RTG announces high grade intercepts at Bunawan Project

Criteria

Explanation

Commentary

Sampling techniques

Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

The data reported is based on sampling of Diamond Drill core of PQ and HQ diameter. The core was split with a diamond core saw and half core samples of 1 metre length or less sent for analysis by an independent ISO certified laboratory (Intertek Testing Services Philippines, Inc.) in Manila.

Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

The drilling was reconnaissance in nature and no field duplicates or certified reference standards (CRM) were submitted. The laboratory which analysed the samples conducted extensive check sampling as part of their own internal QA processes which was reported in the assay sheets.

For the 341 samples submitted Intertek conducted 21 Second Sample analyses (from second splits of the coarse crushed sample prior to pulverising) and 37 Repeat Sample analyses (a separate split and digest / Fire assay from the pulverised material) in addition to 21 assays of their own blank material and 41 assays of CRM standards. The results indicate acceptable accuracy and repeatability.

Aspects of the determination of mineralisation that are Material to the Public Report. In cases where 'industry standard' work has been done this would be relatively simple (e.g. 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.

Diamond drill core of PQ and NQ diameter were cut in half and half core samples submitted to the Laboratory. Sample intervals were one metre or less. Samples were crushed and pulverized (95%<75 um). Gold was analysed by 50 g Fire assay/AAS and Ag, Cu, Pb, Zn and As by AAS. Residual half core has been retained for reference and future metallurgical testwork. Coarse rejects and pulps will be retrieved from the laboratory and stored for future reference and umpire assays.

Drilling techniques

Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc.).

Drilling was by PQ and HQ diameter, triple tube diamond core. The hole collars were surveyed (GPS) but down hole orientation surveys were not conducted and the core was not orientated.

Drill sample recovery

Method of recording and assessing core and chip sample recoveries and results assessed.

Core recovery was 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 calculated and both are recorded in the Geotech log. 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 the adjustment is made in the records. The core recoveries in the nine holes drilled were excellent with all holes individually averaging greater than 98% and the combined average of all nine holes being greater than 99% recovery.

Measures taken to maximise sample recovery and ensure representative nature of the samples.

Drillers are informed of the importance of core recovery and all care is taken to ensure maximum recovery of diamond core.

Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

There is no discernible relationship between core recovery and grade and recoveries were uniformly very high

Logging

Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

The diamond drill core is photographed and logged in a number of logging sheets including a geological log, a structural log and a geotechnical log, which is appropriate for mineral resource estimates and mining studies, neither of which have been undertaken at this stage.

Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography.

Most of the geological logging is a mixture of qualitative (descriptions of the various geological minerals and features) and quantitative (numbers and angles of veins etc). Photos are taken of all core (both wet and dry) which can be considered quantitative.

The total length and percentage of the relevant intersections logged.

All core is initially logged in the various logging sheets noted above and intervals are marked out for sawing and sampling. Not all core has been sampled to date.

Sub-sampling techniques and sample preparation

If core, whether cut or sawn and whether quarter, half or all core taken.

Sample lengths are one metre (or less to coincide with lithological breaks). All core from mineralised zones and the immediate surrounding rocks was initially sawn in half to provide a better surface for geological logging. Half core is collected for analysis and the other half retained for reference and or metallurgical testwork.

If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry.

All sampling reported is of diamond drill core.

For all sample types, the nature, quality and appropriateness of the sample preparation technique.

All half core samples were bagged, labelled and sent to an ISO certified independent laboratory where samples are dried, crushed and pulverised to 95% of the sample passing a 75?m sieve.

Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

The drilling was reconnaissance in nature and no field duplicates or certified reference standards (CRM) were submitted. The laboratory which analysed the samples conducted extensive check sampling as part of their own internal QA processes which was reported in the assay sheets.

For the 341 samples submitted Intertek conducted 21 Second Sample analyses (from second splits of the coarse crushed sample prior to pulverising) and 37 Repeat Sample analyses (a separate split and digest / Fire assay from the pulverised material) in addition to 21 assays of their own blank material and 41 assays of CRM standards. The results indicate acceptable accuracy and repeatability.

Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.

High drill core recoveries were achieved and no evidence of down hole contamination during drilling noted. The half core samples can be considered representative of the insitu material.

Whether sample sizes are appropriate to the grain size of the material being sampled.

The sample size (mostly 1 metre of half core) used is suitable in respect to the grain size of the mineralisation.

Quality of assay data & lab tests

The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

The assay techniques used for the assay results reported herein are international standard and can be considered total. Gold was analysed by 50 g fire assay and the other elements by AAS.

For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

No geophysical tools, spectrometers, hand held XRF instruments etc were used for any analysis or observation reported herein.

Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.

The drilling was reconnaissance in nature and no field duplicates or certified reference standards (CRM) were submitted. The laboratory which analysed the samples conducted their own extensive check sampling as part of their own internal QA processes which is reported in the assay sheets. For the 341 samples submitted Intertek conducted 21 Second Sample analyses (from second splits of the coarse crushed sample prior to pulverising) and 37 Repeat Sample analyses (a separate split and digest / Fire assay from the pulverised material) in addition to 21 assays of their own blank material and 41 assays of CRM standards.

The results indicate acceptable accuracy and repeatability and are considered acceptable for the initial phase of reconnaissance drilling.

Verification of sampling and assaying

The verification of significant intersections by either independent or alternative company personnel.

The geochemical results reported herein and the calculated averages for different intervals were independently checked and calculated by two company personnel.

The use of twinned holes.

The drilling program comprised nine drill holes, none of which have been twinned.

Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

The diamond drill core is 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 mineralization;

2) a structural log of all core, recording alpha and beta angles, structure types, vein types and infill;

3) a geotechnical log of all core recording RQD, defects, fabrics;

4) a geochemical log of assay results.

The drilling results reported are from the first phase of reconnaissance drilling and the data has not been incorporated into a dedicated Project computer database at this stage. All logging and assay data has been validated and archived and is available for future reference. Hard copies of all logging sheets are kept at both the Project office in Bunawan town and the Davao and Perth offices.

Remnant half core and the coarse rejects and sample pulps returned from the laboratory are kept in locked storage at the Company's core yard at Bunawan.

Discuss any adjustment to assay data.

The results reported herein include averages calculated from separate contiguous one metre intervals. No top or bottom cut of any assays has been applied.

Location of data points

Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

Drill hole collars were sited with a hand held GPS with an accuracy of +/- 5 metres.  No down hole orientation survey was conducted.

Specification of the grid system used.

Co-ordinates are on a UTM Grid; WGS84 (52N).

Quality and adequacy of topographic control.

The Bunawan area is moderately hilly. The collar elevation for the drill holes reported herein is based on a reading from a hand held GPS and is consistent with government topographic maps.

Data spacing and distribution

Data spacing for reporting of Exploration Results.

The drill hole assay results reported herein are from reconnaissance holes drilled on separate discrete targets rather than a regular grid.

Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

The Bunawan Project is at an early stage and drill holes are at variable spacing aimed at testing discrete zones of mineralisation. No estimates of grade continuity, resource or reserves are made.

Whether sample compositing has been applied.

No compositing of intervals in the field has been undertaken.

Orientation of data in relation to geological structure

Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type

The drill holes reported are the first holes drilled at the Bunawan project, and while mapped surface structures are generally ENE trending and most drill holes oriented perpendicular to this trend it cannot be assumed at this early stage of exploration that the intervals reported are true widths of mineralisation

If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

As noted above, most of the drilling was conducted perpendicular to the main structural trend indicated in surface geology but it cannot be assumed at this early stage of exploration that the intervals reported are true widths of mineralisation.

Sample security

The measures taken to ensure sample security.

Chain of custody was managed by the company employees. Core was placed in core trays by the drilling crew and kept at 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 was logged and sawn core samples prepared for dispatch.

Samples were packed in boxes and sent directly from the core shed to the laboratory sample preparation facility in General Santos town using a local transport company. Remaining core is kept in the Company core yard which is in a secure compound at Bunawan which is guarded at night.

Audits or reviews

The results of any audits or reviews of sampling techniques and data.

The sampling techniques and QA/QC data were reviewed by Company management and an independent consultant. The writer of this report is an independent consultant who has reviewed all sample handling techniques and considers them to be of industry standard and appropriate for this stage of exploration.

Criteria

Explanation

Commentary

Mineral tenement and land tenure status

Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

The Bunawan Project is covered by Exploration Permit EP-033-XIII, Exploration Permit Application EXPA 37-XIII and Mineral Production Sharing Application APSA 03-XIII. Drilling activity the subject of this announcement is within EP 033-XIII which was granted on 18 August 2014 for a period of two years, with the option to renew for an additional 6 years.

The National Commission on Indigenous Peoples (NCIP) issued a Compliance Certificate to Bunawan in compliance with the FPIC Process and that the Indigenous Community has given its consent to the Project.

The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

The tenure over the area currently being explored is a granted Exploration Permit which is considered secure.

Exploration done by other parties

Acknowledgment and appraisal of exploration by other parties.

The only known previous exploration over the Bunawan project area was conducted by Sierra Mining Ltd. prior to its merger with/ take over by RTG. This exploration included rock chip, stream sediment and soil sampling as well as a ground magnetic survey and geological mapping all of which was reported to the ASX by Sierra Mining.

Geology

Deposit type, geological setting and style of mineralisation.

Mineralisation at Bunawan can be defined as" intermediate sulphidation" or "carbonate-base metal" type epithermal Au-Ag mineralisation associated with a diatreme breccia complex. Mineralisation types in the area include high grade Au in quartz-carbonate veins hosted by wall rock andesite and dacite as well as lower grade disseminated Au in "silica-matrix breccias" developed in the diatreme.

Drill hole Information

A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

·         easting and northing of the drill hole collar

·         elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar

·         dip and azimuth of the hole

·         down hole length and interception depth

·         hole length.

The information contained in this report pertains to the initial results of the first phase of reconnaissance drilling at Bunawan. The easting, northing, elevation, dip, azimuth and hole depth of all holes is reported in a table within the report. The depths of intersections are documented in the text. The location of the drill holes with respect to the diatreme complex (as indicated by ground magnetics) and artisanal workings are shown on a map in the report.

If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

Location and orientation of all drill holes is reported.

Data aggregation methods

In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated.

The results reported herein include averages calculated from separate contiguous one metre intervals. No top or bottom cut of any assays has been applied.

Where shorter lengths of high grade core occurs within wider zones of low grade the higher grades are noted as "including intervals" in the table within the report.

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Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

The assumptions used for any reporting of metal equivalent values should be clearly stated.

No metal equivalent grades are reported herein.

Relationship between mineralisation widths and intercept lengths

These relationships are particularly important in the reporting of Exploration Results.

Due to the preliminary nature of the exploration it cannot be assumed that the intervals reported are true widths of mineralisation.

If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. 'down hole length, true width not known').

The drill holes reported are the first holes drilled at the Bunawan project, and while mapped surface structures are generally ENE trending and most drill holes were oriented perpendicular to this trend it cannot be assumed at this early stage of exploration that the intervals reported are true widths of mineralisation.

Diagrams

Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported. These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

A map (plan view) showing  position of the drill holes and ground magnetic data is included in the report.

Balanced reporting

Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

The report documents the assay results from the first phase of drilling at Bunawan. Low grade sample results from adjacent rocks outside mineralised zones are not reported.

Other substantive exploration data

Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – 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 Bunawan Project has been reported either in previous reports to the ASX (by Sierra Mining Ltd.) or is in the current report to which this appendix is attached.

Further work

The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).

Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

The attached report summarises the results of the initial scout drilling program at Bunawan. The results are considered very encouraging and further drilling is warranted but has not been planned in detail at this stage.