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RTG drills 64.2 m of 7.91% Cu, 2.96 g/t Au at Mabilo

2014-08-14 13:30 ET - News Release

Ms. Justine Magee reports

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

RTG Mining Inc. has released further high-grade copper, gold and iron intercepts in both the North and South mineralized zones at the Mabilo project in the Philippines.

Drilling targeted at extending the South mineralized zone to the north has intersected high-grade supergene copper mineralization. With a total downhole intercept of 64.20 metres for 7.91 per cent copper and 2.96 grams per tonne gold, the hole is the best downhole intercept drilled at the Mabilo project to date.

Continuing diamond drilling on two sections has confirmed the downdip extension of the South mineralized zone with further high-grade intercepts; the system remains open at depth and to the south.

Highlights of the continuing drilling program include:

  • MDH-060 intersected magnetite skarn from 193 metres to 235 metres. Magnetite skarn is partly brecciated with silica pyrite overprinting. The high-grade interval is characterised by well-developed chalcopyrite with coarse-grained intergrowths with magnetite and fine-grained disseminated chalcopyrite:
    • 16 metres at 2.84 g/t Au, 3.04 per cent Cu and 45.89 per cent Fe;
    • Approximately 9.0 g/t Au equivalent;
  • MDH-065 intersected magnetite skarn from 175 metres to 217 metres. The magnetite skarn is similar in style to MDH-060, brecciated with silica pyrite overprinting. Chalcopyrite occurs as disseminations within magnetite clasts and as coarse-grained chalcopyrite intergrowths with magnetite:
    • 20 metres at 1.96 g/t Au, 2.84 per cent Cu and 43.24 per cent Fe;
    • Approximately 7.8 g/t Au equivalent;
  • MDH-066 intersected high-grade supergene copper dominated by massive chalcocite and capped with an oxide copper zone with instances of native copper. Downhole supergene was intercepted from 48.20 metres to 89.50 metres with a zone of primary magnetite from 89.50 metres to 92.05 metres:
    • 64 metres at 2.96 g/t Au, 7.91 per cent Cu and 44.57 per cent Fe;
    • Approximately 17.3 g/t Au equivalent.

Gold equivalent calculations are based on $1,300 (U.S.) per ounce Au, $7,000 (U.S.)/t Cu and $100 (U.S.)/t iron.

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.

Drilling is in progress and currently focused on defining the southwest downdip extent of the South mineralized zone and is targeting the oxide and supergene potential to the north of the South mineralized zone.

South mineralized zone

Drilling has concentrated on the South mineralized zone, which is substantially larger than the North mineralized zone.

Relogging of the drill holes and three-dimensional modelling in this zone has facilitated better targeting for future holes.

Drilling on two sections targeting the downdip of previously reported MDH-053 and MDH-057 has confirmed mineralization extends downdip by approximately 50 metres and remains open at depth.

All intercepts reported herein have core recoveries better than 92 per cent.

MDH-060

MDH-060 is an angled hole drilled to test the downdip extent of MDH-057. The hole intersected magnetite skarn from 182.10 metres to 235.20 metres. Higher-grade intervals are characterized by well-developed chalcopyrite intergrown with magnetite weakly overprinted by silica pyrite. True thickness of magnetite skarn is approximately 32 metres.

MDH-060            From      To   Intercept (m)  Au ppm  Cu %  Ag ppm   Fe %

                 135.80  141.00           5.20     3.49  3.44    13.1  19.35
and              181.00  232.00          51.00     1.63  1.90    19.0  41.35
including        182.10  188.00           5.90     1.48  2.08    25.7  25.81
and including    193.25  231.00          37.75     1.81  2.11    19.9  46.81
including        210.00  226.00          16.00     2.84  3.04    22.4  45.89
including        210.00  213.00           3.00     4.11  5.01    22.6  47.52
and              268.00  274.00           6.00     2.20  0.90     4.0  36.23

MDH-065

Located approximately 40 metres northwest of MDH-060, MDH-065 is an angled hole drilled to further test the downdip extent of MDH-053. The hole intersected magnetite skarn from 179.35 metres to 217.00 metres. Mineralization is characterized by coarse-grained chalcopyrite intergrown with magnetite and breccias with weak silica pyrite overprint. True thickness of magnetite skarn is approximately 32 metres.

MDH-065            From      To   Intercept (m)  Au ppm  Cu %  Ag ppm   Fe %

                 169.00  208.00          39.00     1.46  1.75    22.0  36.47
including        185.00  205.00          20.00     1.96  2.84    37.0  43.24
and including    193.00  204.00          11.00     2.59  3.38   37.32  41.77
and including    187.00  190.45           3.45     1.34  2.55   43.17  44.63

MDH-066

MDH-066 is an angled hole designed to follow up supergene mineralization reported in MDH-029 (Australian Securities Exchange release by Sierra Mining dated April 3, 2014). Located approximately 30 metres northeast of MDH-029 and at the northern limit of the magnetic model, the hole intersected an oxide zone from 37.80 metres to 56.00 metres followed by a massive chalcocite zone from 56.00 metres to 89.50 metres. The bottom of the interval is magnetite skarn from 89.50 metres to 92.05 metres, characterized by weakly overprinted chalcocite and silica pyrite. True thickness in this part of the system has not been determined; all results are reported as downhole intervals.

MDH-066        From      To   Intercept (m)  Au ppm   Cu %  Ag ppm   Fe %

              37.80  102.00          64.20     2.96   7.91    16.0  44.57
including     37.80   56.00          18.20     5.20   0.42   13.75  40.36
including     56.00   89.50          33.50     2.35  14.20    21.6  50.39
including     89.50  102.00          12.50     1.21   1.61     3.0  30.66
and          137.80  149.00          11.20     0.50   0.74     1.0   7.18

Further drilling has continued to the north and east of MDH-066, and has intersected further oxide and supergene mineralization (MDH-071) from 32.25 metres to 62.10 metres downhole. Drill core is currently being processed.

Drilling to the northwest of MDH-029 has intersected mineralized calc-silicate-altered sediments with silica pyrite overprint. The strike of mineralization continues to vector in the northern direction toward the North mineralized zone; drilling is continuing.

Competent person statement

The information in this report that relates to exploration results at the Mabilo project is based on information compiled by Robert Ayres, BSc (honours), a competent person who is member of the Australian Institute of Geoscientists. Mr. Ayres is a full-time employee of Mt. Labo Exploration and Development Company, a Philippine mining company, wholly owned by RTG Mining Ltd. Mr. Ayres has sufficient experience that is relevant to the style of mineralization 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. Mr. Ayres consents to the inclusion in the report of the matters based on his information in the form and the context in which they appear.

We seek Safe Harbor.

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