06:46:27 EDT Sat 20 Apr 2024
Enter Symbol
or Name
USA
CA



RTG Mining Inc (2)
Symbol RTG
Shares Issued 111,973,237
Close 2014-11-20 C$ 0.95
Market Cap C$ 106,374,575
Recent Sedar Documents

RTG Mining releases NI 43-101 Mabilo resource estimate

2014-11-24 09:14 ET - News Release

Ms. Justine Magee reports

RTG ANNOUNCES MAIDEN MINERAL RESOURCE AT MABILO OF 5.87MT INDICATED RESOURCE AND 5.50MT INFERRED RESOURCE

RTG Mining Inc. has released a maiden mineral resource, with an effective date of Sept. 14, 2014, for the Mabilo project reported in accordance with National Instrument 43-101 and the JORC code (2012). The indicated resource includes significant high-grade oxide gold and copper at shallow levels, which contains 67,000 ounces of gold, 32,000 tonnes of copper and 312,000 t of iron. These resources could be mined with limited capital requirements which could allow for the majority of capital expenditure on the primary plant to be financed from the oxide ore.

The magnetite skarn mineralization which makes up a significant portion of the mineral resource is well defined, continues to remain open in multiple directions and is the subject of further drilling. The copper-equivalent grade of the indicated mineral resource is 3.4 per cent after diluting for full recovery assumptions.

Highlights of the resource include:

  • Total indicated resource of 5.9 million t at 2.1 per cent copper, 2.2 grams per tonne gold, 8.4 g/t silver and 49 per cent iron, containing 121,000 t copper and contained gold of 414,000 ounces at a 0.3 g/t Au cut-off grade;
  • Total inferred resource of 5.5 million t at 1.5 per cent Cu, 1.7 g/t Au, 12.9 g/t Ag and 39 per cent Fe, containing 84,000 t copper and contained gold of 302,000 ounces at a 0.3 g/t Au cut-off grade;
  • Indicated oxide resource that includes a high-grade oxide gold cap zone (340,000 t at 3.2 g/t Au) and a very high-grade supergene chalcocite zone (101,000 t at 24.0 per cent Cu) at shallow levels. Both represent significant value with the mining of this product potentially able to assist in financing capital development of the larger primary plant;
  • Significant upside potential remains to upgrade the inferred resource and to further extend the magnetite skarn mineralization along strike and downdip beyond the current resource model.

                               TOTAL MABILO RESOURCE AT 0.3 G/T AU CUT-OFF GRADE

Classification   Tonnes   Cu    Au    Ag    Fe  Contained Cu  Contained Au  Contained Fe  CuEq  Contained CuEq
                     (M)  (%) (g/t) (g/t)   (%)          (kt)         (koz)          (kt)   (%)            (kt)

Indicated          0.73  4.4   2.8   9.5  42.6          32.2          67.0         312.7   5.8            42.6
Inferred           0.13  3.1   2.2  10.4  34.9           3.9           9.0          43.6   4.3             5.4
Indicated          5.13  1.7   2.1   8.3  49.9          88.9         347.0       2,563.0   3.1           159.6
Inferred           5.37  1.5   1.7  12.9  39.1          80.4         293.0       2,101.9   2.6           140.5
Indicated (total)  5.87  2.1   2.2   8.4  49.0         121.1         414.0       2,875.7   3.4           202.2
Inferred (total)   5.50  1.5   1.7  12.9  39.0          84.3         302.0       2,145.6   2.7           145.9

The mineral resource was estimated within constraining wireframe solids based on the mineralized geological
units. This resource table is quoted from all classified blocks above a lower cut-off grade 0.3 g/t Au within
these wireframe solids. Differences may occur due to rounding.

Oxide mining strategy

The indicated oxide resource includes a high-grade oxide gold cap zone (356,000 tonnes at 3.1 g/t Au) and a very high-grade supergene chalcocite zone (101,000 t at 24.0 per cent Cu) at shallow levels. Given the high-grade nature of this shallow oxide mineralization, the focus will be to prioritize this area for initial exploitation.

The zones are layered and should lend themselves to open-pit mining processes.

           OXIDE GOLD AND CHALCOCITE COPPER MABILO RESOURCE AT 0.3 G/T AU CUT-OFF GRADE

                                             Indicated

Zone                       Tonnes     Au     Cu     Fe  Contained Au  Contained Cu  Contained Fe
                               (M)  (g/t)    (%)    (%)         (koz)          (kt)          (kt)
South mineralized zone
Oxide gold cap               0.34    3.2    0.2   43.4          34.7           0.8         145.3
Oxide copper/gold            0.26    2.7    2.5   45.7          22.6           6.7         120.3
Supergene chalcocite         0.10    2.3   24.0   38.6           7.6          24.2          39.0
Subtotal                     0.70    2.9    4.5   43.6          64.8          31.7         304.6
North mineralized zone
Oxide gold cap               0.02    1.6    0.2   23.0           1.1           0.0           4.7
Oxide copper/gold            0.01    2.9    3.5   21.5           1.1           0.4           2.6
Subtotal                     0.03    2.1    1.4   22.4           2.2           0.5           7.3
Total                        0.73    2.8    4.4   42.6          67.0          32.2         311.9

                                              Inferred

Zone                       Tonnes     Au     Cu     Fe  Contained Au  Contained Cu  Contained Fe
                               (M)  (g/t)    (%)    (%)         (koz)          (kt)          (kt)
North mineralized zone
Oxide gold cap               0.02    2.1    0.2   28.3           1.2           0.0           5.0
Oxide copper/gold            0.03    2.9    3.8   22.7           2.5           1.0           6.1
Subtotal                     0.06    2.6    4.6   22.8           4.6           2.6          12.7

The mineral resource was estimated within constraining wireframe solids based on the
mineralized geological units. The resource is quoted from all classified blocks above a lower
cut-off grade 0.3 g/t Au within these wireframe solids. Differences may occur due to rounding.

RTG chief executive officer Justine Magee said the company was very pleased with the maiden mineral resource. "It validates our belief in the potential for a low-cost, high-grade copper-gold project. The very high-grade near-surface oxide resource has the potential to be quickly put into production and fund a significant part of the capital development. The project remains open in multiple directions with significant exploration upside," Ms. Magee said.

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 hectares and exploration permit application EXPA-000188-V of 2,820 hectares. The project area is relatively flat and is easily accessed by 15 kilometres of all-weather road from the highway at the nearby town of Labo.

Summary of mineral resource estimate and reporting criteria

The mineral resource was prepared by independent resource consultancy CSA Global Pty. Ltd.

Geology and geological interpretation

Two mineralized magnetite skarn bodies were initially targeted using ground magnetic data and have been subsequently drilled. The magnetite skarn mineralization is parallel to the host carbonate unit and passes downdip into garnet skarn, contact metamorphosed marble or limestone. Magnetite skarn represents the replacement bodies of the limestone marble lithologies. Magnetite skarn bodies have been fault offset laterally with magnetite continuing across offset zones as strongly mineralized magnetite breccias.

Magnetite near surface has been subject to tropical weathering and the development of an oxide zone dominated by significant a gold-rich, copper-depleted cap. A high-grade chalcocite zone dominates the northern end of the South zone with the remainder of the oxide resource being oxidized magnetite skarn with similar copper and gold grades to primary magnetite.

The North mineralized and South mineralized zones have both been modelled for this mineral resource estimate (MRE). The larger South mineralized zone skarn is approximately 450 metres in strike and dips to the southwest at approximately 60 degrees. The North mineralized zone is approximately 150 m in strike and dips 75 degrees in a northerly direction. Magnetite skarn bodies are currently modelled as three main offset fault blocks in the South mineralized zone and two fault blocks in the North mineralized zone. Thickness of magnetite skarn is variable due to lithological variation of the host marble limestone. At the southern end of the South body, magnetite is approximately 30 m in thickness at the southern end of the system thinning downdip to approximately 15 m. At the northern end of the South mineralized zone, the thickness is approximately 45 to 50 m where it has been subjected to oxidation processes before being covered by volcanic lahars and tuffs.

Drilling and sampling techniques

The MRE is based on data obtained from 69 diamond core drill holes (11,231.45 m) drilled across the two project areas. Drill holes are located on a nominal 40 m by 40 m spacing across primary magnetite zones with good geological continuity. Oxide and chalcocite zones were subject to 25 m by 20 m nominal spacing with drilling oriented approximately northwest to southeast across the strike of mineralization. The dip of the drill holes was designed to intersect the mineralization at the optimal angle to minimize sampling bias with a number of early vertical holes followed up with angled holes. A number of drill holes included in the MRE were infill in nature and have not been previously reported.

Drill hole collars were surveyed using a differential global positioning system (DGPS) to centimetre accuracy. All downhole surveying was carried out using a combination of Reflex Ez-Trak multishot survey tool at 30 m intervals downhole and the Reflex Gyro system was used where magnetite skarn was intersected.

All diamond drill samples were geologically logged, recording relevant data to a set template at or on geological contacts. Diamond core was also geotechnically logged and the core photographed for future record. Diamond core was half-core sampled on geology contacts. Core samples were submitted for analyses using ISO-certified Intertek McPhar Laboratory in Manila. Field quality assurance procedures were employed, including the use of standards, blanks and duplicates. The drill hole data are maintained in a secure relational database by company personnel.

Sample analysis method

Half-core samples were cut and sent for analysis by an independent ISO-certified laboratory (Intertek McPhar Laboratory) in Manila. Samples were crushed and pulverized (95 per cent, 75 microns). Gold was analyzed by 50 g 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.

The sample preparation and assay techniques used for the assay results reported herein are of international industry standard and can be considered total.

Resource estimation methodology

Datamine Studio 3 software was used for all geological modelling, block modelling, grade interpolation, mineral resource classification and reporting. Mineralization domains were modelled based on the geological interpretation from the lithological logging of drill core and drill sample assay results. For the magnetite skarn zones, which are by definition reasonably well mineralized with magnetite iron, the lithological logging has driven the interpretation. Other lithological units in the system are not necessarily mineralized to potentially economic levels throughout their full extents. These zones have been modelled using a nominal lower cut-off grade combination of 0.3 g/t Au and 0.3 per cent Cu in concert with the lithological logging to generate mineralized lithological domains.

The mineral resource block model consists of 30 mineralization lenses grouped into 15 mineralized lithological domain zones of Cu-Au-Fe mineralization, based on lens lithology type. There are eight mineralized lithological domain zones in the South mineralized zone and seven in the North mineralized zone. The mineralized lithological domain zones were used as hard boundaries to select sample populations for data analysis and grade estimation, with soft boundaries between the lenses within each domain zone.

Sample data were composited to one m downhole lengths based on sample length frequency. Statistical analysis was undertaken on all mineralized zones and high-grade cuts were applied based on a review of the histograms, probability plots and basic statistics.

Grade estimation was undertaken using a combination of ordinary kriging (OK) and inverse distance squared (IDS) depending on the available number of samples within the individual mineralized wireframes. Search ellipsoids were oriented to reflect mineralization continuity directions identified from sample data analysis.

Block model definition parameters were reviewed with the primary block size of 20 m east-west by 20 m north-south by four m vertical and subblocking to 2.5 m by 2.5 m by 0.5 m.

Cut-off grades

Cut-off grades for reporting the mineral resource are 0.3 g/t Au, in line with recommendations from RTG based on preliminary optimization studies.

Mining and metallurgical methods and parameters

It has been assumed that the Mabilo mineral resource, if mined, will be developed using open-pit mining methods. No assumptions have been made to date regarding minimum mining widths or dilution.

Extensive metallurgical testwork is continuing and the various styles of mineralization which make up the Mabilo mineral resource have been domained according to their mineralogical and geological characteristics.

Classification criteria

Classification of the mineral resource estimate was carried out taking into account the geological understanding of the deposit, quality of the samples, density of data and drill hole spacing.

Qualified person and competent person statement

The information in this release that relates to exploration results at the Mabilo project is based upon information prepared by or under the supervision of Robert Ayres, BSc (honours), 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. Mr. Ayres has sufficient experience that is relevant to the style of mineralization, 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. 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 release of the matters, based on his information, in the form and the context in which they appear.

The information in this release that relates to mineral resources is based on information prepared by or under the supervision of Aaron Green, who is a qualified person and competent person. Mr. Green is a member of the Australian Institute of Geoscientists and is employed by CSA Global, an independent consulting company. Mr. Green has sufficient experience that is relevant to the style of mineralization, type of deposit under consideration and to the activity which he is undertaking 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. Mr. Green has verified the data disclosed in this release, including sampling, analytical and test data underlying the information contained in the release. Mr. Green consents to the inclusion in the release of the matters, based on his information, in the form and context in which they appear.

We seek Safe Harbor.

© 2024 Canjex Publishing Ltd. All rights reserved.