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RTG Mining Inc. Regulatory Filings 2014

Jul 9, 2014

47130_rns_2014-07-09_ade77bb2-5c3e-4132-9e71-ccb871ad9f8e.pdf

Regulatory Filings

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Level 2, 338 Barker Road Subiaco WA 6008 Phone: +61 8 6489 2900 www.rtgmining.com

ABN: 70 164 362 850

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

RTG ANNOUNCES FURTHER HIGH GRADE INTERCEPTS AND EXTENSIONS TO KNOWN MINERALISATION AT THE MABILO PROJECT

ANNOUNCEMENT TO THE TORONTO STOCK EXCHANGE AND AUSTRALIAN SECURITIES EXCHANGE 9 JULY 2014

The Board of RTG Mining Inc. ("RTG", "the Company") (TSX Code: RTG, ASX Code: RTG) is pleased to announce further high grade copper, gold and iron intercepts in both the North and South Mineralized Zones at the Mabilo Project in the Philippines.

Continuing diamond drilling has also extended the strike of the South Mineralised Zone by 350m. The advances in geological understanding continue to highlight down dip potential and extensions to the system in the north and south zones.

Significant work has also been undertaken in re-logging of previously drilled holes to get better detailed geological understanding to help build 3 dimensional models and give better data for future targeting of holes. A further update will be released upon completion of the re-logging and the detailed geological review.

Highlights of the ongoing drilling program include –

Hole MDH-053 intersected primary mineralised Magnetite Skarn in the South Mineralised Zone at 108 m down hole and then Garnet Skarn at 160 m down hole. Significant intersections include:

47.05 m at 1.64 g/t Au, 1.40% Cu and 55.76% Fe and

18.00 m at 3.12 g/t Au, 1.25% Cu and 42.16% Fe and

18.15 m at 3.29 g/t Au, 0.80% Cu and 41.73% Fe

Hole MDH-054 intersected primary mineralised Magnetite Skarn in the North Mineralised Zone at 171m down hole. The intercept assayed:

17.40 m at 1.80 g/t Au, 2.04% Cu and 48.69% Fe

Hole MDH-055 intersected weakly mineralised primary Magnetite Skarn in the South Mineralised Zone at 112m down hole. The intercept assayed:

10.00 m at 1.16 g/t Au, 0.47% Cu and 43.64% Fe

Hole MDH-057 intersected primary mineralised Magnetite Skarn in the South Mineralised Zone at 129m down hole. The intercept assayed:

24.70 m at 3.41 g/t Au, 2.98% Cu and 51.56% Fe

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

ABOUT MABILO

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

Drilling is currently focused on defining the SE strike and SW down dip extent of the large South Mineralised Zone and testing the strike extension of mineralisation to the north and south of the North Mineralised Zone.

South Mineralised Zone

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

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

Drilling on two sections to the southeast of previously reported MDH-046 has significantly extended mineralisation along strike with two intercepts of high grade copper and gold of significant thickness and grades.

Figure 2 – Schematic long section showing copper grade shells, location of holes of this release and the extension to the magnetic model that has been achieved to date

MDH-053

A vertical hole drilled to test the strike continuation of the high grade mineralisation southeast from MDH-40 and 16. The hole intersected magnetite-chalcopyrite mineralisation from 108 to 182.8 metres, visually consistent with the results from MDH-40 and MDH-16.

MDH053 From To Intercept(m) Auppm Cu% Agppm Fe % Mineralisation
108.00 155.05 47.05 1.64 1.40 5.06 55.76 Magnetite Skarn
including 108.00 116.30 8.30 2.31 2.06 3.55 61.61 Magnetite Skarn
and 136.00 155.05 19.05 1.98 1.65 8.77 54.82 Magnetite Skarn
160.00 178.00 18.00 3.12 1.25 7.51 42.16 Garnet Skarn
183.40 185.00 1.60 5.79 2.25 28.85 4.63 Garnet Skarn
187.85 206.00 18.15 3.29 0.80 5.82 41.73 Garnet Skarn

MDH-055

An angled hole drilled from the same collar as MDH-53 to test the up dip continuity of the mineralisation in MDH-53. The hole intersected a breccia zone with 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 % Mineralisation
112.00 122.00 10.00 1.17 0.48 1.76 43.36 Magnetite Skarn
126.00 137.00 11.00 0.75 0.30 0.48 50.10 Magnetite Skarn
148.00 157.90 9.90 2.08 0.57 1.68 10.03 Magnetite Skarn

Figure 3 – Cross section of South Mineralised Zone showing MDH 053 and MDH 055 with the new geological interpretation (Section B shown on Figure 1)

MDH-057

A vertical hole to further test the strike extent of mineralisation in MDH-53. The hole encountered magnetite skarn from 129 metres to 196.7 metres with strong copper and gold mineralisation to a depth of 153.7 metres. Mineralisation is similar to holes MDH-53 and MDH-40 along strike to the NW.

MDH-057 From To Intercept (m) Au ppm Cu % Ag ppm Fe % Mineralisation
129 153.7 24.7 3.41 2.98 8.91 51.56 Magnetite Skarn
including 129.4 134 4.6 3.99 3.6 4.81 51.59 Magnetite Skarn
and 137.9 140 2.1 6.99 5.25 9.55 54.42 Magnetite Skarn
and 149.2 153.7 4.5 7.22 6.42 24.44 51.56 Magnetite Skarn

Figure 4 - Cross Section of South Mineralised Zone showing MDH 057 with the new geological interpretation (Section A on Figure 1)

Figure 5 – Cross section through the middle of the north end of the South Mineralised Zone showing the re-interpreted geology (Section C of Figure 1)

North Mineralised Zone

Drilling on the North Mineralised Zone has concentrated on exploring the north and south strike extensions of the modelled magnetic body. The mineralisation appears to be localised along the margin of the diorite intrusion and plunges shallowly to both the north and south of the modelled zone which appears to reflect a zone where the mineralisation is both wider and closer to the surface.

MDH-052

An angled hole drilled from the same collar as MDH-050. It drilled down a strongly brecciated structural zone with mineralised skarn intervals between 110-144.8 metres, 150.8-167.7 metres, and 171.8-190.5 metres. Results are not reported due to poor recoveries and the zone will be further tested by future drilling.

MDH-054

An angled hole to further test the mineralisation in MDH-052. The hole intersected massive magnetite-chalcopyrite from 171 - 190 metres where it passed into marble.

MDH-054 From To Intercept (m) Au g/t Cu % Ag g/t Fe % Mineralisation
171.00 188.4 17.4 1.80 2.04 10.99 48.69 Magnetite Skarn
including 172.00 180.70 9 2.38 2.89 11.03 50.07 Magnetite Skarn

COMPETENT PERSON STATEMENT

The information in this report that relates to Exploration Results at the Mabilo Project is based on information compiled by Dr Neal Reynolds, a Competent Person who is a Fellow of the Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Dr Reynolds is a full-time employee of CSA Global Pty Ltd., an international mining industry consultancy engaged by RTG Mining Limited. Dr Reynolds 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"). Dr Reynolds consents to the inclusion in the report of the matters based on his information in the form and the context in which it appears.

ABOUT RTG MINING INC

RTG Mining Inc. is a mining and exploration company listed on the main board of the Toronto Stock Exchange and Australian Securities Exchange Limited. RTG is focused on developing the high grade copper/gold/magnetite Mabilo Project and advancing exploration on the highly prospective Bunawan Project, both in the Philippines, while also identifying major new projects which will allow the company to move quickly and safely to production.

RTG has an experienced management team (previously responsible for the development of the Masbate Gold Mine in the Philippines through CGA Mining Limited), and has B2Gold as one of its major shareholders in the Company. B2Gold is a member of both the S&P/TSX Global Gold and Global Mining Indices.

ENQUIRIES

Australian Contact President & CEO – Justine Magee

Tel: +61 8 6489 2900 Fax: +61 8 6489 2920 Email: [email protected]

CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS

This announcement includes certain "forward-looking statements" within the meaning of Canadian securities legislation. Accuracy of mineral resource and mineral reserve estimates and related assumptions and inherent operating risks, are forward-looking statements. Forward-looking statements involve various risks and uncertainties and are based on certain factors and assumptions. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from RTG's expectations include uncertainties related to fluctuations in gold and other commodity prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs, recovery rates, production estimates and estimated economic return; the need for cooperation of government agencies in the development of RTG's mineral projects; the need to obtain additional financing to develop RTG's mineral projects; the possibility of delay in development programs or in construction projects and uncertainty of meeting anticipated program milestones for RTG's mineral projects and other risks and uncertainties disclosed under the heading "Risk Factors" in RTG's Annual Information Form for the year ended 31 December 2013 filed with the Canadian securities regulatory authorities on the SEDAR website at sedar.com.

HOLE Mineralised Zone UTMEasting UTMNorthing Elev.(m) Inclination Azimuth EOH (m)
MDH-52 NORTH 476,149 1,560,300 110 -65 270 194.1
MDH-53 SOUTH 476,209 1,559,759 125 90 - 243.9
MDH-54 NORTH 476,195 1,560,298 115 -60 270 231.8
MDH-55 SOUTH 476,209 1,559,759 125 -75 050 180.6
MDH-56 SOUTH 476,040 1,559,795 125 -65 050 252.3
MDH-57 SOUTH 476,241 1,559,720 122 90 - 287.1

Results for MDH-52 are not reported because of poor recovery.

Results for MDH-56 were not available at the report date and are not reported.

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

Appendix 2: JORC Code 2012 Edition Table 1

Section 1 Sampling Techniques and Data

Criteria JORC Code explanation Commentary
Samplingtechniques Nature and quality of sampling (e.g.cut channels, random chips,or specific specialisedindustry standard measurement toolsappropriate to the minerals under investigation, such as down holegamma sondes, or handheld XRF instruments, etc). Theseexamples should not be taken as limiting the broad meaning ofsampling.Include reference to measures taken to ensure samplerepresentivity and the appropriate calibration of any measurementtools or systems used.Aspects of the determination of mineralisation that are Material tothe Public Report. The assay data reported herein is based on samplingofdiamond drill core of PQ and HQ diameter which was cutwith a diamond core saw. Samples are generally of 1 metrelength although occasionally slightly longer or shorter wherechanges in lithology, core size or core recovery requiredadjustments; samples are not more than 2 metres length.Half core samples were cut and sent foranalysis by anindependent ISO-certified laboratory (Intertek McPharLaboratory) in Manila.Samples were crushed and pulverised(95% <75 ɥm). Gold was analysed by 50 gramfire assayand the other elements including copper and iron by ICP-MS(Inductively Coupled Plasma Mass Spectrometry) or ICPOES (Inductively Coupled Plasma Optical Emission
Spectrometry) following a four-acid digest.The length of each drill run is recorded and the recovery foreach run calculated on site and checked again at the coreshed. Certified reference standards and blank samples weresubmittedto assess the accuracy and precision of the resultsand every 20th sample was sawn into two and the twoquarter core samples submitted for analysis separately as aduplicate sample.
Drillingtechniques Drill type (e.g.core, reverse circulation, open-hole hammer, rotaryair blast, auger, Bangka, sonic, etc) and details (eg core diameter,triple or standard tube, depth of diamond tails, face-sampling bit orother type, whether core is oriented and if so, by what method,etc). Drilling was by PQ and HQ diameter, triple tube diamondcoring. Down-hole surveying was completed with a Reflexgyro down-hole instrument due to the highly magneticmineralisation. The core was not orientated
Criteria JORC Code explanation Commentary
Drill samplerecovery Method of recording and assessing core and chip samplerecoveries and results assessed.Measures taken to maximisesample recovery and ensurerepresentative nature of the samples.Whether a relationship exists between sample recovery and gradeand whether sample bias may have occurred due to preferentialloss/gain of fine/coarse material. Core recovery is initially measured on site by trainedtechnicians and again in the core shed by the core shedgeologist. Any core loss is measured, the percentage iscalculated and both are recorded in the geotechnicallog forreference when assessing assay results. In instances wherecore breaks off before the bottom of the hole leading to"apparent poor recovery" followed by a core run of >100%recovery, an adjustment is made in the records
The majority of the mineralisation is in fresh rock whererecoveries are greater than 90%. Mostmineralisation occursin wide intersections of massive magnetite skarn withrelatively uniform copper and gold grades. Core loss occursin fracture zones but is usually not a significant problem i.e.the core lost in fracture zones is unlikely to havebeensignificantly higher or lower grade than the surroundingmaterial. In the weathered hematitic oxidised zones somecore loss is unavoidable, but overall recovery is generally>90% and the core loss is volumetrically minor in themineralised zones. In areas of poor recovery,the sampleintervals are arranged to coincide with drill runs,thus areasof different core loss percentage are specific to individualsamples which can be assessed when interpreting analyticalresults and modelled in future resource estimation studies.Where an area of 100% core loss is identified the sampleintervals are marked to each side of the zone and the zone isdesignated "No core" and assigned zero value in the variouslog sheets and geochemicaldatabase.
All care is takento ensure maximum recovery of diamondcore and drillers are informed of the importance of corerecovery. Any areas of poor core recovery are sampled
Criteria JORC Code explanation Commentary
separately thus assay results can be directly related to corerecovery.
There is no discernible relationship between core recoveryand grade. The skarn bodies are relatively uniform oversignificant lengths and the copper and gold grades are notrelated to clay and fracture zones which are the main causesof core loss.
Logging Whether core and chip samples have been geologically andgeotechnically logged to a level of detail 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 intersectionslogged. Diamond drill core for each entire drill hole waslogged insignificant detail in a number of logging sheets including ageological log, a structural log, a geotechnical log and amagnetic susceptibility log for the entire drill hole. Mineralisedand sampled intervals are logged individually in a separatequantitative mineral log with percentages of the differentcoppermineralsbeing recorded. The logging is appropriatefor mineral resource estimates and mining studies, neither ofwhich are reported herein
Most of the geological logging is a mixture of qualitative(descriptions of the various geological features) andquantitative (numbers and angles of veins and fracture zones,mineral percentages etc.). The quantitative mineralisation logand the magnetic susceptibility log are quantitative.Photographs are taken of all core (both wet and dry) prior tothe core being cut.
All core, including barren overburden is logged in the variouslogging sheets noted above apart from the quantitativemineralisation log in which only the mineralised intervals sentfor geochemical analysis are logged in greater detail.
Sub-sampling If core, whether cut or sawn and whether quarter, half or all core All sampling data reported is from diamond drill core.
Criteria JORC Code explanation Commentary
techniquesand samplepreparation taken.If non-core, whether riffled, tube sampled, rotary split, etc andwhether sampled wet or dry.For all sample types, the nature, quality and appropriateness ofthe sample preparation technique. Samples are of sawn half core except for duplicate sampleswhich are quarter core. Half core is bagged and sent to anISO-certified independent laboratory for analysis. The otherhalf retained for reference and/or further testwork.
Quality control procedures adopted for all sub-sampling stages tomaximise representivity of samples.Measures taken to ensure that the sampling is representative ofthe in situ material collected, including for instance results for fieldduplicate/second-half sampling.Whether sample sizes are appropriate to the grain size of the All core samples were dried, crushed to 95% <10 mm and a1.5 kg sub-sample is separated using a riffle splitter andpulverised to 95% <75 μm. A 50 g sub-sample is utilised as afire-assay charge for gold analysis. The sample preparationtechnique and sub-sampling is appropriate for themineralisation.
material being sampled. Blank samples and duplicate samples are submitted routinelyto monitor the sampling and analytical process and to ensurethat samples are representative of in situ material. One inevery 20 samples of half core is sawn again to produce twoquarter core duplicate samples which are submitted to thelaboratory separately with different sample numbers.A blanksample was inserted into sample batches every 20thsamples.
The magnetite skarn mineralisation occurs in extensivezonesof magnetite skarn with disseminated chalcopyrite, containinggold. The sample size of approximately one metre core lengthis suitable in respect to the grain size of the mineralisation
Quality ofassay dataandlaboratorytests The nature, quality and appropriateness of the assaying andlaboratory procedures used and whether the technique isconsidered partial or total.For geophysical tools, spectrometers, handheld XRF instruments,etc, the parameters used in determining the analysis includinginstrument make and model, reading times, calibrations factorsapplied and their derivation, etc. All core samples were analysed atan ISO-certifiedindependent laboratory. Gold was analysed by 50 g fire assayand the other elements including copper and iron wereanalysed by ICP-MS or ICP-OES following a four acid digest.The sample preparation and assay techniques used for theassay results reported herein are of international industry
Criteria JORC Code explanation Commentary
Nature of quality control procedures adopted (e.g.standards, standard and can be considered total.
blanks, duplicates, external laboratory checks) and whetheracceptable levels of accuracy (ie lack of bias) and precision havebeen established. No geophysical tools were used for any analysis reportedherein. Magnetic susceptibility readings are used in magneticmodelling but are not used to estimate magnetite or Fecontent.
Quality control completed by RTGincluded analysis ofstandards, blanks, and duplicates.Commercial CertifiedReference Materials (OREAS 901, 503, 15d) wereinsertedinto sample batches every 40th sample. A blank sample wasinserted every 20th sample; the blank sample material hasbeen sourced and prepared from a local quarry. One in every20 core samples is cut into 2 quarter core samples whichweresubmitted independentlywith their own samplenumbers. In addition, Intertek conducted their own extensivecheck sampling as part of their own internal QAQC processeswhich is reported in the assay sheets. A record of results fromall duplicates, blanks and standards is maintained for ongoingQA/QC assessment. Examination of all the QAQCsampledata indicates satisfactory performance of field samplingprotocols and the assay laboratory.
Verification ofsampling andassaying The verification of significant intersections by either independentor alternative company personnel.The use of twinned holes.Documentation of primary data, data entry procedures, data The geochemical results reported herein and the calculatedaverages for different lithology types were independentlychecked and calculated by two company personnel. QAQCdata has been reviewed by personnel of CSA Global Pty Ltd.
verification, data storage (physical and electronic) protocols.Discuss any adjustment to assay data. No twinned holes have been drilled.
Data documentation, verification and storage is conducted inaccordance with RTG'sStandard Operating ProceduresManual for the Mabilo Project. The diamond drill core is
Criteria JORC Code explanation Commentary
manually logged in significant detail in a number of separateexcel template logging sheets including:
1) a geological log of all core, recording mineralogy, lithology,alteration, degree of oxidation and mineralisation;
2) a structural log of all core, recording alpha angles,structure and vein types and quantity and vein infill minerals;
3) a geotechnical log of all core recording RQD, defects,fabrics;
4) a quantitative mineralisation log of all intervals sampled.
5)a magnetic susceptibility log of all core;
6)bulk density data for selected samples representingdomains identified by the project geologist
Logging is recorded manually onlogging sheets andtranscribed into protected Excel spreadsheet templates orentered directly into the Excel templates. The dataarevalidated by both the Project Geologist and the companyDatabase Manager and uploaded to the dedicated projectdatabase where they are merged with assay resultsreporteddigitally by the laboratory. Hard copies of all logging sheetsare kept at the Project office in Daet.
The results from the two quarter core duplicate samples areaveraged before being entered into the geochemistrydatabase and reported so that all geochemical datarepresents the results from half core samples. The assayresults reported herein include averages of the duplicatesamples. Samples with assay grades below detection levelare assigned a value of half (50%) the lower detection level
Criteria JORC Code explanation Commentary
value when averaging intervals for reporting. No top cuts ofassay data have been conducted in the results reported.
Location ofdata points Accuracy and quality of surveys used to locate drill holes (collarand down-hole surveys), trenches, mine workings and otherlocations used in Mineral Resource estimation.Specification of the grid system used.Quality and adequacy of topographic control. Drill-hole collars are initially surveyed with a hand-held GPSwith an accuracy of approximately +/-5 metres. Completedholes are surveyed by an independent qualified surveyor on aperiodic basis using standard differential GPS (DGPS)equipment achieving sub-decimetre accuracy in horizontaland vertical position.
All of the holes reported herein have been surveyed with ahandheldGPS with coordinates providedin Appendix 1. Thissurvey will be superseded in due course by DGPS survey.
Drill collars are surveyed inUTM WGS84 Zone 51Ngridwhich is the grid for all project data.
The Mabilo project area is relatively flat with total variation intopography less than fifteen (15) metres. Topographic controlis provided by DGPSsurveying.
Data spacinganddistribution Data spacing for reporting of Exploration Results.Whether the data spacing and distribution is sufficient to establishthe degree of geological and grade continuity appropriate for theMineral Resource and Ore Reserve estimation procedure(s) andclassifications applied.Whether sample compositing has been applied. The results reported herein are from drill holes with variablespacing but mostly on a nominal grid with 20 metres betweendrill holes on 40 metre spaced lines.
The drill holes are at variable spacing designed to determinethe continuity and extent of the mineralised skarn zones.Based on statistical assessment of drill results to date, theplanned nominal 40 x 20 metre drill hole spacing is sufficientto support future resource estimation. No estimated grades orresource estimations are included in this report.
No compositing of intervals in the field was undertaken.
Orientation of Whether the orientation of sampling achieves unbiased sampling The assay data reported is from large mineralised magnetite-
Criteria JORC Code explanation Commentary
data inrelation togeologicalstructure of possible structures and the extent to which this is known,considering the deposit type.If the relationship between the drilling orientation and theorientation of key mineralisedstructures is considered to haveintroduced a sampling bias, this should be assessed and reportedif material. garnet skarn bodies. There is no indication that mineralisationgrade within the bodies is affected byinternal structures thataffectthe grade distribution,thus the sampling reportedherein is not biased. This is confirmed by the similar resultsobtained from drill holes in multiple orientations.
There is no bias in the sampling reported herein related todrill-hole orientation. Orientation of some drill-holes hasresulted in apparent thickness greater than the true thickness.The orientation of all holes and the interpreted orientation ofthe mineralisation is discussed in the report.
Samplesecurity The measures taken to ensure sample security. Chain of custody is managed by RTG employees. Core traysare kept at the drill site under constant watch by Companyemployees prior to being transported from the drill site byCompany employeesin a Company vehicle to the core shedwhere core is logged, sawn and prepared for dispatch.
Remaining core is kept in the Company core yard which is ina secure compound at the Company regional office in Daettown and guarded at night.
Samples are sent directly from the core shed to the laboratorypacked in secured and sealed plastic drums using eitherCompany vehicles or a local transport company. A standardChain of Custody form is signed by the driver responsible fortransporting the samples upon receipt of samples at the coreyard and is signed by an employee of the laboratory onreceipt of the samples at the laboratory. Completed forms arereturned to the Company for filing.
Audits orreviews The results of any audits or reviews of sampling techniquesanddata. The sampling techniques and QA/QC data are reviewed onan ongoing basis by Company management and independent
Criteria JORC Code explanation Commentary
---------- ----------------------- ------------

consultants.

Section 2 Reporting of Exploration Results

Criteria JORC Code explanation Commentary
Mineraltenement andland tenurestatus Type, reference name/number, location and ownership includingagreements or material issues with third parties such as jointventures, partnerships, overriding royalties, native title interests,historical sites, wilderness or national park and environmentalsettings.The security of the tenure held at the time of reporting along withany known impediments to obtaining a licence to operate in thearea. The Mabilo Project is covered by Exploration Permit EP-014-2013-V and Exploration Permit Application EXPA-000188-V.Drilling activity the subject of this announcement is within EP014-2013-V which was granted in July 2013 for two years, withthe option to renew for an additional 4 years. EP-014-2013-Vwas issued to Mt Labo Exploration and DevelopmentCorporation ("Mt Labo"), an associated entityof RTG Mining.There is a 1% royalty payable on net mining revenue receivedby Mt Labo in relation to EP-014-2013-V.
Mt Labo hasentered into a joint venture agreement with GaleoEquipment and Mining Company, Inc.("Galeo") to partner inexploring and developing the Mabilo and Nalesbitan Projects.Galeo can earn up to a 36% interest in the Projects, down to200 metres below surface, by contributing approximatelyUS$4,250,000 of exploration drilling and managementservicesfor the Projects over a 2 year period.
In November 2013, Sierra Mining Limited ("Sierra"), a nowwholly owned subsidiary of RTG,and Galeo signed aMemorandum of Understanding ("MOU") setting out proposedchanges to the joint venture agreement toremove the depthlimit of 200m from the agreement and provide for additionaldrilling of 5000m below 200m. The MOU also provides forGaleo to be granted its 36% interest up front with the ability forRTGto claw-back any interest deemed not earned at the endof the claw-back period. The amendments to the JV Agreement
Criteria JORC Code explanation Commentary
are subject to Sierrashareholder approval.
Sierrahas also entered a second MOU with Galeo wherebyGaleo can earn an additional 6% interest in the joint venture bymining the initial 1.5Mt of waste at Mabilo or Nalesbitanandother requirements including assistance with permitting. TheMOU is subject to a number of conditions precedent, includingSierrashareholder approval.
There are no native titleor Indigenous ancestral domainsclaims at Mabilo.
The tenure over the area currently being explored at Mabilo isa granted Exploration Permit which is considered secure.
Explorationdone by otherparties Acknowledgment and appraisal of exploration by other parties. The only significant previous exploration over the Mabiloproject area was a drilling program at another site within thetenement and a ground magnetic survey. RTGor itspredecessor Sierra,has reported this data in previous reportsto the ASX and used the ground magnetic survey as a basis forinitial drill siting. Subsequently RTG conducted its own groundmagnetic survey with closer spaced survey lines and readingintervals which supersedes the historical program. There wasno known previous exploration in the area where the drillingreported herein was conducted.
Geology Deposit type, geological setting and style of mineralisation. Mineralisation at Mabilo can be defined as a magnetite-coppergold skarn which developed where the magnetite-copper-goldmineralisation replaced calcareous horizons in the Eocene ageTumbaga Formation in the contact zone of a Miocene dioriteintrusion.
Drill hole A summary of all information material to the understanding of theexploration results including a tabulation of the following The sampling and geochemical information contained in thisreport is from the second phase of drilling at Mabilo which is
Criteria JORC Code explanation Commentary
Information information for all Material drill holes:oeasting and northing of the drill hole collaroelevation or RL (Reduced Level –elevation above sea level inmetres) of the drill hole collarodip and azimuth of the holeodown hole length and interception depthohole length.If the exclusion of this information is justified on the basis that theinformation is not Material and this exclusion does not detract fromthe understanding of the report, the Competent Person shouldclearly explain why this is the case. ongoing. The easting, northing, elevation, dip, azimuth and endof hole depth of the holes reported herein is documented in atable included as Appendix 1to this report. Down hole depthsand widths of intersections are documented in the text. Theeasting, northing, elevation and orientation for all holes drilledat the Mabilo project has been reported in this and previousreports to the ASX.All relevant data has been reported.
Dataaggregationmethods In reporting Exploration Results, weighting averaging techniques,maximum and/or minimum grade truncations (e.g.cutting of highgrades) and cut-off grades are usually Material and should bestated.Where aggregate intercepts incorporate short lengths of highgrade results and longer lengths of low grade results, theprocedure used for such aggregation should be stated and sometypical examples of such aggregations should be shown in detail.The assumptions used for any reporting of metal equivalentvalues should be clearly stated. Assays of samples of different lengths are weighted for theirlength when averaging assays for the large intervals reportedherein. Where any element in an interval reported is belowdetection level it is assigned a value of half (50%) of the lowerdetection level when averaging mineralised intervals forreporting. Intervals with no core recovery are assigned zerovalue when averaging results. No top or bottom cuts have beenmade to the assay data.
Composite intervals have reported based on nominal cut-offgrades of 0.5 g/t gold and 0.5% copper.
The Mabiloskarn mineralisation is large with arelativelyuniform grade. Higher or lower grade zones with themineralised bodies are wider than sample intervals. Theaverage grades reported herein are based on sample widths ofaverage 1 metre width. Where an average grade contains ahigh grade intersection the high grade intersection has alsobeen reported.
No metal equivalent grades are reported herein.
Criteria JORC Code explanation Commentary
RelationshipbetweenExploration Results.mineralisationwidths andinterceptlengthsthere should be a clear statement to this effect (eg 'down holelength, true width not known'). These relationships are particularly important in the reporting ofIf the geometry of the mineralisation with respect to the drill holeangle is known, its nature should be reported.If it is not known and only the down hole lengths are reported, The holes reported herein have been drilled both vertically andinclined. The orientation of the mineralised bodies is based oninterpretation of geology from drill holes supported by magneticmodelling which indicates that much of the mineralisation isdipping to the southwest.
The interpreted orientation of the mineralised bodies is basedon magnetic modelling and drill-hole data and is documented inthe report. The fact that the intersectionsare in a dipping bodyand therefore not true widths is reported and no intervalsreported herein can be assumed to be a true width of themineralisation.
Diagrams Appropriate maps and sections (with scales) and tabulations ofintercepts should be included for any significant discovery beingreported These should include, but not be limited to a plan view ofdrill hole collar locations and appropriate sectional views. Plan view maps showing locations of all holes reported alongwith magnetic images are included in the report. Theinterpreted geometry o the host geology and the mineralisedskarn bodies is illustrated in cross section.
Balancedreporting Where comprehensive reporting of all Exploration Results is notpracticable, representative reporting ofboth low and high gradesand/or widths should be practiced to avoid misleading reporting ofExploration Results. The report documents the assay results of intersections of themineralised magnetite skarn. Low-grade sample results fromadjacent rocks outside the mineralised body are reported.Barren or very low grade results are not reported. Assays fromdrill holes which did not intersect mineralisation are notreported but their location is shown on plans in the report.
Othersubstantiveexplorationdata Other exploration data, if meaningful and material, should bereported including (but not limited to): geological observations;geophysical survey results; geochemical survey results; bulksamples –size and method of treatment; metallurgical test results;bulk density, groundwater, geotechnical and rock characteristics;potential deleterious or contaminating substances. All meaningful exploration data concerning the Mabilo Projecthas been reported either in previous reports to the ASX or inthe current report to which this table is attached.
Further work The nature and scale of planned further work (e.g.tests for lateralextensions or depth extensions or large-scale step-out drilling). The attached report is an interim report on an ongoing drillingprogram which will systematically test magnetic bodies and
Criteria JORC Code explanation Commentary
Diagrams clearly highlighting the areas of possible extensions,including the main geological interpretations and future drillingareas, provided this information is not commercially sensitive. step-out targets along strike and between the NorthMineralised Zone and the South Mineralised Zone as well asdown-dip from these zones.