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- RTG Mining has acquired 90 per cent of the high-grade Chanach Gold and Copper Project for nearly A$4 million
- RTG has agreed to a majority stake through acquiring 100 per cent of PB Partners’ subsidiary, White Cliff Minerals
- The Chanach Project is a largely under-explored project with only five per cent of the strike length tested
- The company is planning a drilling program for next month at the project which will be aimed at extending the gold resource
- Despite the news, RTG Mining’s shares have gone down 2.78 per cent, with shares trading at 7 cents apiece
RTG Mining has completed its acquisition of 90 per cent of the high-grade Chanach Gold and Copper Project in the Kyrgyz Republic.
The transaction payment of A$3.8 million (US$2.65 million) has been settled.
The Chanach Project is a largely under-explored project with only five per cent of the identified strike length explored.
It is expected to contain 484,000 ounces of gold and 64,000 tonnes of copper.
RTG Mining agreed to a 90 per cent stake in the project through the acquisition of 100 per cent of PB Partners, a wholly-owned subsidiary of White Cliff Minerals.
This deal represents an acquisition cost of US$3.65 per gold resource ounce and US$0.0063 per copper resource ounce.
Limited exploration activities to date have defined an Inferred Mineral Resource of 2.95 Mt at 5.11 g/t Au for 484,000 ounces of Au and 17.23 Mt at 0.37% Cu for 64,000t of Cu.
Now that the acquisition has settled, RTG plans to undertake a drilling program next month. Drilling will be aimed at testing and extending the gold resource along strike in the Lower Gold Zone (LGZ).
The company anticipates the program will consist of 13 reverse circulation holes for a total of 1310 metres with hole depths ranging between 70 and 120 metres.
The Chanach Project area is considered to be highly prospective for world-class epithermal gold, porphyry copper-gold and polymetallic skarn deposits with numerous targets already identified.
Additionally, RTG hopes to grow the existing Inferred Gold Mineral Resource which has been derived at a cost-effective rate of US$11.80 per ounce. This metric is likely to improve with the ongoing enhancement of geological understanding.
Despite the news, RTG Mining’s shares have gone down 2.78 per cent, with shares trading at 7 cents a share in a $33.52 million market cap
