Bunawan

Project Stage:

Early exploration with reconnaissance drilling completed in 2014-2015

Major Exploration Potential:

The Bunawan Project includes 4 project areas situated in the world class mineral province of the Pacific Cordillera volcanic arc in the South Philippines. The Project is approximately 5km NE of Medusa Mining’s Co-O mine. Historic production at the Co-O Mine has demonstrated a significant high grade gold system. Active artisanal mining throughout the region further reinforces the gold potential of the area. Bunawan is centered on a diatreme intrusive complex (Mahunoc diatreme)  and a number of the artisanal mining operations occur within and adjacent to the Mahunoc diatreme.

Reconnaissance diamond drilling targeted at artisanal workings has intercepted high grade mineralization at Bunawan including 7m @ 4.18g/t Au and 4m @ 12.33g/t Au.

Bunawan Project denoting several known gold deposits with a current exploration focus in the Mahunoc area.

THE RIGHT ZIP CODE

Exploring in the Prolific Pacific Cordillera Volcanic Arc

Significant landing holding 2nd only to Medusa Mining

Similar geological setting to the high grade Co-O Mine held by Medusa Mining

Exploration Permit granted within 2 months of project acquisition

Highly prospective NW trending splay fault runs through permit area

Reconnaissance Program Complete

Substantial mineralization
found within broad corridor
along southern margin of
the Mahunoc Diatreme

~2km gold in soil anomaly
(+100ppb) overlying a
major structure along the
diatreme margin

Shear structures
identified with high
grade soil anomalies (+200ppb)

BUNAWAN PROPERTY GEOLOGY

Major Potential at Bunawan

 

6 of First Drill Holes Hit Mineralisation:

The reconnaissance drilling program intercepted high grade mineralisation including 7m @ 4.18g/t Au and 4m @ 12.33g/t Au. Mineralisation was intercepted in 6 of the first holes drilled, which tested a corridor marked by artisanal workings along the southern margin of the Mahunoc diatreme and a coincident district-scale structural zone. The program was targeted at Au in soil and magnetic anomalies as well as areas of artisanal workings. The drilling has confirmed that the mineralised corridor is a highly prospective target zone.

The three most significant drill intercepts are in the three holes (BDH-01, 06 and 08) within and adjacent to the corridor. The disseminated Au in silica-matrix breccias within the diatreme seen in artisanal workings and drilling (BDH-01) are 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 high grade quartz-calcite vein zone in BDH-08 is strongly influenced by a narrow interval grading 0.35 m at 126.71 g/t Au, 46.3 g/t Ag, 0.99% Zn and 0.96 % Pb. A repeat sample of the interval graded 125.87 g/t Au. This in conjunction with the high Ag, Zn and Pb values indicates the intersection is not a coarse or spotty gold effect, but a very high grade Au in quartz-calcite vein in the country rock andesite similar to those mined at the Co-O mine to the south of Mahunoc.

Results Warrant Further Exploration Efforts:

Substantial mineralization has been found within a broad corridor along southern margin of the Mahunoc Diatreme. Shear structures were identified with high grade (+200ppb) soil anomalies. We have also identified ~2km of +100ppb soil grade that is coincident with the structure.

Epithermal veins on the margins of diatremes are a common ore environment elsewhere in the Philippines and SW Pacific. Testing for wider and/or stacked high grade Au in quartz-calcite veins hosted by structures within the andesite beneath the diatreme margin will be the highest priority target for the next phase of drilling.

Next Steps at Bunawan:

A Gradient Array – Induced Polarization (GAIP) program was completed during the December 2015 Quarter with 45.9 line kms covered. A Dipole-Dipole Inducted Polarisation (DDIP) program was also completed with 7.4 line kms covered. The program identified several targets that warrant further work. Some of the targets are coincident with previous geochemical signatures. RTG intends to drill the best of these targets in 2016 and continue to build the geological understanding of this highly prospective area.

RECONNAISSANCE IN MAHUNOC AREA

“

Initial Drill
Program

“

3 Types of
Potential Mineralization

Low Sulphidation Stockwork
Masbate Style

High Sulphidation Veins
Medusa Style

Breccia Pipes
Porphyry Leads

“

Bulk Tonnage
Diatreme-Related
Au Mineralization
Similar To:

Acupan – Philippines
Wafi Creek – PNG
Kellan – Indonesia

Hole From To Metres Au g/t Ag g/t Host Lithology
BDH-01 163 186 23 1.23 8.56 Diatreme
Including 163 175 12 1.63 9.85 Diatreme
BDH-06 111 147 36 1.49 8.29 Diatreme Andesite
Including 113 120 7 4.18 14.05 Diatreme
BDH-08 229 239 10 5.09 3.8 Andesite
Including 235 239 4 12.33 6.42 Andesite
Including 238 238.35 .035 126.7 46.3 Andesite

Bunawan project

Excellent exploration potential in a prolific mining region with several high grade Au and Cu/Au targets throughout the Bunawan permit areas

1161

Hectares

14

Holes Drilled

4873

Meters Drilled

Significant Additional Land Holdings in the Region

pacific-cordillera-region-bunawan

The Pacific Cordillera volcanic arc in Eastern Mindanao is a world class mineral province with many known porphyry copper and epithermal gold deposits. The region comprises an approximate 400 km strike length section of the Pacific Cordillera arc bound to the west by the Philippine Fault System and the Davao Agussan Basin.

Much of the rugged and remote interior of the region was relatively unexplored until the 1980’s, when the wide distribution of epithermal gold, porphyry copper and skarn deposits was recognised. Early discoveries included the Masara Mineral Field in Davao in the south and Siana, Mabuhay and Placer Mines in Surigao in the north. Numerous local gold rushes developed, as more deposits were identified, sometimes with the inadvertent help of timber companies through their road-cutting activities. Principal amongst these were Boringot, Kingking, Bango, Mt. Diwalwal, Co-o, Tambis and Manhulayan. Recent copper-gold discoveries include the world-class Tampakan in the south and Boyongan in northeast Mindanao.

pacific-cordillera-region-bunawanThe Bahayan project comprises Exploration Permit Application 123 covering 69.2km2 near the Diwalwal (company name) mining camp. High-grade gold veins were discovered at Diwalwal in the early 1980s, however, there has been little modern exploration at Diwalwal and surrounding areas.

Production from the low sulphidation epithermal quartz veins at Diwalwal is estimated to have exceeded 8 million ounces of gold. Geologically the steep dipping veins strike west-northwest and occur in highly fractured zones which are deeply oxidized, silici ed and chloritised.

pacific-cordillera-region-bunawanThe Mawab Project comprises two contiguous applications which have a combined area of 65.66 km2. They are located in the Masara Mineral Field, one of most highly mineralised section of the Pacific Cordillera where there are a number of past mines and deposits currently at an advanced stage of development.

pacific-cordillera-region-bunawanThe project comprises one granted Exploration Permit and two applications for Exploration Permits covering a combined area of 128.7 km2. Exploration Permit No 000001-06-XI was granted on the 18th October 2006. The two applications have been cleared and have priority of application.

Native copper and malachite in quartz veins cutting sediments has been reported in Exploration Permit No 000001-06-XI and quartz and base-metal stockwork zones reported in both EPA 118 and EPA 131. Artisanal gold mining is widespread in all three tenement applications.