended in sediments with strong calc-silicate alteration. The target will be revisited in the next quarter.

MDH-056 From To Intercept (m) Au ppm Cu % Ag ppm Fe %
148.70 158.00 9.30 0.13 1.08 5.25 9.55
and 190.00 199.00 9.00 1.00 1.08 3.70 20.87
and 231.40 236.30 4.90 1.51 1.53 8.54 24.24

MDH-057

A vertical hole to further test the strike extent of mineralisation in hole MDH-053. The hole encountered magnetite skarn with significant chalcopyrite mineralisation consistent with drill holes along strike MDH-053 and MDH-040. The hole is the south eastern most drill hole within the South Mineralized Zone and is just outside the magnetic model. The system remains open to the south east.

MDH-057 From To Intercept(m) Au ppm Cu % Ag ppm Fe %
129.00 153.70 24.70 3.41 2.98 8.91 51.56
including 129.40 134.00 4.60 3.99 3.60 4.81 51.59
including 137.90 140.00 2.10 6.99 5.25 9.55 54.42
including 149.20 153.70 4.50 7.22 6.42 24.44 51.56

Figure 6. Geological interpretation of MDH-057

MDH-060, MDH-065 and MDH-066

Drilling was also completed on these holes in the Southern Mineralised Zone.

MDH-060, figure 6, intersected targeted magnetite skarn from 193m-235m. Magnetite skarn is partly brecciated with silica-pyrite overprinting. Mineralization is visually similar to MDH-057, assays pending.

MDH-065

MDH-065 intersected magnetite skarn from 175m to 217m. Magnetite skarn is brecciated in places with silica pyrite overprinting. Chalcopyrite occurs as disseminations within magnetite clasts and as patchy coarse grained chalcopyrite intergrowths with magnetite, assays pending.

MDH-066

MDH-066 has successfully intersected supergne copper mineralisation from 48.2m to 89.5m. The result highlights the potential of the system outside the magnetic model between the south and north mineralized zones, the area has been prioritized for further drilling, assay pending.

NORTH MINERALISED ZONE

The North Mineralised Zone is a discrete body of massive magnetite-Cu-Au mineralisation located approximately 200 metres to the north of the South Body. Reconnaissance drilling in 2012 returned extensive intervals of magnetite-coppergold mineralisation. MDH-020, the first hole in the second phase of drilling, intersected a very high grade supergene copper zone overlying the magnetite skarn. Drilling has not yet been sufficient to determine down dip extents, no true width has been determined all results are therefore reported as down hole results. The results of three holes completed during the Quarter are reported below.

MDH-039

An angled hole designed to investigate the southern strike extent of the North Mineralised Zone. The hole intersected andesite, hornfelsed sediment and minor garnet skarn interpreted to represent the contact zone between the sediment host sequence and the diorite body. Variably elevated Cu, Au and Fe values were recorded but no significant mineralisation was intersected.

MDH-041

An angled hole drilled to test the zone of mineralisation intersected in hole MDH-011 to the north of the magnetite body. The hole intersected argillic altered and weathered hornfelsed sediment and retrograde altered garnet skarn with disseminated chalcocite and chalcopyrite.

MDH-041 From To Intercept (m) Au ppm Cu % Ag ppm Fe %
56.20 87.50 31.30 1.54 3.94 23.50 17.93
including 71.00 75.00 4.00 1.59 13.85 76.30 23.08
and 87.80 111.00 23.20 0.30 0.36 2.00 23.04
total intercept 56.20 111.00 54.80 1.01 2.40 14.30 19.99

The hole was drilled sub-parallel to and approximately 40 m north of the modeled magnetite body thus confirming the northern strike extent of the North Mineralised Zone.

MDH-043

A steeply angled hole drilled from the same collar as MDH-041 was abandoned on the interpreted edge of mineralisation due to drilling difficulties. The hole intersected a supergene enriched zone (disseminated chalcocite) up hole and a bottom of hole intercept grading 1.70% copper on the edge of the interpreted magnetite skarn mineralisation.

MDH-043 From To Intercept (m) Au ppm Cu % Ag ppm Fe %
48.00 51.40 3.40 0.81 2.68 18.50 9.17
and 76.00 115.90 39.90 0.07 0.16 1.10 14.33
including 115.40 115.90 0.50 0.38 1.70 3.50 13.51

MDH-045

A vertical hole to test the east edge of the North Mineralised Zone and a potential extension of the high grade supergene zone in MDH-020. The hole intersected magnetite skarn with an upper oxidized hematite zone containing a zone of chalcocite enrichment. The magnetite skarn is underlain by andesite and garnet skarn containing widespread chalcopyrite along fractures.

MDH-045 From To Intercept (m) Au ppm Cu % Ag ppm Fe %
44.00 61.60 17.60 2.16 6.52 10.10 44.29
including 45.80 52.40 6.60 2.05 13.77 16.90 37.30
and 61.60 84.40 22.80 0.48 0.66 3.80 4.78
total intercept 44.00 84.40 40.40 1.21 3.22 6.60 21.99

MDH-048

An angled hole drilled to the SW from the same collar as MDH-045 to test the southern margin of the modeled magnetite body. The hole intersected magnetitechalcopyrite mineralisation extending 20m south of the boundary of the modeled body, before passing through the base of the magnetite into a mineralised silicapyrite matrix breccia.

Intercept Au Ag
MDH-048 From To (m) ppm Cu % ppm Fe %
43.00 147.60 104.60 1.78 1.79 11.90 43.41
No core
recovery 147.60 147.80 0.20
147.8
0 209.2 61.40 0.46 0.38 2.10 13.91
total
intercept 43.00 209.20 166.20 1.29 1.27 8.30 32.46

MDH-050

A -50 degree angled hole to test the mineralisation immediately north of the North Mineralised Zone magnetic model boundary. The hole appears to have intersected the possible upper western edge of the magnetite skarn, intersecting hematitic oxidized magnetite and garnet skarn from 71 - 90.05 metres, and a mineralised breccia zone from 138.6 to 151.4 metres.

MDH-050 From To Intercept (m) Au ppm Cu % Ag ppm Fe %
71.00 90.05 19.05 1.07 0.58 1.80 25.93
and 138.60 151.40 12.80 0.62 0.79 7.00 16.28

MDH-052

A -65 degree angled hole drilled from the same collar as MDH-050. The hole intersected a hematite rich zone from 70 to 75 metres and a zone intercalated magnetite/hematite skarn and clay altered garnet skarn from 91 m to 185.2 metres where it passed into marble. Chalcopyrite is abundant in places within the magnetite skarn. However poor core recoveries through mineral zones mean the assays are not reportable.

MDH-054

An angled hole to further test the mineralisation in MDH-052. The hole intersected a hematite zone between 116 and 131.5 metres and massive magnetite-chalcopyrite from 171 - 190 metres.

MDH-054 From To Intercept (m) Auppm Cu % Ag ppm Fe %
171.00 188.4 17.40 1.80 2.04 10.99 48.69
including 172.00 180.70 9.70 2.38 2.89 11.03 50.07

MDH-058

A vertical hole to test southward continuation of the North Mineralized Zone. The hole encountered a breccia zone with strong argilic overprinting with minor instances of weakly mineralized magnetite clasts. Further drilling is planned to investigate south of the fault breccia zone. No significant assay returned.

EAST MINERALISED ZONE

The East Mineralised Zone is a magnetic anomaly (SE anomaly) located approximately 550m East of the South Mineralized Zone (figure 3). Three drill holes previously reported by Sierra on 3rd April highlighted the potential of the East Mineralized Zone to host high grade magnetite mineralization although copper and gold mineralization is relatively lower. In the June quarter three more drill holes continued to target the magnetic model in addition to investigate the system's lateral extents. The orientation of the mineralisation to date has not been determined, as such no true width has been assigned and all intercepts are down hole.

MDH-047 tested the north eastern limits of the system, intersecting calc silicate altered sediments. A zone of collapse breccia with magnetite clasts contained moderate mineralization:

9.75m at 0.42g/t Au, 0.93% Cu and 46.61% Fe.

MDH-042 investigated the northern part of the system and intercepted nonmineralized intrusive diorite. MDH-049 tested the south western part of the system intercepting marble cut by thin zones of magnetite skarn without significant copper and gold assays.

The East Mineralized Zone remains significant for high grade magnetite, the system remains open along strike to the East and West. The magnetic survey suggests a connection regionally with the South Mineralized Zone, however this connection has not been investigated and remains the subject of further investigation.

OTHER PROJECTS

No significant work was conducted on RTG's other projects in the Philippines during the Quarter.

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.

CORPORATE

As at 30 June 2014, RTG held cash and liquid assets of US$10.687M (March quarter: US$12.434M). On 4 June 2014, RTG completed the implementation of the schemes of arrangement (the "Schemes") in accordance with the terms of the previously announced Scheme Implementation Deed dated February 24, 2014 (the "Deed") between RTG and Sierra Mining Limited ("Sierra").

Pursuant to the Schemes, RTG acquired all of the outstanding shares of Sierra ("Sierra Shares") and all of the outstanding listed options of Sierra ("Sierra Options"), and issued as consideration:

  • (a) to eligible shareholders of Sierra, 3 new ordinary shares of RTG ("RTG Shares") for every 10 Sierra Shares held and 1 new share purchase option of the Company ("RTG Option") for every 30 Sierra Shares held; and
  • (b) to eligible optionholders of Sierra, 2 RTG Shares for every 10 Sierra Options held and 2 RTG Options for every 90 Sierra Options held.

The Company also acquired all unlisted Sierra Options ("Sierra Unlisted Options"), and issued as consideration to such holders of Sierra Unlisted Options:

  • (a) 1 RTG Share for every 10 Sierra Unlisted Options exercisable at $0.20 each on or before July 1, 2014, together with 1 RTG Option for every 90 Sierra Unlisted Options held; and
  • (b) 1 RTG Share for every 20 Sierra Unlisted Options exercisable at $0.25 each on or before July 1, 2015, together with 1 RTG Option for every 180 Sierra Unlisted Options held.

The TSX approved the listing of the RTG Options and the additional listing of RTG Shares. In addition, RTG Shares and RTG Options (in the form of CDIs) began trading on the ASX as of June 5, 2014, under the trading symbols, "RTG" and "RTGO", respectively. In total, the Company issued 79,063,206 RTG Shares and 8,784,854 RTG Options. As at 30 June 2014, the Company had 8,784,854 options on issue, exercisable at C$1.50 and expiring 4 June 2017, and the total issued capital was 111,717,070 fully paid ordinary shares. Subsequent to 30 June 2014, RTG has also issued 256,000 RTG Shares in connection with the Haywood Fee, as defined in the Circular dated April 8, 2014, and has issued 167 CDIs upon the exercise of options.

Pursuant to the Schemes, RTG has acquired an interest in a number of associate entities by way of a direct 40% interest in each of Mt Labo Exploration & Development Corporation, St Ignatius Exploration and Mineral Resources Corporation, Bunawan Mining Corporation and Oz Metals Exploration and Development Corporation and a further indirect 24% interest in Mt Labo Exploration and Development Corporation.

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. Statement regarding interpretation of exploration results, plans for further exploration and accuracy of mineral resource and mineral reserve estimates and related assumptions and inherent operating risks, are forwardlooking 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 and the Scheme Booklet dated 10 April 2014 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-38 South A Resource 476094 1559915 118 -60 50 132
MDH-39 North Resource 476081 1560164 120 -60 90 124
MDH-40 South B Resource 476169 1559793 124 -90 0 185
MDH-41 North Resource 476065 1560320 114 -60 90 135
MDH-42 East Exploratory 476782 1559813 114 -90 0 120
MDH-43* North Resource 476065 1560320 114 -80 90 116
MDH-44 South B Resource 476169 1559793 124 -60 50 155
MDH-45 North Resource 476134 1560242 105 -90 0 132
MDH-46 South B Resource 476116 1559787 120 -90 0 325
MDH-47 East Exploratory 476860 1559860 127 -80 160 136
MDH-48 North Resource 476134 1560242 105 -60 215 231
MDH-49 East Exploratory 476775 1559730 128 -90 0 214
MDH-50 North Resource 476147 1560295 110 -50 270 192
MDH-51* South B Resource 476040 1559795 110 -60 50 167
MDH-52 North Resource 476147 1560295 110 -65 270 194
MDH-53 South B Resource 476215 1559753 125 -90 0 244
MDH-54 North Resource 476194 1560298 112 -60 270 232
MDH-55 South B Resource 476215 1559753 125 -75 50 181
MDH-56 South B Resource 476040 1559795 110 -65 50 252
MDH-57 South B Resource 476243 1559725 131 -90 0 287
MDH-58 North Resource 476068 1560164 120 -90 0 201
MDH-59* South B Resource 476125 1559691 120 -70 50 154
MDH-60** South B Geotechnical 476152 1559665 118 -70 50 298
MDH-61 South B Geotechnical 476275 1559801 130 -60 230 164
MDH-62 South A Geotechnical 475932 1560093 135 -60 135 119
MDH-63* South B Resource 476131 1559707 120 -70 50 142
MDH-64* South B Metallurgy 476098 1559729 117 -65 50 130
MDH-65** South B Resource 476126 1559700 120 -70 50 263
MDH-66** South A Metallurgy 476026 1559992 113 -60 50 172
MDH-67 South B Metallurgy 476098 1559726 117 -65 50 in progress
MDH-68 South A Resource 475975 1559992 110 -60 50 in progress
MDH-69 South A Metallurgy 476047 1559856 132 -60 50 in progress

Appendix 1: Location of Reported Drill Holes

  • Abandoned drill holes failed to reach target depth, no significant mineralisation.
  • Assay Results pending for MDH-60, MDH-65, MDH-66
  • Results for MDH-52 are not reported because of poor core recovery.
  • Geotechnical Drill Hole MDH-62 reported no significant mineralization.
  • MDH-40 was reported in the previous quarterly report.

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

The intersections reported are in a dipping body and therefore are not true widths and no intervals reported herein can be assumed to be a true width of the mineralisation.

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,or specific 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 measures•taken to ensure samplerepresentivity and the appropriatecalibration of any measurementtools or systems used.Aspects of the determination of•mineralisation that are Material tothe Public Report. The assay data reported hereinisbasedonsamplingofdiamond drill core of PQ and HQdiameter which was cut with adiamond core saw. Samples aregenerallyof1metrelengthalthoughoccasionallyslightlylonger or shorter where changesin lithology, core size or corerecovery required adjustments;samples are not more than 2metres length.Half core samples were cut andsentforanalysisbyanindependentISO-certifiedlaboratory(IntertekMcPharLaboratory) in Manila. Sampleswerecrushedandpulverised(95%<75ɥm).Goldwasanalysed by 50 gram fire assayand the other elements includingcopperandironbyICP-MS(InductivelyCoupledPlasmaMass Spectrometry) or ICP-OES(InductivelyCoupledPlasmaOptical 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 analysis separately
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, as a duplicate sample.DrillingwasbyPQandHQdiameter,tripletubediamondcoring.Down-holesurveyingwas completed with a Reflexgyro down-hole instrument due
depth of diamond tails, facesampling bit or other type, whethercore is oriented and if so, by whatmethod, etc). tothehighlymagneticmineralisation. The core was notorientated
Criteria JORC Code explanation Commentary
Drillsamplerecovery Method of recording and assessing•core and chip sample recoveriesand results assessed.Measures taken to maximise•sample recovery and ensurerepresentative nature of thesamples.Whether a relationship exists•between sample recovery andgrade and whether sample biasmay have occurred due topreferential loss/gain of fine/coarsematerial. Corerecoveryisinitiallymeasuredonsitebytrainedtechniciansandagaininthecore shed by the core shedgeologist.Anycorelossismeasured,thepercentageiscalculatedandbotharerecorded in the geotechnical logfor reference when assessingassayresults.Ininstanceswhere core breaks off before thebottom of the hole leading to"apparentpoorrecovery"followed by a core run of >100%recovery, an adjustment is madein the records
Themajorityofthemineralisation is in fresh rockwhererecoveriesaregreaterthan 90%. Most mineralisationoccurs in wide intersections ofmassive magnetite skarn withrelativelyuniformcopperandgold grades. Core loss occurs infracture zones but is usually notasignificantproblemi.e.thecore lost in fracture zones isunlikelytohavebeensignificantlyhigherorlowergradethanthesurroundingmaterial.Intheweatheredhematitic oxidised zones somecore loss is unavoidable, butoverallrecoveryisgenerally>90%andthecorelossisvolumetricallyminorinthemineralised zones. In areas ofpoorrecovery,thesampleintervalsarearrangedtocoincidewithdrillruns,thusareasofdifferentcorelosspercentagearespecifictoindividual samples which can beassessedwheninterpretinganalytical results and modelledinfutureresourceestimationstudies. Where an area of 100%core loss is identified the sampleintervals are marked to eachside of the zone and the zone isdesignated"Nocore"andassignedzerovalueinthevariouslogsheetsandgeochemical database.Allcareistakentoensure
Criteria JORC Code explanation Commentary
maximum recovery of diamondcore and drillers are informed ofthe importance of core recovery.Any areas of poor core recoveryaresampledseparatelythusassay results can be directlyrelated to core recovery.
Thereisnodiscerniblerelationshipbetweencorerecovery and grade. The skarnbodiesarerelativelyuniformover significant lengths and thecopper and gold grades are notrelatedtoclayandfracturezoneswhicharethemaincauses of core loss.
Logging Whether core and chip samples•have been geologically andgeotechnically logged to a level ofdetail to support appropriateMineral Resource estimation,mining studies and metallurgicalstudies.Whether logging is qualitative or•quantitative in nature. Core (orcostean, channel, etc.)photography.The total length and percentage of•the relevant intersections logged. Diamond drill core for each entiredrill hole was logged in significantdetail ina number of loggingsheets including a geological log,a structural log, a geotechnicallog and a magnetic susceptibilitylogfortheentiredrillhole.Mineralisedandsampledintervals are logged individuallyin a separate quantitative minerallogwithpercentagesofthedifferent copper minerals beingrecorded.Theloggingisappropriate for mineral resourceestimatesandminingstudies,neitherofwhicharereportedhereinMost of the geological logging is
amixtureofqualitative(descriptionsofthevariousgeologicalfeatures)andquantitative (numbers and anglesofveinsandfracturezones,mineral percentages etc.). Thequantitativemineralisationlogand the magnetic susceptibilitylog are quantitative. Photographsare taken of all core (both wetand dry) prior to the core beingcut.Allcore,includingbarren
overburdenisloggedinthevariousloggingsheetsnotedabove apart from the quantitativemineralisation log in which onlythe mineralised intervals sent forgeochemical analysis are logged
Criteria JORC Code explanation Commentary
in greater detail.
Subsamplingtechniquesandsamplepreparation If core, whether cut or sawn and•whether quarter, half or all coretaken.If non-core, whether riffled, tube•sampled, rotary split, etc andwhether sampled wet or dry.For all sample types, the nature,•quality and appropriateness of thesample preparation technique.Quality control procedures adopted•for all sub-sampling stages tomaximise representivity ofsamples.Measures taken to ensure that the•sampling is representative of the insitu material collected, including forinstance results for fieldduplicate/second-half sampling.Whether sample sizes are•appropriate to the grain size of thematerial being sampled. All sampling data reported is fromdiamond drill core. Samples areofsawnhalfcoreexceptforduplicatesampleswhicharequarter core. Half core is baggedandsenttoanISO-certifiedindependentlaboratoryforanalysis. The other half retainedforreferenceand/orfurthertestwork.Allcoresamplesweredried,crushed to95% <10 mm and a1.5 kg sub-sample is separatedusingarifflesplitterandpulverised to 95% <75 µm. A 50g sub-sample is utilised as a fireassay charge for gold analysis.Thesamplepreparationtechnique and sub-sampling isappropriate for the mineralisation.Blanksamplesandduplicatesamples are submitted routinelytomonitorthesamplingandanalytical process and to ensurethat samples are representativeof in situ material. One in every20 samples of half core is sawnagaintoproducetwoquartercore duplicate samples which aresubmittedtothelaboratoryseparately with different samplenumbers. A blank sample wasinsertedintosamplebatchesevery 20th samples.Themagnetiteskarnmineralisationoccursinextensivezonesofmagnetiteskarnwithdisseminatedchalcopyrite, containing gold. Thesample size of approximately onemetre core length is suitable inrespect to the grain size of themineralisation
Qualityofassay dataandlaboratorytests The nature, quality and•appropriateness 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 and All core samples were analysedat an ISO-certified independentlaboratory. Gold was analysed by50 g fire assay and the otherelements including copper andiron were analysed by ICP-MS orICP-OES following a four aciddigest. The sample preparationand assay techniques used for
Criteria JORC Code explanation Commentary
model, reading times, calibrationsfactors applied and their derivation,etc.Nature of quality control• the assay results reported hereinareofinternationalindustrystandard and can be consideredtotal.
procedures adopted (e.g.standards, blanks, duplicates,external laboratory checks) andwhether acceptable levels ofaccuracy (ie lack of bias) andprecision have been established. No geophysical tools were usedfor any analysis reported herein.Magnetic susceptibility readingsare used in magnetic modellingbut are not used to estimatemagnetite or Fe content.
QualitycontrolcompletedbyRTGincludedanalysisofstandards,blanks,andduplicates. Commercial CertifiedReferenceMaterials(OREAS901, 503, 15d, 504, 503b, 502,501b, 401, 40, 22c, 15d & 112)wereinsertedintosamplebatches every 40th sample. Ablank sample was inserted every20th sample; the blank samplematerial has been sourced andprepared from a local quarry.One in every 20 core samples iscut into 2 quarter core sampleswhichweresubmittedindependentlywiththeirownsamplenumbers.Inaddition,Intertekconductedtheirownextensive check sampling as partoftheirowninternalQAQCprocesses which is reported inthe assay sheets. A record ofresults from all duplicates,blanksand standards is maintained forongoingQA/QCassessment.Examination of all the QAQCsampledataindicatessatisfactory performance of fieldsampling protocols and the assaylaboratory.
Verificationofsamplingandassaying The verification of significant•intersections by either independentor alternative company personnel.The use of twinned holes.•Documentation of primary data,•data entry procedures, dataverification, data storage (physicaland electronic) protocols.Discuss any adjustment to assay•data. The geochemical results reportedhereinandthecalculatedaverages for different lithologytypeswerecheckedandcalculatedbytwocompanypersonnel.Notwinnedholeshavebeen
drilled.Data documentation, verificationandstorageisconductedinaccordance with RTG's StandardOperating Procedures Manual for
Criteria JORC Code explanation Commentary
the Mabilo Project. The diamonddrill core is manually logged insignificant detail in a number ofseparate excel template loggingsheets including:
1) a geological log of all core,recordingmineralogy,lithology,alteration,degreeofoxidationand mineralisation;
2) a structural log of all core,recording alpha angles, structureand vein types and quantity andvein infill minerals;
3) a geotechnical log of all corerecording RQD, defects, fabrics;
4) a quantitative mineralisationlog of all intervals sampled.
5) a magnetic susceptibility log ofall core;
6) bulk density data for selectedsamplesrepresentingdomainsidentified by the project geologist
Logging is recorded manually onlogging sheets and transcribedinto protected Excel spreadsheettemplates or entered directly intothe Excel templates. The dataare validated by both the ProjectGeologistandthecompanyDatabase Manager and uploadedto the dedicated project databasewheretheyaremergedwithassay results reported digitally bythe laboratory. Hard copies of alllogging sheets are kept at theProject office in Daet.
The results from the two quartercoreduplicatesamplesareaveraged before being enteredinto the geochemistry databaseandreportedsothatallgeochemical data represents theresults from half core samples.The assay results reported hereininclude averages of the duplicatesamples.Sampleswithassaygrades below detection level areassigned a value of half (50%)the lower detection level valuewhenaveragingintervalsforreporting. No top cuts of assaydata have been conducted in the
Criteria JORC Code explanation Commentary
results reported.
Location ofdata points Accuracy and quality of surveys•used to locate drill holes (collar anddown-hole surveys), trenches,mine workings and other locationsused in Mineral Resourceestimation.Specification of the grid system•used.Quality and adequacy of•topographic control. Drill-holecollarsareinitiallysurveyed with a hand-held GPSwithanaccuracyofapproximately+/-5metres.Completed holes are surveyed byanindependentqualifiedsurveyoronaperiodicbasisusing standard differential GPS(DGPS)equipmentachievingsub-decimetreaccuracyinhorizontal and vertical position.
All of the holes reported hereinhavebeensurveyedwithahandheld GPS with coordinatesprovidedinAppendix1.Thissurvey will be superseded in duecourse by DGPS survey.
Drill collars are surveyed in UTMWGS84 Zone 51N grid which isthe grid for all project data.
TheMabiloprojectareaisrelatively flat with total variation intopography less than fifteen (15)metres. Topographic control isprovided by DGPS surveying.
Dataspacinganddistribution Data spacing for reporting of•Exploration Results.Whether the data spacing and•distribution is sufficient to establishthe degree of geological and grade The results reported herein arefromdrillholeswithvariablespacing but mostly on a nominalgrid with 20 metres between drillholes on 40 metre spaced lines.
continuity appropriate for theMineral Resource and Ore Reserveestimation procedure(s) andclassifications applied.Whether sample compositing has•been applied. The drill holes are at variablespacing designed to determinethe continuity and extent of themineralised skarn zones. Basedon statistical assessment of drillresultstodate,theplannednominal 40 x 20 metre drill holespacing is sufficient to supportfuture resource estimation. Noestimatedgradesorresourceestimations are included in thisreport.
No compositing of intervals in thefield was undertaken.
Orientationof data inrelationtogeologicalstructure Whether the orientation of•sampling achieves unbiasedsampling of possible structures andthe extent to which this is known,considering the deposit type.If the relationship between the•drilling orientation and the The assay data reported is fromlargemineralisedmagnetitegarnet skarn bodies. There is noindicationthatmineralisationgradewithinthebodiesisaffectedbyinternalstructuresthat affect the grade distribution,
Criteria JORC Code explanation Commentary
orientation of key mineralisedstructures is considered to haveintroduced a sampling bias, thisshould be assessed and reported ifmaterial. thus the sampling reported hereinis not biased. This is confirmedby the similar results obtainedfromdrillholesinmultipleorientations.
There is no bias in the samplingreported herein related to drillhole orientation. Orientation ofsome drill-holes has resulted inapparent thickness greater thanthetruethickness.Theorientation of all holes and theinterpretedorientationofthemineralisation is discussed in thereport.
Samplesecurity The measures taken to ensure•sample security. Chain of custody is managed byRTG employees. Core trays arekeptatthedrillsiteunderconstantwatchbyCompanyemployeespriortobeingtransported from the drill site byCompanyemployeesinaCompanyvehicletothecoreshed where core is logged, sawnand prepared for dispatch.
Remaining core is kept in theCompany core yard which is in asecurecompoundattheCompany regional office in Daettown and guarded at night.
Samples are sent directly fromthe core shed to the laboratorypacked in secured and sealedplasticdrumsusingeitherCompanyvehiclesoralocaltransport company. A standardChain of Custody form is signedbythedriverresponsiblefortransporting the samples uponreceipt of samples at the coreyardandissignedbyanemployee of the laboratory onreceipt of the samples at thelaboratory. Completed forms arereturnedtotheCompanyforfiling.
Auditsorreviews The results of any audits or reviews•of sampling techniques and data. ThesamplingtechniquesandQA/QC data are reviewed on anongoingbasisbyCompanymanagementandindependentconsultants.

Section 2 Reporting of Exploration Results

Criteria JORC Code explanation Commentary
Mineraltenement andlandtenurestatus 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 at•the time of reporting along withany known impediments toobtaining a licence to operate inthe area. The Mabilo Project is covered byExploration Permit EP-014-2013-VandExplorationPermitApplicationEXPA-000188-V.Drilling activity the subject of thisannouncement is within EP-014-2013-V which was granted in July2013fortwoyears,withtheoption to renew for an additional 4years.EP-014-2013-Vwasissued to Mt Labo ExplorationandDevelopmentCorporation("Mt Labo"), an associated entityof RTG Mining. There is a 1%royalty payable on net miningrevenue received by Mt Labo inrelation to EP-014-2013-V.
Mt Labo has entered into a jointventureagreementwithGaleoEquipment and Mining Company,Inc.("Galeo")topartnerinexploringanddevelopingtheMabilo and Nalesbitan Projects.Galeo can earn up to a 36%interest in the Projects, down to200 metres below surface, bycontributingapproximatelyUS$4,250,000ofexplorationdrilling and management servicesfor the Projects over a 2 yearperiod.
In November 2013, Sierra MiningLimited ("Sierra"), a now whollyowned subsidiary of RTG, andGaleo signed a Memorandum ofUnderstanding("MOU")settingout proposed changes to the jointventure agreement to remove thedepth limit of 200 m from theagreementandprovideforadditional drilling of 5000 m below200 m. The MOU also providesfor Galeo to be granted its 36%interest up front with the ability forRTG to claw-back any interestdeemed not earned at the end oftheclaw-backperiod.TheamendmentstotheJVAgreement are subject to Sierrashareholder approval.
Criteria JORC Code explanation Commentary
Sierra has also entered a secondMOU with Galeo whereby Galeocanearnanadditional6%interest in the joint venture bymining the initial 1.5 Mt of wasteat Mabilo or Nalesbitan and otherrequirements including assistancewithpermitting.TheMOUissubject to a number of conditionsprecedent,includingSierrashareholder approval.
TherearenonativetitleorIndigenousancestraldomainsclaims at Mabilo.
Thetenureovertheareacurrently being explored at Mabilois a granted Exploration Permitwhich is considered secure.
Explorationdone by otherparties Acknowledgment and appraisal of•exploration by other parties. TheonlysignificantpreviousexplorationovertheMabiloprojectareawasadrillingprogram at another site within thetenement and a ground magneticsurvey. RTG or its predecessorSierra, has reported this data inprevious reports to the ASX andused the ground magnetic surveyas a basis for initial drill siting.Subsequently RTG conducted itsown ground magnetic survey withcloser spaced survey lines andreadingintervalswhichsupersedesthehistoricalprogram. There was no knownprevious exploration in the areawhere the drilling reported hereinwas conducted.
Geology Deposit type, geological setting•and style of mineralisation. Mineralisation at Mabilo can bedefined as a magnetite-coppergoldskarnwhichdevelopedwhere the magnetite-copper-goldmineralisationreplacedcalcareoushorizonsintheEocene age Tumbaga Formationin the contact zone of a Miocenediorite intrusion.
DrillholeInformation A summary of all information•material to the understanding ofthe exploration results including atabulation of the followinginformation for all Material drillholes:easting and northing of the drillohole collar The sampling and geochemicalinformationcontainedinthisreport is from the second phaseofdrillingatMabilowhichisongoing. The easting, northing,elevation, dip, azimuth and end ofhole depth of the holes reported
Criteria JORC Code explanation Commentary
elevation or RL (ReducedoLevel – elevation above sealevel in metres) of the drill holecollardip and azimuth of the holeodown hole length andointerception depthhole length.oIf the exclusion of this information•is justified on the basis that theinformation is not Material andthis exclusion does not detractfrom the understanding of thereport, the Competent Personshould clearly explain why this isthe case. herein is documented in a tableincluded as Appendix 1 to thisreport. Down hole depths andwidthsofintersectionsaredocumentedinthetext.Theeasting, northing, elevation andorientation for all holes drilled attheMabiloprojecthasbeenreportedinthisandpreviousreports to the ASX.Allrelevantdatahasbeenreported.
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 intercepts•incorporate 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. Assays of samples of differentlengthsareweightedfortheirlength when averaging assays forthelargeintervalsreportedherein. Where any element in anintervalreportedisbelowdetection level it is assigned avalue of half (50%) of the lowerdetection level when averagingmineralised intervals for reporting.Intervals with no core recoveryare assigned zero value whenaveragingresults.Notoporbottom cuts have been made tothe assay data.
The assumptions used for any•reporting of metal equivalentvalues should be clearly stated. Compositeintervalshavereported based on nominal cut-offgrades of 0.5 g/t gold and 0.5%copper.
The Mabilo skarn mineralisationis large with a relatively uniformgrade.Higherorlowergradezones with the mineralised bodiesare wider than sample intervals.Theaveragegradesreportedhereinarebasedonsamplewidths of average 1 metre width.Where an average grade containsa high grade intersection the highgrade intersection has also beenreported.
No metal equivalent grades arereported herein.
Relationshipbetweenmineralisationwidthsandintercept These relationships are•particularly important in thereporting of Exploration Results.If the geometry of the•mineralisation with respect to the The holes reported herein havebeen drilled both vertically andinclined. The orientation of themineralised bodies is based oninterpretation of geology from drill
Criteria JORC Code explanation Commentary
lengths drill hole angle is known, itsnature should be reported.If it is not known and only the•down hole lengths are reported,there should be a clear statementto this effect (eg 'down holelength, true width not known'). holessupportedbymagneticmodellingwhichindicatesthatmuchofthemineralisationisdipping to the southwest.The interpreted orientation of themineralised bodies is based onmagnetic modelling and drill-holedata and is documented in thereport.Thefactthattheintersectionsareinadippingbodyandthereforenottruewidthsisreportedandnointervals reported herein can beassumed to be a true width of themineralisation.
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. Planviewmapsshowinglocations of all holes reportedalong with magnetic images areincludedinthereport.Theinterpreted geometry ofthe hostgeologyandthemineralisedskarn bodies is illustrated in crosssection.
Balancedreporting Where comprehensive reporting•of all 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 assayresultsofintersectionsofthemineralisedmagnetiteskarn.Low-grade sample results fromadjacentrocksoutsidethemineralised body are reported.Barren or very low grade resultsare not reported. Assays from drillholeswhichdidnotintersectmineralisation are not reportedbut their location is shown onplans in the report.
Othersubstantiveexplorationdata Other exploration data, if•meaningful 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 thecurrent report to which this tableis attached.
Further work The nature and scale of planned•further work (e.g. tests for lateralextensions or depth extensions orlarge-scale step-out drilling).Diagrams clearly highlighting the•areas of possible extensions, The attached report is an interimreportonanongoingdrillingprogram which will systematicallytest magnetic bodies and step-outtargets alongstrike and betweenthe North Mineralised Zone and
Criteria JORC Code explanation Commentary
including the main geologicalinterpretations and future drillingareas, provided this information isnot commercially sensitive. the South Mineralised Zone aswellasdown-dipfromthesezones.

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/2013 Name of entity

RTG Mining Inc.

70 164 362 850 30 June 2014

ABN Quarter ended ("current quarter")

Consolidated statement of cash flows

Current quarter Year to date
Cash flows related to operating activities (six months)
$US $US
1.1 Receipts from product sales and related debtors
- -
1.2 Payments for(a) exploration & evaluation - -
(b) development - -
(c) production - -
(d) administration
- business development (419,488) (404,862)
- general (1,108,203) (2,672,816)
1.3 Dividends received - -
1.4 Interest and other items of a similar nature
received 13,745 24,111
1.5 Interest and other costs of finance paid - -
1.6 Income taxes paid - -
1.7 Other (provide details if material) - -
Net Operating Cash Flows (1,513,946) (3,053,567)
Cash flows related to investing activities
1.8 Payment for purchases of:(a) prospects - -
(b) equity investments - -
(c) other fixed assets (13,459) (13,459)
1.9 Proceeds from sale of:(a) prospects
(b) equity investments
(c) other fixed assets
1.10 Loans to other entities associates (643,670) (643,670)
1.11 Loans repaid by other entities
1.12 Cash acquired upon completion of merger with 1,327,712 1,327,712
Sierra Mining Limited
670,583 670,583
Net investing cash flows
1.13 Total operating and investing cash flows (843,363) (2,382,984)
1.13 Total operating and investing cash flows(brought forward) (843,363) (2,382,984)
Cash flows related to financing activities
1.14 Proceeds from issues of shares, options, etc. - -
1.15 Proceeds from sale of forfeited shares - -
1.16 Proceeds from borrowings - -
1.17 Repayment of borrowings - -
1.18 Dividends paid
1.19 Other (share issue costs) (1,088,768) (1,088,768)
Net financing cash flows
(1,088,768) (1,088,768)
Net increase (decrease) in cash held (1,932,131) (3,471,752)
1.20 Cash at beginning of quarter/year to date 9,098,108 10,987,517
1.21 Exchange rate adjustments to item 1.20 185,171 (164,617)
1.22 Cash at end of quarter 7,351,148 7,351,148

Payments to directors of the entity, associates of the directors, related entities of the entity and associates of the related entities

Current quarter
$US
1.23 Aggregate amount of payments to the parties included in item 1.2 212,149
1.24 Aggregate amount of loans to the parties included in item 1.10 -

1.25 Explanation necessary for an understanding of the transactions

Payment of directors fees and salaries

Non-cash financing and investing activities

2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

See the 'Corporate" section of the quarterly, above, for details on the merger with Sierra Mining Limited completed during the quarter.

2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest The joint venture partner at the Mabilo Project is required to fund a total of 13,919m of drilling (or make a cash payment in lieu of this) and provide agreed management services.

Financing facilities available

Add notes as necessary for an understanding of the position.

Amount available$US'000 Amount used$US'000
3.1 Loan facilities - -
3.2 Credit standby arrangements - -

Estimated cash outflows for next quarter

$US'000
Exploration and evaluation 1,270,500
Development -
Production -
Business Development and Consultants 375,000
General 738,478
2,383,978
Administration:Total

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shownin the consolidated statement of cash flows) to therelated items in the accounts is as follows. Current quarter$US'000 Previous quarter$US'000
5.1 Cash on hand and at bank 2,170,574 4,420,084
5.2 Deposits at call 5,180,574 4,678,022
5.3 Bank overdraft - -
5.4 Other (provide details) - -
Total: cash at end of quarter (item 1.22) 7,351,148 9,098,106
Tenement reference andlocation Nature of interest(note (2)) Interestatbeginning ofquarter Interest atend ofquarter
6.1 Interests inmining tenementsand petroleumtenementsrelinquished,reduced or lapsed -
6.2 Interests inApplication for MineralThe tenement interestsmining tenementsProduction-Sharingare held in joint venture.and petroleumAgreement ("APSA")RTG's interest is heldtenements002-Vthrough its interest in itsacquired orassociate entity, Mt LaboincreasedExploration andDevelopmentCorporation. The jointExploration Permit("EP") 014-2013-Vholds 36%.Exploration PermitRTG's interest is heldApplication ("EXPA")through its interest in its118-XIMining Corporation.APSA-03-XIIIEXPA-037-XIII - 41%
venture partner currently - 41%
associate entity Bunawan - 40%
- 40%
- 40%
EXPA-123-XI - 40%
EXPA-000188-V - 40%
EP-02-10-XI - 40%
EP-01-06-XI - 40%
EP-01-10XI - 40%

Changes in interests in mining tenements and petroleum tenements

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

Total number Number quoted Issue price persecurity (see note3) (cents) Amount paid up persecurity (see note 3)(cents)
7.1 Preference+securities(description)
7.2 Changes duringquarter(a) Increasesthrough issues(b) Decreasesthrough returnsof capital, buybacks,redemptions
7.3 +Ordinarysecurities 111,717,070 111,717,070 n/a n/a
7.4 Changes duringquarter(a) Increasesthrough issues(b) Decreases 79,063,206 79,063,206 C$1.10 C$1.10
through capitalconsolidation (293,884,779) n/a consolidationoccurred prior toASX listing n/a n/a
7.5 +Convertibledebt securities(description)
7.6 Changes duringquarter(a) Increasesthrough issues(b) Decreasesthroughsecuritiesmatured,converted
7.7 Options(description andconversionfactor) Exercise price Expiry date
7.8 Issued duringquarter 8,784,854 8,784,854 CAD$1.50 4 June 2017
7.9 Exercised duringquarter
7.10 Expired duringquarter
7.11 Debentures(totals only)
7.12 Unsecurednotes (totalsonly)

Compliance statement

1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5).

2 This statement does give a true and fair view of the matters disclosed.

Sign here: ............................................................ Date: ....30 July 2014..........

(Company secretary)

Print name: .......Hannah Hudson.......

Notes

1 The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

2 The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements and petroleum tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement or petroleum tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities*.*

4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report.

5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

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