RTG’s associate company in the Philippines, Mt. Labo Exploration & Development Corporation, terminated its joint venture agreement with Galeo Equipment Corporation in 2016.
On August 21, 2020, the Tribunal found in favor of Mt. Labo in the Singapore International Arbitration Centre. It was confirmed, that the joint venture agreement between Mt. Labo & Galeo was validly terminated and Mt. Labo’s interest in the Mabilo Project increases to 100% at no cost to Mt. Labo.
| Ore Type
|
Million Tonnes
|
Cu % |
Au g/t
|
Ag g/t | Fe %
|
Contained Au (‘000s Oz) |
Contained Cu (‘000s t) |
Contained Fe (‘000s t) |
|
|---|---|---|---|---|---|---|---|---|---|
|
Indicated
|
Oxide + Supergene | 0.78 | 4.1 | 2.7 | 9.7 | 41.2 | 67.1 | 32.1 | 320.8 |
| Fresh | 8.08 | 1.7 | 2.0 | 9.8 | 46.0 | 510.5 | 137.7 | 3,713.7 | |
| Total All Materials | 8.86 | 1.9 | 2.0 | 9.8 | 45.6 | 577.6 | 169.8 | 4,034.5 | |
|
Inferred
|
Oxide + Supergene | 0.05 | 7.8 | 2.3 | 9.6 | 26.0 | 3.5 | 3.7 | 12.3 |
| Fresh | 3.86 | 1.4 | 1.5 | 9.1 | 29.1 | 181.5 | 53.3 | 1,121.8 | |
| Total All Materials | 3.91 | 1.5 | 1.5 | 9.1 | 29.0 | 184.9 | 57.0 | 1,134.1 | |
| 2015 MINERAL RESOURCE ESTIMATE1 | ||
|---|---|---|
| Indicated & Inferred | Cu | Au |
| 12.76Mt | 1.80% | 1.9g/t |
| Contained Metal | 226,800t | 762,500oz |
1.97 Million ounces
gold at 4.8 g/t
472,000 tonnes at
3.70% Copper
Near-surface oxide mineralisation will produce 2 key high-grade products
| Indicated Resource5 |
Million Tonnes |
Au g/t |
Cu % | Au (‘000s Oz) |
Cu (‘000s t) |
|---|---|---|---|---|---|
| Oxide Gold Cap | 0.38 | 2.94 | 0.20 | 36.3 | 0.8 |
| Oxide Copper/Gold | 0.30 | 2.43 | 2.63 | 23.1 | 7.6 |
| Supergene Chalcocite | 0.10 | 2.30 | 23.2 | 7.6 | 23.7 |
| Total | 0.78 | 2.70 | 4.10 | 67.1 | 32.1 |
18 Months
Generates significant cash flow within 4-5 months of DSO permitting
with $17.4M nominal capital requirements
Initially 8 Year Mine Life
DSO to fund majority of equity funding for plant construction
limiting future dilution from equity
Only 18,000m of Drilling to Date
Only drilled 700m of 1.6km strike length
3,000m drill program planned to explore resource growth and further regional drilling including testing porphyry potential
DSO PRODUCTION PARAMETERS |
|
|---|---|
| All amounts expressed in $US | |
| Capex | $20M |
| Average Annual Production | 25,300t Cu 35,000t Cu Equivalent 39,000oz Au 140,000oz Au Equivalent |
| Production Costs | $61.91/tonne |
| Cu Equivalent Production Costs | $0.42/lb |
| Au Equivalent Production Costs | $224/oz |
| Annual Free Cashflow After-Tax | $108 Million |
The feasibility study demonstrates a robust and financially viable new development opportunity even at low commodity prices. Strong gross margin provides very high sensitivity to both commodity prices and new tonnage from expected resource growth. Feasibility economics are based on $1200/oz Au & $5200/t Cu and on 100% basis, the numbers presented here have been updated as of 21 August 2020: US$2.96/ lb Cu, $1,942/oz Au, 62% Fe US$122.79. All amounts are expressed in $US.
7.79Mt at 2.04 g/t Au | 1.95% Cu | 8.79 g/t Ag | 45.5% Fe
including 511koz Gold and 152kt Copper
PRIMARY PRODUCTION PARAMETERS |
|
|---|---|
| All amounts expressed in $US | |
| Capex | $161.4M ($15M is recoverable VAT) |
| Pre-Strip | $24.4M ($2.61M is recoverable VAT) |
| Average Annual Throughput | 1.35M tonnes |
| Average Annual Production | 18,000t Cu 38,300t Cu Equivalent 67,000oz Au 160,000oz Au Equivalent |
| Production Costs | $54/tonne |
| Cu Equivalent Production Costs | $.68/lb |
| Au Equivalent Production Costs | $448/oz |
| Annual Free Cash Flow | $96 Million |
112 Holes Drilled | 19,565M Drilled
Significant exploration potential remains
along strike, regionally and at depth
Potential Porphyry Targets at Depth
DSO cashflow to fund regional exploration
and growth of Mabilo Resource
Phase 1 Mabilo Exploration
Targeting 1.6m tonnes of inferred material inside pit
High confidence extensions to the North within pit design
Drilling priority targeting resources within current pit design
at relatively shallow levels to come into the mining phase early
Phase 2 Mabilo Exploration
East Mineralised Zone extension
Copper and gold increasing towards the east
3 holes planned to test porphyry target at depth
Strong magnetic anomaly south of Venida – skarn target
Magnetic survey over adjacent tenements under application
Regional stratigraphic drill holes
Phase 3 Mabilo Exploration
Venida Pit resource drilling
East Mineralised Zone resource drilling
Magnetic anomalies at Venida Pit & South East
Potential for high-grade copper/gold corridor
1 2015 MABILO MINERAL RESOURCE ESTIMATE
– Reporting at 0.3 g/t Au lower cut-off.
– The Mineral Resource was estimated within constraining wireframe solids based on the mineralized geological units. Differences may occur due to rounding.
– Prepared by CSA Global.
– Note: Differences may occur due to rounding. All elements reported as total estimated in‐situ for blocks above 0.3 g/t Au lower cut‐off, no recovery factors have been considered. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
– Au equivalent is calculated using the following formula, which incorporates recovery factors from metallurgical test work: Au Equivalent = (75.2%*Au Oz)*$1,200)+((92.8%Cu Tonnes)*$5,200)+((88.4%*Fe Tonnes)*$65)+((60%*Ag Oz)*$16))/$1,200
2 Gold Equivalent calculations at US$1200/oz Au and calculated before recoveries
3 Copper Equivalent calculations at US$5000/t Cu and calculated before recoveries
4 2016 MABILO FEASIBILITY STUDY
– The FS is based on a treatment rate of 1Mtpa. A treatment rate of 1.35Mtpa was also considered in an upside case. Factored indicative capital and operating cost estimates were developed for a planned throughput of 1.35 Mtpa, which is presented here as the more likely production scenario.
– All economics, including calculations of equivalent estimates referred in reference to the 2016 Mabilo Feasibility are based on the following commodity price assumptions: US$5000/t Cu, US$1200/oz Au and US$50/t 62% Fe.
– All $ amounts are in $US
– Copper equivalent tonnes produced is based on the following formula – CuEq = (Cu produced/contained*$5000) + (Au produced/contained*$1200+ (Any Contained Fe metal produced* $50))/$5000
– Au Equivalent produced = (75.2%*Au Oz)*$1,200)+((92.8%Cu Tonnes)*$5,200)+((88.4%*Fe Tonnes)*$65)+((60%*Ag Oz)*$16))/$1,200
5 NEAR SURFACE OXIDE RESOURCE
– Contained within the 2015 Mabilo Mineral Resource Estimate
– Reporting at 0.3 g/t Au lower cut-off
– The Mineral Resource was estimated within constraining wireframe solids based on the mineralized geological units. Differences may occur due to rounding.
– Prepared by CSA Global
6 2016 MABILO MINERAL RESERVE
– The copper equivalent grade is based on the following formula – CuEq=((((AuOz*$1,200)+(CuMetal*$5,000)+(FeMetal*$50)+ (AgOz*$14)) / $5,000)/Total ore tonnes)
– The 2016 Mabilo Reserve is a subset of the Mineral Resource Estimate.
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
This website includes certain “forward‐looking statements” within the meaning of Canadian securities legislation. Statement regarding interpretation of exploration results, plans for further exploration and 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 2015 filed with the Canadian securities regulatory authorities on the SEDAR website at sedar.com.
QUALIFIED PERSONS STATEMENT
The information on this website that relates to exploration results at the Mabilo Project is based upon information prepared by or under the supervision of Robert Ayres BSc (Hons), who is a Qualified Person and a Competent Person. Mr Ayres is a member of the Australian Institute of Geoscientists and a full‐time employee of Mt Labo Exploration and Development Company, a Philippine mining company, an associate company of 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 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 release of the matters based on his information in the form and the context in which it appears.
The information on this website that relates to Mineral Resources is based on information prepared by or under the supervision of Mr Aaron Green, who is a Qualified Person and Competent Person. Mr Green is a Member of the Australian Institute of Geoscientists and is employed by CSA Global Pty Ltd, an independent consulting company. Mr Green has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking 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. Green has verified the data disclosed in this release, including sampling, analytical and test data underlying the information contained in the release. Mr Green consents to the inclusion in the release of the matters based on his information in the form and context in which it appears.
The information on this website that relates to Mineral Reserves and Mining is based on information prepared by or under the supervision of Mr Carel Moormann, who is a Qualified Person and Competent Person. Mr Moormann is a Fellow of the AusIMM and is employed by Orelogy, an independent consulting company. Mr Moormann has sufficient experience that is relevant to the type of deposit under consideration and to the activity which he is undertaking 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 Moormann has verified the data disclosed in this release, including sampling, analytical and test data underlying the information contained in the release. Mr Moormann consents to the inclusion in the release of the matters based on his information in the form and context in which it appears.