|The Mabilo project is in Camarines Norte Province of Eastern Luzon.|
SIERRA Mining has received further outstanding results from ongoing drilling at the Mabilo project in Luzon. After receiving these results Sierra became part of a new merged entity with RTG Mining. Canada-based RTG purchased all the shares of Sierra.
The combined company is led by a management team which holds the exploration, mine development and operating experience in the Philippines to progress Sierra’s Mabilo and Bunawan projects. The RTG management team was previously responsible for the successful development and operation of the Masbate Gold Project for CGA Mining prior to its acquisition by B2Gold in early 2013.
Mabilo is a potentially high-grade polymetallic development project, with a direct shipping opportunity in the early years of operation which would strongly mitigate the need for development capital. It is a near-surface deposit, and it is anticipated that the newly combined company will be well positioned to further explore and develop the mineral potential of the area in the near-term.
Bunawan is a highly prospective high grade gold exploration project adjacent to the high grade Co-O mine owned by Medusa Mining.
Highlights from recent Sierra drilling at Mabilo include:
- One hole intersected a significant interval of mineralization outside the limits of the initial magnetic model, confirming that the South A and B Bodies are continuous and the combined body dips to the SW and thickens along the open south west margin. The hole intersected 115.1 metres @ 2.51 grams/tonne gold, 2.16% copper and 47.31% iron.
- Step out drilling has extended the known strike of the high grade mineralization along the SW margin previously intersected in a previous hole. The new hole, about 50 metres further to the SE, intersected 54.15 metres @ 2.77 grams/tonne gold, 2.02% copper and 50.72% iron.
- Drilling has extended the high grade supergene mineralization on the northern end of the South Body with one hole intersecting a high grade chalcocite zone of 20.8 metres @ 2.45 grams/tonne gold, 22.96% copper and 32.19% iron.
- Other drill holes in the North and South bodies continue to extend the high grade copper-gold-silver-iron skarn mineralization while further drilling on the East Body has confirmed very high grade iron skarn, with low grade copper and gold.
Mabilo comprises one granted exploration permit of about 498 hectares and an exploration permit application of 2820 hectares. The area is relatively flat and is easily accessed by 15km of all-weather road from the highway at nearby Labo town. Sierra discovered the mineralization in 2012 during a reconnaissance drilling program targeted on magnetic anomalies from a ground magnetic survey conducted by a former explorer.