RTG Mining Inc. - Quarterly Activities Report
/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
SEPTEMBER 2014 QUARTERLY REPORT
ANNOUNCEMENT TO THE TORONTO STOCK EXCHANGE AND AUSTRALIAN SECURITIES EXCHANGE
SUBIACO, Western Australia, Oct. 29, 2014 /CNW/ -
HIGHLIGHTS
- Further 40m extension to the mineralized strike in the northerly direction, total strike of the Southern Mineralized Zone is now ~400m
- Drilling on the northern end of the Southern Mineralized Zone has confirmed a significant chalcocite copper mineralized zone
- Significant gold oxide mineralization is confirmed at shallow positions just starting from cover volcanics interface
- Summary of significant intercepts for the quarter
- Permitting documentation for proposed DSO Operation at Mabilo now lodged with government
| Hole ID | Intercept width | Grade (g/t Au & % Cu) | Downhole Depth From |
| MDH-060 | 16.00m | 2.84 g/t Au, 3.04% Cu | 210m |
| MDH-066 | 64.00m | 2.96 g/t Au, 7.91% Cu | 37.8m |
| MDH-071 | 35.00m | 2.79g/t Au, 4.47% Cu | 31.0m |
| MDH-073 | 19.10m | 2.18g/t Au, 26.16% Cu | 38.95m |
- Detailed metallurgical test work underway on Mabilo ore
- Remain on track for delivery of a maiden resource statement shortly
- Permit for exploration at Bunawan issued 2 months after completion of Sierra deal
- Cash and liquid assets as at 30 September of US$8.588M
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 all-weather 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 calc-silicate 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.
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 eighty one diamond drill holes have been completed at the end of the Quarter with further drilling ongoing.
South Body
Drilling focused on the South Mineralised Zone, further extending strike towards the north and defining limits to the oxide mineralisation and continuing to define down dip extents of the system. Drilling continues to validate and extend the geology model with identification of the shallow gold rich copper depleted zone from the overburden contact. The chalcocite copper zone at the northern end of the South Mineralised Zone was further extended with follow up drilling.
The magnetic modeled body is approximately 340 meters long. Recent drilling has extended the total strike length of the South Mineralized Zone to approximately 400 meters and remains open to the south and north.
A number of more recent drill holes pending analysis, have confirmed the mineral system extends down dip by more than 200 meters in the SW direction. With infill drilling targeting the area above the deepest intercept drilled to date MDH-046 (ASX release by Sierra Mining 13th May 2014). Additional infill drill holes targeting the oxide parts of the system are also awaiting assay.
Significant intersections returned from the South Mineralised Zone during the Quarter are summarized below and the hole locations are shown in (Figure 3). A full list of drilling undertaken during the quarter is reported in Appendix 1.
MDH-060
An inclined hole drilled to test the down dip extent of MDH-057 (Figure 4). Drilling intersected magnetite skarn from 182.10 meters to 235.20 meters. Higher grade intervals are characterised by coarse grained chalcopyrite inter-grown with magnetite weakly overprinted by silica pyrite. True thickness of magnetite skarn in this part of the system is approximately ~32 meters.
| MDH-060 | From | To | Intercept (m) | Au (g/t) | Cu (%) | Ag (g/t) | Fe ( %) | Mineralisation |
| 135.80 | 141.00 | 5.20 | 3.49 | 3.44 | 13.1 | 19.35 | Breccia Magnetite Skarn | |
| and | 181.00 | 232.00 | 51.00 | 1.63 | 1.90 | 19.0 | 41.35 | Magnetite Skarn |
| including | 182.10 | 188.00 | 5.90 | 1.48 | 2.08 | 25.7 | 25.81 | Breccia Magnetite Skarn |
| and including | 193.25 | 231.00 | 37.75 | 1.81 | 2.11 | 19.9 | 46.81 | Magnetite Skarn |
| Including | 210.00 | 226.00 | 16.00 | 2.84 | 3.04 | 22.4 | 45.89 | Magnetite Skarn |
| Including | 210.00 | 213.00 | 3.00 | 4.11 | 5.01 | 22.6 | 47.52 | Magnetite Skarn |
| and | 268.00 | 274.00 | 6.00 | 2.20 | 0.90 | 4.0 | 36.23 | Garnet Magnetite Skarn |
MDH065
MDH-065 is an inclined hole drilled to further test the down dip extent of MDH-053 (Figure 5). The drillhole intersected magnetite skarn from 179.35 meters to 217.00 meters. Mineralisation in this part of the system is characterised by coarse grained chalcopyrite intergrown with magnetite and breccias with weak silica pyrite overprint consistent with observations in MDH060. True thickness of magnetite skarn is this part of the system is approximately ~32 meters.
| MDH-065 | From | To | Intercept (m) | Au (g/t) | Cu (%) | Ag (g/t) | Fe (%) | Mineralisation |
| 169.00 | 208.00 | 39.00 | 1.46 | 1.75 | 22.0 | 36.47 | Magnetite Skarn | |
| including | 185.00 | 205.00 | 20.00 | 1.96 | 2.84 | 37.0 | 43.24 | Magnetite Skarn |
| and including | 193.00 | 204.00 | 11.00 | 2.59 | 3.38 | 37.32 | 41.77 | Magnetite Skarn |
| and including | 187.00 | 190.45 | 3.45 | 1.34 | 2.55 | 43.17 | 44.63 | Magnetite Skarn |
MDH066 & MDH071
Two diamond drill holes on section were designed to follow up supergene mineralization first reported in MDH-029 (ASX release by Sierra Mining 3rd April 2014). Located approximately thirty meters northeast of MDH-029 and at the northern limit of the South Mineralized Zone beyond the magnetic model. The first drill hole MDH066 intersected an oxide gold rich zone from 37.80 meters to 56.00 meters followed by a massive chalcocite zone from 56.00 meters to 89.50m meters. The bottom of the interval is magnetite skarn from 89.50 meters 92.05 meters. A second drill hole MDH-071 successfully followed up the first drill hole with gold rich oxide zone from 31.00 meters to 59.30 meters and a massive chalcocite zone from 59.30 meters to 63.00 meters.
| MDH-066 | From | To | Intercept (m) | Au (g/t) | Cu (%) | Ag (g/t) | Fe (%) | Mineralisation |
| 37.80 | 102.00 | 64.20 | 2.96 | 7.91 | 16.0 | 44.57 | Oxide Gold, Supergene Copper & Magnetite Skarn | |
| including | 37.80 | 56.00 | 18.20 | 5.20 | 0.42 | 13.75 | 40.36 | Oxide Gold |
| including | 56.00 | 89.50 | 33.50 | 2.35 | 14.20 | 21.6 | 50.39 | Chalcocite Copper |
| including | 89.50 | 102.00 | 12.50 | 1.21 | 1.61 | 3.0 | 30.66 | Magnetite skarn |
| and | 137.80 | 149.00 | 11.20 | 0.50 | 0.74 | 1.0 | 7.18 | Garnet Skarn |
| 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 | 14.3 | 32.54 | Oxide Gold & Chalcocite Copper | |
| including | 38.00 | 59.30 | 21.30 | 3.26 | 0.50 | 16.6 | 35.76 | Oxide Gold |
| including | 59.30 | 63.00 | 3.70 | 1.03 | 36.82 | 6.7 | 17.21 | Chalcocite Copper |
MDH-067
An inclined drill hole designed to test the down dip extent and true thickness intersected in MDH040 (Figure 7) reported previously (ASX release by Sierra Mining 3rd April 2014). The drill hole intersected magnetite skarn from 138.00 meters to 178.40 meters with higher grade intervals characterised by coarse grained chalcopyrite inter-grown with magnetite. 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 |
MDH073
An inclined hole located approximately twenty meters northwest of previously drilled MDH066 reported on (ASX release by RTG Mining 13th August 2014) and at the northern limit of the magnetic model. The drill hole (Figure 8) intersected an oxide gold rich zone at shallow depth from the Labo Volcanics overburden contact at down hole 38.95 meters to 55.60 meters followed by a massive chalcocite copper zone from 61.90 meters to 81.00 meters. The two intervals of gold oxide zone and chalcocite copper zone are separated by a narrow clay zone, with a combined down hole interval of 48.15 meters. True thickness has not been determined due to insufficient drilling on section.
| 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 | 1.2 | 44.30 | Gold Oxide Zone | |
| and | 61.90 | 81.00 | 19.10 | 2.18 | 26.16 | 9.2 | 28.44 | Chalcocite Copper Zone |
| and | 84.00 | 87.10 | 3.10 | 0.84 | 2.53 | 9.1 | 31.27 | Magnetite Skarn |
| and | 106.00 | 111.00 | 5.00 | 4.87 | 5.65 | 10.8 | 19.15 | Garnet Magnetite Skarn |
Documentation was submitted late in the quarter to the local authorities to start the Oxide Mining permitting process.
Work continued towards the finalisation of the maiden geological resource which is due for release in early November.
Samples for metallurgical test work associated with the primary feasibility study were submitted to ALS Laboratories in Perth during the quarter. The samples will be used for Phase 1 analysis, with the results being used for process flow determinations. Further work also continued on environment, community and infrastructure.
OTHER PROJECTS
With the granting of the Exploration Permit for Bunawan in August, we have commenced implementation of a scout drilling program which will begin in the December Quarter. It is proposed to drill approximately 3,500m of diamond core as an initial reconnaissance program. By the end of the Quarter work had commenced on the drilling contract, a local geologist had been employed and work had started on preparing the drill pads.
CORPORATE
As at 30 September 2014, RTG had cash and liquid assets of US$8.588M (June quarter: US$10.68M). The Quarter was focused on the integration of Sierra Mining Ltd. ("Sierrra"), with the introduction of a new geologist, Mr Bob Ayres who has now reviewed all previous drilling activity at Mabilo and developed a strong structural understanding of the Mabilo ore body. The focus has also moved from an exploration to a development project, with an emphasis placed on progressing feasibility work to assist with the permitting process.
We have been working closely with the joint venture partner at the Mabilo Project and have made significant progress with both the preparation of an initial resource and permitting for the development of the Mabilo Project.
In parallel with these efforts, given our established network and credentials in country, we were able to secure the issue of the Bunawan exploration permit which Sierra had been working on for some period of time.
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 Ltd.), 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. 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 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 and the Scheme Booklet dated 10 April 2014 filed with the Canadian securities regulatory authorities on the SEDAR website at sedar.com.
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.
Appendix 1: Location of Reported Drill Holes
| HOLE ID | Location | Survey | Orientation True Nth | Depth | |||||
| Prospect | East | North | RL | Dip | Azi | E.O.H (m) | |||
| MDH-60 | South B | Geotechnical | 476153 | 1559659 | 116 | -70 | 50 | 297.60 | |
| MDH-61 | South B | Geotechnical | 476280 | 1559794 | 125 | -60 | 230 | 164.40 | |
| MDH-62 | South A | Geotechnical | 475937 | 1560086 | 114 | -60 | 135 | 118.80 | |
| MDH-63* | South B | Resource | 476125 | 1559690 | 121 | -70 | 50 | 142.10 | |
| MDH-64* | South B | Metallurgy | 476099 | 1559730 | 114 | -65 | 50 | 129.90 | |
| MDH-65 | South B | Resource | 476129 | 1559696 | 121 | -70 | 50 | 262.70 | |
| MDH-66 | South A | Metallurgy | 476024 | 1559986 | 108 | -60 | 50 | 171.90 | |
| MDH-67 | South B | Metallurgy | 476099 | 1559728 | 113 | -65 | 50 | 196.90 | |
| MDH-68 | South A | Resource | 475975 | 1559988 | 114 | -60 | 50 | 224.60 | |
| MDH-69 | South A | Metallurgy | 476046 | 1559849 | 110 | -60 | 50 | 185.50 | Assay Pending |
| MDH-70* | South A | Resource | 476005 | 1560016 | 111 | -60 | 50 | 70.80 | |
| MDH-71 | South A | Resource | 476038 | 1559998 | 108 | -60 | 50 | 141.30 | |
| MDH-72 | South A | Resource | 476044 | 1559846 | 110 | -74 | 50 | 275.30 | Assay Pending |
| MDH-73 | South A | Resource | 476011 | 1560002 | 109 | -60 | 50 | 124.50 | Assay Pending |
| MDH-74 | South A | Resource | 476067 | 1559976 | 108 | -60 | 50 | 114.80 | Assay Pending |
| MDH-75 | South B | Resource | 476050 | 1559745 | 112 | -65 | 50 | 303.70 | Assay Pending |
| MDH-76 | South A | Resource | 476068 | 1559974 | 108 | -60 | 90 | 83.00 | Assay Pending |
| MDH-77 | South B | Resource | 476047 | 1559850 | 110 | -45 | 50 | 139.60 | Assay Pending |
| MDH-78 | South A | Resource | 476066 | 1559978 | 108 | -60 | 185 | 261.80 | Assay Pending |
| MDH-79* | South A | Resource | 475998 | 1559846 | 116 | -60 | 50 | 140.10 | |
| MDH-80 | South A | Resource | 476074 | 1559716 | 113 | -65 | 50 | 304.00 | Assay Pending |
| MDH-81 | South A | Resource | 476082 | 1559930 | 109 | -65 | 50 | 174.40 | Assay Pending |
| MDH-82 | South A | Resource | 476047 | 1559747 | 113 | -60 | 50 | 277.65 | Assay Pending |
| MDH-83 | South A | Resource | 476106 | 1559800 | 117 | -60 | 50 | 200.60 | Assay Pending |
| MDH-84 | South A | Resource | 475987 | 1560025 | 110 | -60 | 50 | 226.30 | Assay Pending |
| MDH-85 | South A | Resource | 475996 | 1559856 | 117 | -60 | 50 | in progress | |
| MDH-86 | South A | Resource | 476069 | 1559829 | 111 | -60 | 50 | in progress | |
| MDH-87 | South A | Resource | 476104 | 1559898 | 119 | -75 | 50 | in progress | |
- Abandoned drill holes failed to reach target depth, no significant mineralisation.
- Geotechnical Drill Hole MDH-062 reported no significant mineralization.
All co-ordinates in UTM-WGS84 (51 N) were surveyed using differential GPS (DGPS) system by McDonald Consultants Inc.
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 and HQ 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. |
| Drilling techniques |
| Drilling was by PQ and HQ 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 The majority of the mineralisation is in fresh rock where recoveries are greater than 90%. Most mineralisation occurs in wide intersections of massive magnetite skarn with relatively uniform copper and gold grades. Core loss occurs in fracture zones but is usually not a significant problem i.e. the core lost in fracture zones is unlikely to have been significantly higher or lower grade than the surrounding material. In the weathered hematitic oxidised zones some core loss is unavoidable, but overall recovery is generally >90% and the core loss is volumetrically minor in the mineralised zones. In areas of poor recovery, the sample intervals are arranged to coincide with drill runs, thus areas of different core loss percentage are specific to individual samples which can be assessed when interpreting analytical results and modelled in future resource estimation studies. Where an area of 100% core loss is identified the sample intervals are marked to each side of the zone and the zone is designated "No core" and assigned zero value in the various log sheets and geochemical database. All care is taken to ensure maximum recovery of diamond core and drillers are informed of the importance of core recovery. Any areas of poor core recovery are sampled separately thus assay results can be directly related to core recovery. There is no discernible relationship between core recovery and grade. The skarn bodies are relatively uniform over significant lengths and the copper and gold grades are not related to clay and fracture zones which are the main causes of core loss. |
| 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 ?m. 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 Ltd. ("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. |
Rule 5.5
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 |
| ABN | Quarter ended ("current quarter") | |
| 70 164 362 850 | 30 September 2014 |
Consolidated statement of cash flows
| Cash flows related to operating activities | Curent quarter
$US | Year to date (nine months) $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 - general | - - - (339,588) (761,583) | - - - (2,997,773) (1,173,444) |
| 1.3 | Dividends received | - | - |
| 1.4 | Interest and other items of a similar nature received |
4,013 |
28,124 |
| 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 |
(1,097,158) |
(4,143,093) | |
| Cash flows related to investing activities | |||
| 1.8 | Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets | - - (946) | - - (14,405) |
| 1.9 | Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets | ||
| 1.10 | Loans to other entities associates | (765,052) | (1,408,722) |
| 1.11 | Loans repaid by other entities | ||
| 1.12 | Cash acquired from asset acquisition net of expenses# |
(1,064,339) |
263,373 |
|
Net investing cash flows | (1,830,337) | (1,159,754) | |
| 1.13 | Total operating and investing cash flows (carried forward) | (2,927,495) | (5,302,847) |
1.13 | Total operating and investing cash flows (brought forward) | (2,927,495) | (5,302,847) |
| Cash flows related to financing activities | |||
| 1.14 | Proceeds from issues of shares, options, etc. | 240 | 240 |
| 1.15 | Proceeds from sale of forfeited shares | - | - |
| 1.16 | Proceeds from borrowings | - | - |
| 1.17 | Repayment of borrowings | - | - |
| 1.18 | Dividends paid | ||
| 1.19 | Share issue costs# | 1,088,768 | - |
| Net financing cash flows | 1,089,008 | 240 | |
| Net increase (decrease) in cash held |
(1,838,487) |
(5,302,607) | |
| 1.20 | Cash at beginning of quarter/year to date^ | 7,234,480 | 10,877,848 |
| 1.21 | Exchange rate adjustments to item 1.20 | (144,229) | (323,477) |
| 1.22 | Cash at end of quarter |
5,251,764 |
5,251,764 |
| # June quarter statement of cash flows presented shares issue costs and cash acquired on merger with Sierra separately. During the current quarter these items were re-allocated to present them as being netted off for year to date presentation. |
| ^ During the September quarter US$116,668 (YTD US$109,685) was reclassified from opening cash to receivables |
Payments to directors of the entity, associates of the directors, related entities of the entity and associates of the related entities
| Curent quarter $US | ||
|
1.23 |
Aggregate amount of payments to the parties included in item 1.2 |
165,481 |
|
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 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 |
|
None
| |
| 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 earning up to a 42% interest in the project by contributing to exploration and drilling and 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 | ||
| 4.1 | Exploration and evaluation
| 2,189,620 |
| 4.2 | Development
| |
| 4.3 | Production
| |
| 4.4 | Administration: Business Development General
|
466,973 546,005 |
| Total | 3,202,598 |
Reconciliation of cash
| Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows. | Curent quarter $US | Previous quarter $US | |
| 5.1 | Cash on hand and at bank | 2,509,500 | 2,053,906 |
| 5.2 | Deposits at call | 2,742,264 | 5,180,574 |
| 5.3 | Bank overdraft | ||
| 5.4 | Other (provide details) | ||
| Total: cash at end of quarter (item 1.22)# | 5,251,764 | 7,234,480^ | |
| #Cash and liquid assets includes cash at the end of the quarter plus receivables due to the Company including costs awarded under arbitration ($0.94M), consideration due as part of the Segilola share sale agreement($1.0M) and Deferred Heap Leach payment ($1.396M). |
| ^ During the September quarter US$116,668 was reclassified from opening cash to receivables |
Changes in interests in mining tenements and petroleum tenements
| Tenement reference and location | Nature of interest (note (2)) | Interest at beginning of quarter | Interest at end of quarter | ||
| 6.1 | Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed
| - | - | ||
| 6.2 | Interests in mining tenements and petroleum tenements acquired or increased
| Exploration Permit ("EP") 033-XIII | RTG's interest is held through its interest in its associate entity Bunawan Mining Corporation. | - | 40% |
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 per security (see note 3) (cents) | Amount paid up per security (see note 3) (cents) | ||
| 7.1 | Preference +securities (description) | ||||
| 7.2 | Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions | ||||
| 7.3 | +Ordinary securities | 111,973,237
| 111,973,237 | n/a | n/a |
| 7.4 | Changes during quarter (a) Increases through issues (b) Decreases through capital consolidation |
256,000 167 |
256,000 167 |
CAD 0.94 CAD 1.50 |
CAD 0.94 CAD 1.50 |
| 7.5 | +Convertible debt securities (description) | ||||
| 7.6 | Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted | ||||
| 7.7 | Options (description and conversion factor) | 8,784,687 | 8,784,687 | Exercise price CAD 1.50 | Expiry date 4 June 2017 |
| 7.8 | Issued during quarter | ||||
| 7.9 | Exercised during quarter | 167 | 167 | CAD 1.50 | CAD 1.50 |
| 7.10 | Expired during quarter | ||||
| 7.11 | Debentures (totals only) | ||||
| 7.12 | Unsecured notes (totals only)
| ||||
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.
SOURCE RTG Mining Inc.
Contact
ENQUIRIES: Australian Contact, President & CEO - Justine Magee, Tel: +61 8 6489 2900, Fax: +61 8 6489 2920, Email: jmagee@rtgmining.com