Sierra Mining has received further outstanding results from its ongoing drilling program at the Mabilo project in Camarines Norte Province of Eastern Luzon.
Highlights from the program 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.
The Mabilo project comprises one granted exploration permit of about 498 hectares and an exploration permit application of 2820 hectares. The project area is relatively flat and is easily accessed by 15km of all-weather road from the highway at the nearby town of Labo.
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. Sierra subsequently conducted a new ground magnetic survey in early 2013, remodelled the data and commenced a second phase of drilling in mid-2013.
There are currently three drill rigs on site and 46 holes have been completed to date.
Meanwhile, RTG Mining and Sierra Mining have entered into a conditional merger agreement to combine the two companies at an agreed exchange ratio of three RTG shares for each Sierra share held plus one RTG option for every three Sierra shares held.
The resultant combined entity will be 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 management team of RTG was previously responsible for the successful development and operation of the Masbate Gold Mine for CGA Mining prior to its acquisition by B2Gold Corp in early 2013.
The transaction with RTG will also provide improved funding capability, a listing on the Toronto Stock Exchange and a strong institutional shareholder following, resulting in a combined company well positioned to capitalize on the significant mine development opportunity at Mabilo and Sierra’s other regional projects in the Philippines.