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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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