Exploration by ECR at the Danglay gold project in the Baguio District, Philippines during 2015 enabled a resource estimate and target for further exploration to be disclosed in accordance with Canadian NI43-101, leading to the publication of an NI43-101 technical report (the “Report”) regarding the project in December 2015. The Report confirms that Danglay has robust exploration potential for both oxide and primary intermediate sulphidation epithermal gold mineralisation.
- Inferred resource of 1,277,500t at 1.55 g/t gold for 63,500oz gold, estimated at cut–off of 0.75 g/t;
- Resource estimated in respect of the surficial oxide deposit only; in addition, a target for further exploration has been determined in respect of primary intermediate sulphidation vein–hosted mineralisation, which shows significant similarities to better known intermediate sulphidation deposits in the Baguio District;
- The resource estimate and the target for further exploration have each been determined by a qualified person and are disclosed in accordance with Canadian NI43–101;
- The Baguio District has a long history of mining centered on the exploitation of multiple intermediate sulphidation gold–silver–base metal vein deposits.
Since commencing ﬁeld work at Danglay in January 2014, ECR has completed systematic exploration including a prospect-wide topographic survey, 935 metres of surface channel sampling, 383 metres of underground channel sampling, 440 metres of trenching, 30 test pits, and 1812 metres of RC and diamond drilling.
The work completed by ECR has enabled the estimation of an inferred oxide gold resource of 1,277,500 tonnes at a grade of 1.55 g/t gold for 63,500 ounces using a 0.75 g/t cut-off grade (effective date 18 December 2015). The resource comprises both in situ oxide material and scree that has moved downslope, forms a generally ﬂat-lying zone that drapes topography, and extends from surface to a maximum depth of approximately 20 metres for the purposes of the inferred resource estimate.
ECR has deﬁned three strongly gold mineralised zones at Danglay: Danglay Ridge, Hillside and Bito, with cumulative strike length of approximately 600 metres and individual widths of up to 100 metres. The oxide mineralisation at each is underlain by multiple, steeply-dipping quartz-pyrite-base metal sulphide veins and structures, of an intermediate sulphidation epithermal type.
The styles of mineralisation and overall vein architecture show similarities with better known intermediate sulphidation epithermal deposits in the Baguio District. The intermediate sulphidation epithermal vein deposits of the Baguio District have been mined over 100s of vertical metres and giant deposits such as Antamok and Acupan have been mined over vertical intervals of approximately 600 to 800 metres. Most production has come from quartz-pyrite-base metal sulphide veins and breccias, with lesser production from carbonate-sulphide-base metal sulphide veins.
The Baguio District has a long history of open pit and underground mining and is one of the world’s great gold mining camps. As such, there is a signiﬁcant mining-oriented industry in Baguio City and an extensive pool of skilled labour available at globally competitive rates.
On the basis outlined in the Report, a lower bound target for further exploration was estimated at 600,000 tonnes at 5 g/t gold for 95,000 contained ounces of gold and an upper bound target was estimated at 700,000 tonnes at 7.5 g/t gold for 170,000 contained ounces of gold (the “Exploration Target”). The Exploration Target is in respect of primary mineralisation, and the Report recommends that diamond drilling be carried out to target the down-dip extension of the highest grade parts of quartz-pyrite-base metal sulphide veins and mineralised structures. Breccias are also identified as a priority target. Prior to drilling, the Report recommends rock-chip sampling, structural mapping and soil sampling to assist with drill targeting.
It should be noted that a target for further exploration is not a mineral resource estimate, is conceptual in nature, and is used where there has been insufficient exploration to define the target as a mineral resource and where it is uncertain if further exploration will result in the target being delineated as a mineral resource. The basis on which the Exploration Target has been determined is set out in full in the Report.
Exploration potential for further oxide mineralisation remains significant, and field observations, along with logging of RC chips and drill core, indicate that quartz veins, breccias and siliciﬁed zones and their associated stockwork and silica-pyrite selvages may be strongly oxidised to vertical depths of at least 40 metres. The current inferred resource estimate extends only to approximately 20 metres depth.
The Report recommends further drilling to provide a more robust data set with respect to oxide grade distribution, the location of potential high grade oxide zones and the base of oxidation, and to test potential strike extensions of the current inferred resource. Completion of this work would enable an updated resource to be estimated and hopefully an indicated category resource, equating to a higher level of resource confidence, to be determined.
ECR is currently the operator of the Danglay project with the right to earn a 50% interest therein by obtaining, for CTGR, a mining licence for the project. The Company has already earned a 25% interest in Danglay by disclosing a resource estimate in accordance with NI43-101. ECR has the right to terminate the current earn-in agreement at any time and retain this 25% interest. In that event, any future expenditures in connection with CTGR and the Danglay project would be expected to be contributed by ECR and Tiger pro rata, or else the interest of the non-funding party would be diluted.
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|27 November 2015|