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ANNOUNCEMENT TO THE TORONTO STOCK EXCHANGE
SUBIACO, Western Australia, Oct. 17, 2014 /CNW/ - RTG Mining Inc. ("RTG", "the Company") (TSX Code: RTG, ASX Code: RTG) hereby informs the market that the previous announcement made on 9 October 2014 titled "RTG ANNOUNCES FURTHER HIGH GRADE INTERCEPTS AND EXTENSIONS" provided approximate gold equivalent grades and calculations regarding these approximates for selected intercepts of the on-going drilling program. This amended announcement has been prepared and is being filed to correct, and is intended to replace in its entirety, the references to approximate gold equivalent grades and calculations and the representation of the qualified person.
Drilling targeted at extending the South Mineralised Zone to the North, has intersected further high grade supergene copper mineralisation. With a massive chalcocite intercept of 19.10 meters for 26.16% Copper & 2.18 g/t Au.
Further diamond drilling has continued to extend down dip extension of the South Mineralised Zone with further high grade intercepts. The system continues to remains open at depth.
Highlights of the ongoing drilling program include –
Work on the maiden resource for Mabilo is well underway. The resource will include seventy eight diamond drill holes and remains on track to be released in early November 2014.
ABOUT MABILO
The Mabilo Project is located in Camarines Norte Province, Eastern Luzon, Philippines. It comprises one granted Exploration Permit (EP-014-2013-V) of approximately 498 ha and Exploration Permit Application EXPA-000188-V of 2,820 ha. The Project area is relatively flat and is easily accessed by 15 km of all-weather road from the highway at the nearby town of Labo.
Drilling is ongoing and currently focused on defining the SW down dip extent of the South Mineralised Zone and is targeting the oxide and supergene potential to the North of the South Mineralised Zone.
MDH-067
An angled hole drilled to test the down dip extent and true thickness intersected in MDH040 reported previously (ASX release by Sierra Mining 3rd April 2014). The hole intersected magnetite skarn from 138.00 meters to 178.40 meters with higher grade intervals characterised by well-developed chalcopyrite inter-grown with magnetite weakly overprinted by silica pyrite (Figure 3). True thickness of the magnetite skarn is approximately 32 meters.
MDH-067 |
From |
To |
Intercept (m) |
Au g/t |
Cu % |
Ag g/t |
Fe % |
Mineralisation |
151.00 |
174.00 |
23.00 |
2.30 |
1.76 |
4.58 |
47.43 |
Magnetite Skarn |
|
including |
155.00 |
164.63 |
9.63 |
4.12 |
3.24 |
6.13 |
57.82 |
Magnetite Skarn |
Drill core recovery was greater than 88% for reported intervals.
MDH-071
Located 20 meters North East of MDH-066, MDH-071 is an angled hole drilled to further test the continuity of oxide and chalcocite mineralisation intersected in MDH-066 (Figure 4). The drill hole intersected oxidised supergene zone 31.00 meters to 59.30 meters with massive chalcocite supergene from 59.30 meters to 63.00 meters. True thickness of the magnetite skarn is approximately 30 meters.
MDH-071 |
From |
To |
Intercept (m) |
Au g/t |
Cu % |
Ag g/t |
Fe % |
Mineralisation |
31.00 |
66.00 |
35.00 |
2.79 |
4.47 |
14.30 |
32.54 |
Oxide Gold & Chalcocite Copper |
|
including |
38.00 |
59.30 |
21.30 |
3.26 |
0.50 |
16.60 |
35.76 |
Gold Oxide Zone |
including |
59.30 |
63.00 |
3.70 |
1.03 |
36.82 |
6.70 |
17.21 |
Chalcocite Zone |
Drill core recovery was greater than 82% for reported intervals.
MDH-073
An angled hole designed as an incremental 20m step North West of previously drilled MDH066 reported on (ASX release by RTG Mining 13th August 2014). Located 23 meters North East of MDH-029 at the Northern limit of the magnetic model (Figure 2). The drill hole (Figure 5) intersected an oxide zone from the Labo Volcanics overburden at 38.95 meters to 55.60 meters followed by a massive chalcocite zone from 61.90 meters to 81.00m meters with a bleach clay zone separating the two intervals. The bottom of the interval is garnet skarn from 106.00 meters 111.00 meters characterised by massive chalcopyrite garnet and magnetite veinlets. True combined thickness of the oxide mineralisation and chalcocite zone is approximately 48m.
MDH-073 |
From |
To |
Intercept (m) |
Au g/t |
Cu % |
Ag g/t |
Fe % |
Mineralisation |
38.95 |
55.60 |
16.65 |
4.45 |
0.38 |
1.20 |
44.30 |
Gold Oxide Zone |
|
and |
61.90 |
81.00 |
19.10 |
2.18 |
26.16 |
9.20 |
28.44 |
Chalcocite Copper Zone |
and |
84.00 |
87.10 |
3.10 |
0.84 |
2.53 |
9.10 |
31.27 |
Magnetite Skarn |
and |
106.00 |
111.00 |
5.00 |
4.87 |
5.65 |
10.80 |
19.15 |
Garnet Magnetite Skarn |
Drill core recovery was greater than 94% for reported intervals.
Drillhole MDH-068 located 20m South West of MDH-073 has intersected weakly mineralised calc-silicate altered sediments with minor silica pyrite overprint and breccia zone. No significant assays are reported. The strike of mineralisation continues to vector in the Northern direction towards the North Mineralised zone.
QUALIFIED PERSON AND COMPETENT PERSON STATEMENT
The information in this report that relates to Exploration Results at the Mabilo Project is based upon information prepared by or under the supervision of Robert Ayres BSc (Hons), who is a Qualified Person and a Competent Person.. Mr Ayres is a member of the Australian Institute of Geoscientists and a full-time employee of Mt Labo Exploration and Development Company, a Philippine mining company, an associate company of 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 has verified the data disclosed in this release, including sampling, analytical and test data underlying the information contained in the release. Mr. Ayres consents to the inclusion in the report of the matters based on his information in the form and the context in which it appears.
ABOUT RTG MINING INC
RTG Mining Inc. is a mining and exploration company listed on the main board of the Toronto Stock Exchange and Australian Securities Exchange Limited. RTG is focused on developing the high grade copper/gold/magnetite Mabilo Project and advancing exploration on the highly prospective Bunawan Project, both in the Philippines, while also identifying major new projects which will allow the Company to move quickly and safely to production.
RTG has an experienced management team (previously responsible for the development of the Masbate Gold Mine in the Philippines through CGA Mining Limited), and has B2Gold as one of its major shareholders in the Company. B2Gold is a member of both the S&P/TSX Global Gold and Global Mining Indices.
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
This announcement includes certain "forward-looking statements" within the meaning of Canadian securities legislation. Accuracy of mineral resource and mineral reserve estimates and related assumptions and inherent operating risks, are forward-looking statements. Forward-looking statements involve various risks and uncertainties and are based on certain factors and assumptions. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from RTG's expectations include uncertainties related to fluctuations in gold and other commodity prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs, recovery rates, production estimates and estimated economic return; the need for cooperation of government agencies in the development of RTG's mineral projects; the need to obtain additional financing to develop RTG's mineral projects; the possibility of delay in development programs or in construction projects and uncertainty of meeting anticipated program milestones for RTG's mineral projects and other risks and uncertainties disclosed under the heading "Risk Factors" in RTG's Annual Information Form for the year ended 31 December 2013 filed with the Canadian securities regulatory authorities on the SEDAR website at sedar.com.
Appendix 1: Location of Reported Drill Holes
HOLE ID |
Location |
GPS |
Orientation True Nth |
Depth |
||||
Coordinates (UTM WGS84) |
||||||||
Prospect |
Purpose |
East |
North |
RL |
Dip |
Azi |
E.O.H (m) |
|
MDH-067 |
South B |
Metallurgy |
476099 |
1559728 |
113 |
-60 |
50 |
196.9 |
MDH-068 |
South A |
Resource |
475975 |
1559988 |
114 |
-60 |
50 |
224.6 |
MDH-071 |
South A |
Resource |
476038 |
1559998 |
108 |
-60 |
50 |
141.3 |
MDH-073 |
South A |
Resource |
476011 |
1560002 |
109 |
-60 |
50 |
124.5 |
MDH-068 Did not intersect significant assay results.
All co-ordinates in UTM-WGS84 (51 N). All collars apart from 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 |
Sampling techniques |
|
The assay data reported herein is based on sampling of diamond drill core of PQ, HQ and NQ diameter which was cut with a diamond core saw. Samples are generally of 1 metre length although occasionally slightly longer or shorter where changes in lithology, core size or core recovery required adjustments; samples are not more than 2 metres length.
for analysis by an independent ISO-certified laboratory (Intertek McPhar Laboratory) in Manila. Samples were crushed and pulverised (95% <75 ɥm). Gold was analysed by 50 gram fire assay and the other elements including copper and iron by ICP-MS (Inductively Coupled Plasma Mass Spectrometry) or ICP-OES (Inductively Coupled Plasma Optical Emission Spectrometry) following a four-acid digest.
|
Drilling techniques |
|
Drilling was by PQ, HQ and NQ diameter, triple tube diamond coring. Down-hole surveying was completed with a Reflex gyro down-hole instrument due to the highly magnetic mineralisation. The core was not orientated |
Drill sample recovery |
|
Core recovery is initially measured on site by trained technicians and again in the core shed by the core shed geologist. Any core loss is measured, the percentage is calculated and both are recorded in the geotechnical log for reference when assessing assay results. In instances where core 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
|
Logging |
|
Diamond drill core for each entire drill hole was logged in significant detail in a number of logging sheets including a geological log, a structural log, a geotechnical log and a magnetic susceptibility log for the entire drill hole. Mineralised and sampled intervals are logged individually in a separate quantitative mineral log with percentages of the different copper minerals being recorded. The logging is appropriate for mineral resource estimates and mining studies, neither of which are reported herein
Most of the geological logging is a mixture of qualitative (descriptions of the various geological features) and quantitative (numbers and angles of veins and fracture zones, mineral percentages etc.). The quantitative mineralisation log and the magnetic susceptibility log are quantitative. Photographs are taken of all core (both wet and dry) prior to the core being cut.
All core, including barren overburden is logged in the various logging sheets noted above apart from the quantitative mineralisation log in which only the mineralised intervals sent for geochemical analysis are logged in greater detail. |
Sub-sampling techniques and sample preparation |
|
All sampling data reported is from diamond drill core. Samples are of sawn half core except for duplicate samples which are quarter core. Half core is bagged and sent to an ISO-certified independent laboratory for analysis. The other half retained for reference and/or further testwork.
All core samples were dried, crushed to 95% <10 mm and a 1.5 kg sub-sample is separated using a riffle splitter and pulverised to 95% <75 μm. A 50 g sub-sample is utilised as a fire-assay charge for gold analysis. The sample preparation technique and sub-sampling is appropriate for the mineralisation.
Blank samples and duplicate samples are submitted routinely to monitor the sampling and analytical process and to ensure that samples are representative of in situ material. One in every 20 samples of half core is sawn again to produce two quarter core duplicate samples which are submitted to the laboratory separately with different sample numbers. A blank sample was inserted into sample batches every 20th samples.
The magnetite skarn mineralisation occurs in extensive zones of magnetite skarn with disseminated chalcopyrite, containing gold. The sample size of approximately one metre core length is suitable in respect to the grain size of the mineralisation |
Quality of assay data and laboratory tests |
|
All core samples were analysed at an ISO-certified independent laboratory. Gold was analysed by 50 g fire assay and the other elements including copper and iron were analysed by ICP-MS or ICP-OES following a four acid digest. The sample preparation and assay techniques used for the assay results reported herein are of international industry standard and can be considered total.
No geophysical tools were used for any analysis reported herein. Magnetic susceptibility readings are used in magnetic modelling but are not used to estimate magnetite or Fe content.
Quality control completed by RTG included analysis of standards, blanks, and duplicates. Commercial Certified Reference Materials (OREAS 901, 503, 15d, 504, 503b, 502, 501b, 401, 40, 22c, 15d & 112) were inserted into sample batches every 40th sample. A blank sample was inserted every 20th sample; the blank sample material has been sourced and prepared from a local quarry. One in every 20 core samples is cut into 2 quarter core samples which were submitted independently with their own sample numbers. In addition, Intertek conducted their own extensive check sampling as part of their own internal QAQC processes which is reported in the assay sheets. A record of results from all duplicates, blanks and standards is maintained for ongoing QA/QC assessment. Examination of all the QAQC sample data indicates satisfactory performance of field sampling protocols and the assay laboratory. |
Verification of sampling and assaying |
|
The geochemical results reported herein and the calculated averages for different lithology types were checked and calculated by two company personnel.
No twinned holes have been drilled.
Data documentation, verification and storage is conducted in accordance with RTG's Standard Operating Procedures Manual for the Mabilo Project. The diamond drill core is manually logged in significant detail in a number of separate excel 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 representing domains identified by the project geologist
Logging is recorded manually on logging sheets and transcribed into protected Excel spreadsheet templates or entered directly into the Excel templates. The data are validated by both the Project Geologist and the company Database Manager and uploaded to the dedicated project database where they are merged with assay results reported digitally by the laboratory. Hard copies of all logging sheets are kept at the Project office in Daet.
The results from the two quarter core duplicate samples are averaged before being entered into the geochemistry database and reported so that all geochemical data represents the results from half core samples. The assay results reported herein include averages of the duplicate samples. Samples with assay grades below detection level are assigned a value of half (50%) the lower detection level value when averaging intervals for reporting. No top cuts of assay data have been conducted in the results reported. |
Location of data points |
|
Drill-hole collars are initially surveyed with a hand-held GPS with an accuracy of approximately +/- 5 metres. Completed holes are surveyed by an independent qualified surveyor on a periodic basis using standard differential GPS (DGPS) equipment achieving sub-decimetre accuracy in horizontal and vertical position.
All of the holes reported herein have been surveyed with a handheld GPS with coordinates provided in Appendix 1. This survey will be superseded in due course by DGPS survey.
Drill collars are surveyed in UTM WGS84 Zone 51N grid which is the grid for all project data.
The Mabilo project area is relatively flat with total variation in topography less than fifteen (15) metres. Topographic control is provided by DGPS surveying. |
Data spacing and distribution |
|
The results reported herein are from drill holes with variable spacing but mostly on a nominal grid with 20 metres between drill holes on 40 metre spaced lines.
The drill holes are at variable spacing designed to determine the continuity and extent of the mineralised skarn zones. Based on statistical assessment of drill results to date, the planned nominal 40 x 20 metre drill hole spacing is sufficient to support future resource estimation. No estimated grades or resource estimations are included in this report.
No compositing of intervals in the field was undertaken. |
Orientation of data in relation to geological structure |
|
The assay data reported is from large mineralised magnetite-garnet skarn bodies. There is no indication that mineralisation grade within the bodies is affected by internal structures that affect the grade distribution, thus the sampling reported herein is not biased. This is confirmed by the similar results obtained from drill holes in multiple orientations.
There is no bias in the sampling reported herein related to drill-hole orientation. Orientation of some drill-holes has resulted in apparent thickness greater than the true thickness. The orientation of all holes and the interpreted orientation of the mineralisation is discussed in the report. |
Sample security |
|
Chain of custody is managed by RTG employees. Core trays are kept at the drill site under constant watch by Company employees prior to being transported from the drill site by Company employees in a Company vehicle to the core shed where core is logged, sawn and prepared for dispatch.
Remaining core is kept in the Company core yard which is in a secure compound at the Company regional office in Daet town and guarded at night.
Samples are sent directly from the core shed to the laboratory packed in secured and sealed plastic drums using either Company vehicles or a local transport company. A standard Chain of Custody form is signed by the driver responsible for transporting the samples upon receipt of samples at the core yard and is signed by an employee of the laboratory on receipt of the samples at the laboratory. Completed forms are returned to the Company for filing. |
Audits or reviews |
|
The sampling techniques and QA/QC data are reviewed on an ongoing basis by Company management and independent consultants. |
Section 2 Reporting of Exploration Results
Criteria |
JORC Code explanation |
Commentary |
Mineral tenement and land tenure status |
|
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 EP-014-2013-V which was granted in July 2013 for two years, with the option to renew for an additional 4 years. EP-014-2013-V was issued to Mt Labo Exploration and Development Corporation ("Mt Labo"), an associated entity of RTG Mining. There is a 1% royalty payable on net mining revenue received by Mt Labo in relation to EP-014-2013-V.
Mt Labo has entered into a joint venture agreement with Galeo Equipment and Mining Company, Inc. ("Galeo") to partner in exploring and developing the Mabilo and Nalesbitan Projects. Galeo can earn up to a 36% interest in the Projects, down to 200 metres below surface, by contributing approximately US$4,250,000 of exploration drilling and management services for the Projects over a 2 year period.
In November 2013, Sierra Mining Limited ("Sierra"), a now wholly owned subsidiary of RTG, and Galeo signed a Memorandum of Understanding ("MOU") setting out proposed changes to the joint venture agreement to remove the depth limit of 200 m from the agreement and provide for additional drilling of 5000 m below 200 m. The MOU also provides for Galeo to be granted its 36% interest up front with the ability for RTG to claw-back any interest deemed not earned at the end of the claw-back period. The amendments to the JV Agreement are subject to Sierra shareholder approval.
Sierra has also entered a second MOU with Galeo whereby Galeo can earn an additional 6% interest in the joint venture by mining the initial 1.5 Mt of waste at Mabilo or Nalesbitan and other requirements including assistance with permitting. The MOU is subject to a number of conditions precedent, including Sierra shareholder approval.
There are no native title or Indigenous ancestral domains claims at Mabilo.
The tenure over the area currently being explored at Mabilo is a granted Exploration Permit which is considered secure. |
Exploration done by other parties |
|
The only significant previous exploration over the Mabilo project area was a drilling program at another site within the tenement and a ground magnetic survey. RTG or its predecessor Sierra, has reported this data in previous reports to the ASX and used the ground magnetic survey as a basis for initial drill siting. Subsequently RTG conducted its own ground magnetic survey with closer spaced survey lines and reading intervals which supersedes the historical program. There was no known previous exploration in the area where the drilling reported herein was conducted. |
Geology |
|
Mineralisation at Mabilo can be defined as a magnetite-copper-gold skarn which developed where the magnetite-copper-gold mineralisation replaced calcareous horizons in the Eocene age Tumbaga Formation in the contact zone of a Miocene diorite intrusion. |
Drill hole Information |
|
The sampling and geochemical information contained in this report is from the second phase of drilling at Mabilo which is ongoing. The easting, northing, elevation, dip, azimuth and end of hole depth of the holes reported herein is documented in a table included as Appendix 1 to this report. Down hole depths and widths of intersections are documented in the text. The easting, northing, elevation and orientation for all holes drilled at the Mabilo project has been reported in this and previous reports to the ASX.
All relevant data has been reported. |
Data aggregation methods |
|
Assays of samples of different lengths are weighted for their length when averaging assays for the large intervals reported herein. Where any element in an interval reported is below detection level it is assigned a value of half (50%) of the lower detection level when averaging mineralised intervals for reporting. Intervals with no core recovery are assigned zero value when averaging results. No top or bottom cuts have been made to the assay data.
Composite intervals have reported based on nominal cut-off grades of 0.5 g/t gold and 0.5% copper.
The Mabilo skarn mineralisation is large with a relatively uniform grade. Higher or lower grade zones with the mineralised bodies are wider than sample intervals. The average grades reported herein are based on sample widths of average 1 metre width. Where an average grade contains a high grade intersection the high grade intersection has also been reported.
No metal equivalent grades are reported herein. |
Relationship between mineralisation widths and intercept lengths |
|
The holes reported herein have been drilled both vertically and inclined. The orientation of the mineralised bodies is based on interpretation of geology from drill holes supported by magnetic modelling which indicates that much of the mineralisation is dipping to the southwest.
The interpreted orientation of the mineralised bodies is based on magnetic modelling and drill-hole data and is documented in the report. The fact that the intersections are in a dipping body and therefore not true widths is reported and no intervals reported herein can be assumed to be a true width of the mineralisation. |
Diagrams |
|
Plan view maps showing locations of all holes reported along with magnetic images are included in the report. The interpreted geometry of the host geology and the mineralised skarn bodies is illustrated in cross section. |
Balanced reporting |
|
The report documents the assay results of intersections of the mineralised magnetite skarn. Low-grade sample results from adjacent rocks outside the mineralised body are reported. Barren or very low grade results are not reported. Assays from drill holes which did not intersect mineralisation are not reported but their location is shown on plans in the report. |
Other substantive exploration data |
|
All meaningful exploration data concerning the Mabilo Project has been reported either in previous reports to the ASX or in the current report to which this table is attached.
|
Further work |
|
The attached report is an interim report on an ongoing drilling program which will systematically test magnetic bodies and step-out targets along strike and between the North Mineralised Zone and the South Mineralised Zone as well as down-dip from these zones. |
Image with caption: "Figure 1 - Location of drill holes and sections reported in this release on RTP ground magnetic image. (CNW Group/RTG Mining Inc.)". Image available at: http://photos.newswire.ca/images/download/20141017_C2505_PHOTO_EN_6820.jpg
Image with caption: "Figure 2 - Schematic long section showing isotropic copper grade shells, location of drill holes and significant intercepts of this release and the extension to the magnetic model that has been achieved to date. (CNW Group/RTG Mining Inc.)". Image available at: http://photos.newswire.ca/images/download/20141017_C2505_PHOTO_EN_6821.jpg
Image with caption: "Figure 3 - Cross section of South Mineralised Zone showing MDH 067 and MDH 040 with geological interpretation and high grade intercept annotated (Section C of Figure 1). (CNW Group/RTG Mining Inc.)". Image available at: http://photos.newswire.ca/images/download/20141017_C2505_PHOTO_EN_6822.jpg
Image with caption: "Figure 4 - Cross section through MDH-071, MDH-029 and MDH-066 on geological interpretation (Section B of Figure 1). (CNW Group/RTG Mining Inc.)". Image available at: http://photos.newswire.ca/images/download/20141017_C2505_PHOTO_EN_6823.jpg
Image with caption: "Figure 5 - Cross Section of South Mineralised Zone showing MDH 073 with the geological interpretation (Section A on Figure 1). (CNW Group/RTG Mining Inc.)". Image available at: http://photos.newswire.ca/images/download/20141017_C2505_PHOTO_EN_6824.jpg
SOURCE: RTG Mining Inc.
ENQUIRIES: Australian Contact: President & CEO - Justine Magee, Tel: +61 8 6489 2900, Fax: +61 8 6489 2920, Email: [email protected]
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