Tiger JV to start Itogon drilling in Q1 2014
2013-12-09 10:50 ET - News Release
Mr. Patric Barry reports
COMMENCEMENT OF WORK PROGRAM FOR ITOGON GOLD-SILVER PROJECT
The final condition for commencement of ECR Minerals PLC's earn-in to a 50-per-cent interest in Tiger International Resources Inc.'s Itogon gold-silver project in the Philippines has now been satisfied. The condition was satisfied by the submission of requested documents to the Philippine Mines & Geosciences Bureau by Cordillera Tiger Gold Resources Inc., holder of the exploration permit pertaining to the Itogon project.
The EP was recently renewed for a period of two years from Oct. 1, 2013, and the exploration program can now commence with ECR as the operator/manager of the project through Cordillera Tiger.
Planned exploration at the Itogon project
Surface and underground sampling
A program of surface channel sampling is planned with the objective of verifying a selection of historical channel sample runs. Historical surface channel sampling results including 50 metres at 3.23 grams per tonne Au, 17 m at 1.76 g/t Au, 23 m at 2.32 g/t Au and 40 m at 1.68 g/t Au were reported by ECR Minerals. These assays may not be Canadian National Instrument 431-101 compliant, and Canadian regulations require that the company state they should not be relied upon.
A program of stream-sediment and soil sampling is proposed to cover the entirety of the tenement outside the main prospect area and is intended to help identify any extensions to the mineralized zone outlined by historical information and any other deposits that may exist within the tenement boundaries. The main prospect area that will be tested covers just a small part of the total 330-hectare area of the EP.
An exploratory tunnel into the lower part of the main prospect area is known to exist and is understood to be of substantial length. As far as possible, this tunnel will be rehabilitated, mapped and sampled in order to provide additional information as to the continuity and tenor of gold and silver grades at depth. It may also be possible to take a drill rig into this tunnel so as to drill from within, to be determined after the tunnel is reopened.
The verification channel sampling is planned to commence during December, 2013, and conclude during January, 2014. The tenement-wide stream-sediment and soil sampling, and the rehabilitation of the exploratory tunnel are planned to commence in February, 2014.
Drilling
An extensive drilling program has been designed for the Itogon project based on available historical information and site inspections, and is aimed at intersecting all the currently interpreted, subparallel quartz vein structures across the width of the main prospect area, which is characterized by a prominent ridge trending approximately northwest. The ridge is bound by steeply incised tributaries of the Danglay River.
The multiple subparallel veins strike along the ridge and have been mapped historically over a length of 450 m, with vein outcrop mapped a further 150 m down the ridge at the Danglay River valley floor. Historical sampling has identified significant gold-silver mineralization in the veins as well as their alteration halos, in intervening quartz veinlet stockworks and in the host rock. The veins are indicated to be steeply dipping, and the width of the mineralized zone has been mapped historically at up to 250 m.
The drilling program is aimed at establishing an open-pit-type resource along and below the ridge, as well as seeking to identify high-grade, underground-type ore enclosed within the lower-grade ore. The situation of the deposit within the ridge is expected to prove favourable for either an open-pit or underground mining scenario.
The results of the full 3,850-metre drilling program are intended to enable the completion of a resource estimate, which will be compliant with a standard, as that term is defined in the Alternative Investment Market Rules for Companies. Tiger will endeavour to obtain signed reports by National Instrument 43-101 qualified persons.
Drilling is expected to commence during the first quarter of 2014 and will primarily be by reverse circulation (RC) percussion with some diamond drilling. The proposed program is composed of 23 angle holes up to 200 m deep and on seven sections 50 m to 80 m apart along strike. Most of the planned holes are 150 m deep, and all are minus-60-degree inclination.
An initial phase of 1,000 m of drilling is planned ahead of a second phase of 2,850 m, which will be subject to the results of the first phase.
Patric Barry, president of Tiger International, commented: "We hope that completion of the programs outlined will add significant value to Tiger's equity in the project by confirming and building upon historical data, and enabling creation of an accurate, up-to-date picture of the project's economic potential.
"The proposed drilling program will generate information as to the overall grade of the deposit, as well as assess its cohesiveness and whether it can be mined in bulk, either by open-pit or underground techniques, or as discrete higher-grade zones minable underground.
"A resource model will be generated based on the obtained results, and, if appropriate, this will be followed by engineering studies which will consider mining options as well as other parameters such as tailings and waste disposal."
About the Itogon gold-silver project
The target in the Itogon gold-silver project area is a wide, epithermal-style gold-silver system. At least five gold-and-silver-bearing quartz veins have been mapped historically and are indicated to be continuous (especially the main vein) or semi-continuous and steeply dipping (near vertical). The vein sets are recognized as occurring within a zone up to 250 m wide and up to 600 m long. There is an extensive database of previous work on the deposit, including the results of drilling, metallurgical testwork and surface sampling.
The Philippines is a low-cost operating environment with skilled labour and mining services readily available. The Itogon project area is in moderate to rugged terrain readily accessible from the city of Baguio via a combination of paved roads and unsealed vehicle tracks. Infrastructure is present in the immediate area, including electricity and cellular telephone systems. The Itogon gold-silver project is located between the Padcal copper-gold mine of Philex Mining Corp., which is the largest mine in the Philippines, and the Sangilo gold mine of Itogon Suyoc Resources Inc., which has been producing almost continuously since the early 20th Century. The Baguio district has produced large quantities of gold and copper along what is called the Baguio gold belt, and mining continues today.
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