Zodiac Gold

RTG Mining Announces High Grade Intercepts and New Style of Mineralisation at Bunawan Project

Subiaco, Western Australia (FSCwire) - The Board of RTG Mining Inc. (“RTG”, “the Company”) (TSX Code: RTG, ASX Code: RTG) announces the results of the diamond drilling program at the Bunawan Project in the Philippines including intercepted high grade mineralization intervals, with 9.0m @ 2.02/t Au.

Drillhole From To Intercept (m) Au g/t Mineralisation Core Recovery (%)
BDH10 62.00 64.00 2.00 2.94 Diatreme Breccia 100.00
and 163.40 167.00 3.60 4.58 Diatreme Breccia 100.00
             
BDH12 108.00 111.00 3.00 1.05 Diatreme Breccia / Andesite 100.00
             
BDH14 262.00 264.15 2.15 2.16 Andesite 100.00
             
BDH15 39.00 48.00 9.00 2.02 Dacite 90.00
including 44.00 48.00 4.00 2.85 Dacite 92.00
and including 45.00 48.00 3.00 3.43 Dacite 92.00
and including 45.00 46.00 1.00 6.78 Dacite 75.00
Table 1- Significant Down-hole Intersections (Note that the true width of the mineralization is not known at this stage)

The results of this program further confirm the presence of breccia/epithermal vein systems within and below the diatreme that is similar geologically to the nearby Co-O vein system. The discovery of a favorably mineralized dacite host in BDH15 that is geologically similar to the nearby high-grade artisanal mining area also adds to the increased mineral potential of the property. Hydrothermal alteration assemblage in the dacite suggests that it may be a component of a high-sulphidation system in the general area. With the various geological conditions identified, the region has the potential to see another major gold discovery. 

Drilling Program

 

Figure 1. Geological Map showing locations of completed drill holes and artisanal gold workings. Holes of latest program marked in green
RTG Mining 4 18 2017 1

This second phase of reconnaissance drilling (six holes for 1,798.6 meters) was targeted at Induced Polarization responses coincident with magnetic low signatures and anomalous surface gold geochemistry. Targets also included extensions of previously identified mineralization/geology. Holes BDH-10, BDH-11 and BDH-12 were targeted at geophysical responses, whilst holes BDH-13, BDH-14 and BDH-15 tested extensions of mineralization/geology. Geological mapping and comparison with diatreme-related mineralisation which is common in the Philippines also provided guidance in drill hole targeting.

Drilling continued to investigate the extent of mineralization along a corridor marked by artisanal workings on the southern margin of the Mahunoc diatreme complex. Significantly BDH-10 and BDH-12 has added mineralized continuity about the center of the corridor where previous drilling BDH-06 intercepted 36m @ 1.49g/t including 7m @ 4.18g/t Au (ASX release Feb 2015).

At shallow depths BDH15 intersected a new, previously not seen, style of mineralisation characterized by vuggy silica in intensely silicified dacite. This represents a new style of gold deposition in the Mahunoc prospect and is similar to the nearby artisanal Red Mountain bonanza-style gold-quartz vein system.

The drilling has emphasized the significant potential of the area and further confirmed that the mineralised corridor on the southern margin of the diatreme (marked by extensive shallow artisanal workings in the diatreme and a coincident, district scale structural zone), is a highly prospective target area.

BDH-10 intercepted two (2) silicified zones hosted within the diatreme breccia. This style of mineralization is similar to that intercepted in previous drilling and provided further validation of the geophysical method with mineralization correlating with resistivity & chargeability anomalism.

BDH-11 intersected several zones containing narrow white vuggy quartz-calcite-pyrite veinlets associated with later-formed rhodonite crystals. No significant gold mineralization was intersected, however, a review of lithology and structures encountered in early interpretations suggest that this drill hole may have missed the targeted structure.   

BDH-12 intercepted mineralization in a brecciated andesite with interstitial quartz-calcite. This crackled zone in andesite is significant as it shows the potential for more mineralization styles in the property. End of hole was at 151.40m and failed to reach the target depth due to downhole conditions associated with a major fault zone.  

BDH-13 intersected a 56 m wide zone of fracture-filled / cross-cutting calcite-quartz with colloidal silica and grey quartz bands; this is geologically beneath the Pocloy mineralized breccia pipe workings.

BDH-14 intercepted mineralization in the andesite lava underneath the Imbudo artisanal gold workings. The mineralization is characterized by cross-cutting white vuggy calcite-quartz and dark grey quartz veinlets with ± pyrite ± chalcopyrite ± galena ± sphalerite selvages. This zone represents the projected extension of supergene-enriched narrow gold-bearing veinlets at Imbudo workings. The intercept demonstrates that the Imbudo system persists at depth and is characterized by base metal associated mineralization, supporting further base metal anomalism targeting campaigns within the prospect. 

BDH-15 intercepted intensely silicified dacite with vuggy silica. The dacite lies between the diatreme breccia and the andesite lava. A quartz-calcite stockwork zone in andesite was also intercepted towards the bottom of the hole. Mineralisation in this dacite is dissimilar from that intersected during the first phase reconnaissance drilling program. In that program, mineralized silicified zones were found hosted in diatreme breccia interpreted to have been introduced into porous clast-rich zones within the diatreme from structurally controlled epithermal vein zones in the andesite below the diatreme apron such as that intersected in BDH 08. The mineralization in dacite intersected by BDH15 represents an additional style of gold deposition found in the Mahunoc prospect area and is similar to the nearby Red Mountain bonanza-style gold-quartz vein mineralization hosted also in dacite. The intercept is very exciting as it shows the existence of an additional favorable epithermal system and host rock located within the property. It should be further targeted in future drilling programs.

Figure 2. BDH15 & BDH10 interpretive geological cross-section
RTG Mining 4 18 2017 2

ABOUT BUNAWAN

The Bunawan Property is located in the east of Mindanao Island in Agusan del Sur province, approximately 190 km north-northeast of Davao and adjacent to the Davao – Surigao highway.

The Bunawan Project (Figure 3) is centered on a diatreme intrusive complex (Mahunoc diatreme) approximately five km NE of Medusa Mining’s Co-O mine in eastern Mindanao.  Historical production at the Co-O Mine has demonstrated a significant high grade gold system and there is active artisinal mining throughout the region which further reinforces the gold potential of the area.  A number of the artisanal mining operations occur within and adjacent to the Mahunoc diatreme and the area is highly prospective for the discovery of economic epithermal Au-Ag mineralisation of intermediate sulphidation / carbonate-base metal type.

The ground magnetics and mapping suggest that the southern margin of the diatreme is a relatively flat-lying apron shallowly overlying andesite wall rock and that Au mineralisation in the diatreme within the “mineralised corridor“ is derived from veins in the structural zone in the underlying andesite.

Figure 3. Location Plan with Regional Geology Showing
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DRILL HOLE INFORMATION

Six holes were drilled for 1,798.6 meters as documented in the table below and shown in Figure 1.

Hole Easting Northing Elevation Azimuth Dip Depth
BDH-10 177946 916629 335 340 -45 221.1
BDH-11 177850 916560 319 340 -45 236.1
BDH-12 178412 916884 394 340 -60 151.4
BDH-13 178370 916640 415 340 -60 390.0
BDH-14 178199 916600 418 340 -55 400.0
BDH-15 177980 916512 347 340 -60 400.0
Table 2. Drill Hole co-ordinates (WGS84, 52 N) and orientation

QUALIFIED PERSON AND COMPETENT PERSON STATEMENT

The information in this report relating to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information provided to Robert Ayres BSc (Hons), a Competent Person who is Member of the Australian Institute of Geoscientists. 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. 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 the information he has been provided 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.

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