RTG Announces Further High Grade Intercepts and Extensions to Known Mineralisation at the Mabilo Project

Figure 1 -Location of drill holes and sections reported in this release on RTP ground magnetic image. (CNW Group/RTG Mining Inc.)

Figure 2 - Schematic long section showing isotropic copper grade shells, location of drill holes and significant intercepts of this release and the extension to the magnetic model that has been achieved to date. (CNW Group/RTG Mining Inc.)

Figure 3 - Cross section of South Mineralised Zone showing MDH 060 and MDH 057 with geological interpretation and high grade intercept annotated (Section A of Figure 1). (CNW Group/RTG Mining Inc.)

Figure 4 - Cross section through MDH-065, MDH-053 and MDH-055 on geological interpretation (Section B of Figure 1). (CNW Group/RTG Mining Inc.)

Figure 5 - Cross Section of South Mineralised Zone showing MDH 065 with the geological interpretation (Section C on Figure 1). (CNW Group/RTG Mining Inc.)

/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

ANNOUNCEMENT TO THE TORONTO STOCK EXCHANGE AND AUSTRALIAN SECURITIES EXCHANGE

PERTH, Western Australia, Aug. 14, 2014 /CNW/ - The Board of RTG Mining Inc. ("RTG", "the Company") (TSX Code: RTG, ASX Code: RTG) is pleased to announce 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 Mineralised zone to the North, has intersected high grade supergene copper mineralisation. With a total down hole intercept of 64.20 meters for 7.91% Copper and 2.96 g/t Gold, the hole is the best down hole intercept drilled at the Mabilo project to-date.

Continuing diamond drilling on two sections has confirmed the down dip extension of the South Mineralised Zone with further high grade intercepts, the system remains open at depth and to the South.

Highlights of the ongoing drilling program include –

  • MDH-060 intersected magnetite skarn from 193 meters to 235 meters. 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 meters at 2.84 g/t Au, 3.04% Cu and 45.89% Fe
    Approximately 9.0 g/t Au equivalent

  • MDH-065 intersected magnetite skarn from 175 meters to 217 meters. 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 meters at 1.96 g/t Au, 2.84% Cu and 43.24% Fe
    Approximately 7.8g/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. Down hole supergene was intercepted from 48.20 meters to 89.50 meters with a zone of primary magnetite from 89.50 meters to 92.05 meters.

    64 meters at 2.96 g/t Au, 7.91% Cu and 44.57% Fe
    Approximately 17.3 g/t Au equivalent

Gold equivalent calculations are based on US$1300/ oz Au, US$7000/t Cu and US$100/ 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 ha and Exploration Permit Application EXPA-000188-V of 2,820 ha. The Project area is relatively flat and is easily accessed by 15 km of all-weather road from the highway at the nearby town of Labo.

Drilling is ongoing and currently focused on defining the SW down dip extent of the South Mineralised Zone and is targeting the oxide and supergene potential to the North of the South Mineralised zone.

South Mineralised Zone
Drilling has concentrated on the South Mineralised Zone which is substantially larger than the North Mineralised Zone.

Re-logging of the drill holes and three dimensional modelling in this Zone has facilitated better targeting for future holes. An updated long section view of isotropic copper grade shells is illustrated below (Figure 2).

Drilling on two sections targeting the down dip of previously reported MDH-053 and MDH-057 has confirmed mineralisation extends down dip by approximately fifty meters and remains open at depth.

All intercepts reported below have core recoveries better than 92%.

MDH-060
An angled hole drilled to test the down dip extent of MDH-057. The hole intersected magnetite skarn from 182.10 meters to 235.20 meters. Higher grade intervals are characterised by well-developed chalcopyrite inter-grown with magnetite weakly overprinted by silica pyrite (Figure 3). True thickness of magnetite skarn is approximately 32 meters.










MDH-060

From

To

Intercept (m)

Au ppm

Cu %

Ag ppm

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

 

MDH-065
Located ~40 meters North West of MDH-060, MDH-065 is an angled hole drilled to further test the down dip extent of MDH-053 (Figure 4). The hole intersected magnetite skarn from 179.35 meters to 217.00 meters. Mineralisation is characterised by coarse grained chalcopyrite intergrown with magnetite and breccias with weak silica pyrite overprint. True thickness of magnetite skarn is approximately 32 meters.  










MDH-065

From

To

Intercept (m)

Au ppm

Cu %

Ag ppm

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

 

MDH-066
An angled hole designed to follow up supergene mineralisation reported in MDH-029 (ASX release by Sierra Mining 3rd April 2014). Located approximately 30 meters North East of MDH-029 (Figure 5) and at the Northern limit of the magnetic model, the hole intersected an oxide 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 characterised by weakly overprinted chalcocite and silica pyrite. True thickness in this part of the system has not been determined, all results are reported as down hole intervals.










MDH-066

From

To

Intercept (m)

Au ppm

Cu %

Ag ppm

Fe %

Mineralisation


37.80

102.00

64.20

2.96

7.91

16.0

44.57

Oxide, Supergene &
Magnetite Skarn

including

37.80

56.00

18.20

5.20

0.42

13.75

40.36

Oxide

including

56.00

89.50

33.50

2.35

14.20

21.6

50.39

Supergene

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

 

Further drilling has continued to the North and East of MDH-066 and has intersected further oxide and supergene mineralisation (MDH-071; Figure 5) from 32.25 meters to 62.10 meters down hole. Drill core is currently being processed.

Drilling to the North West of MDH-029 has intersected mineralised calc-silicate altered sediments with silica pyrite overprint. The strike of mineralisation continues to vector in the Northern direction towards the North Mineralised zone, drilling is ongoing.

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 (Hons), 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 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 consents to the inclusion in the report of the matters based on his information in the form and the context in which it appears.

ABOUT RTG MINING INC

RTG Mining Inc. is a mining and exploration company listed on the main board of the Toronto Stock Exchange and Australian Securities Exchange Limited.  RTG is focused on developing the high grade copper/gold/magnetite Mabilo Project and advancing exploration on the highly prospective Bunawan Project, both in the Philippines, while also identifying major new projects which will allow the company to move quickly and safely to production.

RTG has an experienced management team (previously responsible for the development of the Masbate Gold Mine in the Philippines through CGA Mining Limited), and has B2Gold as one of its major shareholders in the Company. B2Gold is a member of both the S&P/TSX Global Gold and Global Mining Indices.

CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS

This announcement includes certain "forward-looking statements" within the meaning of Canadian securities legislation. Accuracy of mineral resource and mineral reserve estimates and related assumptions and inherent operating risks, are forward-looking statements. Forward-looking statements involve various risks and uncertainties and are based on certain factors and assumptions. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from RTG's expectations include uncertainties related to fluctuations in gold and other commodity prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs, recovery rates, production estimates and estimated economic return; the need for cooperation of government agencies in the development of RTG's mineral projects; the need to obtain additional financing to develop RTG's mineral projects; the possibility of delay in development programs or in construction projects and uncertainty of meeting anticipated program milestones for RTG's mineral projects and other risks and uncertainties disclosed under the heading "Risk Factors" in RTG's Annual Information Form for the year ended 31 December 2013 filed with the Canadian securities regulatory authorities on the SEDAR website at sedar.com.

Appendix 1:  Location of Reported Drill Holes







HOLE ID

Location


GPS
Coordinates (UTM WGS84)

Orientation True Nth

Depth


Prospect


East

North

RL

Dip

Azi

E.O.H (m)

MDH-060

South B

Geotechnical

476152

1559665

118

-70

50

297.60

MDH-065

South B

Resource

476126

1559700

120

-70

50

262.70

MDH-066

South A

Metallurgy

476026

1559992

113

-60

50

171.90


All co-ordinates in UTM-WGS84 (51 N). All collars apart from MDH-38 only surveyed by digital GPS at this stage.

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.

Appendix 2:  JORC Code 2012 Edition Table 1
Section 1 Sampling Techniques and Data




Criteria

JORC Code 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.
  • Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.
  • Aspects of the determination of mineralisation that are Material to the Public Report.

 

The assay data reported herein is based on sampling of diamond drill core of PQ, HQ and NQ diameter which was cut with a diamond core saw. Samples are generally of 1 metre length although occasionally slightly longer or shorter where changes in lithology, core size or core recovery required adjustments; samples are not more than 2 metres length.

Half core samples were cut and sent for analysis by an independent ISO-certified laboratory (Intertek McPhar Laboratory) in Manila. Samples were crushed and pulverised (95% <75 ɥm). Gold was analysed by 50 gram fire assay and the other elements including copper and iron by ICP-MS (Inductively Coupled Plasma Mass Spectrometry) or ICP-OES (Inductively Coupled Plasma Optical Emission Spectrometry) following a four-acid digest.

The length of each drill run is recorded and the recovery for each run calculated on site and checked again at the core shed. Certified reference standards and blank samples were submitted to assess the accuracy and precision of the results and every 20th sample was sawn into two and the two quarter core samples submitted for analysis separately as a duplicate sample.

Drilling techniques

  • Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg 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, HQ and NQ diameter, triple tube diamond coring. Down-hole surveying was completed with a Reflex gyro down-hole instrument due to the highly magnetic mineralisation. The core was not orientated

Drill sample recovery

  • Method of recording and assessing core and chip sample recoveries and results assessed.
  • Measures taken to maximise sample recovery and ensure representative nature of the samples.
  • 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.

 

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

  • 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.
  • Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography.
  • The total length and percentage of the relevant intersections logged.

 

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

  • If core, whether cut or sawn and whether quarter, half or all core taken.
  • If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.
  • For all sample types, the nature, quality and appropriateness of the sample preparation technique.
  • Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.
  • 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.
  • Whether sample sizes are appropriate to the grain size of the material being sampled.

 

All sampling data reported is from diamond drill core. Samples are of sawn half core except for duplicate samples which are quarter core. Half core is bagged and sent to an ISO-certified independent laboratory for analysis. The other half retained for reference and/or further testwork.

All core samples were dried, crushed to 95% <10 mm and a 1.5 kg sub-sample is separated using a riffle splitter and pulverised to 95% <75 μm.  A 50 g sub-sample is utilised as a fire-assay charge for gold analysis.  The sample preparation technique and sub-sampling is appropriate for the mineralisation.

Blank samples and duplicate samples are submitted routinely to monitor the sampling and analytical process and to ensure that samples are representative of in situ material. One in every 20 samples of half core is sawn again to produce two quarter core duplicate samples which are submitted to the laboratory separately with different sample numbers. A blank sample was inserted into sample batches every 20th samples.

The magnetite skarn mineralisation occurs in extensive zones of magnetite skarn with disseminated chalcopyrite, containing gold. The sample size of approximately one metre core length is suitable in respect to the grain size of the mineralisation

Quality of assay data and laboratory tests

  • The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.
  • 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.
  • Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.

 

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 verification of significant intersections by either independent or alternative company personnel.
  • The use of twinned holes.
  • Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.
  • Discuss any adjustment to assay data.

 

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

  • 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.
  • Specification of the grid system used.
  • Quality and adequacy of topographic control.

 

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

  • Data spacing for reporting of Exploration Results.
  • 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.
  • Whether sample compositing has been applied.

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

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

 

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

  • The measures taken to ensure 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 results of any audits or reviews of sampling techniques and data.

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

  • 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 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 Mabilo Project is covered by Exploration Permit EP-014-2013-V and Exploration Permit Application EXPA-000188-V. Drilling activity the subject of this announcement is within EP-014-2013-V which was granted in July 2013 for two years, with the option to renew for an additional 4 years. EP-014-2013-V was issued to Mt Labo Exploration and Development Corporation ("Mt Labo"), an associated entity of RTG Mining. There is a 1% royalty payable on net mining revenue received by Mt Labo in relation to EP-014-2013-V.

Mt Labo has entered into a joint venture agreement with Galeo Equipment and Mining Company, Inc. ("Galeo") to partner in exploring and developing the Mabilo and Nalesbitan Projects. Galeo can earn up to a 36% interest in the Projects, down to 200 metres below surface, by contributing approximately US$4,250,000 of exploration drilling and management services for the Projects over a 2 year period.

In November 2013, Sierra Mining Limited ("Sierra"), a now wholly owned subsidiary of RTG, and Galeo signed a Memorandum of Understanding ("MOU") setting out proposed changes to the joint venture agreement to remove the depth limit of 200 m from the agreement and provide for additional drilling of 5000 m below 200 m. The MOU also provides for Galeo to be granted its 36% interest up front with the ability for RTG to claw-back any interest deemed not earned at the end of the claw-back period. The amendments to the JV Agreement are subject to Sierra shareholder approval.

Sierra has also entered a second MOU with Galeo whereby Galeo can earn an additional 6% interest in the joint venture by mining the initial 1.5 Mt of waste at Mabilo or Nalesbitan and other requirements including assistance with permitting. The MOU is subject to a number of conditions precedent, including Sierra shareholder approval.

There are no native title or Indigenous ancestral domains claims at Mabilo.

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

Exploration done by other parties

  • Acknowledgment and appraisal of exploration 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

  • Deposit type, geological setting and style of mineralisation.

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

  • 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.
  • 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.

 

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

  • 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.
  • 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.

 

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

  • These relationships are particularly important in the reporting of Exploration Results.
  • 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 (eg 'down hole length, true width not known').

 

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

  • 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.

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

  • 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 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

  • 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 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 nature and scale of planned further work (e.g. 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 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.

 

SOURCE RTG Mining Inc.

Image with caption: "Figure 1 -Location of drill holes and sections reported in this release on RTP ground magnetic image. (CNW Group/RTG Mining Inc.)". Image available at: http://photos.newswire.ca/images/download/20140814_C2907_PHOTO_EN_4854.jpg

Image with caption: "Figure 2 - Schematic long section showing isotropic copper grade shells, location of drill holes and significant intercepts of this release and the extension to the magnetic model that has been achieved to date. (CNW Group/RTG Mining Inc.)". Image available at: http://photos.newswire.ca/images/download/20140814_C2907_PHOTO_EN_4855.jpg

Image with caption: "Figure 3 - Cross section of South Mineralised Zone showing MDH 060 and MDH 057 with geological interpretation and high grade intercept annotated (Section A of Figure 1). (CNW Group/RTG Mining Inc.)". Image available at: http://photos.newswire.ca/images/download/20140814_C2907_PHOTO_EN_4856.jpg

Image with caption: "Figure 4 - Cross section through MDH-065, MDH-053 and MDH-055 on geological interpretation (Section B of Figure 1). (CNW Group/RTG Mining Inc.)". Image available at: http://photos.newswire.ca/images/download/20140814_C2907_PHOTO_EN_4857.jpg

Image with caption: "Figure 5 - Cross Section of South Mineralised Zone showing MDH 065 with the geological interpretation (Section C on Figure 1). (CNW Group/RTG Mining Inc.)". Image available at: http://photos.newswire.ca/images/download/20140814_C2907_PHOTO_EN_4858.jpg





For further information: ENQUIRIES: Australian Contact, President & CEO - Justine Magee, Tel: +61 8 6489 2900, Fax: +61 8 6489 2920, Email: jmagee@rtgmining.com