The Asia Miner

JUL-SEP 2017

The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region

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34 | ASIA Miner | Volume 14 • Issue 3 | 2017 Philippines DIAMOND drilling at RTG Mining's Bunawan Gold Project in Mindanao has returned high-grade intersections and identified a new style of mineralisation. The company believes that with the various geological conditions identified, the region has poten- tial to see another major gold discovery. The second phase of reconnaissance drilling included six holes for 1789.6 metres. It targeted Induced Polarisation responses coincident with magnetic low signatures and anomalous surface gold geochemistry as well as extensions of previously identified mineralisation/geology. Best results were: 2 metres from 62 me- tres @ 2.94 g/t gold and 3.6 metres from 163.4 metres @ 4.58 g/t; 3 metres from 108 metres @ 1.05 g/t; 2.15 metres from 262 metres @ 2.16 g/t; and 9 metres from 39 metres @ 2.02 g/t, including 4 metres from 44 metres @ 2.85 g/t, which included 3 metres from 45 metres @ 3.43 g/t and 1 metre from 46 metres @ 6.78 g/t. Bunawan is in Agusan del Sur province, about 190km north-northeast of Davao and adjacent to the Davao-Surigao highway. It is centred on a diatreme intrusive complex approximately 5km northeast of Medusa Mining's operating Co-O mine. RTG says the results further confirm the presence of breccia/epithermal vein sys- tems within and below the diatreme that is similar geologically to the nearby Co-O vein system. It says that the discovery of a favourably mineralised dacite host in one hole also adds to the increased mineral potential of Bunawan as at is geologically similar to the nearby high-grade artisanal mining area. Hydrothermal alteration assemblage in the dacite suggests that it may be a component of a high-sulphidation system in the general area. As well as advancing exploration on Bu- nawan, RTG is focused on developing the high-grade Mabilo Copper-Gold-Magnetite Project in Camarines Norte province, east- ern Luzon. Exploration is inactive due to a dispute between RTG subsidiary Mt Labo Explora- tion and Development Corporation and joint venture partner Galeo Equipment Corpora- tion. The JV has been terminated following Ga- leo not remedying notified breaches of a JV agreement, which Galeo is disputing. Mt Labo has commenced arbitration proceed- ings in the Singapore International Arbitration Centre. As it stands, the termination means Mt Labo has a right to acquire Galeo's 36% JV interest for nominal consideration. RIZAL Resources continues to advance the T'Boli Gold Project in southern Mindanao towards full production. It has recommissioned the mill while mine development activities are advancing as part of a two-year plan with the objective of recommencing production and delivering positive operating margins. Rizal says the team has been pushing hard to realise the pro- duction plan, while continuing efforts to raise the remaining capital needed to fund the project through its commissioning and ramp-up phase. Since the beginning of 2017, the company has had lower cashflow than budgeted, which slowed progress, but it has man- aged to advance the project towards production. The plant was recommissioned in February and 3587 tonnes of mineralised material was treated in the March quarter. The rate of commissioning was slowed due to some mechanical issues in the crushing and grinding circuit but by the end of the quarter, most of these had been resolved. By the end of March quarter, there had been 18.16 ounces of gold produced and by the end of April, the plant had produced 182 ounces. Maintenance in May saw ball mill liners replaced and a new primary crusher installed. The key focus in the short term has been to access remnant ma- terial in the upper level of the mine had left behind by previous small- scale miners, with the objective of increasing gold production. The plan for the remainder of May and June was to operate the plant at its daily design rate of 200 tonnes, however grade estima- tion has been difficult due to the unknown quantity of higher-grade material that may have been mined. Rizal's subsidiary TMC has two mining contractors undertaking mine development work, MPC and Conex Mining Contractors. MPC, formerly Magdrills, was the sole mining contractor until De- cember 2016 and Conex commenced as primary contractor on decline development in February. Conex is focused on rapidly extending the decline to provide access to the previously unmined 510 level, particularly the South Vein. The inferred resource estimate of 1.1 million ounces indicates generally higher grades and wider intercepts within this vein. MPC has shifted its focus from the decline to drive development, preparing near-term access in the upper 540 level to sections of mineralised material identified in the inferred resource. Rizal makes progress at T'Boli Geology of the region of eastern Mindanao that hosts the Bunawan Gold Project of RTG Mining. High-grade results from Bunawan

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