Drill Tracker Weekly: RTG Expands Magnetite and Garnet Skarns at Mabilo Project

Drill Tracker Weekly is not exclusive to Resource Investing News and is published with permission from Mackie Research Capital Corporation. It highlights drilling results in context with our database of over 10,000 drilling and trenching results. The purpose of this report is to highlight drilling and trenching results that stand out from the pack and compare them to their peer group. This report does not constitute initiation of coverage or a recommendation.

RTG Mining (TSX:RTG)

Price: $0.55

Market cap: $70 million

Cash estimate: $12 million

Project: Mabilo

Country: Philippines

Ownership: 100 percent

Resources: 5.9 MT at 2.2g/t Au, 2.1% Cu, 8.4 g/t Ag and 49% Fe indicated

Project status: Resource Definition

• RTG Mining Inc. announced results from its the recently acquired Mabilo Cu-Au-Fe project in the in Camarines Norte Province of the Philippines. The project was acquired through the June 2014 merger with Australian based Sierra Mining. The drilling contractor, Galeo, has a right to earn a 42% interest in the project (to a depth of 200 metres), by providing USD$4.25 million in exploration drilling and management services.

• Hole MDH-096 was designed to target the up-dip extension of the southern edge of the South Body magnetite skarn mineralization. At a depth of 156 metres, the hole hit a zone of magnetite skarn mineralization averaging 1.29% Cu, 1.86 g/t Au, 3.6 g/t Ag and 40.3% Fe over 35 metres (estimated true thickness 23 metres). An additional hole extended the magnetite skarn down-dip to the south with an interval of 43.20 metres averaging 1.01% Cu and 1.09 g/t Au, 35.5 g/t Ag and 20.90% Fe at a depth of 242 metres.

• Mineralization in the main South Body occurs in two 45 degree dipping tabular bodies of skarn mineralization with an upper garnet rich body and a lower zone of massive magnetite skarn, with significant copper and gold associated with chalcopyrite, lesser bornite and in the supergene zone, massive chalcocite. In some areas the magnetite has been weathered to form a hematite skarn, with the copper remobilized forming high-grade supergene zones, dominated by chalcocite and massive native copper.

• On November 2014, the Company announced an initial NI 43-101 complaint (and JORC Code) indicated resource estimate of 5.9 MT at 2.2g/t Au, 2.1% Cu, 8.4 g/t Ag and 49% Fe with an additional 5.5 MT grading 1.7 g/t Au, 1.5% Cu, 12.9 g/t Ag and 39% Fe. The Indicated resource includes a near surface high-grade gold zone (340,000 t @ 3.2 g/t Au) as well as a supergene Chalcocite copper zone (101,000 t @ 24% Cu) that the Company believes may be able to provide early cash flow.

Discovery history: Small scale artisanal miners exploited iron, copper and gold on the property. First drill hole (2012) – 66 metres @ 2.1 g/t Au, 3.0 % Cu, 46.1% Fe

Current holes (South Mineralized Zone): 43.2 metres @ 1.09 g/t Au, 1.01% Cu; 35 metres @ 1.86 g/t Au, 1.29% Cu

Risks Analysis

Data contained in DRILL TRACKER WEEKLY is based on early stage exploration activity. The results are obtained at the very early stages of exploration and therefore, individual results may not be reproducible with additional trenching or drilling, nor may the results ultimately lead to the discovery of an economic deposit. Delineation of a resource body requires an extensive data gathering exercise according to guidelines set out in National Instrument 43-101 before investors can be reliably assured of a competent body of mineralization that may be of economic interest. DRILL TRACKER WEEKLY is designed to highlight individual trench or drill results, which stand out as being materially anomalous and are particularly worth of note – a type of early warning flag for a particular property that warrants further attention. Hence, DRILL TRACKER WEEKLY does not provide a recommendation to buy, sell or hold a specific equity – it is an information reference source to help quantify the meaning and relevance of early stage exploration results. 

Relevant Disclosures Applicable to: Drill Tracker Weekly

1. The research analyst or a member of the analyst’s household owns and/or has options to acquire shares of the subject issuer. At the date of this release, Wayne Hewgill, owns no shares in any companies in this report

2. Trevali Mining Corp. is covered at Mackie Research Capital Corporation by analyst Peter Campbell

• Within the last 3 years, Mackie Research Capital Corporation has managed or co-managed an offering of securities by the subject issuer.
• Within the last 3 years, Mackie Research Capital Corporation has received compensation for investment banking and related services from the subject issuer.
• In September 2014, an analyst from Mackie Research Capital Corporation visited Trevali’s Santander Mine in Peru. Commercial travel expenses to and from site were paid by Mackie Research Capital Corporation.
• In October 2013, an analyst from Mackie Research Capital Corporation visited Trevali’s Santander Mine in Peru. Commercial travel expenses to and from site were paid by Mackie Research Capital Corporation.
• In September 2012, an analyst from Mackie Research Capital Corporation visited Trevali’s New Brunswick assets. Commercial travel expenses to and from site were paid by Mackie Research Capital Corporation.

3. Foran Mining Corp. is covered at Mackie Research by analyst Peter Campbell

• • In February 2013, an Analyst from Mackie Research Capital Corporation visited Foran’s McIlvenna Bay Project site. Commercial travel expenses to and from site were paid by Mackie Research Capital Corporation.

Analyst Certification

I, Wayne Hewgill certify that the information in this report is sourced through public documents that are believed to be reliable but accuracy and completeness as represented in this report cannot be guaranteed. The author has not received payment from any of the companies covered in this report. This report makes no recommendations to buy, sell or hold. Each analyst of Mackie Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.